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Test 931
RETAIL MERCHANDISING
1
1. Olivia runs a home-based business that distributes high-quality, handmade baskets. She sells the
products and earns commissions on the baskets sold by four other basket representatives. This is an
example of
A. product licensing.
C. multi-level marketing.
B. product trade-name franchising.
D. strategic partnering.
2. Transportation routes, rates, and services may all be regulated by
A. intermediaries.
C. competition.
B. level of service.
D. laws.
3. Which of the following would probably use a longer channel of distribution than the others:
A. A baby duck
C. An airplane
B. A printing press
D. A bottle of shampoo
4. If a wholesaler objects to a supplier's policies restricting trade or competition, it is illegal for the supplier to
__________ with the wholesaler.
A. refuse to deal
C. communicate
B. comply
D. do business
5. Which of the following often makes it difficult for small manufacturers that have limited budgets to receive
an equal opportunity to distribute their new products:
A. Slotting allowances
C.
B. Gray marketing
D.
6. What type of channel conflict might occur if a business that sells to wholesalers decides to also sell its
products directly to retailers?
A. Illegal
C. Vertical
B. Horizontal
D. Regional
7. When defending their ideas objectively, retail employees should be prepared to
A. demonstrate a sense of leadership.
C. use aggressive body language.
B. write a technical research report.
D. provide supporting information.
8. Why do department store chains often make it possible for employees to meet during work time and
participate in group discussions?
A. To discuss personal issues
C. To plan extracurricular activities
B. To share many different opinions
D. To have casual conversations
9. One reason retail employees often use note cards when making oral presentations is because the cards
help them to
A. remember key points.
C. write down questions.
B. look important.
D. memorize the data.
10. It is important for appliance store employees to demonstrate a customer-service mindset when they are
A. placing orders.
C. handling problems.
B. contacting suppliers.
D. preparing schedules.
11. Which of the following is the best way to handle leave-me-alone customers:
A. Never press for sales or decisions
C. Ask simple, polite questions with options
B. Agree first on common points
D. Don't jump to quick conclusions
12. When moving one pallet of incoming merchandise to the processing area, which piece of equipment
would be best for the job?
A. Upright hand truck
C. Forklift
B. Conveyor
D. Platform hand truck
Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio
Test 931
RETAIL MERCHANDISING
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13. What are the primary factors that retailers consider when determining the most appropriate shipping
method for merchandise?
A. Shipping distance and sales taxes
C. Delivery time and carton weight
B. Delivery cost and dating terms
D. Insurance charges and credit rating
14. Reserve stock would be defined as items of stock that
A. will replace forward stock.
C. have not been checked.
B. have not been delivered.
D. are being held for customers.
15. One reason why it is important for gift shops to maintain adequate inventory levels is to avoid
__________ needed goods.
A. paying taxes on
C. stockpiling
B. running out of
D. depreciating
16. A toy store that wanted its inventory records to be updated automatically at the time of the customer's
purchase could use a __________ system.
A. point-of-sale
C. point-of-sale tally
B. price-ticket stub
D. cash-register stub
17. Where a product is available for purchase is referred to as
A. the right location.
C. the setting.
B. place utility.
D. product display.
18. The way that most retailers let consumers know about their products is through
A. strategic management.
C. financial analysis.
B. marketing.
D. operations management.
19. Your employer recently announced that the furniture store is losing money, and s/he asked each
employee to come up with one way to increase profits. Which of the following would you suggest as a
way to increase profits:
A. Decrease product line
C. Increase worker efficiency
B. Hire more employees
D. Raise prices
20. Leonardo's Bookstore is considering opening a second location in a nearby city. The owners are
concerned with the competition they might face from a store that is not quite like theirs, but also
competes for scarce consumer dollars. What form of competition are they facing?
A. Direct
C. Indirect
B. Price
D. Nonprice
21. According to the law of diminishing returns, continuing to hire additional employees will eventually cause
the overall level of production to
A. stay even.
C. increase.
B. level off.
D. decrease.
22. What is one reason why the overall unemployment rate understates the actual employment situation?
A. Discouraged workers are not included.
C. Underemployed people are listed.
B. The rate is not seasonally adjusted.
D. The rate reflects regional differences.
23. A department store employee who is always ready and willing to work is showing
A. initiative.
C. creativity.
B. empathy.
D. industriousness.
24. Interest and enthusiasm are very important parts of a(n)
A. positive attitude.
C. orderly environment.
B. business cycle.
D. partnership agreement.
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25. Katrina's supervisor meets with her every day so that the supervisor can identify Katrina's mistakes and
help her improve her job performance. This kind of feedback is an example of
A. constructive criticism.
C. formal evaluation.
B. job enrichment.
D. excessive control.
26. The main reason many individuals resist change is
A. discipline.
B. decisiveness.
C. fear.
D. self-confidence.
27. Another music store employee is upset because of a reprimand from the manager. You listen quietly and
then share how you handled a reprimand. You are demonstrating __________ behavior.
A. critical
C. empathetic
B. indifferent
D. impatient
28. We all have the right to express ourselves as long as we do not __________ others' rights.
A. violate
C. support
B. respect
D. influence
29. In order to have an objective point of view, you need to
A. seek the opinions of a great many other people.
B. view the world through your own perspective.
C. set aside your emotional reaction to situations.
D. be helpful and willing to share with others.
30. Which of the following is one of the drawbacks of using consensus building as a decision-making tool:
A. Eliminates discussion
C. Takes time
B. Discourages compromise
D. Requires power
31. Which of the following is a common negotiating strategy:
A. Using authority
C. Bargaining
B. Speaking
D. Being aggressive
32. Lisa charges a small gift shop to use the extra space in the building she owns. Which of the following is
Lisa's source of income:
A. Dividends
C. Rent
B. Salary
D. Interest
33. Each year, Marla must pay a certain percentage of the value of her home to the local government. Which
of the following is the tax liability Marla is responsible for paying:
A. Property
C. Sales
B. Inheritance
D. Income
34. Which of the following is a benefit of whole-life insurance:
A. The policyholder earns interest at current rates.
B. It combines death benefits with a savings plan.
C. The policyholder can borrow the policy's cash value.
D. It has lower premiums than term insurance.
35. Based on the following information, what amount of revenue will a pet store list on its profit-and-loss
statement: $5,500 in sales, $600 in earned interest, $1,250 in sale of assets, $375 worth of goods stolen,
and $150 in shipping fees.
A. $7,875
C. $7,725
B. $7,500
D. $7,350
36. What information should be included on a bank deposit slip?
A. Account balance
C. Account number
B. Amount withdrawn
D. Social Security number
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37. Being able to understand and predict future risks is one of the benefits to a retailer of gathering
A. pricing results.
C. selling resources.
B. advertising data.
D. marketing information.
38. When obtaining marketing information from customers, why is it important for home improvement stores
to tell customers how their personal information will be used?
A. To be ethical
C. To follow the law
B. To analyze data
D. To achieve goals
39. How might a vendor use the information in salespeople's lost-business reports that indicates that toy
stores are dissatisfied with the vendor's credit policies and service?
A. To identify its target market
C. To revise its marketing strategy
B. To change its operating goals
D. To update its promotional techniques
40. Which method of data collection in marketing research asks consumers questions in order to learn their
opinions and the reasons behind them?
A. Survey
C. Profile
B. Observation
D. Experiment
41. One of the benefits to a retailer of tabulating the information contained in a marketing survey is to
determine if some
A. questions required lengthy answers.
C. people did not provide their names.
B. questions were difficult to understand.
D. people did not answer all of the questions.
42. Which of the following statements emphasizes the importance of merchandising to retailers:
A. Satisfied customers come back again and again.
B. Over 70 percent of buying decisions are made in-store.
C. A successful business strategy is focused and long-term.
D. Merchandising includes both tactical and strategic projects.
43. Which of the following marketing functions would measure consumer response to a new video game:
A. Purchasing
C. Marketing-information management
B. Distribution
D. Selling
44. Which component of the marketing plan summarizes the environmental conditions that can affect a
department store's marketing activities:
A. Environmental synopsis
C. Conditional assessment
B. Diagnostic summary
D. Situational analysis
45. Which of the following is a consideration in the place element of marketing:
A. Extending credit to customers
C. Using sales promotion
B. Offering warranties or guarantees
D. Choosing distribution channels
46. Appliance stores can better determine the specific needs of their markets because of today's
A. mass-marketing techniques.
C. increased production capabilities.
B. improved marketing research.
D. lower production and promotion costs.
47. What kind of changes that may affect the sales forecast can retailers control?
A. Economic
C. Market
B. External
D. Internal
48. Why should a bookstore evaluate its internal environment when changes are occurring in its external
environment?
