Question 1

A retailer is concerned about such issues as tradeoffs between faster delivery times from suppliers and higher shipping costs and support from suppliers in storing merchandise.These issues concern _____.
A)store security
B)inventory management
C)crisis management
D)outsourcing

Accepted Answer

The concerns mentioned in the question pertain to inventory management – specifically, the tradeoffs between faster delivery times and higher shipping costs, as well as the need for support from suppliers in storing merchandise.

Question 2

An advantage to rationalized retailing programs is the _____.
A)ease of expansion
B)low investment
C)appeal to a well-defined market target
D)spreading of risk due to diversification

Accepted Answer

The answer of An advantage to rationalized retailing programs is...

Question 3

Which type of insurance most directly affects employees?
A)workers' compensation
B)property damage
C)public liability
D)directors' liability

Accepted Answer

Workers' compensation insurance is designed to provide benefits to employees who are injured on the job or become ill due to their work. This insurance directly affects employees by providing them with benefits if they become injured or ill as a result of their employment.

The other types of insurance listed do not have as direct of an impact on employees. Property damage insurance covers damage to property, but does not affect employees directly. Public liability insurance covers damages to third parties, such as customers or vendors, but again does not directly affect employees. Directors' liability insurance covers the personal liability of company directors, which is not related to the well-being or benefits of employees.

Question 4

A retailer with high seasonality can best reduce its labor costs in the peak season through _____.
A)job standardization
B)carefully screening employees
C)developing employee performance standards
D)cross-training and developing self-service options for consumers

Accepted Answer

Cross-training employees means they can perform a wider range of tasks, allowing for more flexibility during high demand periods. This can help reduce the need for additional staff, thus reducing labor costs. Self-service options for consumers such as online ordering or use of kiosks can also decrease the need for as many employees during peak season. Job standardization and developing employee performance standards may not necessarily reduce labor costs. Carefully screening employees may be important for any business, but it may not directly impact labor costs during peak season.

Question 5

A retailer selling products that are potentially dangerous due to misuse or manufacturer defects should get _____ insurance.
A)property damage
B)public liability
C)product liability
D)workers' compensation

Accepted Answer

Product liability insurance protects retailers from legal claims made by customers who have been injured or suffered harm as a result of using the retailer's products. This is especially important for retailers selling potentially dangerous products, such as power tools or electronics. Property damage insurance would not cover legal claims related to misuse of products, while public liability insurance covers claims related to injury or damage caused by the retailer’s business activities, but not specifically related to products. Workers’ compensation insurance only covers injuries sustained by employees.

Question 6

Which of the following energy management strategies is most likely to have a negative impact on a retailer's atmosphere?
A)centrally managing lighting levels by each department by time of day to better reflect outside lighting conditions
B)replacing an older central air-conditioning system with a new efficient unit that requires 150 tons less capacity
C)installing high efficiency fluorescent bulbs in place of incandescent light bulbs
D)raising the temperature thermostat from 72 degrees in the summer to 74 degrees

Accepted Answer

Raising the temperature thermostat can lead to a warmer and potentially uncomfortable atmosphere for customers, whereas the other energy management strategies are not likely to have as noticeable of an impact on the atmosphere.

Question 7

Store security relates to both _____.
A)insurance and personal security
B)personal security and merchandise security
C)crisis management and pilferage control
D)safety management and crisis management

Accepted Answer

Store security pertains to both the security of the employees and the security of the merchandise. Personal security of the employees is necessary to ensure the safety of the staff against potential physical harm, while merchandise security aims to prevent loss or damage to the products in the store. Insurance, crisis management, and pilferage control may be part of store security, but they do not encompass all aspects of it. Safety management might also be a part of store security, but it is not the only aspect. Thus, the best choice is B.

