Business of Retail Chapter 3 Review

While the season is changing from summer to back to school, a manager asks a sales associate for ideas on a sales strategy that will help clear out the remaining summer merchandise. Which of the following strategies is most likely to help reach this goal?

• Introduce an employee incentive plan for the salesperson who sells the most summer apparel that week.

• Suggest shipping the summer merchandise to an outlet store to make room for the spring line.

• Put up signs throughout the store stating that all summer merchandise is "while supplies last."

• Reduce pricing on summer apparel by 60% or more and add incentives for purchasing sunscreen, bathing suits, and tank tops.

Your store is running a promotion on pickles. They have created an end-cap display. A customer accidentally runs into the display with their shopping cart and many bottles of pickles fall and break. You see the mess as you walk by. What's the best next step for the sales associate?

• Check on the shopper to ensure they are unharmed and direct traffic away from the area until it can be cleaned up.

• Nothing. Maintenance is surely aware of the problem.

• You're not assigned to that part of the store, so you keep going and find someone else to take care of it.

• Pick up the big pieces of glass while you wait for help.

What should a store do with their 4th of July merchandise on the 5th of July?

• Throw the merchandise left away.

• Mark down the merchandise.

• Keep the merchandise in the store warehouse until nest year.

• Leave it on the shelves until customers buy all the merchandise.

Sharon is a sales associate and recently changed the arrangement of merchandise on the sales floor and would like to determine whether the new setup is helping sales. Which is the best way for Sharon to accomplish this?

• Listen to what customers are saying and observe how they are reacting to the new merchandising setup.

• Take notes about the number of displays and whether the frequency of restocking is increasing or decreasing.

• Pull sales reports from before and after the merchandising change and compare the associated sales figures.

• Ask customers for feedback relating to the new merchandising setup and whether it is useful and improved.

______________ is not an example of suggestive selling technique.

• Sales associates wearing the clothing being sold in the store.

• A messy display of tank tops.

• A store providing samples of cheese to customers.

• Beach themed display with all the items needed for the beach including towels, beach bag & sunblock.

A shoe store is selling sandals, and a sales associate notices that a nearby department store is running a sale on sandals for the same price. What is the best strategy the associate can use to make sure the shoe store's sandals sell?

• Use approved signage that advertises the sandals as the store's "Everyday low price."

• Check the competitor's website for policies and additional service offerings.

• Visit the competitor's store to view their merchandise displays and prepare similar displays in order to increase visibility of the merchandise.

• Discount the shoe store's selection of sandals by 10% to ensure the store is offering the lowest price.

___________ is the action of promoting and selling products and services through advertising, space management, and product branding.

• Social media

• Personal selling

• Displays

• Marketing

Winn Dixie is running a mix and match special with canned vegetables. Customers can pay $1.10 for any canned vegetable product or $10 for 10 canned vegetable products. Madeline is ready for check-out and has 2 Black Beans, 5 Kidney Beans, and 3 Golden Corn cans. What would be the proper way to process the sale at the register?

• Scan the 10 cans individually.

• Scan 1 can of black beans and update the quantity to 2; 1 can of kidney beans and update the quantity to 5; and 1 can of golden corn and update the quantity to 3.

• Scan 1 can of beans and update the quantity to 8, and 1 can of golden corn, & update the quantity to 2.

• Scan any can and update the quantity to 10.

Visual merchandising accomplishes which of the following:

• Organizes merchandise in the stockroom.

• Promotes products using magazine advertisements.

• Allow customers to make a connection with products.

• Creates advertising billboards

Which statement best describes having hands-on instructional classes (i.e. interior painting, laying tiles, repairing a leaky faucet, etc.) at Lowe's, the home improvement store.

• Customers' confidence in instructors will in turn boost their own confidence so that they can complete a project on their own after visits to the store to take classes.

• Most customers want to try to complete home improvement projects on their own but do not have the time to attend a class.

• Instructors for these classes will be a tool to draw customers to the store to purchase products used in the class.

• The classes need to be scheduled at a convenient time or advertised enough in advance to enable a higher customer attendance.