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13STORE CHAPTER LAYOUT AND DESIGN
MULTIPLE CHOICE
1. Which variable of the retailing mix has the greatest influence on a consumers initial perception of a
retailer?
a.
The stores personnel
b.
The stores price points
c.
The stores promotional campaign
d.
The stores merchandise
e.
The store itself
ANS: E
PTS: 1
REF: p. 481
OBJ: LO 13-1
2. Since online customers browse frequently, which are the two aspects to be considered in keeping the
content current?
a.
Merchandise presentation and merchandise
description
b.
Store image and space productivity
c.
Visual communications and store planning
d.
Store design and merchandising
e.
Microretailing and space productivity index
ANS: A
PTS: 1
REF: p. 481
OBJ: LO 13-1
3. _____ and _____ are the two primary objectives of the store environment.
a.
Effective sales management; creating a distinctive ambience
b.
Creative merchandise presentation; effective
store traffic control
c.
Maximizing impulse purchase opportunities;
effective shelf space allocation
d.
Creating the desired store image; increasing
space productivity
e.
Maintaining a pleasant selling environment;
effective merchandise control
ANS: D
PTS: 1
REF: p. 482
OBJ: LO 13-1
4. The first decision the retailer must make in planning a store is:
a.
deciding where to put the receiving dock.
b.
determining where to put the main entrance.
c.
deciding what type of fixtures to use.
d.
deciding what type of lighting to use.
e.
determining how to allocate the stores space.
ANS: E
PTS: 1
REF: p. 482
OBJ: LO 13-1
5. Which element of the stores environment is concerned with the stores space allocation, layout, and
circulation?
a.
Merchandising
b.
Productivity
c.
d.
e.
ANS: D
Store design
Store planning
Visual communications
PTS: 1
REF: p. 482
OBJ: LO 13-1
6. Which element of the stores environment is concerned with the stores exterior design, ambience, and
lighting.
a.
Merchandising
b.
Productivity
c.
Store design
d.
Store planning
e.
Visual communications
ANS: C
PTS: 1
REF: p. 482
OBJ: LO 13-1
7. Which element of the stores environment is concerned with the stores fixture selection, merchandise
presentation, and visual merchandising?
a.
Merchandising
b.
Productivity
c.
Store design
d.
Store planning
e.
Visual communications
ANS: A
PTS: 1
REF: p. 482
OBJ: LO 13-1
8. Which element of the stores environment is concerned with the stores retail identity, graphics, and
POS signage?
a.
Merchandising
b.
Productivity
c.
Store design
d.
Store planning
e.
Visual communications
ANS: E
PTS: 1
REF: p. 482
OBJ: LO 13-1
9. The presentation of merchandise is a critical factor in the selling power of a store and its overall image.
For bookstores, a face-out merchandise presentation of books as opposed to spine-out presentation:
a.
is no longer used due to space constraints.
b.
enhances store sales because face-out present ation allows the retailer to stock more titles.
c.
creates a discount store atmosphere.
d.
results in a consumer perception of cramming
a huge selection of titles at low prices.
e.
creates the image of a specialty book boutique
that carries a limited selection of exclusive
titles and is therefore a rather pricey place to
shop.
ANS: E
PTS: 1
REF: p. 483
OBJ: LO 13-1
10. In supermarket retailing, _____ percent of all endcaps should be advertised sale merchandise that the
customer will seek out.
a.
b.
c.
d.
e.
ANS: B
10
25
33
50
60
PTS: 1
REF: p. 483
OBJ: LO 13-1
11. In supermarket retailing, _____ percent of endcaps should be unadvertised sale items that will cause
the customer to be alert when looking at an endcaps while traveling through the store.
a.
5
b.
10
c.
25
d.
40
e.
50
ANS: C
PTS: 1
REF: p. 483-485
OBJ: LO 13-1
12. In supermarket retailing, _____ percent of endcaps should be regularly priced seasonal or impulse
merchandise.
a.
10
b.
20
c.
33
d.
50
e.
80
ANS: D
PTS: 1
REF: p. 485
OBJ: LO 13-1
13. A simple but powerful truism in retailing is: The more merchandise customers are exposed to that is
presented in an orderly manner:
a.
the higher their evaluation of the store.
b.
the higher the stores average price per unit.
c.
the more they tend to buy.
d.
the lower the stores average price per unit.
e.
the more crammed the stores appearance will
be.
ANS: C
PTS: 1
REF: p. 487
14. In-store marketing is based on the theory that:
a.
b.
c.
d.
OBJ: LO 13-1
it is easier to draw new customers than to get
customers already in the store to buy more
than they had planned.
the loss from shrinkage is less with in-store
marketing than with out-of-store marketing.
marketing dollars spent inside the store are
less effective than general advertising and
public relations efforts.
it is very difficult to draw new customers to
your store, so encouraging existing customers
to purchase additional items should lead to
significantly greater sales and profit increases
than out-of-store marketing efforts.
e.
ANS: D
a dynamic, exciting in-store environment will
draw more new customers to the retail institution.
PTS: 1
REF: p. 487-488
OBJ: LO 13-1
15. Which of the following refers to merchandise that cannot be sold because of theft, loss, and damage?
a.
Bottomed out
b.
Knifed
c.
Shrinkage
d.
Grossed
e.
Lost
ANS: C
PTS: 1
16. High shrinkage:
a.
b.
c.
d.
e.
ANS: D
REF: p. 488
OBJ: LO 13-1
means the store is operating at a loss.
can be easily tracked.
means the stores turnover rate is too high.
detracts from space productivity.
is anything above .5 percent.
PTS: 1
REF: p. 488
OBJ: LO 13-1
17. All of the following are warning signs that a retailer has a space problem EXCEPT:
a.
insufficient staging space for large shipments
of advertised products.
b.
open spaces on the selling floor, even if the
product is on hand.
c.
uncluttered and organized aisles, hallways and
stockrooms.
d.
sales lag expectations for specific locations
where space or fixtures are a known issue.
e.
off-site storage or multiple stockrooms required for a single commodity.
ANS: C
PTS: 1
18. The term floor plan in retailing refers to:
a.
b.
c.
d.
e.