A. To revise pricing
C. To remain competitive
B. To update advertising
D. To improve distribution
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49. What technological tool reads bar-coded information that is located on retail products and increases the
efficiency of the customer checkout process?
A. Optical scanner
C. Digital imager
B. Electronic data interchange
D. Regional network exchange
50. Since Maria's gift shop has grown significantly over the past year, she feels that it is time to transfer her
handwritten records into a software program. Maria is changing to which style of record keeping?
A. Scientific
C. Common
B. Manual
D. Computerized
51. If your supervisor asks you to find information on Coca-Cola's current market share for cola in the United
States, the best and most precise wording to use when trying to narrow down the Internet search on most
search engines would be
A. Coca-Cola OR current market share OR cola OR United States.
B. Coca-Cola AND current market share AND cola AND United States.
C. Coca-Cola OR current market share OR cola AND United States.
D. Coca-Cola AND/OR market share.
52. Two furniture store employees in different locations having the ability to turn on their computers and
access the same inventory status information to see if a desk is in stock for a customer is an example of
a(n) __________ application.
A. electronic
C. audiovisual
B. spreadsheet
D. groupware
53. Why is it important to report noncompliance with business health and safety regulations?
A. To interview all employees
C. To correct dangerous situations
B. To make the retailer pay fines
D. To obtain confidential records
54. Accidents that happen on the job are often caused by
A. the use of safety equipment.
C. strict safety standards.
B. sufficient lighting.
D. human error.
55. A discount store's cashiers and sales personnel should be trained to protect the store from dishonest
customers who attempt to carry out
A. point-of-sale fraud.
C. payroll fraud.
B. embezzlement.
D. internal theft.
56. Payroll, rent, utilities, and supplies are all classified as __________ expenses.
A. contractual
C. fixed
B. variable
D. operating
57. It is important to keep the checking and marking areas of a toy store clean because
A. it makes the salesperson's job easier.
C. customers may see this area.
B. employees should be kept busy.
D. it can reduce losses from markdowns.
58. What do retail employees often do during the day when their cash registers are running low on certain
denominations of money?
A. Verify funds
C. Buy change
B. Close drawer
D. Roll coins
59. Which of the following statements about creativity in marketing occupations is true:
A. Almost all marketing occupations involve creativity to some extent.
B. Creativity is not important for most marketing jobs.
C. Opportunities to be creative are limited to advertising and display.
D. Creativity is applicable to working with things rather than with people.
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60. When signing the sections of an employment application that require a signature, applicants should avoid
using a(n)
A. initial.
C. surname.
B. nickname.
D. title.
61. What type of information can applicants list in the employment section of their résumés if they have never
had paying jobs?
A. Volunteer experience
C. Industry awards
B. Honorary memberships
D. Technical training
62. Trade associations, rather than professional organizations, are typically more __________ oriented.
A. service
C. profit
B. retail
D. standards
63. Which of the following is a reason for the growth of non-store retailing:
A. Increased use of the Internet
B. Fewer ways to buy products than in the past
C. Decreased retail competition
D. Increased use of single-channel retailing
64. In order to manage your time effectively, all of the things that you want to accomplish should first be
A. classified.
C. scheduled.
B. identified.
D. prioritized.
65. Which of the following is a business objective that is generally considered unethical:
A. Setting a price that maximizes the company's return on investment
B. Setting prices to intentionally drive the competition out of business
C. Establishing a suggested retail price for a new product line
D. Using sales promotions to sell items at lower prices to attract customers
66. Which of the following is an agreement that allows countries to impose import duties on goods in order to
reduce dumping practices:
A. International Agreement for Protectionism (IAP)
B. General Agreement on Tariffs and Trade (GATT)
C. North American Free Trade Agreement (NAFTA)
D. Balance of Trade Agreement (BTA)
67. The majority of retailers that use profit-oriented pricing want to
A. create a negative cash flow.
C. earn a reasonable amount of profit.
B. balance their financial statements.
D. reduce their return on investment.
68. What strategies do retailers use differently during the various life-cycle stages of a product?
A. Directing
C. Marketing
B. Operating
D. Controlling
69. Which of the following is a type of software program that appliance manufacturers often use to plan,
modify, or customize products:
A. Photo management
C. Freeform application
B. Computer-aided design
D. Remote access
70. Which of the following is an ethical issue relating to a video game manufacturer's product management
activities:
A. Exclusive dealerships
C. Planned obsolescence
B. Price discrimination
D. Advertising allowances
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71. The Underwriters Laboratory seal on an electrical product indicates
A. standard grades established by the federal government.
B. a guarantee by the manufacturer.
C. the product can be returned.
D. quality and safety backed by a testing organization.
72. Mr. and Mrs. Inkwell purchased a bookshelf stereo system that was completely covered by a one-year
warranty. After six months, one of the speakers no longer worked. When the Inkwells returned one
speaker, what kind of warranty applied to the speaker?
A. Unethical
C. Limited
B. Full
D. Government
73. Which of the following is a way that retailers can include consumer protection as part of product/service
management:
A. Discount pricing
C. Accurate labeling
B. Creative selling
D. Precise marketing
74. When calculating open-to-buy at the beginning of the sales period, which of the following formulas would
determine total stock needs:
A. Planned sales + outstanding purchases + BOM
B. Planned sales + merchandise required + EOM
C. Planned sales + reductions + BOM
D. Planned sales + markdowns + EOM - BOM
75. A well-known company developed the first tissues that were enhanced with lotion. What strategy was
most likely used to initially position the product in the marketplace?
A. Price
C. Benefits
B. Competition
D. Image
76. One of the ways that the use of brands benefits consumers is that brands
A. make buying easier.
C. reinforce company image.
B. provide user information.
D. create customer loyalty.
77. Which of the following is one of the main functions of a retailer's merchandising budget:
A. To plan dollar amount of inventory
C. To pay all invoices on time
B. To negotiate a quantity discount
D. To evaluate vendor pricing
78. Which of the following trade publications would be useful to retail buyers in selecting goods and services:
A. Business Week
C. USA Today
B. Daily News Record
D. Wall Street Journal
79. What is one of the factors that furniture store chains often consider when determining when to buy goods
from foreign countries?
A. Transportation terms
C. Display requirements
B. Shipping arrangements
D. Receiving facilities
80. Promotion benefits customers by helping them to
A. postpone buying decisions.
B. identify buying motives.
C. select appropriate products.
D. spend more on products.
81. "Take these diet pills and you will lose seven pounds in one week" is a promotion that is based on
A. offensiveness.
C. fears.
B. deception.
D. stereotypes.
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82. One reason advertising prescription drugs online might be considered an ethical issue is because the
advertisements might persuade customers to
A. use drugs they do not need.
C. buy drugs they cannot afford.
B. obtain drugs from the manufacturer.
D. order drugs that are inexpensive.
83. The most common purchase option for radio advertising is __________ radio.
A. local
C. web
B. network
D. satellite
84. The appliance store manager has asked you to create a newspaper ad which would introduce a new
microwave oven. What part of the advertisement will contain the sales message?
A. Headline
C. Layout
B. Copy
D. Identification
85. A form of direct mail that a garden shop might use to announce a sale is a
A. postcard.
C. reply envelope.
B. newspaper circular.
D. kiosk.
86. A toy store that places tricycles on one level, scooters on a higher level behind the tricycles, and fullsized bikes on a higher level behind the scooters is using which display arrangement?
A. Step
C. Zigzag
B. Pyramid
D. Line
87. One reason mass merchandisers set up point-of-sale displays is to provide customers with goods that
the stores
A. plan to sell below cost.
C. need to liquidate.
B. usually do not carry.
D. buy on consignment.
88. An important benefit to the department store of coordinating such promotional activities as planning a
special event and giving samples to customers who attend the event is
A. feedback.
C. increased sales.
B. more competition.
D. publicity.
89. Sally is a sales associate at Hudsons. When Fred was looking for a new sofa, Sally showed him a wide
variety of styles, helped him to choose the best color, and even assisted him in selecting lamps and
accessories to go with the sofa. Sally was exhibiting what key aspect of the definition of selling?
A. Stylistic planning
C. Ensuring customer satisfaction
B. Determining purchase decisions
D. Selling communications
90. Providing quality customer service on a consistent basis often helps retail salespeople to increase sales
to
A. first-time buyers.
C. new prospects.
B. current customers.
D. major corporations.
91. Calculate the following sales information: A customer purchased 4 pens at $1.09 each, 2 binders at $3.29
each, 3 folders at 5 for $1.00, and 1 eraser at $.58. What is the total of the sales if there is an 8.25%
sales tax on all purchases?
