Which aspects of a store’s exterior are controllable by the retailer? Which are uncontrollable?
> Which of the following transactions would count in GDP? Select one or more of the answers from the choices shown. a. Kerry buys a new sweater to wear this winter. b. Patricia receives a Social Security check. c. Roberto gives his daughter $50 for her bi
> Tina walks into Ted’s sporting goods store and buys a punching bag for $100 dollars. That $100 payment counts as ________________ for Tina and _______________ for Ted. a. Income; Expenditure. b. Value added; Multiple Counting. c. Expenditure; Income. d.
> “Ninety percent of new products fail within two years—so you shouldn’t be so eager to innovate.” Do you agree? Explain why or why not.
> Suppose that purely competitive firms producing cashews discover that P exceeds MC. Will their combined output of cashews be too little, too much, or just right to achieve allocative efficiency? In the long run, what will happen to the supply of cashews
> Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $12 per meal. What is the size of this firm’s profit or l
> Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in
> Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23%, 22%, 18%, 12%, 11%, 8%, and 6%. What is the four‐firm concentration ratio of the hamburger industry i
> Using diagrams for both the industry and a representative firm, illustrate competitive long-run equilibrium. Assuming constant costs, employ these diagrams to show how (a) an increase and (b) a decrease in market demand will upset that long-run equilib
> Which of the following best describes the efficiency of monopolistically competitive firms? a. Allocatively efficient by productively inefficient. b. Allocatively inefficient but productively efficient. c. Both allocatively efficient and productively ef
> In the small town of Geneva, there are 5 firms that make watches. The firms’ respective output levels are 30 watches per year, 20 watches per year, 20 watches per year, 20 watches per year, and 10 watches per year. The four-firm concentration ratio for t
> There are 10 firms in an industry, and each firm has a market share of 10 percent. The industry’s Herfindahl index is: LO1 a. 10. b. 100. c. 1,000. d. 10,000.
> Suppose that as the output of mobile phones increases, the cost of touch screens and other component parts decreases. If the mobile phone industry features pure competition, we would expect the long-run supply curve for mobile phones to be: a. Upward sl
> Did the eventual recovery of the unemployment rate after the Great Recession indicate recovery in all aspects of employment? Explain and give examples
> The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develo
> Jean Baptiste Colbert was the Minister of Finance under King Louis XIV of France. He famously observed, “The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissi
> A retailer has a beginning monthly inventory valued at $100,000 at retail and $61,000 at cost. Net purchases during the month are $190,000 at retail and $115,000 at cost. Transportation charges are $10,500. Sales are $225,000. Markdowns and discounts equ
> A retailer has yearly sales of $900,000. Inventory on January 1 is $360,000 (at cost). During the year, $660,000 of merchandise (at cost) is purchased. The ending inventory is $325,000 (at cost). Operating costs are $90,000. Calculate the cost of goods s
> Present two situations in which it would be advisable for a retailer to take a markdown instead of carry over merchandise from one budget period to another.
> Contrast the weeks’ supply method and the percentage variation method of merchandise planning.
> Why use sophisticated weather forecasting services if daily weather predictions tend to be inaccurate?
> Why should a local appliance store designate control units, even though this may be time-consuming?
> Explain the basic premise of the retail method of accounting. Present an example.
> The FIFO method seems more logical than the LIFO method, because it assumes the first merchandise purchased is the first merchandise sold. So, why do many more retailers use LIFO?
> Which retailers can best use a perpetual inventory system based on the cost method? Explain your answer.
> 1. A retailer can sell 100 printers per month at a price of $200 each or 275 printers per month at a price of $175 each. What is the elasticity of demand (expressed as a positive number)? a. 0.40 b. 1.00 c. 1.65 d. 7.01 2. If the retailer in problem 1 c
> How are the terms gap analysis and scenario analysis interrelated?
> 11. A retailer has purchased a line of suits for $200 each. The selling price is $375 per suit. What is the markup at retail? a. 46.7% b. 57.1% c. 75.0% d. 175.0% 12. A retailer has net annual sales of $300,000. Retail expenses are $75,000. Net profit i
> 1. A retailer uses a perpetual inventory system. Compute the firm's end-of-month inventory at cost, if monthly sales (at cost) = $600,000; monthly sales (at retail) = $750,000; monthly purchases (at cost) = $250,000; and beginning inventory (at cost) = $
> A retailer buys items for $65. At an original retail price of $89, it expects to sell 1,000 units. a. If the price is marked down to $79, how many units must the retailer sell to earn the same total gross profit it would attain with an $89 price? b. If t
> Under what circumstances do you think unbundled pricing is a good idea? A poor idea? Why?
> What are the pros and cons of everyday low pricing to a retailer? To a manufacturer?
