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Questions and Answers

Which type of consumer decision-making process is most likely associated with a high risk of cognitive dissonance?

  • Impulse Shopping
  • Limited Decision Making
  • Extended Decision Making (correct)
  • Routine Decision Making

A consumer decides to purchase a new brand of coffee that they saw advertised. They had intended to buy their usual brand. What type of impulse shopping is this?

  • Routine repurchase
  • Completely unplanned
  • Partially unplanned
  • Unplanned substitution (correct)

For which type of decision-making process is the consumer most likely to skip steps, relying instead on habit?

  • Extended Decision Making
  • Impulse Shopping
  • Limited Decision Making
  • Routine Decision Making (correct)

When buying which of the following would a consumer most likely engage in 'limited decision making'?

<p>Clothing (D)</p> Signup and view all the answers

A consumer goes to the store with no intention of buying anything, but leaves having purchased a candy bar. This is an example of what?

<p>Completely Unplanned Impulse Shopping (B)</p> Signup and view all the answers

Which of the following is the key step to trigger a purchase in Routine Decision Making?

<p>Problem awareness (A)</p> Signup and view all the answers

A consumer decides they need new shoes. They haven't yet decided on what brand or style. This is an example of which type of impulse purchase?

<p>Partially unplanned (D)</p> Signup and view all the answers

Which of the following influences has the LEAST impact on Extended Decision Making?

<p>Store environment (C)</p> Signup and view all the answers

Which shopper segment is most likely to engage in online pre-purchase information search, while also believing they are smart shoppers?

<p>Apathetic (A)</p> Signup and view all the answers

A retailer wants to attract 'Involved' shoppers. Which strategy would be MOST effective based on their preferences?

<p>Creating an engaging in-store experience with sampling and an in-store cafe. (B)</p> Signup and view all the answers

What is the primary reason 'Spontaneous' shoppers differ from 'Apathetic' shoppers?

<p>Spontaneous shoppers prioritize saving time and effort more. (B)</p> Signup and view all the answers

A customer leaves an apparel store without making a purchase. According to the information, which of the following is the LEAST likely reason for this?

<p>The customer found the perfect item but it was too expensive. (C)</p> Signup and view all the answers

A clothing retailer aims to improve customer satisfaction. Based on the provided information, which adjustment would likely have the MOST significant positive impact?

<p>Improving the range of available styles, sizes, and fits in the store. (C)</p> Signup and view all the answers

In an 'equal store' organization, which of the following responsibilities is typically assigned to the branch stores?

<p>Executing sales strategies and achieving sales targets. (A)</p> Signup and view all the answers

Which characteristic is most indicative of a chain retailer utilizing an equal store organizational format?

<p>Standardized operational processes across all store locations. (C)</p> Signup and view all the answers

A retail chain is experiencing difficulties adapting to local market conditions due to rigid, centralized control. Which organizational adaptation would best address this issue?

<p>Increasing the degree of decentralization to allow stores to respond to local needs. (C)</p> Signup and view all the answers

A regional retail chain wants to implement strategies to improve employee retention. Considering the direct and indirect costs of employee turnover, which initiative would be most effective?

<p>Investing in enhanced employee training and development programs. (A)</p> Signup and view all the answers

What is an example of an indirect cost associated with high employee turnover in a retail setting?

<p>Loss of sales due to decreased employee morale. (A)</p> Signup and view all the answers

Which of the following strategies would least likely address the specific needs and concerns of female workers in a retail environment?

<p>Limiting promotional opportunities to maintain operational efficiency. (B)</p> Signup and view all the answers

Which of the following is an example of a direct cost of employee turnover?

<p>The cost of advertising for new job openings. (C)</p> Signup and view all the answers

A retail company aims to reduce employee turnover, particularly among its female workforce. Which combination of initiatives would likely have the greatest impact?

<p>Flexible work hours, job sharing options, and comprehensive training programs. (D)</p> Signup and view all the answers

What is the primary purpose of a well-structured compensation plan in a retail organization?

<p>To reward initiative and performance, compensate employees based on their value, and attract/retain competent personnel. (D)</p> Signup and view all the answers

A retail company is aiming to cultivate a more inclusive workplace. Which of the following initiatives would be MOST effective in achieving this goal?