REF: p. 489
OBJ: LO 13-2
the process of deciding what price zones
should be placed next to each other.
planning budgets, promotions, and specific
activities for each department over a given
period of time.
the activities associated with the planning of
store lighting, designs, colors, and other elements of the store environment.
where merchandise and customer service departments are located, how customers circu late through the store, and how much space is
dedicated to each department.
planning merchandise mixes, prices, and inventory for each department in a store.
ANS: D
PTS: 1
REF: p. 489
OBJ: LO 13-2
19. _______ occurs when a chain store retailer operating over a wide geographic area, tailors its mer chandise and services in each store to the needs of the immediate trading area.
a.
Target marketing
b.
Microretailing
c.
Stack-outs
d.
Shrinkage
e.
Merchandise planning
ANS: B
PTS: 1
REF: p. 490
OBJ: LO 13-2
20. _____ are pallets of merchandise set out on the floor in front of the main shelves.
a.
Endcaps
b.
Productivity indices
c.
Circulators
d.
Spine racks
e.
Stack-outs
ANS: E
PTS: 1
REF: p. 490
21. The first step when developing a floor plan is:
a.
b.
c.
d.
e.
ANS: B
PTS: 1
22. The goal of space allocation is to:
a.
b.
c.
d.
e.
ANS: C
PTS: 1
23. A space productivity index:
a.
OBJ: LO 13-2
deciding what price should be used.
analyzing how the available store space
should be allocated to various departments.
determining how customers circulate through
the store after entering through every possible
entrance.
determining where shoplifting is most likely
to occur.
deciding where to put the nonselling areas.
REF: p. 491
OBJ: LO 13-2
maximize customer access to high-profit
items
evenly divide floor space between the five
functional areas
make the largest possible amount of space
available to hold merchandise and be shopable
allow for the rapid restocking of valuable
shelf space in high-turnover merchandise cat egories
design a store which maximizes back room
stock capacity
REF: p. 491
OBJ: LO 13-2
is typically done when designing a new
stores space allocations.
reports on the ability of space allocations to
maximize the quantities of merchandise carried.
analyzes the amount of shelf space allocated
to particular individual brands across several
departments.
measures the percentage of the stores total
gross margin from a particular category to the
categorys percentage of total space utilized.
is based on industry or trade association data.
b.
c.
d.
e.
ANS: D
PTS: 1
REF: p. 493
OBJ: LO 13-2
24. A store manager notes that the space productivity index for a particular product category is 1.35. Based
on this information, the manager should consider:
a.
reducing the amount of space allocated to this
category, since it is underperforming.
b.
lowering the price of the merchandise in this
department in order to boost its sales per sq.
ft., which will improve its index.
c.
firing the buyer, because 1.35 is a very poor
space productivity index number.
d.
moving the product class to a more visible
location within the store in hopes of improving the departments weak performance.
e.
increasing the amount of space allocated to
this category, since it has a very good space
productivity index.
ANS: E
PTS: 1
REF: p. 493
OBJ: LO 13-2
25. A store manager notes that the space productivity index for a particular product category is .82. Based
on this information, the manager should consider:
a.
reducing the amount of space allocated to this
category, since it is underperforming.
b.
lowering the price of the merchandise in this
department in order to boost its sales per sq.
ft., which will improve its index.
c.
promoting the buyer, because .82 is very
strong space productivity index number.
d.
promoting the buyer, since the margin generated on the product category is higher than
that of other products, based on its allocated
space within the store.
e.
increasing the amount of space allocated to
this category, since it has a very good space
productivity index.
ANS: A
PTS: 1
REF: p. 493
OBJ: LO 13-2
26. According to the late retail consultant Robert Kahn, many retailers mistakenly believed that simply
placing more products in a store increased sales per square foot. Kahn indicated that higher sales per
square foot could be explained by understanding basic consumer behavior. Kahns rationale can best
be understood through the formula: sales per square foot equals:
a.
the number of retail customers multiplied by
the length of time they spend in the store.
b.
the number of retail customers divided by the
square foot of retail space.
c.
the number of products carried multiplied by
the number of retail customers.
d.
the number of products carried multiplied by
the shelf space available divided by the num ber of retail customers.
e.
retail sales divided by square footage.
ANS: A
PTS: 1
REF: p. 495
OBJ: LO 13-2
27. The four basic types of layout that retailers use today are:
a.
spine, cluster, loop, and partition.
b.
free flow, cluster, partition, and grid.
c.
cluster, free flow, loop, and spine.
d.
free flow, grid, loop, and spine.
e.
cluster, loop, spine, and partition.
ANS: D
PTS: 1
REF: p. 498
OBJ: LO 13-2
28. The _____ usually works well in small stores where customers wish to browse through all of the mer chandise.
a.
standard
b.
free-flow
c.
grid
d.
loop
e.
spine
ANS: B
PTS: 1
REF: p. 498-499
OBJ: LO 13-2
29. The free-flow layout does NOT work well in large department stores or other stores offering a great
variety of merchandise because:
a.
it fails to provide cues as to where one depart ment stops and another starts.
b.
customers are encouraged to spend too much
time browsing rather than moving efficiently
through the store.
c.
the arrangement of merchandise is difficult to
blend for a consistent store environment.
d.
they encourage customers to browse through
the entire store so that they can see all of the
merchandise and not concentrate on one area.
e.
the average time spent in any particular department is reduced, thereby reducing average
sales.
ANS: A
PTS: 1
REF: p. 499-500
30. The most familiar example of the grid layout is a(n):
OBJ: LO 13-2
a.
b.
c.
d.
e.
ANS: C
automobile showroom.
jewelry store.
drugstore.
apparel shop.
furniture store.
PTS: 1
REF: p. 500
OBJ: LO 13-2
31. In a _____ store layout, counters and fixtures are placed in long rows or runs, usually at right angles,
throughout the store.
a.
standard
b.
free-flow
c.
grid
d.
boutique
e.
mini-store
ANS: C
PTS: 1
REF: p. 500
OBJ: LO 13-2
32. Which type of store design is sometimes called a racetrack?
a.
Grid
b.
Circle
c.
Spine
d.
Loop
e.
Flexible
ANS: D
PTS: 1
33. A major benefit of the loop layout is that it:
a.
b.
c.
d.
e.
ANS: E
PTS: 1
REF: p. 500
OBJ: LO 13-2
provides a major customer aisle which begins
at the entrance, loops through the store and
then moves the customer to the clearance
merchandise section of the store.
never lets the customer stray more than 10
feet from any of the merchandise in the store.
encourages customers to flow freely through
all the fixtures, since there are usually no
defined traffic patterns in the store.
lets the shopper get in and out of the store
very quickly.
exposes shoppers to the greatest possible
amount of merchandise.
