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Entrepreneurship I Review
What is "market share"?
Which best describes "consultative selling"?
Entrepreneurship I Review
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Entrepreneurship I Review
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Answers
1
Which best describes "consultative selling"?
Working with a customer to determine his or her needs
Offering only one kind of each product
Using the latest research to redesign a floor plan
2
What is "market share"?
The % a store has of the total sales in its trading area
The shelf space a store devotes to any particular product
The amount of floor space a retail store has
The price of a store's shares on the stock market
3
Newspapers, magazines, and direct mail are all examples of what?
Alternative media
Broadcast media
National institutions
Print media
4
A smart store layout moves customers in and out as fast as possible.
False
True
5
What are two advantages of highly marketable items?
They wear out quickly and need to be replaced often
Easy to sell and attract lots of customers to the store
Always have high profit margins and are easy to get in stock
6
How are promotional budgets normally determined?
By budgeting just a little bit more than the competition
By using a percentage of a business's net sales
By using an estimate of expected future sales
7
Which of the following is an example of sales promotion?
A flyer filled with coupons for discounts on merchandise
A press release announcing a new store opening
A radio ad thanking customers for their continued support
8
In the context of retail, which of the following means the same as "stock"?
Floor space
Headroom
Inventory
Common
9
What is a "complementary" business?
A business plan that focuses on customer service
A retailer that sells related merchandise as one's own store
A retailer that helps customers look good
10
Where is a POP display often set up?
On the sidewalk
In the front of a store
In the back of a store
11
A question beginning with "how" or "why" is usually what type of research question?
Binary
Secondary
Qualitative
Proprietary
12
What is a loyalty program?
A program in where businesses donate money to the community
Any kind of marketing strategy that creates loyal customers
An advertising campaign that focuses on national values
13
What are "loss leaders" designed to do?
Attract more customers to come into the store
Drive competitors out of business
Keep advertising budgets under control
Reduce a store's tax burden
14
What are the two main factors a retail business must strike a compromise between for price. ?
Quality and quantity
Location and value
Advertising budget and cost of ads
Reasonable margin and customers' willingness to pay
15
Which is not a secondary consideration when locating a retail store?
Availability of workers
Possibilities for expansion
Access to good schools
Zoning laws
16
To a retail business owner, what is "cost"?
The selling price
The environmental damage caused by the store
The amount paid to suppliers for merchandise
17
True or false: When a price is set too low, customers might think the product is defective.
True
False
18
Which is NOT one of the five steps in conducting market research?
Apply for government funding
Obtain data
Apply for government funding
Choose the best solution
19
Advertising a low-priced product in order to lure customers into buying a high-priced product
Promotional mix
A shell game
Bait and switch
Phishing
20
In a retail business, what number do you get by subtracting an item's cost from its price?
Overhead
Profit
Discount
Margin
21
What is just-in-time inventory control designed to do?
Reduce the amount of inventory a store must keep on hand
Eliminate wasteful packaging
Cut down on merchandise lost to theft
Minimize time spent restocking shelves
22
Which of the following might be considered an impulse purchase?
A new computer printer
A bag of pink grapefruit
A loaf of bread
A candy bar
23
Which is NOT a use for market research?
Determining tax deductions
Forecasting sales
Identifying what services customers want
Deciding what merchandise to sell
24
What did the Clayton Antitrust Act of 1914 and the Robinson-Patman Act of 1936 outlaw?
Collusion
Pre-Thanksgiving sales
Price discrimination
Undercutting the competition
25
What is one of the two main ways businesses usually create an address list?
collecting addresses on their own
purchasing a list from a third party
By using government data and market research
By word of mouth and by asking friends and family
26
What do employee compensation laws do?
Determine minimum wages, 40-hour work week, & overtime pay
Guarantee income in case of injury
Provide transportation to workers without their own car
27
What is "staffing level"?
The rank above cashier
Assigning the same number of workers to each department
The number of workers assigned to jobs at a particular time
The educational level attained by employees of a business
28
The goal of a promotion should be what?
Decided after the promotion has ended
To impress local politicians
Specific and clearly stated
29
Which product has the highest "consumability"?
