Retail Management A Strategic Approach 13th Edition Berman Test Bank

Retail Management A Strategic
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Retail Management: A Strategic Approach, 13e (Berman/Evans/Chatterjee)
Chapter 8 Information Gathering and Processing in Retailing
1) Using intuition, continuing what was done before, and copying a successful competitor's
strategy are examples of ________.
A) retail strategies based on nonsystematic research
B) creative problem solving
C) the marketing concept applied to retailing
D) executive judgment
Answer: A
Difficulty: Moderate
Skill: Terminology/Concept
2) An example of nonsystematic research in retailing, relating to the effect of a price rise on

projected sales, is ________.
A) evaluating sales of sweaters at different price levels in prior years
B) developing an educated "guess" as to demand for sweaters based on current weather
conditions
C) interviewing consumers to determine their probability of purchasing sweaters at different
prices
D) experimentation with different price levels in matched-pairs of stores
Answer: B
Difficulty: Challenging
3) The information needs of retail managers are anticipated, collected, organized, and stored on a
continuous basis in ________.
A) a retail information system
B) observation
C) an experiment
D) retail research
Answer: A
4) Which of these is not a benefit of the use of a retail information system?

A) Opportunities can be foreseen.
B) The initial time and labor investment is low.
C) Crises can be avoided.
D) The elements of a retail strategy can be coordinated.
Answer: B
1
Copyright © 2018 Pearson Education, Inc.
5) The procedure to gather, integrate, apply, and store information related to specific subject
areas is referred to as ________.
A) data warehousing
B) data mining
C) database management
D) a retail information system
Answer: C
6) A major benefit to data warehousing is its ________.

A) ability for data access and retrieval at multiple locations
B) low cost
C) continuously being updated
D) ease of use
Answer: A
7) An application of data mining is ________.

A) pilferage control
B) sales forecasting
C) micromarketing
D) mass marketing
Answer: C
8) The use of micromarketing is an example of which target marketing strategy?

A) undifferentiated marketing
B) mass marketing
C) concentrated marketing
D) differentiated marketing
Answer: D
9) Which statement concerning the Universal Product Code (UPC) is not correct?
A) The UPC is not readable by humans.
B) The UPC is now the accepted industry standard by food and general merchandise retailers.
C) The UPC symbol also includes price information.
D) With the UPC, cashiers no longer have to enter transactions manually.
Answer: C
2
10) The Universal Product Code (UPC) system allows a retailer to ________.
A) develop a personnel performance system
B) evaluate store managers based on profitability
C) read price information based on the code
D) store and monitor product sales data on an item-by-item basis
Answer: D
11) Retailers and their suppliers regularly exchange information via their computers through the
use of ________.
A) retail information systems
B) electronic data interchange
C) data-base management
D) customer relationship marketing programs
Answer: B
12) Marketing research in retailing involves ________.

A) primary data collection and analysis
B) secondary data collection and analysis
C) the collection and analysis of information relating to specific issues or problems facing a
retailer
D) the gathering, storing, and retrieval of data in an orderly manner
Answer: C
13) Which stage of the marketing research process in retailing is concerned with the
development of a clear statement of the topic to be examined?
A) recommendations
B) primary data collection
C) issue (problem) definition
D) implementation
Answer: C
3
14) Data that have already been gathered for purposes other than the problem or issue under
study are ________.
A) secondary data
B) primary data
C) marketing research data
D) marketing information systems data
Answer: A
15) Secondary data can be further broken down into ________ and ________ data.
A) probability; nonprobability
B) internal; external
C) survey; experiments
D) primary; tertiary
Answer: B
16) Data generated through surveys, observation, experiments, and simulation to address the
specific problem or issue under study are ________ data.
A) primary
B) secondary
C) marketing information systems
D) marketing research
Answer: A
17) A major advantage of secondary data is the ________.

A) fit with the research topic to be studied
B) immediate availability of data for analysis
C) ability to control the use of questions and the sequence of questions
D) known source and control over data collection
Answer: B
18) A major disadvantage of the use of secondary data is ________.

A) its high cost of data collection
B) its lack of a representative sample
C) that data may be categorized in an unusable fashion
D) its difficulty in tabulation
Answer: C
4
19) An example of internal secondary data is ________.
A) a new market research study conducted by an independent market research company
B) a new market research study conducted by the firm's market research department
C) a retailer's profit-and-loss statements
D) annual reports of competitors
Answer: C
20) An example of external secondary data is ________.