<p>Implementing clear policy statements from top management valuing employee diversity, paired with active recruitment and meaningful training programs. (C)</p> Signup and view all the answers

How can retailers effectively demonstrate a commitment to diversity beyond simply meeting legal requirements?

<p>By establishing mentorship programs for minority employees and providing them with advancement opportunities. (B)</p> Signup and view all the answers

A retail manager discovers that a supplier is employing underage workers. What is the retailer's ethical and legal obligation?

<p>To cease doing business with the supplier and report the violation to the appropriate authorities. (D)</p> Signup and view all the answers

Which of the following is an example of violating labor laws in the retail setting?

<p>Hiring a worker without verifying their age. (C)</p> Signup and view all the answers

A newly hired employee is struggling with using the store's inventory management system. According to the training decisions checklist, what is the MOST relevant question to address?

<p>What material (content) should be learned, and how should it be taught? (C)</p> Signup and view all the answers

A retail chain is expanding and needs to train a large number of new employees quickly. Which training approach would be MOST efficient and cost-effective for conveying basic company policies and procedures?

<p>Computerized training modules with interactive quizzes. (C)</p> Signup and view all the answers

A retail company wants to improve its employee retention rate. Which of the following strategies would likely have the GREATEST impact?

<p>Providing opportunities for advancement and professional development. (A)</p> Signup and view all the answers

A retailer aims to balance inventory levels to avoid stockouts while minimizing excess merchandise. Which strategy BEST addresses the challenges posed by 'fad' merchandise with no historical sales data?

<p>Conduct thorough market research and monitor initial sales data closely to adjust inventory levels. (A)</p> Signup and view all the answers

To improve the retail supply chain, which action would MOST effectively address delays caused by the increasing number of foreign suppliers?

<p>Implementing real-time tracking systems and diversifying transportation methods. (D)</p> Signup and view all the answers

A retail store experiences consistent inventory shrinkage due to employee theft. Apart from firing offenders when caught, which proactive measure would be MOST effective in deterring future incidents?

<p>Rotating employee responsibilities and offering rewards for spotting thefts. (A)</p> Signup and view all the answers

A store identifies that a significant amount of theft occurs near store exits. Which of the following strategies would be MOST effective in reducing this type of theft?

<p>Moving high-value merchandise displays away from exit areas. (C)</p> Signup and view all the answers

Which of the following actions would BEST balance the need to minimize shoplifting while maintaining a positive shopping environment?

<p>Using uniformed guards and visible surveillance in high-risk areas. (D)</p> Signup and view all the answers

A regional supermarket chain is considering carrying a new line of artisanal ice cream. What would be the most likely scenario where they would require a slotting allowance?

<p>The ice cream requires specialized freezer space and is a new brand with unproven sales. (C)</p> Signup and view all the answers

Considering the challenges of predicting customer demand and managing inventory, which approach allows a retailer to MOST effectively adapt shelf space allocation to maximize revenues?

<p>Dynamically adjusting shelf space based on current sales revenues and product turnover rates. (C)</p> Signup and view all the answers

A small boutique orders a shipment of dresses from a designer. According to the outlined ownership transfer options, under which circumstance does the boutique NOT own the dresses upon receipt?

<p>Title transfers when dresses are accepted on consignment. (C)</p> Signup and view all the answers

Which of the following activities is NOT typically involved in the receiving and stocking of merchandise?

<p>Negotiating future contracts with suppliers. (D)</p> Signup and view all the answers

How can retailers BEST utilize technology to deter both employee and shopper theft?

<p>By integrating surveillance cameras with point-of-sale systems to detect discrepancies. (B)</p> Signup and view all the answers

A retailer wants to improve its loss prevention strategy without negatively impacting employee morale. Which approach strikes the BEST balance?

<p>Offering training programs and rewards for identifying security breaches. (A)</p> Signup and view all the answers

A retailer notices a significant discrepancy between their computerized inventory data and a recent physical count. Which aspect of merchandise control should they MOST immediately focus on to determine the cause?

<p>Investigating inventory shortages to identify potential theft or errors. (B)</p> Signup and view all the answers

What role does RFID technology play in receiving and stocking merchandise?

<p>RFID is a method of tracking and retrieving data using tags, but its use is currently limited. (A)</p> Signup and view all the answers

A clothing retailer is determining whether to accept a customer return for a damaged sweater. What is the retailer primarily determining?