> At the end of the year, the retailer in question 8 determines that actual operating expenses are $160,000, actual profit is $120,000, and actual sales are $650,000. What is the maintained markup percentage? Explain the difference in your answers to quest
> A firm has planned operating expenses of $200,000, a profit goal of $130,000, and planned reductions of $35,000 and expects sales of $700,000. Compute the initial markup percentage.
> A gift store charges $25.00 for a ceramic figurine; its cost is $14.00. What is the markup percentage (at cost and at retail)?
> A car dealer purchases on-dashboard GPS systems for $100 each and desires a 35 percent markup (at retail). What retail price should be charged?
> A beauty supply retailer wants to receive a 35 percent markup (at retail) for all merchandise. If a magnifying mirror retails for $11 per tile, what is the maximum that the retailer would be willing to pay for a magnifying mirror?
> What is the value of the global retail development index?
> Explain why markups are usually computed as a percentage of selling price rather than of cost.
> Give an example of a price strategy that integrates demand, cost, and competitive criteria.
> Comment on each of the following from the perspective of a large retailer. a. Horizontal price fixing. b. Vertical price fixing. c. Price discrimination. d. Minimum-price laws. e. Unit pricing.
> Why is it important for retailers to understand the concept of price elasticity even if they are unable to compute it?
> Present a community relations program for a pharmacy chain.
> Do you agree with upscale retailers’ decision not to provide in-store shopping carts? What realistic alternatives would you suggest? Explain your answers.
> How could a neighborhood paint supply store engage in solutions selling?
> Which stores should not use a curving (free-flowing) layout? Explain your answer.
> Develop a purchase motivation product grouping for an online men’s apparel retailer.
> Present a planogram for a nearby bank.
> What is benchmarking? Present a five-step procedure to do retail benchmarking.
> What is meant by selling, merchandise, personnel, and customer space?
> Define the concept of atmosphere. How does this differ from that of visual merchandising?
> How could a store selling new computers project a value-based retail image? How could a store selling used computers project such an image?
> Why is it sometimes difficult for a retailer to convey its image to consumers? Give an example of a restaurant with a fuzzy image.
> For each of these promotional objectives, explain how to evaluate promotional effectiveness: a. To increase impulse purchases of candy. b. To project a reliable image. c. To increase customer loyalty rates.
> Develop a checklist for a chain of large sporting goods stores to coordinate its promotional plan.
> Explain the hierarchy of effects from a retail perspective. Apply your answer to a new auto dealer.
> Develop sales promotions for each of the following: a. A nearby strip shopping center. b. A new restaurant. c. An upscale discount online furniture retailer.
> What are the pros and cons of coupons?
> Cite five performance measures commonly used by retailers, and explain what could be learned by studying each.
> How can advertising, public relations, personal selling, and sales promotion complement each other for a retailer?
> Are there any retailers that should not use sales promotion? Explain your answer.
> Are there any retailers that should not use personal selling? Explain your answer.
> How can a local pharmacy try to generate positive publicity?
> How do manufacturer and retailer cooperative advertising goals overlap? How do they differ?
> How would an advertising plan for an online-only gift retailer differ from that of a bricks-and-mortar gift store chain?
> 1. Explain why the 2Es are so important for forward-looking retail planning. 2. What’s the last retailer—physical store or online store— that excited you? Describe what excited you. Did this encourage you to buy more or pay a quick return visit? Why or w
> 1. What do you think about the methodology used to gather the data for this case? Explain your answer. 2. “The first challenge is Differentiation and Relevance.” Why is this true for retailers of all types and sizes? Why will this be even more difficult
> 1. For a deep discounter, should price be the only element of the retailer’s strategy that is promoted? Explain your answer. 2. In advertising prices, does Walmart have to enact the same prices for items sold in all of its stores throughout the United S
> 1. As an apparel retailer, would you be excited by utilizing eyeQ displays to tailor products to specific customers? 2. As a one-way system— no questions are asked of shoppers— how accurate do you think that eyeQ would be in identifying customer characte
> Develop a sales opportunity grid for a supermarket that plans to add a fresh Jamba juice bar to its services mix in stores.