REF: p. 500
OBJ: LO 13-2
34. The _____ layout is essentially a variation of the free-flow, grid, and loop layouts, and combines the
advantages of all three.
a.
complex
b.
spine
c.
master flow
d.
flexible
e.
mixed
ANS: B
PTS: 1
REF: p. 501
OBJ: LO 13-2
35. The best example of the spine layout is found in:
a.
b.
c.
d.
e.
ANS: D
PTS: 1
36. Most shoplifting takes place in:
a.
b.
c.
d.
e.
ANS: A
PTS: 1
automobile showrooms.
discount department stores.
drugstores.
medium-sized specialty stores.
discount furniture stores.
REF: p. 501
OBJ: LO 13-2
fitting rooms, aisles crowded with extra merchandise, and behind high displays.
layaway and customer service areas.
back rooms, especially the loading dock.
office spaces.
dressing rooms.
REF: p. 501
OBJ: LO 13-2
37. The two basic types of merchandise presentation are:
a.
visual merchandising and nonvisual merchandising.
b.
product merchandising and service merchandising.
c.
hardline merchandising and softline merchandising.
d.
fixture merchandising and wall merchandising.
e.
on-shelf merchandising and visual merchandising.
ANS: E
PTS: 1
REF: p. 502
OBJ: LO 13-3
38. _____ merchandising is a retailing term used to describe the merchandise that is displayed on and in
counters, racks, shelves, and fixtures throughout the store.
a.
Bulk
b.
On-shelf
c.
Shopable
d.
Product
e.
Prepackaged
ANS: B
PTS: 1
REF: p. 504
OBJ: LO 13-3
39. The _____, which can hold a wide variety of merchandise by means of hardware hung from the vertic al spine, is the workhorse fixture in hardlines departments.
a.
table
b.
round rack
c.
gondola
d.
basket
e.
twelve-hold rack
ANS: C
PTS: 1
REF: p. 504
OBJ: LO 13-3
40. The _____ is a display that draws special attention to selected features (e.g., color, shape, or style) of
merchandise.
a.
hardline fixture
b.
softline fixture
c.
wall fixture
d.
bulk or capacity fixture
e.
feature fixture
ANS: E
PTS: 1
41. The chief advantage of a round rack is:
a.
b.
c.
d.
e.
ANS: C
PTS: 1
REF: p. 506
OBJ: LO 13-3
it allows garments to be presented face out.
it holds more merchandise than either the
straight rack or the four-way rack.
it holds the bulk of merchandise without looking as heavy as a long straight rack.
it is less expensive than the gondola and
twelve-hold rack.
it takes up less floor space than either the
straight rack or the four-way rack.
REF: p. 506
OBJ: LO 13-3
42. The _____ is considered a softline feature fixture, because it presents merchandise in a manner that
features certain characteristics of the merchandise (such as color, shape or style).
a.
four-way rack
b.
gondola
c.
round rack
d.
rack
e.
deck
ANS: A
PTS: 1
REF: p. 506
OBJ: LO 13-3
43. The primary problem with the pegging method of merchandise presentation is that it:
a.
can be labor intensive to display and maintain.
b.
makes small merchandise appear disorderly
and haphazard.
c.
cannot be incorporated into a wall system.
d.
gives a low-cost, low-quality image to a store.
e.
cannot work with gondolas.
ANS: A
PTS: 1
REF: p. 506
OBJ: LO 13-3
44. Which two methods of merchandise presentation have the greatest potential to convey low-cost, lowprice, and high-volume image?
a.
Stacking and shelving
b.
Pegging and folding
c.
Dumping and shelving
d.
Stacking and dumping
e.
Hanging and pegging
ANS: D
PTS: 1
REF: p. 507
OBJ: LO 13-3
45. The psychology of merchandise presentation refers to the fact that:
a.
different merchandising methods can strongly
influence buying habits.
b.
merchandise presentation teaches consumers
how to shop effectively.
c.
consumers in a store should be led around like
mice through a maze.
d.
social factors strongly influence shopping behavior.
e.
shoppers can be classified according to psychological tests.
ANS: A
PTS: 1
REF: p. 507
OBJ: LO 13-3
46. Which of the following is NOT an example of the psychology of merchandise presentation?
a.
Displaying merchandise in vertical bands of
color can increase sales.
b.
Consumers always turn left when entering a
store for the first time.
c.
Shoppers view merchandise at 45-degree
angles from their path of travel.
d.
Merchandise displays evoke images of how
trendy or value oriented a retailer is.
e.
Displaying hair-care products on a high series
of shelves in the waiting area that is lighted
with fluorescent light fixtures.
ANS: B
PTS: 1
REF: p. 507-509
OBJ: LO 13-3
47. Which of the following is a good guideline to use when selecting fixtures for your store?
a.
Large, metal, bulky fixtures will enhance
sales while more delicate fixtures reduce sales
potential.
b.
When shopping for clothing, let the fixtures
point out the sizes before they reveal the color
of the items.
c.
Design the store so that customers can view
all the fixtures holding the merchandise by
turning at a 90-degree angle from their normal
path of travel.
d.
Always use simple earth tones.
e.
Match the fixture to the merchandise, not the
merchandise to the fixture.
ANS: E
PTS: 1
48. Visual merchandising is:
a.
b.
c.
REF: p. 509
OBJ: LO 13-3
the practice of making the most profitable
merchandise the most visible.
the practice of making all the merchandise as
visible as possible.
practiced by lower-end stores attempting to
shake their cheap image.
the artistic display of merchandise and theat rical props to set the tone for the store.
intended to be highly shopable.
d.
e.
ANS: D
PTS: 1
REF: p. 509
OBJ: LO 13-3
49. Which of the following is NOT a characteristic of an effective visual merchandising display?
a.
It is not typically associated with a shopable
fixture.
b.
It is usually located in a focal point or feature
area of the store.
c.
It is most widely used by discounters and other low-price retailers.
d.
It makes use of props in addition to the merchandise.
e.
It does not have to include merchandise.
ANS: C
PTS: 1
REF: p. 509
OBJ: LO 13-3
50. _____ is the overall feeling or mood projected by a store through its aesthetic appeal to the human
senses.
a.