Question 8

Which of the following does not contribute to the difficulty in planning personnel utilization in retailing?
A)high employee turnover
B)self-service merchandising
C)inflexibility due to union issues
D)large shifts in demand due to seasonality

Accepted Answer

Self-service merchandising actually makes it easier to plan personnel utilization as there is no need for as many staff members to assist customers. The other options all contribute to the difficulty in planning personnel utilization. High employee turnover requires continuous hiring and training, inflexibility due to union issues makes it harder to adjust schedules and job duties, and large shifts in demand due to seasonality require adjusting staffing levels.

Question 9

Board members of public corporations can be liable for their actions that may result in the loss in value of the retailer's stock.To cover this potential loss,retailers typically provide them with _____ insurance.
A)property damage
B)directors' and officers' liability
C)public liability
D)workers' compensation

Accepted Answer

Directors' and officers' liability insurance is specifically designed to protect the board members from personal financial loss due to their actions and decisions made on behalf of the corporation. This type of insurance covers legal expenses, settlements, and judgments resulting from lawsuits brought against the directors or officers for alleged wrongful acts or omissions. Therefore, this insurance would be the best choice for covering the potential loss in value of the retailer's stock. Property damage, public liability, and workers' compensation insurance are not relevant to the liability of the board members for the loss in stock value.

Question 10

A firm organizes its store maintenance operations on the basis of location.Which method of classifying jobs does the firm use?
A)product classification
B)functional classification
C)geographic classification
D)combination organization classification

Accepted Answer

The firm uses geographic classification to organize its store maintenance operations based on location. This means that jobs are classified according to the physical location or region where they are performed. This type of classification is common in large organizations that have operations in different parts of the country or world. It helps to ensure efficient management of resources and coordination of activities across different locations. Product classification would classify jobs according to the different products or services offered by the firm, functional classification would classify jobs based on the different functional areas such as marketing, finance, and operations, and combination organization classification would combine different methods of classification based on the needs of the organization. However, none of these are the best choice given the information provided.

Question 11

Centralized decision making is generally associated with _____.
A)micromerchandising
B)risk-maximization retailing
C)rationalized retailing
D)category management

Accepted Answer

Centralized decision making is generally associated with rationalized retailing, which involves a more top-down approach to decision making and standardized processes for merchandise selection, pricing, and promotion. This can lead to greater efficiency and consistency within a retail organization, but may also limit flexibility and responsiveness to local market conditions. Micromerchandising, risk-maximization retailing, and category management all involve different approaches to retail decision making that may be more decentralized or focused on specific aspects of retail operations.

Question 12

A significant disadvantage with the use of rationalized retailing is the _____.
A)high operating costs associated with standardization
B)poor possible fit with local tastes
C)loss of quantity discounts through volume purchasing
D)need for more personnel due to decentralized decisions

Accepted Answer

Rationalized retailing involves standardizing products and processes across multiple locations, which can lead to a poor fit with local tastes and preferences. This can result in lower sales and reduced customer satisfaction. While there may be some operating costs associated with standardization, it also allows for volume purchasing and streamlined operations that can result in cost savings. Decentralized decision-making may also require more personnel, but this is not necessarily a significant disadvantage of rationalized retailing.

Question 13

Poor morale and boredom caused by extreme specialization can be overcome through _____.
A)a Theory X orientation
B)job specialization
C)the use of prototype stores
D)cross-training

Accepted Answer

Cross-training can help alleviate boredom and poor morale caused by extreme specialization by giving employees the opportunity to learn and perform different tasks. This variety helps keep work interesting and challenging, and can also provide opportunities for personal and professional growth. Option A (Theory X orientation) is not recommended as it assumes employees are inherently lazy and require strict supervision, which can further decrease morale. Option B (job specialization) is the cause of the problem, not the solution. Option C (the use of prototype stores) may not be relevant to the issue of employee morale and boredom.

Question 14

The cross-training of employees is particularly beneficial when a retailer _____.
A)must deal with highly seasonal sales trends
B)is open for short hours
C)is open for long hours
D)has loyal part-time workers

Accepted Answer

When a retailer must deal with highly seasonal sales trends, cross-training employees can help ensure that there is adequate staff coverage during busy times and that employees can flexibly and efficiently handle changing demands.

