Download PNS4020 Exercise 1 Ans

PNS4020 Exercise 1
1) All of the activities involved in acquiring particular goods and/or services and making them
available at the places, times, prices, and quantities that will enable the firm to reach its goals
comprise ________.
A) merchandising
B) financial merchandise management
C) retail pricing
D) a centralized buying organization
2) A major advantage of centralized buying for a retailer is ________.
A) the increased role of branch stores
B) greater fit with regional trends
C) faster delivery times
D) greater bargaining power
3) A major advantage of a merchandising philosophy is ________.
A) close supervision of selling staff
B) equal treatment of the selling function
C) the buyer is close to consumers via his or her involvement with selling
D) the use of specialists in each area
4) A never-out list is used for ________.
A) fashion items
B) dealer brands
C) fad items
D) best sellers
5) In the growth stage of the product life cycle, ________.
A) goods or service sales reach their maximum
B) variations in the basic product offering appear
C) distribution is typically very limited
D) a skimming price strategy is used
6) Which retail assortment strategy is characterized by a retailer having a broad target market,
one-stop shopping, and a large inventory investment?
A) wide and deep
B) wide and shallow
C) narrow and deep
D) narrow and shallow
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7) Merchandise planning is most problematic for ________.
A) staple merchandise
B) seasonal merchandise
C) impulse merchandise
D) fad merchandise
8) Price competition by retailers is most intense in which product life cycle stage?
A) introduction
B) growth
C) maturity
D) decline
9) Which retail assortment strategy requires the greatest inventory investment for a retailer?
A) wide and deep
B) wide and shallow
C) narrow and shallow
D) narrow and deep
10) Which retail assortment strategy is used by a specialty store?
A) narrow and deep
B) narrow and shallow
C) wide and shallow
D) wide and deep
11) In general, as a retailer moves from a narrow and shallow strategy toward a wide and deep
strategy, ________.
A) customer disappointment with selection increases
B) one-stop shopping appeals are lost
C) inventory turnover decreases
D) a specialist image is received
12) In category management, a grouping of products is viewed as a ________.
A) boutique
B) strategic business unit
C) functional unit
D) vendor responsibility unit
13) A narrow and shallow retail assortment strategy requires the lowest inventory investment.
A) TRUE
B) FALSE
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