A) a new market research study conducted by an independent market research company
B) a new market research study conducted by the firm's market research department
C) company-based inventory records
D) annual reports of competitors
Answer: D
21) Ongoing studies are made available to many clients for a fee from ________.
A) channel members
B) the U.S. federal government
C) the Business Periodicals Index
D) commercial research houses
Answer: D
22) A major advantage of primary data is that the ________.

A) study is inexpensive
B) methodology is conducted for the current study
C) data are readily available
D) data can always be collected by a single retailer
Answer: B
23) Sampling of stores, products, or customers in a nonprobability sample is conducted on the

basis of ________.
A) judgment or convenience
B) an equal chance of being chosen
C) a known chance of being chosen
D) a table of random digits
Answer: A
5
24) Information is systematically gathered from respondents by communicating with them in
a(n) ________.
A) observation
B) simulation
C) survey
D) experiment
Answer: C
25) Which of the following is not a survey?

A) personal interviewing
B) customer traffic counts
C) a mail-based questionnaire
D) a telephone-based questionnaire
Answer: B
26) The potential for interviewer bias is greatest in which survey technique?
A) mail survey
B) observation
C) telephone survey
D) personal survey
Answer: D
27) In a nondisguised survey, a respondent is told the ________.

A) actual stores being investigated
B) sponsor of the survey
C) actual intent of the study
D) actual name of the market research company conducting the survey
Answer: C
28) Disguised surveys are typically used to study consumer ________.

A) demographics
B) lifestyles
C) attitudes
D) reactions to price changes
Answer: C
6
29) The semantic differential technique uses ________.
A) demographic data
B) nominal scales
C) ratio scales
D) bipolar adjective scales
Answer: D
30) An appliance retailer is classified by consumers as friendly, reliable, moderately attractive,

and as providing a relatively good value for the money. The research technique used by the
retailer is ________.
A) observation
B) a semantic differential
C) experimentation
D) an online survey
Answer: B
31) A form of research in which present behavior or the results of past behavior are noted and
recorded is ________.
A) observation
B) survey
C) simulation
D) experimentation
Answer: A
32) The major disadvantage of observation is that ________.

A) the sampling is not probability-based
B) attitudes cannot be studied
C) the experiment is contrived
D) the respondent knows that he or she is being measured
Answer: B
7
33) One or more elements of a retail strategy mix are manipulated under controlled conditions in
which research technique?
A) observation
B) simulation
C) survey
D) experiment
Answer: D
34) Which research technique is able to show cause and effect?

A) survey
B) experiment
C) observation
D) simulation
Answer: B
35) A mathematical model is constructed to explain the environment facing a retailer in which
research technique?
A) survey
B) experiment
C) observation
D) simulation
Answer: D
36) A small movie theater plans to build a coffee and snack bar that features espresso based on
the success of a much larger competitor that features six screens. This strategy represents
________.
A) systematic research
B) nonsystematic research
C) a retail information system
D) single-source data
Answer: B
Skill: Applied/Comprehensive/Integrative
8
37) Which does not represent a systematic method of research?
A) pre-testing of a survey to determine potential biases in wording
B) verifying that interviews were actually conducted with selected respondents by use of a
telephone
C) use of a nonprobability sample in a legal case involving retail pricing
D) removing potential respondents, who have moved prior to a store being renovated, from a
store image survey
Answer: C
38) A major characteristic of a retail information system is ________.

A) its low cost
B) the use of competitor data
C) the use of verified data from government sources
D) its continuous nature
Answer: D
39) A hotel chain found the following profile to exist for its guests: average stay is 2.7 nights, 55
percent had a car with them, 8 percent watched a pay-per-view television program, and 15
percent purchased a snack item from the in-room refrigerator. Which form of marketing research
was the retailer utilizing?
A) a retail information system
B) an experiment
C) simulation
D) observation
Answer: A
40) The difference between regular reports and exception reports is based on ________.
A) length
B) the handling of deviations from expected performance
C) cost
D) types of accounts covered
Answer: B
9
41) A retailer with 1,000 credit accounts has 50 with balances that are past due for over 45 days.
How many accounts would be listed in the exception report?
A) 25
B) 45
C) 50
D) The answer cannot be determined based on the information provided.
Answer: B
42) An example of an exception report is ________.

A) a report listing customers with overdue credit card balances
B) a quarterly profit-and-loss statement
C) an inventory turnover report by merchandise classification
D) an analysis of profitability by merchandise classification
Answer: A
43) A frequent-shopper program is an example of ________.

