Question 1

Contingency plans should be based directly on ________.
A) gap analysis
B) benchmarking
C) scenario analysis
D) strategic planning

Accepted Answer

Contingency planning involves preparing for potential future events and minimizing their impact on the organization. Scenario analysis involves identifying potential future scenarios and developing plans to respond to each one. Gap analysis involves identifying areas where the organization is falling short of goals or performance benchmarks, which is not directly related to contingency planning. Benchmarking involves comparing an organization's performance against similar organizations, which can inform strategic planning but is not directly related to contingency planning. Strategic planning involves setting long-term goals and developing plans to achieve them, which is related to but not directly the same as contingency planning.

Question 2

An advantage of using a company audit specialist in performing the retail audit is ________.
A) high degree of auditor independence
B) high degree of objectivity
C) level of knowledge about the retailer
D) low cost for a small retailer

Accepted Answer

Company audit specialists possess a high level of knowledge about the retailer, which is beneficial in performing detailed and accurate audits.

Question 3

Sales per square foot and gross margin per square foot are examples of ________.
A) a retail audit
B) retail objectives
C) specific activities
D) performance measures

Accepted Answer

Sales per square foot and gross margin per square foot are both performance measures used to evaluate a retail business's financial performance. They are indicators of how efficiently a retailer is using its physical space to generate sales and profits.

Question 4

A sales opportunity grid evaluates new opportunities on the basis of ________.
A) net profit in specific time periods
B) retail price
C) operating costs
D) sales revenues

Accepted Answer

The answer of A sales opportunity grid evaluates new opportunities...

Question 5

A company audit specialist is a(n)________.
A) internal employee whose prime responsibility is the retail audit
B) internal employee who has other responsibilities but may be asked to participate in the retail audit
C) person who works as a consultant on a fee basis
D) employee that conducts audits on an overtime basis

Accepted Answer

The answer of A company audit specialist is a(n)________.
A) internal...

Question 6

A retailer compares its actual performance against potential performance and then determines the areas in which it must improve.This illustrates ________.
A) gap analysis
B) variance analysis
C) benchmarking
D) strategic planning

Accepted Answer

Gap analysis is the process of comparing actual performance against potential performance, identifying areas for improvement, and establishing plans for addressing those areas. Variance analysis involves comparing actual performance against budgeted or expected performance. Benchmarking involves comparing performance against industry or competitor standards. Strategic planning involves setting long-term goals and developing plans to achieve them.

Question 7

The use of low,moderate,and high interest rates as variables in a retail plan for a major appliance retailer illustrates ________.
A) gap analysis
B) benchmarking
C) strategic planning
D) scenario analysis

Accepted Answer

Scenario analysis involves evaluating different future conditions or scenarios (such as low, moderate, and high interest rates) to understand potential impacts on business plans or investments. This approach helps in preparing for various possible futures.

Question 8

Which of the following is not a factor in the global retail development index (GRDI)?
A) existence of a large middle class
B) market attractiveness
C) time pressure
D) market saturation

Accepted Answer

The answer of Which of the following is not a...

Question 9

An investigation of a retailer's total retailing effort or some aspect of it is a ________.
A) retail audit
B) situation analysis
C) retail strategic plan
D) retail information system

Accepted Answer

A retail audit is an assessment of a retailer's overall retailing effort or a specific aspect of it, such as merchandise management, pricing, promotion, or service level. The purpose of a retail audit is to identify strengths and weaknesses in the retailer's operations and to develop recommendations for improvement.

Question 10

The first step in undertaking a retail audit is ________.
A) conducting the audit
B) determining who does the audit
C) determining when and how often the audit is conducted
D) developing audit form(s)

Accepted Answer

Determining who does the audit is the first step in undertaking a retail audit, as it sets the foundation for planning and executing the audit process effectively.

Question 11

The purpose of ________ is to study what a retailer is presently doing,appraise performance,and make recommendations for the future.
A) benchmarking
B) gap analysis
C) scenario analysis
D) a retail audit

Accepted Answer

A retail audit is specifically designed to study a retailer's current practices, assess how well they are performing, and make suggestions for future improvement. Benchmarking involves comparing a retailer's performance to that of other companies in the same industry, gap analysis identifies gaps between current and desired performance levels, and scenario analysis involves evaluating potential future scenarios and their impacts on the retailer's operations. While these techniques may be useful in their own right, they are not specifically focused on analyzing a retailer's current practices and making recommendations for the future in the same way that a retail audit is.

Question 12

In benchmarking,a retailer ________.
A) compares its efficiency to those of comparable retailers
B) evaluates its performance relative to its plans
C) studies its customer satisfaction measure using the American Customer Satisfaction Index (ACSI)
D) sets its own standards and measures its performance based on the achievements of its sector of retailing, specific competitors, high-performance firms, and/or the prior actions of the company itself

Accepted Answer

The answer of In benchmarking,a retailer ________.
A) compares its efficiency...