A. $12.12
C. $13.10
B. $12.15
D. $13.12
92. Universal Inc., is being pressured by the larger retailers it deals with to offer them better discounts and
more services than Universal offers its smaller retail accounts. When dealing with this situation, Universal
should be concerned with __________ factors.
A. regulatory
C. internal
B. sales
D. financial
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93. Which of the following questions does a highly ethical appliance salesperson ask himself/herself when an
"iffy" sales situation occurs:
A. What is the right thing to do?
C. How far can I go with this?
B. What can I get away with?
D. How can I benefit?
94. What is most likely to happen if a department store salesperson exaggerates or misrepresents facts
about an expensive vacuum to a customer?
A. The salesperson receives a referral.
C. The customer provides a testimonial.
B. The salesperson is promoted.
D. The customer files a lawsuit.
95. The brand names that are most familiar to the average consumer usually are __________ brand names.
A. national
C. special
B. private
D. generic
96. The logical completion to an effective sales presentation is the
A. close.
C. approach.
B. objection.
D. follow-up.
97. Which of the following best describes suggestion selling:
A. Reasonably high-pressured in order to be successful
B. A sincere effort by the salesperson to be of service
C. Limited to items related to the primary purchase
D. Passive, patient, and follow the lead of the customer
98. A customer who purchased an appliance for $99.95 plus 5% tax wants to exchange it for a better model
that sells for $149.95 plus 5% tax. How much should the salesperson charge the customer for the
exchange?
A. $52.50
C. $43.04
B. $49.95
D. $54.42
99. Which of the following is the primary objective of a discount store and its sales staff:
A. Carrying out merchandising activities
C. Following up on sales
B. Offering readily available credit
D. Establishing a loyal clientele
100. Which of the following are examples of first-line management job titles:
A. President, senior vice president, and chief executive officer
B. Collections supervisor, crew chief, and production supervisor
C. Company vice president, department head, and regional sales manager
D. Senior vice president, chief financial officer, and regional vice president
Test 931
RETAIL MERCHANDISING — KEY
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1. C
Multi-level marketing. Multi-level marketing refers to a business, usually well known, that pays
commissions on sales earned to people at two or more levels. The sales representatives usually work
independently of the company. A product trade-name franchise is a franchise arrangement based on an
independent sales relationship between a franchisor and franchisee to stock and sell a specific line of
goods. It is also known as a dealership or exclusive distributorship. Licensing is a business arrangement
that requires the authorization or permission from an owner to another entity to use trademarked,
copyrighted (e.g., logo, name), or patented material for a specific activity, during a specific time period,
for the profit of both parties. Strategic partnering is not a term that is recognized as a method of business
ownership.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. D
Laws. Distribution systems must comply with government regulations. Businesses are expected to
become familiar with the laws in any state in which they produce and/or store products and to comply
with those laws. Competition, level of service, and intermediaries affect a company's distribution
decisions, but they are not responsible for regulation of distribution activities.
SOURCE: CM:001
SOURCE: DS LAP 1—Distribution
3. D
A bottle of shampoo. Shampoo is a low-cost, standard product that would probably use a longer channel
of distribution than the other alternatives. Baby ducks are perishable and need to use short channels. A
printing press is highly technical, requires installation, and is quite heavy; therefore, it would rely on short
channels. An airplane is technical and quite heavy and would probably use a direct route from the
producer to the industrial user.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
4. A
Refuse to deal. It is illegal for a supplier to refuse to deal with a channel member in an existing
distribution channel solely because the channel member disagrees with a policy that may be illegal in
itself (i.e., restricts trade or limits competition). Suppliers routinely communicate and do business with
wholesalers, but not doing so is not illegal. Suppliers usually try to comply with a wholesaler's requests.
SOURCE: CM:005
SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)
[pp. 366-367]. Boston: Houghton Mifflin.
5. A
Slotting allowances. A slotting allowance is a cash premium that manufacturers pay to businesses to
cover the costs involved in carrying a new product. In many cases, the cash premium is substantial
because there is a lot of competition among manufacturers to encourage businesses to carry their
products. Often, the manufacturer that offers the largest allowance is the one that gets shelf space for its
new product. This may be unethical because small manufacturers that cannot afford to pay large slotting
allowances do not have an equal opportunity to distribute their products. The gray market involves buying
from unauthorized distributors. Channel strategies are distribution plans. Targeted advertising involves
focusing on a specific group.
SOURCE: CM:006
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 446]. Mason, OH:
Thomson/South-Western.
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6. C
Vertical. Conflict in a distribution channel occurs when there is disagreement among the various channel
members. Vertical conflict occurs when there is disagreement between different levels of the same
channel. An example of a vertical channel is a business selling to wholesalers, who then decide to also
sell to retailers. If the business decides to bypass the wholesalers and sell directly to retailers, conflict
may develop within that vertical channel of distribution because the wholesalers are being eliminated.
Horizontal conflict occurs among businesses at the same channel level, such as between different
franchisees for the same business competing in the same city. Deciding to also sell to retailers is not
illegal. Regional is not a type of channel conflict.
SOURCE: CM:008
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 371-372]. Mason, OH: South-Western.
7. D
Provide supporting information. When retail employees present their ideas to management or coworkers,
they should be prepared to defend those ideas and provide supporting information. Being prepared will
help employees remain objective and be able to offer logical evidence to back up their ideas. Employees
should be prepared to explain supporting information because others may have questions or concerns
about the ideas. It is usually not necessary for employees to write technical research reports to defend
their ideas. The use of aggressive body language may offend others. Employees do not need to
demonstrate a sense of leadership when defending their ideas. The best approach is to be prepared.
SOURCE: CO:061
SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices for
business and the professions (6th ed.) [p. 256]. Boston: McGraw-Hill College.
8. B
To share many different opinions. Many department store chains encourage employees to participate in
group discussions to analyze problems and find solutions. The advantage is that when employees share
many different opinions, there is an increase in the chance of developing useful recommendations.
However, for the group discussions to be useful, all members must feel comfortable and be willing to
express their opinions. Chains do not make it possible for employees to participate in group discussions
to discuss personal issues, to plan extracurricular activities, or to have casual conversations.
SOURCE: CO:053
SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices for
business and the professions (6th ed.) [p. 255]. Boston: McGraw-Hill College.
9. A
Remember key points. Retail employees often write brief notes on small cards to help them remember to
discuss important points they want to present to the audience. The notes serve as a guide to help
employees stay focused on the information they need to present and keep them from getting off track.
The notes are often a mini-outline of the presentation. Employees do not use note cards to look
important, write down questions, or memorize the data.
SOURCE: CO:025
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 496-497].
Boston: Irwin/McGraw-Hill.
10. C
Handling problems. Problems and complaints should not be avoided but looked at as opportunities to
demonstrate a customer-service mindset. Most customers will tell others about problems they have with
the appliance store, but they will also tell how quickly and satisfactorily their problems or complaints were
resolved. These customers will likely return to the store, in spite of previous problems, because they
know employees will resolve whatever problems arise. Employees do not need to demonstrate a
customer-service mindset when placing orders, contacting suppliers, and preparing schedules because
customers are not involved in these situations.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
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RETAIL MERCHANDISING — KEY
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11. A
Never press for sales or decisions. Never pressing for sales or decisions is the best way to deal with
leave-me-alone customers. Just be patient. Agreeing first on common points is the best way to deal with
impatient customers. Asking simple, polite questions with options is the best way to deal with
argumentative customers. Avoiding jumping to quick conclusions is the best way to deal with dishonest
customers.
SOURCE: CR:009
SOURCE: EI LAP 1—Making Mad Glad
12. C
Forklift. A forklift is designed to pick up a pallet, which is a wooden platform upon which merchandise is
placed. An upright hand truck (two wheels) and a platform hand truck (four wheels) are used to move
smaller quantities of merchandise. Conveyors are used to move all types of merchandise over a specific
route, but they would not be used to move merchandise on a pallet.
SOURCE: DS:085
SOURCE: Johnson, J.C., Wood, D.F., Wardlow, D.L., & Murphy, P.R. (1999). Contemporary logistics
(7th ed.) [p. 354]. Upper Saddle River, NJ: Prentice Hall.
13. C
Delivery time and carton weight. Many factors must be considered when determining appropriate
shipping methods. Many transportation services set delivery charges based on the weight of the
merchandise. Other major considerations include the time it takes to transport the merchandise
depending on the type of transportation (e.g., air, ground, rail, water), and the distance between the
sender and the recipient. For example, a 50-pound carton shipping via air freight that travels a distance
of 2,000 miles to arrive the next day generally costs more than a 50-pound carton shipping via truck that
travels a distance of 1,000 miles in three days. Although insurance can be purchased to cover loss during
transportation, it is generally a primary consideration only if the item is very expensive. A credit rating
refers to a system that evaluates an individual's or business's ability to pay debt (e.g., mortgage) on a
timely basis. The transportation company might want to verify the retailer's credit rating before making
contractual agreements. Therefore, the credit rating is not necessarily a primary consideration for the
retailer but for the shipping company. Although some locations might charge sales tax on shipping, many
places do not. Therefore, sales tax is not a primary consideration.