<p>Whether the supplier or retailer is responsible and under what conditions damaged goods are accepted. (C)</p> Signup and view all the answers

A store aims to minimize losses from merchandise theft. What's the MOST effective initial step?

<p>Monitoring and analyzing inventory losses. (D)</p> Signup and view all the answers

A retailer is calculating how much of a specific item to reorder. If the retailer has high inventory turnover, what does this MOST directly suggest about order frequency?

<p>Orders may need to be placed more frequently. (B)</p> Signup and view all the answers

Flashcards

Involved Shoppers

Shoppers who value saving time and effort, attracted to good product assortment and price-saving opportunities.

Spontaneous Shoppers

Shoppers who don't plan much, but care about saving time and effort.

Apathetic Shoppers

Shoppers who are less time-conscious, believe they are smart shoppers, price-conscious, but don't respond to in-store promotions.

Merchandise Deficiencies

A key reason customers leave apparel stores without buying, includes not finding the right style, size, or fit.

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Unsatisfactory In-Store Experience

A key reason customers leave apparel stores without buying, includes unhelpful assistance and poor atmosphere.

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Separate Store Organization

Each store buys for itself with individual sales goals.

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Equal Store Organization

Buying is centralized; branch stores focus solely on sales.

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Attributes of Equal Store Organization

Functional divisions, centralized authority, standardized operations, elaborate controls, and limited decentralization.

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Human Resource Management

Activities related to employees

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Employee Turnover

Losing and replacing employees.

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Direct Costs of Employee Turnover

Costs from separations, replacements, and lost productivity.

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Indirect Costs of Employee Turnover

Lower morale, customer dissatisfaction, and reduced sales.

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Flex Time

Adapting work hours.

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Extended Decision Making

Consumer fully engages and spends significant time gathering information.

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Limited Decision Making

Consumer follows all steps but spends less time on each step.

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Routine Decision Making

Consumer buys out of habit and skips steps in the decision process.

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Cognitive Dissonance

Regret felt after making a purchase.

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Completely Unplanned Shopping

No prior intention to purchase in a goods or service category.

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Partially Unplanned Shopping

Consumer decides to make a purchase in a category before entering a store but hasn't chosen a brand.

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Unplanned Substitution

Consumer switches from an intended specific brand after seeing other options.

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Perceived Risk

Perceived risk stemming from financial, functional, and psychological perspectives.

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Diversity policy statement

Publicly state the importance of diversity from leadership.

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Active minority recruitment

Engage in efforts to broaden the pool of candidates.

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Meaningful training programs

Provide programs to develop skills and knowledge.

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Advancement opportunities

Provide possibilities for upward mobility in the company.

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Zero tolerance policy

A workplace that is free of bias and prejudice.

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Fair & open hiring

Fair hiring: equal opportunity regardless of background.

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Workplace Diversity

Workforce should mirror the population's diversity.

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Salary plus commission

Base salary plus additional earnings from sales.

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Multi-Modal Transportation

Using multiple modes like train and truck to move goods.

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Fad Merchandise

New products lacking sales history, making inventory difficult

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Honesty Tests

Testing employees to assess their honesty and integrity.

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Security Cameras

Installing surveillance to deter theft.

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Door Control

Monitoring when exterior doors are opened and closed.

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Separation of Duties

Dividing tasks so one person records sales and another handles deposits.

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Uniformed Guards

Using uniformed personnel to discourage shoplifting.

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Electronic Article Surveillance

Attaching security devices to prevent theft of valuable items.

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Slotting Allowances

Payments retailers require from vendors for shelf space, especially for new products.

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Title Transfer

Moment when the retailer assumes ownership of goods; varies (upon purchase, loading, receiving, or end of billing cycle).

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RFID (radio frequency identification)

A system using tags to remotely store and retrieve data, useful for inventory management.

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Retailer's Tasks

Receiving, storing goods, checking invoices, price marking, completing transactions, returns, controlling merchandise, etc.

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Controlling Merchandise

Monitoring sales, profits, turnover, shortages, seasonality, and costs for each product.

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Consignment

Supplier pays after merchandise is sold.

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Factors for Reordering

Time to order and receive, inventory turnover, financial outlays, and inventory costs.

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Inventory Losses

High costs of merchandise theft.

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