Question 13

Which is not a component of SERVQUAL?
A) reliability
B) retail image
C) assurance
D) responsiveness

Accepted Answer

Retail image is not a component of SERVQUAL. The five components of SERVQUAL are reliability, responsiveness, assurance, empathy, and tangibles.

Question 14

"What if" planning,based on alternative scenarios,is called ________.
A) scenario analysis
B) contingency planning
C) strategy planning
D) benchmarking

Accepted Answer

The answer of "What if" planning,based on alternative scenarios,is called...

Question 15

Industry norms for performance measures are important to ________.
A) determine company profitability
B) evaluate company performance on the basis of industry benchmarks
C) assign fixed costs to various departments
D) compute direct product profitability

Accepted Answer

Industry norms provide a benchmark for evaluating company performance relative to competitors in the same industry. This enables companies to identify areas where they are outperforming or underperforming compared to the industry average and make targeted improvements. Industry norms are not directly used to determine profitability, assign fixed costs, or compute direct product profitability.

Question 16

Which statement concerning the American Customer Satisfaction Index (ACSI)is not correct?
A) Fast-food franchises typically receive the highest ACSI scores.
B) The ACSI is based on an ongoing study.
C) The ASCI index is based on a scale of 0 to 100.
D) The retailer with the highest 2015 satisfaction scores was Amazon.com.

Accepted Answer

This statement is not always true. While some fast-food franchises have received high ACSI scores in the past, it is not a consistent trend across the industry. For example, in 2020, Starbucks had the highest ACSI score among limited-service restaurants, while Panera Bread was ranked first in 2019.

Question 17

Which of the following is not a fundamental factor in developing and implementing an integrated retail strategy?
A) reducing costs
B) scenario analysis
C) performance measures
D) defining productivity

Accepted Answer

While reducing costs is an important consideration in any retail strategy, it is not a fundamental factor in developing and implementing an integrated retail strategy. The fundamental factors typically include scenario analysis to identify potential opportunities and challenges, defining clear performance measures to track progress, and defining productivity standards to ensure optimal use of resources.

Question 18

Which type of retail plan process increases the involvement of retail buyers and sales managers?
A) centralized
B) horizontal
C) top-down
D) bottom-up

Accepted Answer

The bottom-up retail plan process involves gathering input and feedback from retail buyers and sales managers at the store level, thus increasing their involvement in the planning process. This approach can lead to a more accurate and effective retail plan.

Question 19

Which statement concerning benchmarking is not correct?
A) Benchmarking data is available from government, trade magazines, and other sources.
B) A retailer should seek to benchmark its performance against high-performance firms regardless of industry.
C) Benchmarking is only suitable for large retailers.
D) Retailers can benchmark their performance against retailers and nonretailers.

Accepted Answer

Benchmarking is suitable for retailers of all sizes, not just large retailers.

Question 20

To be successful,strategy planning should be ________.
A) conducted on a centralized basis
B) conducted on a decentralized basis
C) conducted on an ongoing basis
D) short run in orientation

Accepted Answer

Strategy planning should be an ongoing process, where the organization constantly reviews and revises its strategies based on the changing internal and external environment. Conducting it on a centralized or decentralized basis or having a short-run orientation can limit the effectiveness of the planning process.

Quiz 20: Integrating and Controlling the Retail Strategy

Contingency plans should be based directly on ________.

An advantage of using a company audit specialist in performing the retail audit is ________.

Sales per square foot and gross margin per square foot are examples of ________.

A sales opportunity grid evaluates new opportunities on the basis of ________.

A company audit specialist is a(n) ________.

A retailer compares its actual performance against potential performance and then determines the areas in which it must improve.This illustrates ________.

The use of low,moderate,and high interest rates as variables in a retail plan for a major appliance retailer illustrates ________.

Which of the following is not a factor in the global retail development index (GRDI) ?

An investigation of a retailer's total retailing effort or some aspect of it is a ________.

The first step in undertaking a retail audit is ________.

The purpose of ________ is to study what a retailer is presently doing,appraise performance,and make recommendations for the future.

In benchmarking,a retailer ________.

Which is not a component of SERVQUAL?

"What if" planning,based on alternative scenarios,is called ________.

Industry norms for performance measures are important to ________.

Which statement concerning the American Customer Satisfaction Index (ACSI) is not correct?

Which of the following is not a fundamental factor in developing and implementing an integrated retail strategy?

Which type of retail plan process increases the involvement of retail buyers and sales managers?

Which statement concerning benchmarking is not correct?

To be successful,strategy planning should be ________.