SOURCE: DS:044
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 286].
Woodland Hills, CA: Glencoe/McGraw-Hill.
14. A
Will replace forward stock. Reserve stock is stock that is not needed immediately on the selling floor but
will replace forward stock as that stock is sold. Shipments are checked as soon after delivery as possible.
Stock that hasn't been delivered is stock on order. Items are held for customers in layaway or in a
customer pickup area.
SOURCE: DS:015
SOURCE: Cash, R. P., Thomas, C., Wingate, J. W., & Friedlander, J. S. (2006). Management of retail
buying (p. 105). Hoboken, NJ: John Wiley & Sons.
15. B
Running out of. Gift shops need to maintain adequate inventory levels in order to operate. Shops may not
be able to function if they run out of the supplies they need or the goods they resell to customers. If
shops run out of these items, they may need to close until shipments arrive that will replenish the
inventory. Sometimes shops stockpile inventory if they think a shortage will occur or if prices will increase
drastically. Gift shops do not maintain adequate inventory levels in order to avoid paying taxes or
depreciating the goods.
SOURCE: DS:023
SOURCE: Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (p. 341). London:
Thomson Learning.
Test 931
RETAIL MERCHANDISING — KEY
13
16. A
Point-of-sale. A point-of-sale system is an automatic system of unit inventory control. A point-of-sale
system uses computerized cash registers to quickly and accurately subtract items from inventory at the
time of purchase. The system continuously updates inventory and provides current information as to the
variety and quantity of goods in stock. Price-ticket stub, point-of-sale tally, and cash-register stub are
manual systems of maintaining unit inventory control.
SOURCE: DS:091
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 206, 344).
New York: Glencoe/McGraw-Hill.
17. B
Place utility. Place utility is the usefulness provided by where a product is available for purchase. The
right location offers the best place utility, of course. The setting is the selling environment, in general.
And, to showcase a product for sale, marketers may use a product display.
SOURCE: EC:004
SOURCE: EC LAP 13—Use It (Economic Utility)
18. B
Marketing. Marketing is the process of creating, communicating, and delivering value to customers and
managing customer relationships in ways that benefit the organization and its stakeholders. The
marketing function responsible for communicating information about goods, services, images, and/or
ideas to achieve a desired outcome is promotion. Most retailers use some form of promotion to inform
consumers about the products they have for sale. Operations management is the process of planning,
controlling, and monitoring the day-to-day activities required for continued business functioning. Strategic
management is the process of planning, controlling, and organizing an organization or department.
Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use
of financial resources.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business (Business Activities)
19. C
Increase worker efficiency. Increasing worker efficiency can increase productivity and sales which should
lead to an increase in profits. Raising prices could result in a further decrease in profits if it causes a drop
in sales. Decreasing the product line could result in customer dissatisfaction. Hiring more employees
would increase payroll and related expenses with no guarantee that additional workers would increase
profits.
SOURCE: EC:010
SOURCE: EC LAP 2—Risk Rewarded
20. C
Indirect. Indirect competition is a rivalry between or among businesses, such as retailers, that offer
dissimilar goods or services. All businesses compete for scarce consumer dollars that might be spent on
goods and services different from their own. Price competition is a type of rivalry between or among
businesses that focuses on the use of price to attract scarce customer dollars. Nonprice competition is a
type of rivalry between or among businesses that involves factors other than price. Direct competition is
rivalry between or among businesses that offer similar types of goods or services.
SOURCE: EC:012
SOURCE: EC LAP 8—Ready, Set, Compete!
Test 931
RETAIL MERCHANDISING — KEY
14
21. D
Decrease. The law of diminishing returns states that after a certain point, hiring additional employees will
result in a decrease in the overall level of production. Overall productivity reaches its highest level when
there are a certain number of employees using the available resources to do the work. If businesses hire
additional employees, the level of production begins to decrease because there are too many employees
using the same resources, such as equipment. In order for production to increase when businesses hire
more employees, the business also needs to buy additional equipment and supplies and expand its
space. According to the law of diminishing returns, continuing to hire additional employees does not
cause production to level off, increase, or stay even.
SOURCE: EC:023
SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [pp. 162-163]. Cincinnati: SouthWestern College.
22. A
Discouraged workers are not included. Discouraged workers are those people who want to work but have
given up looking for jobs. Most of these people have been out of work for a long time and no longer show
up in the records that track people who are looking for work or receiving unemployment benefits. As a
result, the unemployment rate usually is higher than indicated because of the people who are not
included. The unemployment rate is seasonally adjusted. Underemployed people are not included in the
unemployment rate because they are working. The overall unemployment rate does not reflect regional
differences; however, there are rates available for specific geographic areas.
SOURCE: EC:082
SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 335-336).
Upper Saddle River, NJ: Prentice Hall.
23. D
Industriousness. Industriousness is the willingness to work, and industrious employees are very valuable
to department stores. Empathy is the ability to put oneself in another person's place. Creativity is the
ability to generate unique ideas, approaches, solutions, etc. Initiative is the willingness to act without
having to be told to do so.
SOURCE: EI:018
SOURCE: HR LAP 10—Personal Traits
24. A
Positive attitude. Interest and enthusiasm are part of a positive attitude which gives you a good outlook
on life. Although you will still encounter frustrations and disappointments, you won't be kept down very
long by them. Your interest in life and your enthusiasm will soon reassert themselves. Business cycles
are periods of expansion and contraction in economic activities. An orderly, systematic environment can
be obtained without interest and enthusiasm. A partnership agreement is a written agreement signed by
business partners which specifies the terms of the partnership.
SOURCE: EI:020
SOURCE: HR LAP 20—Interest and Enthusiasm
25. A
Constructive criticism. Constructive criticism points out mistakes for the purpose of helping someone to
improve. It is given in a tactful manner and never attacks the individual. It is an example of guidance
rather than excessive control. Job enrichment is giving more meaning to a job in order to increase
employee motivation. Formal evaluation is a complete review of an employee's overall job performance
usually conducted once a year.
SOURCE: EI:003
SOURCE: HR LAP 3—Handling Feedback
Test 931
RETAIL MERCHANDISING — KEY
15
26. C
Fear. Regardless of whether the change is great or small, many people seem to fear and resist change.
Any change has the potential to threaten a person's security. People who are decisive, disciplined, and
self-confident may still fear change, but these traits help them to overcome their fears and make
necessary changes.
SOURCE: EI:026
SOURCE: HR LAP 8—Adjusting to Change
27. C
Empathetic. Empathy is the ability to put yourself in another person's place. By showing compassion and
sharing a similar experience, you are demonstrating empathetic behavior. To be indifferent means that
you don't care or wouldn't respond. To be critical means to find fault with your fellow employee's actions.
To be impatient means not taking the time to listen or sympathize.
SOURCE: EI:030
SOURCE: HR LAP 17—Empathy
28. A
Violate. In a free society, we have the right to express our thoughts, feelings, and opinions in ways which
do not infringe upon or violate the rights of others. We should support and respect the rights of others,
but we may not be able to influence them.
SOURCE: EI:008
SOURCE: HR LAP 16—Assertiveness
29. C
Set aside your emotional reaction to situations. The only way you can be objective is to keep your
emotions out of the way and to consider only the facts in a situation. Viewing things only from your own
perspective gives you a biased view rather than an objective one. The opinions of other people are not
always helpful since they may also be biased. Being helpful and willing to share benefits human relations
but not objectivity.
SOURCE: EI:037
SOURCE: EI LAP 5—Can You Relate?
30. C
Takes time. Consensus building as a decision-making tool is not perfect and has some drawbacks. One
drawback is that consensus building takes time and a lot of it. The group members need to spend time
discussing their differences, suggesting alternatives, and reaching agreement. Consensus building
encourages compromise and discussion. Those are advantages rather than drawbacks. Making a
decision by consensus means that each group member has equal power.
SOURCE: EI:011
SOURCE: QS LAP 17—All Aboard!
31. C
Bargaining. Bargaining often is an effective negotiating strategy. When bargaining, each person
proposes solutions and uses "give-and-take" tactics to reach an agreement. Each person may have to
give up something in the process, but each person gets something in return. Silence rather than speaking
is also a common negotiating strategy. Another strategy involves claiming not to have authority rather
than using authority. Being aggressive is not a negotiating strategy.