A plasma TV
A chest freezer
An iPad
A loaf of bread
30
What is a "business district"?
It's the IRS's term for "shopping mall"
Unenclosed shopping area developed w/o much planning
Any group of 3 or more businesses adjacent to one another
31
Which of the following is NOT a necessary trait of a good employee?
Tidy appearance
Good communication skills
Willingness to accept direction
Lives nearby
32
In a triple net lease, who pays for property maintenance?
A third-party contractor
The landlord
The tenant
33
What is meant by "promotional mix"?
A staggered schedule of ads airing at different times of day
The combination of the types of promotion a business uses
A set of key words all successful ad campaigns should use
34
What is an internal email list?
One that is kept only on one computer for extra security
One that was generated by the business itself
One that was generated from IRS data
35
What is the primary purpose of fixtures?
To provide good lighting
To display merchandise
36
Which of the following is not part of the process of checking in stock?
Arranging goods on a display rack
Reviewing expiration dates of perishable goods
Ensuring stock is in good condition
37
An understaffed store may become a target for what?
Shoplifters
Tax audit
Panhandlers
Deal-seekers
38
Is secondary data generally more expensive or less expensive than primary data?
More
Less
39
What is a disadvantage of using a large sample size?
Less accuracy
Tax liabilities
Privacy concerns
Increased expense
40
Which of the following is NOT a type of store layout?
Spine
Grid
Loop
Runway
41
What is a "hard bounce"?
An email sales technique that often doubles a response rate
A method of sending emails anonymously
An email address is forcibly directed to the recipient
Email returned bc an address does not exist/has been closed
42
What are the two main sources of data?
Computer/real world
Government/private sector
Primary/secondary
43
Which question is an example of quantitative market research?
How did you hear of our product?
How many time's did you purchase this product in the past
Why did you buy this product?
44
Which is NOT a symptom of an understaffed store?
Unhappy customers
Closed cash registers
Customers using credit cards
Poor stock maintenance
45
Which of the following is the best example of a loyalty program?
An end-of-year clearance sale
A "buy nine, get the tenth one free" punch card
A shelf where heavily discounted items are placed
46
How do managers deal with overstaffing problems?
By canceling ad campaigns
By making full-time positions part-time
By cutting back store hours
By selling the store
47
Who is usually involved in personal selling?
A business owner's family and friends
A store's sales associates
Customers
A radio executive
48
What does a store's buyer do?
Purchases merchandise to sell
Tests the effectiveness of a store's sales force as shopper
Keeps track of competitors' prices
49
What are "price points"?
The practice of listing all prices so they end in ".99"
Incentive programs that encourage customers to spend more
The typical selling prices at which goods are sold
50
A grocery store would most likely use which type of layout?
Loop
Grid
Random
Free flow
51
What types of businesses generally prefer freestanding locations?
Small mom-and-pop retailers
Big-box retailers such as Home Depot
Nail salons
52
What does stock turnover measure?
The sales tax due for each item
The size of a product's packaging
How often stock is sold during a given time period
The ease with which merchandise can be placed on shelves
53
Which of the following would be considered a good response rate for an email campaign?
All of the above
5 percent
1 percent
20 percent
54
Which government agency is in charge of enforcing advertising laws?
The SEC
The US Chamber of Commerce
The Justice Department
The Federal Trade Commission
55
Which is typically perceived as one of the main advantages of a big-box retailer?
Convenient downtown locations
Personalized customer service
Low prices
56
Which is NOT a source of secondary data?
Past sales records
Federal government
Trade associations
A business's own Facebook survey
57
Which is not a critical consideration when choosing a location for a retail store?
Nearby police station
Traffic
Convenience
Visibility
58
What does a vendor's invoice typically list?
The minimum retail sales prices
Upcoming specials
The items and quantities in a delivery
The dates by which perishable goods must be sold
59
What is a "markdown"?
A price reduction in order to boost the number of sales
A special tax-exempt item
Another name for taking inventory
The sticker on the package stating the price
60
Which of the following items is the least seasonal?