A) electronic data interchange
B) market research
C) database management
D) data mining
Answer: C
44) A retailer uses sophisticated software to evaluate large quantities to uncover emerging trends.
This illustrates ________.
A) data warehousing
B) data mining
C) experimentation
D) simulation
Answer: B
45) The data collection role of retailers in a distribution channel has been facilitated by
________.
A) the use of UPC and scanners
B) simulation-based studies
C) personal surveys
D) observation
Answer: A
10
46) The Universal Product Code (UPC) is most widely used in conjunction with ________.
A) inventory management
B) consumer credit-card purchases
C) merchandise returns
D) accounting recordkeeping
Answer: A
47) An advantage of electronic data interchange (EDI) is ________.

A) increased communication between retailers and their suppliers
B) increased communication between retailers and their customers
C) increased speed of data transmission on sales by employee
D) more accurate data due to the modular nature of the transmission process
Answer: A
48) Paperless communication between a retailer and its suppliers has been facilitated by
________.
A) retail information systems
B) UPC-based technology and EDI
C) exception reports
D) database management
Answer: B
49) The major difference between marketing research in retailing and a retail information system
is that ________.
A) the retail information system stores data
B) the retail information system is continuous
C) marketing research in retailing includes the retail information system process
D) marketing research in retailing does not include inventory-related data
Answer: B
11
50) A retailer determined that its monthly sales were 22 percent below expectations on the basis
of its retail plan. Which stage of the marketing research process should the retailer be concerned
with?
A) making recommendations
B) defining the problem
C) analyzing primary data exception reports
D) implementing findings
Answer: B
51) An example of secondary data relating to inventory levels held at each store is information
gathered from ________.
A) a physical count of each store's inventory developed especially for the current study
B) a questionnaire sent to store managers on inventory adequacy
C) an experiment conducted to determine what percent of consumers switch brands when their
preferred brand is out of stock
D) past management reports developed on the basis of point-of-sale equipment
Answer: D
52) A chain shoe retailer with 100 stores determined that its monthly sales were 12 percent
below expectations on the basis of its retail plan. Which represents a clear statement of a topic to
be studied in the problem (issue) definition stage of the marketing research process in retailing?
A) Why has overall sales volume declined 12 percent in comparison to the projected sales level?
B) Why has sales volume declined by at least 25 percent over projected levels in some
geographic areas versus a gain of 10 percent in others?
C) Have competitors also had lower than anticipated sales?
D) What is actual versus planned sales on each major merchandise classification (men's, ladies,
and children's; slipper, dress shoe, casual shoe, and sneaker line) by store?
Answer: D
53) The major distinction between primary and secondary data is that primary data are
________.
A) less costly
B) generated by the affected retailer
C) generated specifically for the research project under study
D) conducted at continuous time intervals
Answer: C
12
54) An example of primary data to determine the effect of a 10 percent price increase in sales is
information gathered from ________.
A) trade association unpublished research
B) public data which is filed by competitors for federal agencies
C) company sales reports that list sales at different price intervals over time
D) an experiment in which company personnel monitor sales in matched pairs of stores where
prices differ by 10 percent on a systematic basis
Answer: D
55) Which problem definition is most likely to require primary data collection?
A) to determine the average household income level in a county
B) to analyze the percent of high school graduates that plan to go immediately to college
C) to determine the average supermarket purchase by consumers on the basis of family size
D) to determine the percent of households that move in a given year
Answer: C
56) A major concern with a retailer's using internal secondary data as a source of information is
the ________.
A) high cost of permissions
B) credibility of the data source
C) data being misleading since it may focus on one time period
D) high cost of data collection
Answer: C
57) The use of point-of-sale cash registers to study the number of products purchased in the
average transaction illustrates ________.
A) internal secondary data
B) external secondary data
C) a survey
D) observation
Answer: A
13
58) A retailer has a database of past sales by season, by store, and by merchandise classification.
This database is used as a guide in planning and control. The database is an example of
________.
A) internal secondary data
B) external secondary data
C) a survey
D) observation
Answer: A
59) The distinction between internal and external secondary data is based on the ________.
A) purpose of the data collection process (past research or new research project)
B) focus of the data (company or industry)
C) firm collecting the data (government or commercial research house)
D) source of the data (within or outside the firm)
Answer: D
60) A retailer can generate data on sales by cash versus credit, the average sale, and number of
items purchased on the average shopping trip by examining ________.
A) inventory records
B) purchase orders
C) merchandise purchases
D) sales invoices
Answer: D
61) A drug store chain customarily sells items, such as nationally advertised film, batteries, and
shampoo, at low cost in an attempt to increase store traffic and sales of other merchandise. It
seeks to determine the percentage of shoppers that purchased any of these three goods who also
bought at least $10 in additional goods on the same shopping trip. This can be determined
through an analysis of ________.
A) telephone survey
B) personal survey
C) observation
D) sales invoices
Answer: D
14
62) A franchisee needs to determine its sales in a specific geographic area in conjunction with a
major legal court case against a franchisor. The retailer should utilize ________.
A) a probability sample
B) a nonprobability sample
C) simulation
D) an experiment
Answer: A
63) A retailer seeks to conduct a survey. It is important that interviewer bias be minimized. The
retailer should utilize which survey technique?
A) observation
B) mail survey
C) telephone survey
D) personal survey
Answer: B
64) A retailer plans to study store loyalty among a group of respondents that live within normal
driving time of its store. The retailer seeks to terminate the data collection process in the early
stage of data collection if the store-loyal group of customers approximates 30 percent of
respondents. Which survey technique should the retailer utilize?
A) mail survey
B) telephone survey
C) simulation
D) observation
Answer: B
65) A retailer wants to study the effect of store brand on customer perception of quality. While
the same exact knit shirts are shown to respondents, one-half are labeled with the store's dealer
brand and the other half with a nationally advertised manufacturer's brand. Respondents are told
to rate the quality of each shirt. They are told that the purpose of the study is to refine the store's
quality measurement scale. This illustrates ________.
A) a simulation
B) a disguised survey
C) a nondisguised survey
D) observation
Answer: B
15
66) In studying its image, a retailer discovers that it is, on average, described as being expensive,
as having very good service, as stocking conventional "me-too" goods, and as having a
conservative fashion orientation. The retailer used which primary research technique?
A) observation
B) sampling
C) semantic differential
D) multi-dimensional scaling
Answer: C
67) Stores with very similar images on a semantic differential have average scores ________.
A) near each other
B) on different scales
C) far from each other
D) on opposite scales
Answer: A
68) A shopping center developer seeks to determine the average turnover of cars in the shopping
center. The developer is concerned about whether he or she should impose a parking fee. A
sample of cars is monitored in terms of entry and exit times. Which primary research technique
was used?
A) survey
B) experimentation
C) observation
D) simulation
Answer: C
69) Which type of consumer behavior can best be studied using observation?
A) the average distance shoppers will travel to shop at a new regional shopping center
B) the average length of time a consumer spends in the cereal aisle of a supermarket
C) the degree of store loyalty
D) the store image of a specialty retailer
Answer: B
16
70) A retailer wishes to determine how many of its salespeople cross-sell related items. The
optimal methodology should utilize ________.
A) an experiment
B) a survey
C) mystery shoppers
D) secondary data
Answer: C
71) In an effective retail distribution channel, information flows freely among suppliers, retailers,
and final consumers.
Answer: TRUE
72) The assumption that past trends will continue in the future represents a retail strategy based
on systematic research.
Answer: FALSE
73) Retail information systems can be used by small and large retailers for customer, location,
and promotional research purposes.
Answer: TRUE
74) Both small and large retailers can outsource their retail information system.
Answer: TRUE
75) Retail information systems have evolved from improving inventory control to be more
involved with merchandise ordering, transferring merchandise among stores, and in surveys.
Answer: TRUE
76) Databases can be generated by customer, vendor, and product category.