SOURCE: EI:062
SOURCE: EI LAP 8—Make It a Win-Win (Business Negotiation)
Test 931
RETAIL MERCHANDISING — KEY
16
32. C
Rent. Income is a money resource owners receive for supplying goods and services. As a resource
owner, Lisa is supplying retail space and receiving rent payments from the gift shop, so she is receiving
income. A salary is a form of income that is money payments for labor. A dividend is the sum of money
paid to an investor or stockholder as earnings on an investment. Interest is the money payment for the
use of borrowed money.
SOURCE: FI:061
SOURCE: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2005). Personal finance (pp. 66-67). New York:
Glencoe/McGraw-Hill.
33. A
Property. Tax liability is the amount of money that people owe and must pay to the government. Property
taxes are monies that local governments collect from homeowners. The value of the home and the
property the home sits upon is a consideration when determining the homeowner's property tax liability.
When a person receives property or items as stipulated in a deceased person's will, the person must pay
an inheritance tax. Governments collect sales tax for purchases and income tax on money that a person
earns.
SOURCE: FI:067
SOURCE: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2005). Personal finance (pp. 381-382).
New York: Glencoe/McGraw-Hill.
34. C
The policyholder can borrow the policy's cash value. A whole-life insurance policy builds cash value as
the policyholder pays premiums at regular intervals. If, at some point, the policyholder needs a loan, s/he
can borrow the cash value of the policy. Universal life insurance combines death benefits with an
investment and savings plan that earns interest at current market rates. Whole-life insurance rates are
higher than term insurance rates because term insurance only pays death benefits if the policyholder dies
during the set period of time covered by the policy.
SOURCE: FI:081
SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's
wraparound edition (6th ed.) [pp. 451-452]. New York: Glencoe/McGraw-Hill.
35. D
$7,350. Revenue is one of the main categories of a pet store's profit-and-loss statement. Revenue
includes the total amount of money earned by a store, such as from the sale of goods and services,
interest earned from bank accounts, and the sale of the store's assets. Total these amounts to determine
the revenue ($5,500 + $600 + $1,250 = $7,350). The value of goods stolen and the amount paid in
shipping fees are not types of revenue.
SOURCE: FI:094
SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)
36. C
Account number. When making a bank deposit, you complete a bank deposit slip. This form must provide
the bank with your company's name, address, account number, date, and amount of deposit. Social
Security number is not needed. The funds are being deposited, not withdrawn. The account balance is
given on the bank statement.
SOURCE: FI:298
SOURCE: Lange, W.H., Rousos, T.G., & Mason, R.D. (1998). Mathematics with business applications
(4th ed.) [pp. 126, 146]. New York: Glencoe/McGraw-Hill.
Test 931
RETAIL MERCHANDISING — KEY
17
37. D
Marketing information. Marketing information is all of the marketing-related data available from inside and
outside the retailer. It includes information about past situations and what is happening now. By gathering
marketing information, retailers often are able to understand and predict the risks that might occur in the
future and take steps to control those risks. For example, if current marketing information indicates that
one product is losing popularity, a retailer can modify the product or repackage it to be more appealing.
As a result, the retailer might avoid losing customers, which is a future risk. Gathering advertising data,
selling resources, and pricing results will not help retailers to understand and predict future risks.
SOURCE: IM:012
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 124]. Mason, OH: South-Western.
38. A
To be ethical. Ethical behavior involves doing what is right. When home improvement stores collect
marketing information from customers, it is ethical to make sure customers know how the information will
be used. Then, customers have the opportunity to decide not to provide information, or to provide only
certain types of information. It is not ethical to mislead customers about how the information will be used,
or say it will remain private if that is not correct. Stores do not tell customers how their personal
information will be used to analyze data, follow the law, or achieve goals.
SOURCE: IM:025
SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)
[pp. 134-135]. Upper Saddle River, NJ: Prentice Hall.
39. C
To revise its marketing strategy. Vendors monitor lost-business reports because they usually contain an
explanation of why toy stores no longer buy from the vendor. The reports might indicate that stores are
dissatisfied with the product, dissatisfied with the vendor's credit policies, or are getting better prices and
more service from competitors. A vendor might use this information to make changes to its marketing
strategy in an attempt to regain customers or to prevent other customers from taking their business
elsewhere. The more information a vendor obtains from lost-business reports, the better able it is to
make useful and effective marketing decisions. Vendors do not use the information in lost-business
reports to change their operating goals, identify their target markets, or update their promotional
techniques.
SOURCE: IM:184
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 47, 633-634]. Upper Saddle River,
NJ: Prentice Hall.
40. A
Survey. A survey is a marketing-research method that involves the use of mail questionnaires, telephone
interviews, personal interviews, and group interviews. Observation is a marketing-research method that
gathers data by watching consumers. Experiment is a marketing-research method that tests cause and
effect by test-marketing new products or comparing test groups with control groups. Profile is not a
marketing-research method but a list of the main characteristics of a person or group of persons that
creates a "picture" of the person or group.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
Test 931
RETAIL MERCHANDISING — KEY
18
41. D
People did not answer all of the questions. In many cases, processing marketing information involves
tabulating the results of a survey. Tabulating is counting the number of respondents who answered each
question with one of the possible answers. For example, if 100 people responded to a survey, retailers
need to know how many of them agreed, disagreed, or had no opinion about the questions. Also,
tabulating helps retailers to determine if some people did not answer all the questions, which might have
an effect on the accuracy of the results. Tabulating the information in a marketing survey will not help a
retailer determine if some questions were difficult to understand or if the questions required lengthy
answers. Surveys often are anonymous and do not require people to provide their names.
SOURCE: IM:062
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach
for the new millennium (pp. 501-505). Boston: Irwin/McGraw-Hill.
42. B
Over 70 percent of buying decisions are made in-store. Since over 70 percent of buying decisions are
made in-store, merchandising is very important to retailers. The customers will make decisions based on
the merchandise they are presented with. Satisfied customers come back again and again. A successful
business strategy is focused and long-term, and merchandising includes both tactical and strategic
projects. All of these statements are true; however, none emphasizes the importance of merchandising to
retailers.
SOURCE: MK:004
SOURCE: Holliday, A. (2006). Understanding field marketing. Retrieved August 3, 2007, from
http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=248&Ite
mid=42
43. C
Marketing-information management. Marketing-information management is an organized way of
continuously gathering, accessing, synthesizing, evaluating, and disseminating information for use in
making business decisions. Selling is defined as determining consumer needs and wants and responding
through planned, personalized communication that influences purchase decisions and enhances future
business opportunities. Distribution is a marketing function that is responsible for the moving, storing,
locating, and/or transferring ownership of goods or services. Purchasing is a business activity that
involves obtaining goods and services for use in the operation of a business.
SOURCE: MK:002
SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)
44. D
Situational analysis. A situational analysis is a determination of a department store's current business
situation and the direction in which the store is headed. Both internal (e.g., personnel) and external (e.g.,
competition) environmental conditions are evaluated to determine the store's current strengths,
weaknesses, opportunities, and threats. Diagnostic summary, conditional assessment, and
environmental synopsis are not terms commonly used to describe marketing plan components.
SOURCE: MP:007
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 632]. Mason, OH: South-Western.
45. D
Choosing distribution channels. The place element of marketing focuses on considerations in getting the
selected product in the right place at the right time. Some of the other place considerations are storage,
transportation, inventory handling and control, and choice of specific outlets to offer the products. Sales
promotion is an aspect of the promotion element. Extending credit is a consideration of the price element.
Warranties and guarantees are considerations in the product element.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)
Test 931
RETAIL MERCHANDISING — KEY
19
46. B
Improved marketing research. Improved marketing research has allowed appliance stores to determine
better what the specific needs of their markets are. Mass-marketing techniques do not target a specific
need. Increased production capabilities and lower production costs are aspects of mass marketing.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met?
47. D
Internal. Retailers have control over such internal changes as personnel, pricing, and product lines that
may affect their sales forecasts. Having control over internal changes enables them to adapt their sales
forecasts accordingly. External changes are changes that occur outside businesses. Market changes and
economic changes are examples of external changes over which retailers have no control.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
48. C
To remain competitive. When a bookstore's external environment changes, it should evaluate its internal
environment in order to remain competitive. External changes, such as industry growth or a slowdown in
the economy, often make it necessary for a company to change the way it does business. These types of
external changes might make it more difficult for a bookstore to compete and remain successful. In
response to external changes, a bookstore might update its advertising, revise its pricing, and improve its
distribution in order to remain competitive.
SOURCE: MP:008
SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)
[pp. 98-99]. Boston: Irwin/McGraw-Hill.