Feel
b.
Ambience
c.
Flavor
d.
Sense
e.
Decor
ANS: B
PTS: 1
REF: p. 510
OBJ: LO 13-4
51. If the retail store can be compared to a book, then the storefront, or store exterior, is like the:
a.
title.
b.
book mark.
c.
chapters.
d.
ending.
e.
book cover.
ANS: E
PTS: 1
REF: p. 511
OBJ: LO 13-4
52. The retailing practice of appealing to sight, sound, smell, and touch is called _____ marketing.
a.
ambience
b.
sensory assault
c.
sensory maximization
d.
total sensory
e.
sensory decor
ANS: D
PTS: 1
REF: p. 513
OBJ: LO 13-4
53. Which of the following statements about sensory marketing is true?
a.
Effective store designs should appeal only to
the senses of sight and sound.
b.
Background music is no longer considered a
valuable marketing tool to influence shopper
behavior.
Retailers today are trying to use lighting as a
key in-store marketing tool to put consumers
in the mood.
The tempo of music affects how long shoppers stay in a store.
The placement of ads in a stores background
music is illegal in the United Sates.
c.
d.
e.
ANS: D
PTS: 1
REF: p. 515
OBJ: LO 13-4
54. Visual communications in retailing have become especially important because:
a.
retailers are making bigger investments in
high-tech methods of communications.
b.
customers are becoming increasingly sophist icated.
c.
retailers have found it necessary to cut costs
by reducing their sales staffs.
d.
they provide better service than sales associates.
e.
more and more people are functionally illiter ate.
ANS: C
PTS: 1
REF: p. 515
OBJ: LO 13-5
55. Which of the following is NOT part of a retailers visual communications program?
a.
Store name and logo
b.
Background music
c.
Institutional signage
d.
Directional and category signage
e.
Lifestyle graphics
ANS: B
PTS: 1
REF: p. 516-518
OBJ: LO 13-5
56. _____ signage describes the merchandising mission, customer-service policies, and other messages on
behalf of the retail institution, such as Lowest Price Guaranteed.
a.
Mission signage
b.
Store signage
c.
Category signage
d.
Institutional signage
e.
Policy signage
ANS: D
PTS: 1
REF: p. 517
OBJ: LO 13-5
57. _____ signage consists of large signs that are usually placed fairly high, so they can be seen
throughout the store.
a.
Fixture
b.
Directional
c.
Point-of-sale
d.
Price/info
e.
Category
ANS: B
PTS: 1
REF: p. 517
OBJ: LO 13-5
58. In general, the largest in-store signage is usually:
a.
logo signage at the rear of the store.
b.
directional and departmental signage.
c.
signage comparing the stores prices to com petitors.
d.
signage that points out the products features.
e.
point-of-sale signage.
ANS: B
PTS: 1
REF: p. 517
OBJ: LO 13-5
59. _____ signage is placed closer to the merchandise and is intended to give details about specific mer chandise items.
a.
Fixture
b.
Directional
c.
Point-of-sale
d.
Price/info
e.
Category
ANS: C
PTS: 1
REF: p. 517
OBJ: LO 13-5
60. _____ signage is usually smaller, since it is intended to be seen from a shorter distance and is located
on or close to the fixture itself.
a.
Fixture
b.
Directional
c.
Point-of-sale
d.
Price/info
e.
Category
ANS: E
PTS: 1
REF: p. 517
OBJ: LO 13-5
TRUE/FALSE
1. Setting and presentation are now critical factors in serving the customer.
ANS: T
PTS: 1
REF: p. 480
OBJ: LO 13-1
2. Keeping content current is an important element of effective website design for retailers.
ANS: T
PTS: 1
REF: p. 481
OBJ: LO 13-1
3. The two primary objectives to consider when planning a new store are the image it projects and the
conversion rate generated by its sales force.
ANS: F
PTS: 1
REF: p. 482
OBJ: LO 13-1
4. The first decision store planners must consider is how to efficiently allocate the stores space.
ANS: T
PTS: 1
REF: p. 482
OBJ: LO 13-1
5. The presentation of merchandise is a critical factor in the selling power of a store.
ANS: T
PTS: 1
REF: p. 483
OBJ: LO 13-1
6. Merchandise presentation is a critical factor in determining both store image and productivity.
ANS: T
PTS: 1
REF: p. 483
OBJ: LO 13-1
7. An effective store layout and design creates a comfortable environment that enhances the merchandise
and entices shoppers to browse and buy.
ANS: T
PTS: 1
REF: p. 483
OBJ: LO 13-1
8. As a general rule, managers should use the 80-20 rule for endcaps, where 80 percent of items on the
endcap are announced sale items, and 20 percent are unannounced sale items.
ANS: F
PTS: 1
REF: p. 483
OBJ: LO 13-1
9. The retailers basic objectives can be summarized by stating: Get customers into the store, get them to
buy what you have, and hope they will not return it.
ANS: F
PTS: 1
REF: p. 485
OBJ: LO 13-1
10. That the store image serves a critical role in the store selection process is best illustrated by the fact
that in the supermarket industry overall customer service is the most important criterion in deciding
where to shop.
ANS: F
PTS: 1
REF: p. 486
OBJ: LO 13-1
11. As a rule, the more merchandise customers are exposed to, that is presented in an orderly manner, the
more they tend to buy.
ANS: T
PTS: 1
REF: p. 487
OBJ: LO 13-1
12. Due to its overuse, image engineering becomes less important every day for retailers.
ANS: F
PTS: 1
REF: p. 487
OBJ: LO 13-1
13. Shrinkage is what happens to produce and other perishable merchandise when it is not refrigerated.
ANS: F
PTS: 1
REF: p. 488
OBJ: LO 13-1
14. Losses from shrinkage generally range from 12 to 25 percent of retail sales.
ANS: F
PTS: 1
REF: p. 488
OBJ: LO 13-1
15. To enhance sales productivity, retailers must incorporate planning, merchandise presentation, and
design strategies which minimize shrinkage.
ANS: T
PTS: 1
REF: p. 488
OBJ: LO 13-1
16. When retailers speak of store planning, they are referring to decisions related to the location of new
stores.
ANS: F
PTS: 1
REF: p. 488
OBJ: LO 13-2
17. Most shoppers cannot consciously identify the elements of a good store, but they know when these ele -
ments are missing.