Answer: TRUE
17
77) Database information can come from both internal and external sources.
Answer: TRUE
78) Micromarketing is an application of data mining.

Answer: TRUE
79) The issue (problem) definition stage of the marketing research process in retailing seeks to
clearly describe the research question.
Answer: TRUE
80) Sources of internal secondary data include budgets, sales figures, inventory records, and
prior company research.
Answer: TRUE
81) A nonprobability sample is generally more costly and difficult to implement than a
probability sample.
Answer: FALSE
82) A survey would not be considered as an experiment even if it is administered under closely
controlled conditions.
Answer: FALSE
83) Disguised surveys are frequently used in image research.

Answer: TRUE
84) The major advantage of observation is that respondent cooperation is not required.
Answer: TRUE
18
85) In a simulation, only the factor under investigation is manipulated; all other factors remain
constant.
Answer: FALSE
86) An effective retail information system should contain both continuous data and market
research.
Answer: TRUE
87) An effective retail information system allows a retailer to foresee opportunities and to avoid
crises.
Answer: TRUE
88) Channel cooperation has been impeded through electronic data interchange.
Answer: FALSE
89) Examples of the effective use of retail research are the use of focus groups to test hypotheses
and the use of nonprobability samples.
Answer: FALSE
90) The issue (problem) definition stage of the marketing research process seeks to isolate
specific problem/opportunity areas for further study.
Answer: TRUE
91) In general, primary data collection is faster than secondary data collection.
Answer: FALSE
92) Much internal secondary data relating to sales are now computer-based due to the
widespread acceptance of the Universal Product Code.
Answer: TRUE
19
93) The findings in nonprobability samples are more generalizable than those from probability
samples.
Answer: FALSE
94) All surveys involve some form of interviewing procedure.