49. A
Optical scanner. Optical scanners have been used for several years and have increased the retailers'
ability to check out customers quickly and accurately. A price tag is coded with a bar code and is read by
a device that creates an electrical signal as the light scans the bar code. The scanner translates the bar
code into a numerical price through an electronic cash register. An electronic data interchange (EDI)
system is a computer network that allows retailers and suppliers to communicate information (e.g., order
placement) electronically. A digital imaging system processes images and text by a video camera and is
stored in a computer. The image can be manipulated and sent to other computers that are networked.
Regional network exchange is a technological term that is not widely used in the retail industry.
SOURCE: NF:041
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 343-344).
New York: Glencoe/McGraw-Hill.
50. D
Computerized. Moving from a "handwritten" to a "software" style of record keeping is called moving from
a manual to a computerized style. "Common" and "scientific" are not terms used to describe styles of
record keeping.
SOURCE: NF:001
SOURCE: NF LAP 1—Record It (Business Records)
Test 931
RETAIL MERCHANDISING — KEY
20
51. B
Coca-Cola AND current market share AND cola AND United States. Search engines need to be given
directions using exact wording. Using "AND" links all of the required information together and gives a
more productive search. The more exact the wording, the more narrow the responses returned, and the
less time wasted on unrelated responses. Using "OR" as the logical operator will tell the search engine to
return information on individual topics instead of responses that include all four topics. The "AND/OR"
could return responses on either Coca-Cola or market share. It could also give you Coca-Cola market
share, but it might not; or it might be for a country other than the United States. The "Coca-Cola OR
current market share OR cola AND United States" could return responses for other companies, other
industries, or information on cola in the United States, but not the specific information needed.
SOURCE: NF:006
SOURCE: Moore, M.M. (2001, June). You can get there from here. Darwin Online. Retrieved August 6,
2007, from http://www.darwinmag.com/read/060101/can.html
52. D
Groupware. Groupware applications refer to the modes that employees who work in different locations
use to work together or collaborate so they can accomplish a common goal. One mode of collaboration
involves links or networks that connect several people via computer. For example, when two furniture
store employees in different locations have the ability to turn on their computers and access the same
inventory status information to see if a desk is in stock for a customer, they are using a groupware
application. This is not an example of a spreadsheet, audiovisual, or electronic application.
SOURCE: NF:011
SOURCE: Net Access. (n.d.). Groupware (intranet). Retrieved August 3, 2007, from
http://www.netxs.com.pk/intranet/groupware.html
53. C
To correct dangerous situations. It is important to report noncompliance with business health and safety
regulations in order to force retailers to correct dangerous situations. Certain governmental agencies
have developed health and safety regulations that retailers are expected to follow in order to provide
employees with a safe work environment. If retailers do not comply with these regulations, they should be
reported so the necessary action can be taken to solve the problem and make the workplace safe for
employees. The goal is to correct dangerous situations; however, retailers may be fined if they continue
to ignore the regulations. During the process of investigating a report of noncompliance, it may be
necessary to interview all employees and obtain confidential records.
SOURCE: OP:005
SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.)
[pp. 277-279]. Weimar, TX: Culinary and Hospitality Industry Publications Services.
54. D
Human error. Most accidents, both on and off the job, are caused by human error. Employees who are
careless, tired, or poorly trained make mistakes that may result in accidents. Using safety equipment,
following strict safety standards, and having adequate light all help to prevent accidents on the job.
SOURCE: OP:007
SOURCE: RM LAP 2—Following Safety Precautions
55. A
Point-of-sale fraud. Point-of-sale fraud includes any illegal schemes involving credit cards, checks, or
cash which cheat a discount store out of money. Some examples would be customers who try to pay for
goods with stolen credit cards, forged checks, or altered bills. Payroll fraud is a form of internal theft
carried out by employees of the store who alter the payroll records in order to steal money for themselves
or others. Embezzlement is the theft of valuables that have been entrusted to one's care.
SOURCE: OP:013
SOURCE: RM LAP 4—Security Precautions
Test 931
RETAIL MERCHANDISING — KEY
21
56. D
Operating. These expenses are the costs incurred in running a business. Operating expenses can be
further classified as either fixed or variable. Fixed expenses are set costs for an established period of
time, such as rent and utilities. Variable expenses are costs that vary as the sales volume varies.
Examples of variable costs are payroll and supplies. Contractual is a distractor.
SOURCE: OP:024
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 668-669]. Woodland Hills, CA: Glencoe/McGraw-Hill.
57. D
It can reduce losses from markdowns. If merchandise becomes soiled or damaged before it reaches the
selling area, the toy store must lower the price and reduce the profit margin. Sometimes, soiled goods
cannot be sold at all. Housekeeping in the checking and marking areas does not make the salesperson's
job easier since salespeople do not usually work in these areas. Customers also are not in this part of the
toy store. Keeping employees busy would not be a valid reason for housekeeping.
SOURCE: OP:032
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.
58. C
Buy change. Buying change is the process of exchanging one denomination of money for an equal value
of another denomination. Throughout the day, retail employees check their supply of change to be sure
that it is adequate. If they find they are running low on certain denominations, they take currency from the
cash register in the amount of change needed and exchange it for the denomination needed. Verifying
funds involves counting or checking the accuracy of the amount in the cash register. Employees would
buy change rather than close the cash drawer. At the end of the day, they might roll coins and place them
in the appropriate paper wrapper.
SOURCE: OP:194
SOURCE: The American Bankers Association (2005). Today's teller: Developing basic skills
(pp. 102-103). Washington DC: The American Bankers Association.
59. A
Almost all marketing occupations involve creativity to some extent. Creativity is the ability to generate
unique ideas, approaches, and solutions and can be used in many marketing jobs. For example,
employees can be creative when making sales presentations and in solving human-relations problems
among coworkers. Creativity is not limited to advertising and display nor to working with things rather
than with people.
SOURCE: PD:012
SOURCE: PD LAP 2—Creativity
60. B
Nickname. When signing the sections of an employment application that require a signature, applicants
should always use their correct name, not a nickname. A nickname is a familiar form of a proper name
and is generally used only by a person's family and friends. Nicknames are not considered to be
professional and should not be used on applications, which are types of business documents. If an
applicant has a title, such as doctor, it is acceptable to include the title with the signature. An individual's
surname, or last name, is always included in the signature. Applicants should include their initials
because it is possible for several people to have the same first and last names, but they usually have
different middle initials.
SOURCE: PD:027
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 46-47].
Mason, OH: South-Western.
Test 931
RETAIL MERCHANDISING — KEY
22
61. A
Volunteer experience. Many teenagers entering the job market for the first time have never had paying
jobs that they can list in the employment section of their résumés. It is acceptable for these people to list
any volunteer experience that they might have had. Volunteer work is a substitute for paid work because
it indicates that they have had experience following directions and completing tasks. Technical training,
honorary memberships, and industry awards are types of information often listed in the education section
of a résumé.
SOURCE: PD:031
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 49]. Mason,
OH: South-Western.
62. C
Profit. Businesspeople participate in a trade association hoping to find solutions to business problems
which they, as individuals, could not solve alone. Working together, trade association members seek
ways to increase the profitability of all members' businesses. Professional organizations are usually
concerned with expanding the knowledge of the profession and maintaining high professional standards.
While these groups do provide service to their members, they would not be described as service
oriented. Either group could be retail oriented.
SOURCE: PD:036
SOURCE: CD LAP 1—Trade Associations/Professional Organizations
63. A
Increased use of the Internet. Increased use of the Internet is a major reason for the growth of non-store
retailing. More and more consumers are shopping online, and there are many buying options that weren't
available in the past, such as telephone ordering and mail ordering. Increased retail competition makes
non-store retailing even more important to many businesses. More and more retailers are using multichannel retailing all the time.
SOURCE: PD:091
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[p. 128]. Upper Saddle River, NJ: Prentice Hall.
64. B
Identified. An essential step in effective time management is to identify all of your required activities.
These activities can then be classified according to type, prioritized according to importance, scheduled
to be done at an appropriate time, and finally performed.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
65. B
Setting prices to intentionally drive the competition out of business. Predatory pricing is the practice of
pricing goods extremely low with the goal of driving the competition out of business. In many countries,
predatory pricing is illegal, and it is generally considered unethical. Maximizing profits, suggesting retail
prices, and using sales promotions are not necessarily unethical.
SOURCE: PI:015
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 536-537).
New York: Glencoe/McGraw-Hill.
66. B
General Agreement on Tariffs and Trade (GATT). The GATT is an agreement among many nations to
encourage economic cooperation and liberalization of international trade. A component of the agreement
allows a country to place import duties (tariffs) on goods. One reason countries place duties on imports is
to protect their markets from businesses that price imports below cost and sell ("dump") them in order to
reduce competition. NAFTA is a specific international trade agreement that lessens the restrictions and
tariffs between the United States, Mexico, and Canada. The IAO and BTA are not legitimate or existing
trade agreements.
