Question 1

The use of a mystery shopper in assessing sales training involves a nondisguised audit while the store is open.

Accepted Answer

A) True 
 B)False

Question 2

A retailer is concerned about the degree of integration of its overall strategy.While the retailer prices goods above the market,customer service is uneven and,at times,the parking lot is inadequate.What type of retail audit should the retailer pursue?

Accepted Answer

A)  nondisguised audit
B)  vertical audit
C)  disguised audit
D)  horizontal auditE) None of the above
F) A) and B)

Question 3

Which audit needs to be conducted when the store is open?

Accepted Answer

A)  determining shortages
B)  determining the efficiency of a new lighting system
C)  analyzing a point-of-sale system in handling price changes
D)  analyzing the extent of employee turnoverE) A) and B)
F) All of the above

Question 4

The major advantages in the use of company department managers as auditors are objectivity and lack of time pressure.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a component of the global retail development index?

Accepted Answer

A)  market attractiveness
B)  market saturation
C)  country risk
D)  growth in Gross Domestic Product (GDP) E) A) and B)
F) A) and C)

Question 6

A sales opportunity grid can be used in conjunction with category management.

Accepted Answer

A) True 
 B)False

Question 7

What type of retail audit can be conducted as exploratory research in evaluating a retailer's response to problems and opportunities?

Accepted Answer

A)  nondisguised audit
B)  vertical audit
C)  disguised audit
D)  horizontal auditE) None of the above
F) B) and C)

Question 8

Sales revenue by goods/service category,gross margin return on investment,employee turnover,and financial ratios are examples of _____.

Accepted Answer

A)  performance measures
B)  specific activities
C)  objectives
D)  a retail auditE) All of the above
F) A) and C)

Question 9

Common performance measures used by retailers are sales revenues,gross margin percentages,markdown percentages,and financial ratios.

Accepted Answer

A) True 
 B)False

Question 10

To be successful,strategic planning should be _____.

Accepted Answer

A)  conducted by a planning group
B)  viewed as an integrated and ongoing process
C)  focused on short-term objectives
D)  focused on technologyE) A) and C)
F) None of the above

Question 11

A vertical audit typically precedes a horizontal audit.

Accepted Answer

A) True 
 B)False

Question 12

The first step in undertaking a retail audit is _____.

Accepted Answer

A)  developing audit form(s) 
B)  determining when and how often the audit is conducted
C)  determining who does the audit
D)  conducting the auditE) A) and B)
F) None of the above

Question 13

Top-down retail plans are generally developed by firms that believe in participative management.

Accepted Answer

A) True 
 B)False

Question 14

A retailer with high inventory turnover is likely to have _____.

Accepted Answer

A)  high gross margin return on investment
B)  low operating costs
C)  low employee turnover
D)  high profitsE) B) and C)
F) A) and B)

Question 15

Which statement about a retailing effectiveness checklist is not correct?

Accepted Answer

A)  The retailing effectiveness checklist enables the retailer to compute a total score based on summing individual scores for each category.
B)  The retailing effectiveness checklist is a type of retail audit.
C)  The retailing effectiveness checklist enables retailers to rate performance in each area.
D)  The retailing effectiveness checklist is equally suited for small and large retailers.E) A) and B)
F) B) and D)

Question 16

Retail auditing procedures are standardized through the use of _____.

Accepted Answer

A)  audit forms
B)  nondisguised audits
C)  disguised audits
D)  vertical auditsE) A) and B)
F) A) and C)

Question 17

A vertical audit _____.

Accepted Answer

A)  identifies the relative importance of each retailing mix element
B)  focuses on separate functional elements
C)  evaluates the environment facing a retailer: the economy,demographics,competition,and consumers
D)  is always nondisguisedE) A) and C)
F) A) and B)

Question 18

A retail audit should be conducted with what minimum time frequency?

Accepted Answer

A)  every 5 years
B)  every 3 years
C)  yearly
D)  semiannuallyE) A) and B)
F) C) and D)

Question 19

An appropriate time period for an audit is the busiest month of the year.

Accepted Answer

A) True 
 B)False

Question 20

Which audit is especially suitable for monitoring sales presentations of retail salespersons?

Accepted Answer

A)  systematic
B)  horizontal
C)  disguised
D)  nondisguisedE) A) and D)
F) A) and C)

Exam 20: Integrating and Controlling the Retail Strategy

The first step in undertaking a retail audit is _____.

Correct AnswerverifiedShow Answer

Which statement about a retailing effectiveness checklist is not correct?

Correct AnswerverifiedShow Answer

What type of retail audit can be conducted as exploratory research in evaluating a retailer's response to problems and opportunities?

Correct AnswerverifiedShow Answer

The use of a mystery shopper in assessing sales training involves a nondisguised audit while the store is open.

Correct AnswerverifiedShow Answer

A retailer is concerned about the degree of integration of its overall strategy.While the retailer prices goods above the market,customer service is uneven and,at times,the parking lot is inadequate.What type of retail audit should the retailer pursue?

Correct AnswerverifiedShow Answer

Which audit is especially suitable for monitoring sales presentations of retail salespersons?

Correct AnswerverifiedShow Answer

A vertical audit typically precedes a horizontal audit.

Correct AnswerverifiedShow Answer

An appropriate time period for an audit is the busiest month of the year.

Correct AnswerverifiedShow Answer

A vertical audit _____.

Correct AnswerverifiedShow Answer

A retail audit should be conducted with what minimum time frequency?

Correct AnswerverifiedShow Answer

The major advantages in the use of company department managers as auditors are objectivity and lack of time pressure.

Correct AnswerverifiedShow Answer

Sales revenue by goods/service category,gross margin return on investment,employee turnover,and financial ratios are examples of _____.

Correct AnswerverifiedShow Answer

Which of the following is not a component of the global retail development index?

Correct AnswerverifiedShow Answer

Which audit needs to be conducted when the store is open?

Correct AnswerverifiedShow Answer

Common performance measures used by retailers are sales revenues,gross margin percentages,markdown percentages,and financial ratios.

Correct AnswerverifiedShow Answer

A sales opportunity grid can be used in conjunction with category management.

Correct AnswerverifiedShow Answer

Top-down retail plans are generally developed by firms that believe in participative management.

Correct AnswerverifiedShow Answer

To be successful,strategic planning should be _____.

Correct AnswerverifiedShow Answer

A retailer with high inventory turnover is likely to have _____.

Correct AnswerverifiedShow Answer

Retail auditing procedures are standardized through the use of _____.

Correct AnswerverifiedShow Answer

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