Office Depot offers customers a huge selection of office supply merchandise. As a result, inventory investment _____________.

Office Depot offers customers a huge selection of office supply merchandise. As a result, inventory investment _____________. 

A. increases because they have to carry back up stock for each SKU
B. increases because of the increase in demand
C. increases because of the value of the assortment
D. decreases because of the increase of the customer base
E. decreases because of the introduction of back up stock

Answer: A

The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's _________.

The Men's Wearhouse stocks over 350 different styles and colors of ties. This assortment of ties can be referred to as the store's _________. 

A. supply standard
B. complete retail offering
C. breadth of merchandise
D. retailer mix
E. depth of merchandise

Answer: E

Assortment is often referred to as the ____________.

Assortment is often referred to as the ____________. 

A. breadth of merchandise
B. complete retail offering
C. depth of merchandise
D. object of the buy
E. retail mix

Answer: C

Variety is often referred to as the _____________.

Variety is often referred to as the _____________. 

A. store's supply standard
B. complete retail offering
C. retail mix
D. breadth of merchandise
E. depth of merchandise

Answer: D

What is the word used to describe a retailer's merchandise "depth"?

What is the word used to describe a retailer's merchandise "depth"? 

A. Apparition
B. Assortment
C. Modicum
D. Variety
E. Product

Answer: B

What is the word used to describe a retailer's merchandise "breadth"?

What is the word used to describe a retailer's merchandise "breadth"? 

A. Apparition
B. Assortment
C. Modicum
D. Variety
E. Product

Answer: D

What does the acronym SKU stand for?

What does the acronym SKU stand for? 

A. Style Kept Utility
B. Stock Keeping Unit
C. Selling Keyboard Utility
D. Stored and keyed Unit
E. None of the above

Answer: B

Each different item of merchandise in a retail store is called a(n) _____________.

Each different item of merchandise in a retail store is called a(n) _____________. 

A. consumer offering
B. store counted item (SCI)
C. stored and keyed unit (SKU)
D. stock keeping unit (SKU)
E. economic unit

Answer: D

Because the only merchandise categories at the University Futon Shop are double-sized futons, the Futon Shop can be said to have no ______________.

Because the only merchandise categories at the University Futon Shop are double-sized futons, the Futon Shop can be said to have no ______________. 

A. inventory control
B. need for customer service
C. variety
D. shrinkage
E. product depth

Answer: C

_________ refers to the number of different merchandise categories a retailer offers.

_________ refers to the number of different merchandise categories a retailer offers. 

A. Inventory mixture
B. Product measurement
C. Product depth
D. Variety
E. Assortment

Answer: D

Which of the following statements about NAICS codes is TRUE?

Which of the following statements about NAICS codes is TRUE? 

A. The letters in NAICS stand for National Assortments in Commercial Stores.
B. Retailers with the same NAICS codes are likely to compete against each other.
C. A retailer's principal competitor is seldom, if ever, in the same NAICS category.
D. The NAICS code categorizes businesses according to an 8-digit classification system.
E. The classifications for retail firms are based upon the location of the store fronts.

Answer: B

The North American Industry Classification System (NAICS):

The North American Industry Classification System (NAICS): 

A. was developed by the Federal Trade Commission (FTC)
B. uses an 8-digit classification system
C. was created to collect data on North America's business activity
D. is limited in its use to only retail institutions
E. is used only by the United States

Answer: C

New retail formats are created and evolve because _______.

New retail formats are created and evolve because _______. 

A. consumers lose interest
B. large retailers have undertaken stronger marketing campaigns
C. consumers needs and competition change
D. private branding dictates new fashion
E. retailers have built better relationships with key customers

Answer: C

To be competitive in today's marketplace, Supermarkets are focusing on offering perishable products and meal solutions.

To be competitive in today's marketplace, Supermarkets are focusing on offering perishable products and meal solutions. 

Answer: TRUE

An advantage of a large retail chain is that it can respond quickly to market changes and customer needs.

An advantage of a large retail chain is that it can respond quickly to market changes and customer needs. 

Answer: FALSE

Extreme-value retailers have a broad variety but shallow assortment of products offered at very low prices.

Extreme-value retailers have a broad variety but shallow assortment of products offered at very low prices. 

Answer: TRUE

Discount stores offer both hard and soft goods for sale.

Discount stores offer both hard and soft goods for sale. 

Answer: TRUE

The biggest difference between services and merchandise retailers is their profits.

The biggest difference between services and merchandise retailers is their profits. 

Answer: FALSE

Subway is a franchise.

Subway is a franchise. 

Answer: TRUE

Hispanics have significantly different shopping and eating patterns from those of the general population in the United States.

Hispanics have significantly different shopping and eating patterns from those of the general population in the United States. 

Answer: TRUE