SOURCE: PI:017
SOURCE: Answers.com. (n.d.). Dumping. Retrieved August 6, 2007, from
http://www.answers.com/topic/dumping
Test 931
RETAIL MERCHANDISING — KEY
23
67. C
Earn a reasonable amount of profit. Most retailers that use profit-oriented pricing want to recover their
costs and make a reasonable amount of profit. A financial statement is a summary of accounting
information. Retailers do not generally use profit-oriented pricing for the purpose of balancing their
financial statements. Most retailers want to have a positive cash flow and to increase their return on
investment.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
68. C
Marketing. Marketing strategies are plans of action for achieving marketing goals and objectives. All
products move through the life-cycle stages at different rates requiring different marketing strategies.
Marketers must understand how and why competition will change from one stage of the product life cycle
to another in order to plan marketing strategies that will be most effective for the product at each state of
its life cycle. Operating is the process of running the business. Directing is the management function of
providing guidance to workers and work projects. Controlling is the management function that monitors
the work effort.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
69. B
Computer-aided design. Computer-aided design (CAD) is a type of software program that allows users to
draw two- or three-dimensional illustrations on a computer. Many appliance manufacturers use CAD
software to design their products and use them as a blueprint for constructing the products. The program
offers manufacturers the flexibility to customize products. Photo management, freeform application, and
remote access are not types of software programs that manufacturers use to plan, build, modify, or
customize products.
SOURCE: PM:039
SOURCE: Hunt, J. (2005, December 22). Definition of Computer Aided Design (CAD) Software.
EzineArticles. Retrieved August 6, 2007, from http://ezinearticles.com/?Definition-ofComputer-Aided-Design-(CAD)-Software&id=117506
70. C
Planned obsolescence. Planned obsolescence refers to the practice of continually updating products,
which results in the outdating of existing products. Video games are an example of items that are often
updated or changed regularly, resulting in outdated versions of the game. This practice is an ethical issue
because businesses that plan continuous product changes leave the consumer with only one option—to
purchase the newer version. Price discrimination is an ethical issue that relates to pricing practices.
Exclusive dealerships are ethical issues that relate to distribution. Advertising allowances are ethical
issues that relate to promotion.
SOURCE: PM:040
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 85-86]. Mason,
OH: Thomson/South-Western.
71. D
Quality and safety backed by a testing organization. The Underwriters Laboratory is an independent
testing organization that tests electrical products for quality and safety. The UL symbol does not indicate
that the product can be returned, represent a guarantee by the manufacturer, or imply a standard of
acceptance established by the federal government.
SOURCE: PM:019
SOURCE: Underwriters Laboratory, Inc. (2006). UL standards for safety. Retrieved September 18,
2006, from http://www.ul.com/info/standard.htm
Test 931
RETAIL MERCHANDISING — KEY
24
72. B
Full. The complete stereo system was covered by the warranty, which is, therefore, a full warranty. A full
warranty is a promise by the seller to the consumer to repair or replace a product that does not perform
as expected. A limited warranty does not have all the provisions of a full warranty but may cover specific
parts or certain repairs. A warranty is an ethical business practice intended to protect consumers.
Warranties are regulated by government through the Magnuson-Moss Warranty Act, but they are not
referred to as government warranties.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
73. C
Accurate labeling. One way that retailers can include consumer protection as part of product/service
management is by labeling products accurately. Product labels protect consumers by telling them what
they need to know in order to use the product safely. The information provided should be as accurate and
easy to understand as possible. Discount pricing, creative selling, and precise marketing are not forms of
consumer protection.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
74. D
Planned sales + markdowns + EOM - BOM. In order to calculate the amount of money available for
purchases at the beginning of the sales period, it is necessary to add together the figures for planned
sales, markdowns, and end-of-month inventory. From this total, beginning inventory is subtracted to
determine how much is left for purchases.
SOURCE: PM:058
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 487-488).
New York: Glencoe/McGraw-Hill.
75. C
Benefits. One way marketers position goods and services in the marketplace is by emphasizing their
benefits. The marketers emphasize how the product is different from other similar products. A new
concept such as tissues containing lotion is appealing to people during flu and cold season or for those
who have allergies. The tissues are softer and less likely to irritate the skin. Therefore, emphasis is
placed on the benefits of using the product. A new product in the marketplace would not initially
experience competition. Price would not likely be used to position the product because product
development is very expensive. The product might be more expensive when it is introduced in the
marketplace to cover development costs and because there is no competition. Image refers to the way
someone or something is viewed by others. Marketers would probably not emphasize the image of
disposable products such as tissues.
SOURCE: PM:042
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 560-561]. Woodland Hills, CA: Glencoe/McGraw-Hill.
76. A
Make buying easier. Consumers usually buy brands with which they are familiar, rather than spending a
lot of time and effort examining every available product. While brands identify products, they do not
provide information about the product's use. Businesses, rather than consumers, benefit from the fact
that brands reinforce company image and create customer loyalty.
SOURCE: PM:021
SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)
Test 931
RETAIL MERCHANDISING — KEY
25
77. A
To plan dollar amount of inventory. A merchandising budget is an estimate of the amount of products
expected to be sold to customers. An important function of the merchandising budget is to plan the dollar
amount of inventory that needs to be in stock to meet expected demand. Retailers need to know the
amount of money they should invest in inventory to obtain the merchandise that sales forecasts estimate
customers will buy. Evaluating vendor pricing, negotiating a quantity discount, or paying all invoices on
time are not functions of a merchandising budget.
SOURCE: PM:061
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 485-488).
New York: Glencoe/McGraw-Hill.
78. B
Daily News Record. The Daily News Record is a trade publication for the men's apparel, retail, and textile
industries. Trade publications are useful to buyers in a certain occupational or industry group because
they provide current information about new products and trends. Business Week is a news magazine that
also reports on the economy. USA Today and the Wall Street Journal are newspapers.
SOURCE: PM:260
SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 70). Chicago: GoodheartWillcox.
79. B
Shipping arrangements. When furniture store chains buy goods from foreign countries, they should take
into consideration the length of time it will take to ship the goods. Making shipping arrangements in
foreign countries can be complicated; therefore, it is usually necessary to place orders early. Chains
often need to allow adequate time to apply for special shipping permits and pay various fees to foreign
governments before the ordered goods can be shipped. The terms of transportation indicate whether the
buyer or seller pays shipping charges. Display requirements and receiving facilities are not factors that
chains consider when determining when to buy goods from foreign countries.
SOURCE: PM:262
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 475). New
York: Glencoe/McGraw-Hill.
80. C
Select appropriate products. Promotion helps the customer determine which product is the right one for
him/her, or the most appropriate. Promotion introduces new products to consumers and assists with
decision making. It does not help consumers to spend more on products or delay decisions. It is the
salesperson's job to identify the customer's buying motives, or reasons for buying.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
81. B
Deception. Some promotions are deceptive because they make false or exaggerated claims about a
product. Losing seven pounds in one week is a false claim about a product. Offensiveness involves being
insulting to the customer. Some promotions reinforce stereotypes through portrayals of women or
minorities. Fear involves focusing on people's insecurities.
SOURCE: PR:002
SOURCE: PR LAP 4—Know Your Options (Types of Promotion)
Test 931
RETAIL MERCHANDISING — KEY
26
82. A
Use drugs they do not need. Advertising prescription drugs is often a controversial topic. Those who feel
it is ethical to advertise drugs believe that the ads are simply providing information. Those who feel that
this type of advertising might be unethical believe that it persuades customers to ask their doctors for
drugs they do not need. If customers see ads for certain drugs, they may decide they would like to try
them. Oftentimes, doctors will write prescriptions for patients if they are persistent, even if the doctors
don't think the drugs are necessary. Also, promoting name-brand prescription drugs encourages
customers to ask for them rather than comparable generic drugs that are less expensive. Customers
usually are unable to buy drugs they cannot afford. Prescription drugs usually must be purchased from a
licensed pharmacy rather than from the manufacturer. Persuading customers to order inexpensive drugs
is not an ethical issue.
SOURCE: PR:099
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)
[pp. 41-42]. Upper Saddle River, NJ: Prentice Hall.
83. A
Local. About 90% of advertising is purchased on local radio by businesses in the area. Network radio
reaches millions of people across the United States but, overall, it accounts for a significantly smaller
percentage of radio advertising. Most people listen to local radio in their homes and cars, not to web
radio on their computers. Satellite radio has not become popular on a widespread basis yet; and much of
it, if not all, is currently commercial free.