Bottled water
Swimsuit
Whole turkey
Snowboard
61
In a sliding scale % lease, what usually happens to the amount of rent paid as sales go up?
It goes down as a percentage of sale
Nothing
It goes up as a percentage of sales
62
Of fixed-rate, percentage, and tnl which makes financial planning easiest for a business owner?
Triple net
Percentage
Fixed-rate
63
What is a "vendor"?
The head cashier in a store
Any automated sales process that needs no human interaction
Business that sells merchandise to retail stores for resale
64
Which of the following items is NOT perishable?
Batteries
Eggs
Meat
Paper towels
65
When offering a job to an applicant, what should the manager and new hire mutually agree upon?
The next year's vacation schedule
The break schedule
The date for the holiday party
The starting date
66
What is an advantage of selling consumable items?
They typically have a large profit margin
They do not need refrigeration
They tend to generate repeat business
They are long-lasting
67
Which is an example of specialty media?
A satellite television ad
A "midnight madness" sale
T-shirts with a store logo on them
68
What is a store's "open-to-buy"?
The number of hours a week that customers can come to shop
The amount of money available for purchasing new inventory
A real estate term indicating that a business is up for sale
A spreadsheet listing all unsold merchandise
69
What did the Sherman Antitrust Act outlaw?
Black-market goods
Counterfeit money
Monopolies and price fixing
Deceptive advertising
70
True or false: Secondary data is often gathered before primary data.
False
True
71
Which of the following is NOT something a potential employee needs to know before being hired?
The number of hours to be worked
The job description
The wages
Must memorize the entire product line
72
What does "total opens" measure?
The number of customers who sign a purchase agreement
The recipients who actually open your marketing email
The customers who come to your store on the day of a sale
73
What is the main reason a business might use a third-party list?
It is difficult to collect a large number of email addresses
They are much cheaper
Customers are more likely to read any emails they receive
74
What is a common way retailers measure store productivity?
Customer surveys
Sales per square foot
By word of mouth
75
Which of the following is NOT a type of inventory system?
Virtual
Perpetual
Physical
76
What is a loop layout designed to make customers do?
Buy several of the same item
See the most merchandise
Arrive at a shelf with overstock inventory
77
Long lines are an indication of what?
Too many people writing checks
Prices that are too low
Understaffing
Disgruntled employees
78
Of fixed-rate, percentage, and triple net leases, which is used least often?
Triple net
Percentage
Fixed-rate
79
Staple merchandise is usually placed where?
In a permanent location, often in the rear of the store
On a bottom shelf
Outside the front door
By the cash registers
80
When supply goes down and/or consumer demand goes up, what usually happens to the price?
Nothing
It rises
It drops
81
What is meant by "trade area"?
It's a business's geographic surroundings
It's the type of item a store specializes in selling
It's the physical space where the cash registers are located
82
What do equal opportunity employment laws do?
Guarantee the same number of hours to each employee
Guarantee vacation days for everybody
Protect employees from discrimination
83
What did the CAN-SPAM Act of 2003 do?
Require "unsubscribe" links in all marketing emails
Require that all email marketers be American citizens
Require that email messages delete themselves after 30 days
84
What is a great advantage of an internal list?
It naturally targets customers with the most money
It contains names from around the country and even the world
It contains names & emails voluntarily supplied by customers
It can be compiled in just a matter of hours
85
Which is an example of how a small store might best compete with a large, big-box chain?
By selling at a loss
By moving into a location across the street
By offering in-store workshops
86
True or false: In retailing, "product" and "merchandise" are used interchangeably.
True
False
87
What is a focus group?
small group of people who provide opinions
Elite consumers chosen for their trend-setting taste
A set of retail outlets designated as test stores
88
Who usually provides POP displays?
Retailers
Trade groups
Manufacturers
The government
89
Which of the following is the responsibility of a vendor?
Ensuring perishable goods are sold quickly
Properly displaying merchandise
Delivering merchandise on time
Marking products with the correct prices
90
What is "institutional promotion"?
Promotion that does not use the Internet
Promotion meant to heighten a store's image
Promotion aimed at schools