ANS: T
PTS: 1
REF: p. 489
OBJ: LO 13-2
18. A floor plan is a schematic that shows where the merchandise and customer service departments are
located, how customers will circulate through the store, and how much space should be allocated to
each department.
ANS: T
PTS: 1
REF: p. 489
OBJ: LO 13-2
19. Excessive time required to put away new receipts is a warning sign of retail space problems.
ANS: T
PTS: 1
REF: p. 489
OBJ: LO 13-2
20. Successful retailers place merchandise in key strategic locations.
ANS: T
PTS: 1
REF: p. 490
OBJ: LO 13-2
21. The first step when developing a floor plan is to determine how the available store space will be alloc ated to various departments.
ANS: T
PTS: 1
REF: p. 491
OBJ: LO 13-2
22. The retailer must balance the quest for greater density of merchandise presentation with the ambience
and feel of the store.
ANS: F
PTS: 1
REF: p. 491
OBJ: LO 13-2
23. Because it is important to always have the correct stock on hand, the amount of space being devoted to
the back room has increased in recent years.
ANS: F
PTS: 1
REF: p. 491
OBJ: LO 13-2
24. Office and other functional space includes a break room for associates, a training room, offices for the
store manager and assistant managers, a cash office, bathroom facilities for both customers and em ployees, and perhaps other areas.
ANS: T
PTS: 1
REF: p. 492
OBJ: LO 13-2
25. The space productivity index compares the operating cost of a particular category to its space utilized.
ANS: F
PTS: 1
REF: p. 493
OBJ: LO 13-2
26. When a space productivity index is less than 1.0, the product category is generating a larger percentage
of the stores gross margin than the percentage of store space it is using, and consideration should be
given to allocating additional space to this category.
ANS: F
PTS: 1
REF: p. 493
OBJ: LO 13-2
27. The space-productivity index is a decision-making formula, not just a tool to help management make
decisions.
ANS: F
PTS: 1
REF: p. 494
OBJ: LO 13-2
28. When determining space allocation for a new store, a retailer should consider industry standards, the
retailers previous experience with similar formats, and the space required to carry the number of items
specified by the retailers buyers.
ANS: T
PTS: 1
REF: p. 495
OBJ: LO 13-2
29. A planogram is a graphic schematic which shows the precise location of every SKU on a shelf or other
merchandise display.
ANS: T
PTS: 1
REF: p. 497-498
OBJ: 13-2
30. LO Free-flow layouts are best used in stores larger than 10,000 square feet.
ANS: F
PTS: 1
REF: p. 498-499
OBJ: LO 13-2
31. The grid layout is often referred to as the loop and box.
ANS: F
PTS: 1
REF: p. 500
OBJ: LO 13-2
32. The grid layout is a true shopping layout which is best used in retail environments where the major ity of customers wish to shop the entire store.
ANS: T
PTS: 1
REF: p. 500
OBJ: LO 13-2
33. The major benefit of the loop layout is that it exposes shoppers to the greatest possible amount of mer chandise.
ANS: T
PTS: 1
REF: p. 500
OBJ: LO 13-2
34. A loop layout is based on a single main aisle running from the front to the back of the store, with smal ler aisles transporting customers in both directions so that the all the stores merchandise is exposed to
the consumer.
ANS: F
PTS: 1
REF: p. 500
OBJ: LO 13-2
35. The spine layout is heavily used by medium-sized specialty stores.
ANS: T
PTS: 1
REF: p. 501
OBJ: LO 13-2
36. Fitting rooms, where most shoplifting occurs, should be placed near the receiving areas so that an em ployee can monitor what is occurring in each room.
ANS: F
PTS: 1
REF: p. 501
OBJ: LO 13-2
37. One of the most important considerations when planning a stores layout is visibility of the merchand ise.
ANS: T
PTS: 1
REF: p. 501
OBJ: LO 13-2
38. Small, expensive items are usually stocked in very high fixtures to discourage shoplifting.
ANS: F
PTS: 1
REF: p. 502
OBJ: LO 13-2
39. There are two basic types of merchandising: visual merchandising and on-shelf merchandising.
ANS: T
PTS: 1
REF: p. 502
OBJ: LO 13-3
40. On-shelf merchandising refers to the merchandise which is displayed on shelves and on counters, but
not carried on racks and fixtures.
ANS: F
PTS: 1
REF: p. 504
OBJ: LO 13-3
41. The best way to improve sales is to place as much merchandise as possible into the store.
ANS: F
PTS: 1
REF: p. 504
OBJ: LO 13-3
42. The gondola is widely used for fashion-oriented softline merchandise.
ANS: F
PTS: 1
REF: p. 505
OBJ: LO 13-3
43. The round rack is known as a bulk or capacity fixture.
ANS: T
PTS: 1
REF: p. 506
OBJ: LO 13-3
44. Garments can be hung on a wall at a higher level than they can be displayed on floor racks thereby en abling retailers to show more merchandise.
ANS: T
PTS: 1
REF: p. 506
OBJ: LO 13-3
45. The method of merchandise presentation can have a dramatic impact on the stores image and space
productivity.
ANS: T
PTS: 1
REF: p. 507
OBJ: LO 13-3
46. Merchandise presentation is important as evidenced in studies which show that over 70 percent of
present department store sales are unplanned purchases.
ANS: F
PTS: 1
REF: p. 507
OBJ: LO 13-3
47. One of merchandise presentations most important psychological effects is to foster an image in the
customers mind of how trendy, exclusive, pricey, or value oriented the merchandise is.
ANS: T
PTS: 1
REF: p. 507
OBJ: LO 13-3
48. When customers move through the store, they view the store at a 90-degree angle from their path of
travel.
ANS: F
PTS: 1
REF: p. 507
OBJ: LO 13-3
49. To be most effective, merchandise should be displayed in vertical bands of color wherever possible.
ANS: T
PTS: 1
REF: p. 508
OBJ: LO 13-3
50. A good rule to follow when selecting fixtures is to match the fixture to the merchandise, not the mer chandise to the fixture.
ANS: T
PTS: 1
REF: p. 509
OBJ: LO 13-3
51. Visual merchandising is the artistic display of merchandise and theatrical props used as scene-setting
decoration in the store.