> 1. How would you promote a proactive health-and-wellness theme as a drugstore chain? 2. What does “transparency” mean with regard to the information provided by retailers? What grade would you give to the retailers you patronize? Why? 3. How would you ad
> 1. From a retailer perspective, how would you exhibit “simplicity” in an omnichannel world? 2. From a consumer perspective, what does “simplicity” mean to you? Is it important? Explain your answer. 3. Should every kind of retailer— small, large, discount
> 1. What retailer activities are involved with a price optimization strategy? 2. Why don’t more retailers use price optimization strategies? 3. How does price optimization relate to the concept of category management? 4. How could a small retailer engage
> 1. What are your overall conclusions about the information presented in this? 2. Do the data highlighted in the case affect both suppliers and retailers? Explain your answer. 3. Comment on the results shown in Table 1. 4. What criteria should suppliers
> 1. As a retail buyer, what criteria would you use in deciding whether your chain should carry the new Samsung Family Hub refrigerator? 2. What kind of support would you require from Samsung with regard to training you (as the buyer) and the on-floor sale
> 1. Present a merchandising philosophy for this sporting goods retailer. 2. Why do you think this retailer would prefer an inside buying organization, rather than an outside one? 3. If this buyer position is responsible for tennis equipment, what decisio
> 1. What is the proper mix of humans and technology in preventing shrinkage losses? 2. How would a small retailer’s theft avoidance strategy differ from that of a large strategy? Why? 3. Develop an operations blueprint (see Figure 13-1 for an example) to
> 1. Based on the information this case, what kind of career path would you expect an SMDO to have? Why? 2. How could an SMDO have an impact on a retailer’s cash flow? 3. How could an SMDO have an impact on a chain retailer’s energy management systems? 4.
> 1. Based on the information this case, what kind of career path would you expect an MTD to have? Why? 2. Using Figure 11-4 as an example, present a similarly formatted job description for an MTD. 3. How could an MTD improve a retailer’s financial operati
> 1. What are the pros and cons of delineating such a long list of specific activities for an ASM to perform? 2. Why is ASM a good starting point for a retail career? 3. What criteria would you use to determine how well an ASM is doing in his/her job? 4. W
> Why is it imperative for a firm to view its strategy as an integrated and ongoing process?
> 1. A new technology allows retailers to be sure the temperature in a delivery trailer is in the proper range for refrigerated or frozen food, and whether products can go on to the store, require more testing, or are rejected. Relate this to store locatio
> 1. What is the most surprising thing that you learned from reading this case? Explain your answer. 2. What are the implications of this case for a U.S. retailer that wants to open in Europe? 3. What are the implications of this case for an online retaile
> 1. Comment on this statement: “AEO established a strategy based on what its road map would look like for the next 5 years.” 2. Explain the concept of “channel-immune” distribution centers. How does this fit with retailers’ store location decisions? 3. Wh
> 1. How is trading-area analysis different for a small store than a large store? Explain your answer. 2. How should a food-delivery service such as AmazonFresh define its trading area? Is it going to bigger or smaller than a traditional supermarket’s trad
> 1. What is the TNS Shopper Universe? Why is it a valuable tool for retailers? 2. Describe the consumer segments included as experience-driven. 3. Describe the consumer segments included as task-driven. 4. Which customer segments noted in this case are mo
> 1. What do hot retailers have in common? Explain your answer. 2. Why do you believe that so many supermarkets and apparel stores seem to be hot retailers? 3. Cite one retailer mentioned in this case that you think is still hot. Do some research to prove
> 1. What is the convenience economy? Give your own examples. 2. Is the convenience economy good or bad for retailers? Why? 3. What would restaurants have to do to be able to use the Ritual app efficiently and effectively? 4. What is your favorite example
> 1. According to the information in the case, how are American demographics changing? 2. As a supermarket retailer, how would you address the rise in U.S. single-person households? 3. As a local gift shop, how would you address the rise of Hispanics in th
> 1. Why is omnichannel retailing a bigger challenge for food retailers than general merchandise retailers? 2. Apply DyShaun Muhammad’s three key steps to your favorite supermarket. 3. Comment on this statement: “It’s easier to do multichannel, but that cr
> 1. Do you agree or disagree with this statement: “It’s no longer bricks-and-mortar versus E-commerce — omnichannel is the path to success.” Explain your answer. 2. How has Walmart evolved over the years to address changing consumer desires, new technolog
> Visit the Web site of PetSmart (www.petsmart.com) and then comment on its storefront, general interior, store layout, displays, and checkout counter.
> 1. What must retailers that are the “favorites of today” do to remain popular? 2. What criteria do you use in deciding on your favorite stores? Why? 3. Take a look at the Jet Web site (https://jet.com). Do you think it will succeed? Why or why not? 4. De
> Why do you think that “virtual shopping” has not taken off faster as a research tool for retailers?
> Why would a retailer use mystery shoppers rather than other forms of observation? Are there any instances when you would not recommend their use? Why or why not?
> Develop a 10-item semantic differential for a local furniture store to judge its image. Who should be surveyed? Why?
> Cite the benefit of each primary data method: survey, observation, experiment, and simulation.
> As a fitness club owner, what kinds of secondary data would you use to learn more about your industry and consumer trends in leisure activities?
> Cite the major advantages and disadvantages of secondary data.
> What are the opportunities and potential problems with electronic data interchange (EDI) for a drugstore chain?
> Explain the relationship among the terms data warehouse, data mining, and micromarketing. How can f.y.e. (for your entertainment, www.fye.com) apply these concepts?
