Retailing Management 5th Canadian Edition By Levy – Test Bank

Overview

Multiple Choice Questions

1. Reasons for a chargeback may include all of the following, except:
   A.vendor mistakes such as shoddy labelling
   B. fees paid by a vendor for space in a retail store
   C. merchandise isn’t selling
   E. late shipments
   D. wrong-size boxes or hangers

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-04 Investigate why retailers (buyers) are building strategic relationships with their vendors (sellers).
Topic: 11-26 Chargebacks

2. Why might The Bay shift suppliers from Asian countries to Caribbean countries or even local suppliers in Canada?
   A.It may be more profitable.
   B. The Caribbean countries may offer shorter and more consistent lead times.
   C. Some customers may prefer “Made in Canada” merchandise.
   D. It may be easier to monitor working standards in domestic factories.
   E. All of these are valid reasons to consider this change.

Blooms: Understand
Difficulty: Easy
Learning Objective: 11-02 Explore the issues retailers should consider when sourcing internationally.
Topic: 11-05 International Sourcing Decisions

3. Which of the following is TRUE of a grey-market good?
   A.Grey-market merchandise is counterfeit merchandise.
   B. Grey-market merchandise often is not the same quality and is visually different to merchandise brought into the country through normal channels.
   C. A grey-market good is merchandise that possesses a valid North American registered trademark and is made by a foreign manufacturer but is imported into North America without permission of the trademark owner.
   D. Grey-markets are a declining business
   E. All of these are true of a grey-market good.

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-04 Investigate why retailers (buyers) are building strategic relationships with their vendors (sellers).
Topic: 11-31 Grey-market and diverted merchandise

4. National brands are also called _______________ brands.
   A.manufacturer
   B. private-label
   C. exclusive
   D. generic
   E. distributor

Blooms: Remember
Difficulty: Easy
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-02 Manufacturer brands

5. Gerber baby food, Lubriderm moisturizer, Dell computers, and Harley Davidson motorcycles are all examples of _______________ brands.
   A.national
   B. private-label
   C. general
   D. generic
   E. licensed

The items in the question are all products that are produced and controlled by one manufacturer and that carry a name belonging to that manufacturer.

Blooms: Remember
Difficulty: Easy
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-02 Manufacturer brands

6. Why do department stores organize some of their categories around national brands as opposed to the traditional classification scheme?
   A.It is helpful to the vendors as they can make their quotas in department stores
   B. It is ethical for retailers to support their vendors by selling their national brands
   C. National brands are much more profitable for the retailer than the private brands
   D. Merchandise can be purchased and coordinated around a central theme
   E. Sales are unpredictable and retailers prefer a sure thing with national brands

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-04 A brand or a store?

7. A discount store would most likely buy from vendors of manufacturer brands to:
   A.increase its promotional expense
   B. moderate its traffic flow
   C. gain a positive impact on its store image
   D. create brand recognition
   E. do all of these

Manufacturer brands have a positive impact on a store’s image, increase traffic flow, and lower promotional expenses. Manufacturer brands appeal to brand loyal customers.

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-02 Manufacturer brands

8. With so many retailers offering Elizabeth Arden’s Green Tea Scent Spray, how can a cosmetics store manager attract customers to her store to purchase the product?
   A.Offer a significant discount on the product
   B. Advertise heavily in local papers and media about the product’s availability at her store
   C. Put all perfumes on sale for a one-day event
   D. Negotiate better delivery dates with the vendor to coordinate with selling events
   E. Do none of these

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-02 Manufacturer brands

9. Which of the following type of brands would a retailer normally expect to get the lowest gross margin?
   A.National brands
   B. Private-label brands
   C. Exclusive brands
   D. Generic brands
   E. Unique brands

Blooms: Remember
Difficulty: Medium
Learning Objective: 11-01 Determine what branding options are available to retailers.
Topic: 11-02 Manufacturer brands

10. Retailers achieve lower gross margins from selling national brands because of:
    A.poor customer service
    B. the distinctive identity national brands have assumed
    C. the popularity of private-label brands
    D. the cost of quality control
    E. the costs incurred by the vendors of promoting the national brands