ANS: T
PTS: 1
REF: p. 509
OBJ: LO 13-3
52. Ambience refers to the overall feeling or mood projected by a store through its aesthetic appeal to the
human senses.
ANS: T
PTS: 1
REF: p. 510
OBJ: LO 13-4
53. Interior design can be broken into two types of elements: the finishes applied to surfaces and architec tural shapes.
ANS: T
PTS: 1
REF: p. 511
OBJ: LO 13-4
54. Lowering the lighting levels in a fashion department can actually discourage sales, because the low
lighting may suggest a discount-store image.
ANS: F
PTS: 1
REF: p. 513
OBJ: LO 13-4
55. The first 20 feet inside a store is a decompression chamber for customers as they adjust to the lighting
and climate of the store.
ANS: T
PTS: 1
REF: p. 514
OBJ: LO 13-4
56. Sight is believed to be the most closely linked of all the senses for memory and emotions.
ANS: F
PTS: 1
REF: p. 514
OBJ: LO 13-4
57. Today retailers are beginning to engineer smells and sounds in their stores as a means of increasing
sales.
ANS: T
PTS: 1
REF: p. 514
OBJ: LO 13-4
58. The type of music may have an effect not only how long the customers stay in a store, but also on how
much merchandise they purchase.
ANS: T
PTS: 1
REF: p. 515
OBJ: LO 13-4
59. The first and most visible element in a comprehensive visual communications program is the retailers
identity, composed of the store name, logo, and supporting visual elements.
ANS: T
PTS: 1
REF: p. 516
OBJ: LO 13-5
60. Research has shown that the best choice of names for most new retailers is the founders last name,
since this cannot be copied.
ANS: F
PTS: 1
REF: p. 516
OBJ: LO 13-5
61. Institutional signage describes the merchandising mission and customer-service policies of the retailer.
ANS: T
PTS: 1
REF: p. 517
OBJ: LO 13-5
62. Directional and departmental signage is usually large and placed fairly high, so it can be seen
throughout the store.
ANS: T
PTS: 1
REF: p. 517
OBJ: LO 13-5
63. Category signage is smaller than departmental signage, since it is intended to be seen from a shorter
distance.
ANS: T
PTS: 1
REF: p. 517
OBJ: LO 13-5
64. The most important function of POS signage is to clearly state the price of the merchandise being
signed.
ANS: T
PTS: 1
REF: p. 517
OBJ: LO 13-5
65. Lifestyle photography must be chosen carefully because beauty is in the eye of the beholder, and the
graphics it contains may be misinterpreted.
ANS: T
PTS: 1
REF: p. 518
OBJ: LO 13-5
ESSAY
1. How can a virtual store drive repeat visits and encourage purchasing?
ANS:
The various aspects the retailer has to keep in mind in designing a virtual store are:
Keep content current. Online consumers browse frequently, so it is very important to continu ally update information on the site. Two aspects should be considered: merchandise presenta tion and merchandise description.
Make the site easy and enjoyable to use. This means that users with little or no experience
either online or with your product category should be able to move easily about the site and
find the information they desire.
Structure an online community where consumers can interact with one another or contribute to
the sites content. Offering potential consumers an opportunity to become involved in the site
can build a loyal clientele.
PTS: 1
REF: p. 481-482
OBJ: LO 13-1
2. What are the two primary objectives of the stores environment?
ANS:
The two primary objectives of the stores environment are creating the desired store image and in creasing space productivity. These amount to a simple description of the three basic tasks of retailing:
Get customers into the store (market image).
Once customers are inside the store, convert them into customers buying merchandise (space
productivity).
Do this in the most efficient manner possible.
PTS: 1
REF: p. 485-488
OBJ: LO 13-1
3. How is the space productivity of a store influenced by the stores shrinkage rate?
ANS:
One factor that detracts from space productivity is shrinkage, or the loss of merchandise through theft,
loss, and damage. It is called shrinkage because retailers usually do not know what happened to the
missing items, only that the inventory level in the store has somehow shrunk. Even stores that move
customers through the entire space and effectively use in-store marketing techniques to maximize sales
can fall victim to high shrinkage. High shrinkage alone can make the difference between a profit and a
loss. Because of the high cost of theft, retailers are employing a greater number of security guards and
loss-control specialists. This adds to their costs and results in higher prices for legitimate customers.
PTS: 1
REF: p. 488
OBJ: LO 13-1
4. Describe the process a retailer would go through to effectively plan its store.
ANS:
The retailer has to consider the following while planning for its store:
A store needs more than merchandise to be shopable. Unless a store specializes in only one
product type, it would be impossible to shop if that store were not broken into departments and
categories. Signs and graphics give cues to understanding the organization of the merchandise
in a store.
Visual displays and focal points are where merchandise is pulled off the shelf or racks and dis played in theatrical vignettes. All cues must work subliminally to organize the merchandise
and guide shoppers effortlessly through the store.
The floor plan serves as the backbone of the store and is the fundamental structure around
which every other element of the store environment takes shape. Microretailing occurs when a
chain store retailer operating over a wide geographic area, usually nationally, tailors its mer chandise and services in each store to the needs of the immediate trading area.
In addition, successful retailers place merchandise in key strategic locations. Another simple
rule to follow is to think of the age of the consumer. The stores layout and design, including
merchandise location, must be carefully planned to meet the retailers merchandising goals,
make the store easy to understand and shop, and allow merchandise to be effectively presen ted.
Almost as important as merchandise adjacencies is the reduction of stack-outs. Although stackouts may improve the short-run sales of the featured product, their negative impact may offset
these marginal sales. When there is a stack-out and the customer does not have a specific need
on that aisle, then the customer will skip that aisle.
PTS: 1
REF: p. 488-491
OBJ: LO 13-2
5. What types of space are needed by retailers?
ANS:
There are five basic types of space needs in a store:
Back room.
Office and other functional spaces.
Aisles, service areas, and other nonselling areas of the main sales floor.
Wall merchandise space.
Floor merchandise space.
PTS: 1
REF: p. 491-493
OBJ: LO 13-2
6. Explain how retailers can evaluate space productivity.
ANS:
A retailer that has been in business for some time can develop a sales history on which to evaluate
merchandise performance, refine space allocations, and enhance space productivity. One easy measure
to use is the space-productivity index, which compares the percentage of the stores total gross margin
dollars for a particular merchandise category to its percentage of space utilized. An index rating of 1.0
would be an ideal department size. If the index is greater than 1.0, then the product category is generat ing a larger percentage of the stores gross margin than the percentage of store space it is using,
and the retailer should consider allocating additional space to this category. If the index falls below
1.0, then the product category is underperforming relative to other merchandise, and the retailer might
consider reducing its space allocation.