SOURCE: PR:007
SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)
84. B
Copy. Copy is the text of an advertisement that delivers the sales message. It includes whatever the
advertiser wishes to say about the product. Layout is the way in which the elements of an ad are
arranged. The headline is text set in large type and usually positioned at the top of an advertisement to
catch readers' attention. Identification is the element that identifies the product or the advertiser and may
include additional information about the business.
SOURCE: PR:014
SOURCE: PR LAP 7—Parts of Print Ads
85. A
Postcard. Direct mail is a promotional medium that comes to consumers' homes and businesses. A
postcard is a form of direct mail, and it is a good format to use when announcing a sale because it
requires less paper and postage to send. Newspaper circulars and kiosks are not forms of direct mail. A
reply envelope is a component that is often included in direct mail so that consumers can respond to the
business's offer.
SOURCE: PR:089
SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 574]. Boston: Irwin/McGraw Hill.
86. A
Step. The step display arrangement involves placing items on different levels. In most cases, it is more
effective to use only three steps or levels. The step arrangement attracts attention to the items on each
level. A viewer's eye is drawn from the lower level up the steps to the middle and top levels. A zigzag
arrangement draws the viewer's attention from side to side rather than up. A pyramid is similar to the step
but includes move levels and tapers toward the top. A line arrangement is straight.
SOURCE: PR:026
SOURCE: Bell, J., & Ternus, K. (2002). Silent selling: Best practices and effective strategies in visual
merchandising (2nd ed.) [pp. 42-43]. New York: Fairchild.
Test 931
RETAIL MERCHANDISING — KEY
27
87. B
Usually do not carry. Mass merchandisers, such as Target, use a lot of point-of-sale displays. One
reason is to provide customers with goods that the stores usually do not carry, or carry only in a limited
amount. For example, mass merchandisers often set up point-of-sale displays of sunglasses, paperback
books, seasonal items, etc. The stores supplement their regular product lines by using point-of-sale
displays. These displays provide goods that may be too costly for stores to routinely keep in stock but
that customers want periodically throughout the year. Mass merchandisers do not buy goods on
consignment. Stores do not plan to sell the goods below cost because the items in a point-of-sale display
are usually prepriced. Point-of-sale displays contain new merchandise rather than items that stores need
to liquidate.
SOURCE: PR:114
SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 206-207).
Upper Saddle River, NJ: Prentice Hall.
88. C
Increased sales. The purpose of most promotional activities is to attract customers to the department
store in order to increase sales. Coordinating promotional activities so that they work together helps to
increase the impact of each activity and provide more satisfactory results. Coordinating promotions would
only result in publicity for the store under certain circumstances. More competition is not likely to benefit
the store. Customer feedback can be a benefit to the store but not of as much importance as increased
sales.
SOURCE: PR:076
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367). New
York: Glencoe/McGraw-Hill.
89. C
Ensuring customer satisfaction. By ensuring customer satisfaction, salespeople make sure that all of the
customer's needs and wants have been satisfied. In this situation, Sally is ensuring that all of Fred's
needs (a sofa and accessories) and wants (colors and styles) are being satisfied. Salespeople often
influence purchase decisions, but they do not determine them. Because Sally did not know Fred was
going to be in the store that day, she did not plan what she would say to him. Selling communications
and stylistic planning are not parts of the selling definition.
SOURCE: SE:017
SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)
90. B
Current customers. Retail salespeople often try to increase sales to current customers by providing
quality service on a consistent basis. Current customers who are satisfied with the level of service often
become lifetime customers and buy additional goods and services. Salespeople realize that it may be
easier to sell more to current customers than to identify new customers. However, current customers
probably will not buy more if they are not satisfied with the service. New prospects are potential
customers—ones who might buy. First-time buyers are those who are buying from a salesperson for the
first time and who do not yet know what type of service they will receive. Providing quality customer
service on a consistent basis might increase sales to major corporations if those corporations are also
current customers rather than new prospects or first-time buyers.
SOURCE: SE:076
SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 411-412].
Boston: Irwin/McGraw-Hill.
91. D
$13.12. Calculate each of the items separately, then add up the total of each (pens, 4 x $1.09 = $4.36;
binders, 2 x $3.29 = $6.58; folders, $1.00 ÷ 5 = $.20 x 3 = $.60; eraser = $.58). Add the totals ($4.36 +
$6.58 + $.60 + $.58 = $12.12). Multiply the subtotal by 8.25%. ($12.12 x 8.25% or .0825 = $.999 or
$1.00). Add the subtotal and the tax to get the grand total ($12.12 + $1.00 = $13.12).
SOURCE: SE:117
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 334-337).
New York: Glencoe/McGraw-Hill.
Test 931
RETAIL MERCHANDISING — KEY
28
92. A
Regulatory. Regulatory factors affect businesses and their sales policies, including consumer protection
regulations and federal antitrust laws intended to ensure fair competition among businesses. One law
forbids companies to discriminate in the prices or services offered to competing customers. Financial
concerns are a type of internal factor that affect selling policies. Sales factors are simply any factors that
affect the company sales. Internal factors are those forces present within the company.
SOURCE: SE:932
SOURCE: SE LAP 121—Selling Policies
93. A
What is the right thing to do? Sometimes, appliance salespeople find themselves in situations that require
them to make decisions that are not clearly right or wrong. When this occurs, each salesperson must rely
on his/her own moral compass to make these decisions or take action. Highly ethical salespeople will do
the right thing, even if the result is not favorable for them. The remaining options are not questions that a
highly ethical salesperson usually asks himself/herself.
SOURCE: SE:106
SOURCE: SE LAP 129—Keep It Real—In Sales (Selling Ethics)
94. D
The customer files a lawsuit. Salespeople must be careful about how they communicate product
information to their customers. If a department store salesperson exaggerates or misrepresents a
vacuum's capabilities or characteristics, and the customer purchases the vacuum and it doesn't perform
as the salesperson said it would, the customer can sue the store for breach of contract. A salesperson
misrepresenting a product is more likely to be reprimanded or dismissed rather than promoted. A
testimonial is an endorsement. A referral is a lead that a satisfied customer provides to a salesperson. A
customer who is unhappy with a product does not usually endorse the product or provide the salesperson
with a referral.
SOURCE: SE:108
SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)
[p. 37]. Mason, OH: South-Western.
95. A
National. National brands are brands for which the manufacturer assumes all responsibility. These
brands are advertised on television, in magazines, and in newspapers so frequently that consumers often
feel national brands are superior. Private brands are brands owned by middlemen. Their exposure is
more likely to be on the local level, although some private brands such as Sears' Craftsman are
advertised widely. Generic items are unbranded products. Special is not a type of brand.
SOURCE: SE:019
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 657-658).
New York: Glencoe/McGraw-Hill.
96. A
Close. When customers are moved to the point where they are convinced the product meets their needs
and they wish to purchase it, salespeople need to complete the paperwork and close the sale. Approach
is the beginning of a sale when the customer and salesperson first communicate. Objection is a point of
difference between a customer and a salesperson that may prevent a sale. Follow-up is reaffirming the
buyer-seller relationship by being attentive to the customer after the sale.
SOURCE: SE:048
SOURCE: SE LAP 126—The Selling Process
97. B
A sincere effort by the salesperson to be of service. Suggestion selling is a technique in which the
salesperson attempts to increase the customer's purchase by suggesting additional items after the
original decision to buy has been made. People are turned away by pushiness and high-pressure
methods. Passiveness will not bring items to the attention of the customer. Suggestion selling should
include related as well as unrelated items, a greater quantity of items, and higher priced items.
SOURCE: SE:875
SOURCE: SE LAP 110—Using Suggestion Selling
Test 931
RETAIL MERCHANDISING — KEY
29
98. A
$52.50. The amount due is the difference between the first and second purchases. In order to determine
the amount due, the full purchase price of each item must first be calculated. The original purchase was
$99.95 plus 5% tax, or $99.95 x 5% or .05 = $4.9975 or $5.00; $99.95 + $5.00 = $104.95; $149.94 x 5%
=$7.4975 or $7.50; $149.95 + $7.50 = $157.45. The price of the original purchase is then subtracted from
the price of the exchange purchase ($157.45 - $104.95 = $52.50).
SOURCE: SE:162
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 340-341).
New York: Glencoe/McGraw-Hill.
99. D
Establishing a loyal clientele. A clientele is a body of customers upon which an organization can rely for
repeat business. This is important because the discount store would not be able to succeed financially
without repeat business. Following up on sales, offering credit, and carrying out merchandising activities
are ways of building a clientele.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
100. B
Collections supervisor, crew chief, and production supervisor. First-line management is supervisors who
work directly with the employees who carry out the business's routine work. President, senior vice
president, chief executive officer, and chief financial officer are examples of top-level management
positions. Company vice president, department head, and regional sales manager are examples of
middle-management positions.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!