Answer: FALSE
95) Large surveys to geographically scattered consumers can be handled most economically by
mail.
Answer: TRUE
96) A disguised observation study closely resembles an experiment if it takes place under
controlled conditions.
Answer: TRUE
97) A mystery shopper is a form of undisguised observation.

Answer: FALSE
98) Observation is an appropriate data collection technique to determine customer motivations

and attitudes.
Answer: FALSE
99) Experiments can take place only in contrived settings.

Answer: FALSE
100) In a simulation, the manipulation is done on a mathematical model.

Answer: TRUE
20
101) a. Illustrate how a Web-based retailer can base its retail strategy on nonsystematic research.
b. How can the strategy be improved through effective problem definition and relevant
information?
102) a. Explain the components of a retail information system.

b. How does a retail information system differ from marketing research in retailing?
103) a. Explain how the UPC has facilitated the data collection process for retailers.
b. How has electronic data interchange improved channel cooperation among retailers and their
suppliers?
104) Apply the marketing research process in retailing to the question of how an antiques shop
specializing in costly Tiffany lamps can increase its sales. Utilize each stage of the process in
terms of information sought, evaluation of information, and interpretation of information.
105) a. Describe the importance of the problem definition process in retail research.
b. Apply the problem definition process to the question of whether a new product has added to a
supermarket's overall sales.
106) a. Under what conditions could secondary data sources be insufficient/inadequate for use in
a retail research study?
b. Under what conditions could secondary data sources be sufficient/adequate for use in a retail
research study?
107) A food-oriented retailer wishes to compile a list of 50 key frozen food items (in terms of
sales, inventory turnover, and profitability). Outline internal secondary data sources for this
problem.
108) Under what conditions should a retailer utilize a personal survey? ... a telephone survey? …
a mail survey?
109) Develop a semantic differential scale to determine Starbuck's retail image.

21
110) a. Under what conditions should a retailer use observation as a primary data source?
b. What are the major advantages to the use of observation versus surveys as a retail research
technique?
c. What are the major disadvantages to the use of observation versus surveys as a retail research
technique?
111) Design a survey instrument to be completed by a mystery shopper investigating the quality
of an appliance retailer's sales force.
112) a. Under what conditions should a retailer use experimentation as a primary data source?
b. What are major advantages to the use of experimentation in retail research?
c. What are major disadvantages to the use of experimentation in retail research?
22

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Retail Management A Strategic

Approach 13th Edition Berman Test

2) An example of nonsystematic research in retailing, relating to the effect of a price rise on

4) Which of these is not a benefit of the use of a retail information system?

6) A major benefit to data warehousing is its ________.

7) An application of data mining is ________.

8) The use of micromarketing is an example of which target marketing strategy?

12) Marketing research in retailing involves ________.

17) A major advantage of secondary data is the ________.

18) A major disadvantage of the use of secondary data is ________.

20) An example of external secondary data is ________.

22) A major advantage of primary data is that the ________.

23) Sampling of stores, products, or customers in a nonprobability sample is conducted on the

25) Which of the following is not a survey?

27) In a nondisguised survey, a respondent is told the ________.

28) Disguised surveys are typically used to study consumer ________.

30) An appliance retailer is classified by consumers as friendly, reliable, moderately attractive,

32) The major disadvantage of observation is that ________.

34) Which research technique is able to show cause and effect?

38) A major characteristic of a retail information system is ________.

42) An example of an exception report is ________.

43) A frequent-shopper program is an example of ________.

47) An advantage of electronic data interchange (EDI) is ________.

76) Databases can be generated by customer, vendor, and product category.

78) Micromarketing is an application of data mining.

83) Disguised surveys are frequently used in image research.

94) All surveys involve some form of interviewing procedure.

97) A mystery shopper is a form of undisguised observation.

98) Observation is an appropriate data collection technique to determine customer motivations

99) Experiments can take place only in contrived settings.

100) In a simulation, the manipulation is done on a mathematical model.

102) a. Explain the components of a retail information system.

109) Develop a semantic differential scale to determine Starbuck's retail image.

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