The space-productivity index is simply a tool to help management make decisions, not a decision-mak ing formula. Even though a certain category may have a low index, senior management may retain its
full space because a new buyer has just been hired or because the category is an important image
builder. A high-index category might not be given more space if management expects a hot fashion
trend to cool off soon and believes the space-productivity index for that category will drop accord ingly. Also, the space-productivity indexes can only be computed on merchandise the retailer has a
history of selling.
PTS: 1
REF: p. 493-495
OBJ: LO 13-2
7. In designing a new store, a retailer has many different layouts to choose from. What are the different
retail store layouts, and what are the advantages and disadvantages of each?
ANS:
Four basic types of layout are used today: free flow, grid, loop, and spine.
Free Flow: The simplest type of store layout is a free-flow layout in which fixtures and merchandise
are grouped into free-flowing patterns on the sales floor. This type of layout works well in small
stores, usually less than 5,000 square feet, in which customers wish to browse through all of the mer chandise. Generally, the merchandise is of the same type, such as fashion apparel perhaps categorized
only into tops and bottoms. If there is a greater variety of merchandise, a free-flow layout fails to
provide cues as to where one department stops and another starts, confusing the shopper.
Grid: In the grid layout, the counters and fixtures are placed in long rows or runs, usually at right
angles, throughout the store. The grid is a both a historically and contemporarily popular shopping lay out, best used in retail environments in which the majority of customers wish to shop the entire store.
In supermarkets, for instance, many shoppers flow methodically up and down all the fixture runs, look ing for everything they might need along the way. However, if the shopper wishes to find only several
specific categories, the grid can be confusing and frustrating, because it is difficult to see over the fix tures to other merchandise. For example, supermarkets move customers through the entire store by pla cing the meats, dairy goods, and other frequently purchased items at the rear of the store. However, re tailers should employ this strategy carefully. Forcing customers in a hurry all the way to the back of a
large store will frustrate many customers and lead some to go elsewhere for merchandise.
Loop: Over the past two decades, the loop layout (sometimes called a racetrack layout) has become a
popular tool for enhancing the productivity of retail stores. The major benefit of the loop layout is that
it exposes shoppers to the greatest possible amount of merchandise.
Spine: The spine layout is essentially a variation of the free-flow, grid, and loop layouts and combines
the advantages of all three in certain circumstances. A spine layout is based on a single main aisle run ning from the front to the back of the store, transporting customers in both directions.
PTS: 1
REF: p. 498-502
OBJ: LO 13-2
8. Store fixtures fall into thee basic categories: hardlines, softlines, and wall fixtures. What options do re tailers have within each category, and what are the advantages and disadvantages of each?
ANS:
Hardlines Fixtures: The workhorse fixture in most hardlines departments is known as the gondola. The
basic gondola can hold a wide variety of merchandise by means of hardware hung from the vertical
spine. In addition to the gondola, a few other types of fixtures are in common use today: tables, large
bins, and simple flat-base decks.
Softlines Fixtures: The bulky gondola is inappropriate for fashion-oriented softlines merchandise. The
four-way feature rack and the round rack are the two fixtures most heavily used today, replacing the
straight rack. Merchants prefer face-out presentations over sleeve-out presentations. The face-out
concept can apply not only to softlines such as apparel but also to hardlines. Face-outs take up more
space than sleeve-outs, so it is impractical to face out all or even a high percentage of the total mer chandise on the floor.
The round rack is known as a bulk or capacity fixture and is intended to hold the bulk of merchandise
without looking as heavy as a long straight rack of merchandise. Although it is smaller than the
straight rack, it too allows only sleeve-outs unless fitted with special hardware. The four-way rack is
considered a feature fixture; even though it holds fewer items, it presents merchandise in a manner that
permits the shopper to glimpse at a garments style and key characteristics. The ingenious design also
allows it to hold a large quantity of merchandise on the hanger arms behind the four face-outs.
However, to be easily shopped, all the merchandise on one arm must be the same type of garment with
variations only in color and size. However, the retailer should be warned that when the front garment
does not match those behind it, the four-way is poorly merchandised and leaves the customer in the
same quandary as the straight rack.
Wall Fixtures: Thy are designed to be hung on the wall. Shelves, peg hooks, bins, baskets, and even
hanger bars can be fitted into wall systems. Hanger bars can be hung parallel to the wall, much like a
closet bar, so that large quantities of garments can be sleeved-out, or they can protrude perpendicularly
from the wall, either straight out (straight-outs) or angled down (waterfalls), to allow merchandise to
be faced out. The primary quality of wall systems is that they can generally be merchandised much
higher than floor fixtures. Walls not only hold large amounts of merchandise but also serve as a visual
backdrop for the department.
PTS: 1
REF: p. 504-506
OBJ: LO 13-3
9. Although there are a wide array of fixtures and hardware available to retailers, there are essentially six
methods of merchandise presentation. What are these methods and when should a retailer use each
one?
ANS:
The six methods of merchandise presentation are as follows:
Shelving. The majority of merchandise is placed on shelves that are inserted into gondolas or
systems. Shelving is a flexible, easy-to-maintain merchandise-presentation method.
Hanging. Apparel on hangers can be hung from softlines fixtures, such as round racks and
four-way racks, or from bars installed on gondolas or wall systems.
Pegging. Small merchandise can be hung from peg hooks, which are small rods inserted into
gondolas or wall systems. Used in both softlines and hardlines, pegging gives a neat, orderly
appearance but can be labor intensive to display and maintain.
Folding. Higher-margin or large, unwieldy softlines merchandise can be folded and then
stacked onto shelves or placed on tables. This can create a high-fashion image, such as when
towels are taken off peg hooks and neatly folded and stacked high up the wall.
Stacking. Large hardlines merchandise can be stacked on shelves, the base decks of gondolas,
or flats, which are platforms placed directly on the floor. Stacking is easily maintained and
gives an image of high volume and low price.
Dumping. Large quantities of small merchandise can be dumped in bins or baskets inserted
into gondolas or wall systems. This highly effective promotional method can be used in soft lines (socks, washcloths) or hardlines (batteries, grocery products, candy), and creates a highvolume, low-cost image.