Question 15

The opposite of extreme employee specialization is _____.
A)job standardization
B)self-service merchandising
C)automation
D)cross-training

Accepted Answer

Cross-training involves teaching employees how to do multiple tasks instead of just one specialized task. This creates a more versatile and flexible workforce, rather than one that can only perform a narrow range of duties.

Question 16

A characteristic associated with the bottom-up space management approach is that _____.
A)retail space costs may be high
B)the total space available may be less than that required by the plan
C)planning is centralized
D)the needs of scrambled merchandising may not be met

Accepted Answer

The bottom-up space management approach starts with the specific needs of each department or category within a store and allocates space accordingly. This approach can lead to the total space available being less than that required by the overall plan.

Question 17

The opposite strategy to rationalized retailing is _____.
A)micromerchandising
B)risk-minimization retailing
C)centralized management
D)category management

Accepted Answer

Micromerchandising focuses on tailoring products to local preferences, which contrasts with rationalized retailing's standardized approach.

Question 18

A retailer can encourage long-term employment by _____.
A)using job standardization
B)adhering to a promotion-from-within philosophy
C)utilizing self-service facilities
D)utilizing a Theory X orientation

Accepted Answer

Adhering to a promotion-from-within philosophy can encourage employees to strive for long-term employment, as they see potential for career growth within the company. This can increase job satisfaction and motivation, leading to lower turnover rates. The other options are not directly related to encouraging long-term employment. Job standardization may increase efficiency, but it does not necessarily promote job security or career advancement. Utilizing self-service facilities and a Theory X orientation may decrease the need for employees, potentially leading to layoffs and increased turnover.

Question 19

Rationalized retailing is often conducted in conjunction with _____.
A)micromerchandising
B)decentralized management
C)electronic data interchange
D)the desire for a uniform image

Accepted Answer

Rationalized retailing focuses on creating a uniform image across all locations of a retail chain, which is achieved by implementing standardized operating procedures, store layouts, and product assortments. Therefore, it is often conducted in conjunction with the desire for a uniform image.

Question 20

The most appropriate financial performance standard of a department store retail buyer is _____.
A)customer satisfaction
B)total unit sales
C)total dollar gross profit in department
D)total dollar sales

Accepted Answer

The most appropriate financial performance standard for a department store retail buyer is the total dollar gross profit in the department. This metric takes into account both sales revenue and the cost of goods sold, providing a more accurate measure of profitability than either total unit sales or total dollar sales alone. Customer satisfaction is important, but it is not a financial performance standard.

Quiz 13: Operations Management: Operational Dimensions

A retailer is concerned about such issues as tradeoffs between faster delivery times from suppliers and higher shipping costs and support from suppliers in storing merchandise.These issues concern _____.

An advantage to rationalized retailing programs is the _____.

Which type of insurance most directly affects employees?

A retailer with high seasonality can best reduce its labor costs in the peak season through _____.

A retailer selling products that are potentially dangerous due to misuse or manufacturer defects should get _____ insurance.

Which of the following energy management strategies is most likely to have a negative impact on a retailer's atmosphere?

Store security relates to both _____.

Which of the following does not contribute to the difficulty in planning personnel utilization in retailing?

Board members of public corporations can be liable for their actions that may result in the loss in value of the retailer's stock.To cover this potential loss,retailers typically provide them with _____ insurance.

A firm organizes its store maintenance operations on the basis of location.Which method of classifying jobs does the firm use?

Centralized decision making is generally associated with _____.

A significant disadvantage with the use of rationalized retailing is the _____.

Poor morale and boredom caused by extreme specialization can be overcome through _____.

The cross-training of employees is particularly beneficial when a retailer _____.

The opposite of extreme employee specialization is _____.

A characteristic associated with the bottom-up space management approach is that _____.

The opposite strategy to rationalized retailing is _____.

A retailer can encourage long-term employment by _____.

Rationalized retailing is often conducted in conjunction with _____.

The most appropriate financial performance standard of a department store retail buyer is _____.