PTS: 1
REF: p. 506-507
OBJ: LO 13-3
10. What psychological factors should be considered when merchandising stores?
ANS:
The various psychological factors to be considered when merchandising stores are:
Value and fashion image. One of merchandise presentations most important psychological ef fects is to foster an image in the customers mind of how trendy, exclusive, pricey, or value
oriented the merchandise is. For each of the merchandise-presentation methods mentioned pre viously, we discussed its effect on price image. By changing the merchandise-presentation
method, we can change the perception of our towel display from common, high volume, and
high value to an exclusive selection of high-fashion merchandise that is typically branded by a
well-known designer, which presumably will be at higher prices.
Angles and sight lines. Research has shown that as customers move through a retail store, they
view the store at approximately 45-degree angles from the path of travel, rather than perpen dicular to their path. This 45-degreee angle approximates the extent to which the typical per son can turn his or her head. Although this seems logical, most stores are set up at right angles
because it is easier and consumes less space. Therefore, merchandise and signage often wind
up being at a 90-degree angle to the main aisle. Four-way feature racks can be more effect ively merchandised by being turned to meet the shoppers sight lines head-on.
Vertical color blocking. To be most effective, merchandise should be displayed in vertical
bands of color wherever possible. As customers move through the store, their eyes naturally
view a swath approximately two-feet high, parallel to the floor, at about eye level. This visu al swath of merchandise will be viewed as a rainbow of colors if each merchandise item is dis played vertically by color. This method of merchandise presentation creates such a strong
visual effect that shoppers are exposed to more merchandise, which in turn increases sales. In
addition, when shopping for clothing, customers most often think first of color. Thus, they can
easily find the column of color on display and locate their size.
PTS: 1
REF: p. 507-509
OBJ: LO 13-3
11. Describe the role of visual merchandising in the context of merchandise presentation.
ANS:
Visual merchandising is the artistic display of merchandise and theatrical props used as scene-setting
decoration in the store. It is crucial in the context of merchandise presentation. An effective visual
merchandising display has several key characteristics. Visual displays are not typically associated with
a shopable fixture but are located in a focal point, feature area, or other area remote from the on-shelf
merchandising and perhaps even out of reach of the customer. Their goal is to create a feeling in the
store conducive to buying merchandise. Another characteristic of visual merchandising is its use of
props and elements in addition to merchandise. In fact, visuals do not always include merchandise
they may just be interesting displays of items somehow related to the merchandise or to a mood the re tailer wishes to create. Visuals tell the customer whether this is an upscale, serious shopping experi -
ence; a frivolous, fun shopping experience; or a down and dirty, low-price shopping experience. To be
most effective, however, visuals should incorporate relevant merchandise. The retailer should be care ful in setting visuals to make sure that the displays do not create walls that make it difficult for shop pers to reach other areas of the store. In addition, the retailer should carefully consider the placement
of signs.
PTS: 1
REF: p. 509-510
OBJ: LO 13-3
12. How is lighting design used by different types of retailers?
ANS:
Retailers have come to understand how lighting can greatly enhance store sales. One of the early keys
to success for Blockbuster Video was its move away from the 100-watt bulbs used by its competitors
to brighter lights. Brighter lighting in a wine store influences shoppers to examine and handle more
merchandise. Department stores, on the other hand, have found that raising lighting levels in fashion
departments can actually discourage sales because bright lighting suggests a discount-store image.
Lighting design, however, is not limited to simple light levels. Retailers have learned that different
types and levels of lighting can have a significant impact on sales. Increasingly, retailers are also re cognizing that lighting is a large contributor to energy cost and energy waste, and thus energy efficient
lighting is a very high priority in both new buildings and store remodeling. Many retailers are actually
using too much outdoor lighting today, probably because of the increasing risk of accidents or law suits.
PTS: 1
REF: p. 511-513
OBJ: LO 13-4
13. Why are the smell and background music of a store so important when designing a stores environ ment?
ANS:
Effective store design appeals to the human senses of sight, hearing, smell, and touch. Smell is be lieved to be the most closely linked of all the senses to memory and emotions. Bakeries, coffee shops,
popcorn vendors in movie theaters, and specialty shops that sell coffee or tobacco often attract custom ers through the smells that emanate from their products. Retailers hope that using smells as an in-store
marketing tool will put consumers in the mood. Regardless of the smell used, it must be consistent
with the stores image.
Retailers have piped music such as Muzak into their stores for generations, believing that a musical
backdrop will create a more relaxing environment and encourage customers to stay longer. Increas ingly, music is being seen as a valuable marketing tool because the right music can create an environ ment that is both soothing and reflective of the merchandise being offered. Researchers believe that
while the tempo of music affects how long shoppers stay in a store, the type of music may be just as
influential on how much they purchase. Today, some retailers are experimenting with placing advert isements into the background music. Other retailers have found a different use for this canned music.
Retailers need to understand the culture they operate in, as well as the role of music throughout the
seasons. Also music could be used to draw attention to select merchandise within the store.
PTS: 1
REF: p. 513-515
OBJ: LO 13-4
14. What are the various types of signage used by a retailer? Provide examples of each type.
ANS:
Institutional Signage: Inside the store, the first level of visual communications is known as institutional
signage, or signage that describes the merchandising mission, customer-service policies, and other
messages on behalf of the retail institution. This signage might include messages such as Lowest
Price Guaranteed and All Major Credit Cards Accepted.
Directional, Departmental, and Category Signage: Directional and departmental signage serves as the
highest level of organization in an overall signage program. For instance, when you enter a Lowes
with its more than 25-foot ceilings and large metal warehouse racks organized into a grid shopping
pattern and covering several acres of floor space, it would be very difficult to find merchandise
without Lowes use of large and bold signs showing the location of the paint department, plumbing de partment, electrical department, lumber department, and gardening department. Once a shopper locates
and moves close to a particular department, category signage is used to call out and locate specific
merchandise categories. For instance, the departmental sign might say Sporting Goods, be two feet
high and six feet wide, and hang from the ceiling. On the other hand, the category signage might be
only six inches high and two feet wide, affixed to the top of the gondola, and read Hunting,
Tennis, or Fitness.
Point-of-Sale Signage: The next level of signageeven smaller and placed closer to the merchandise
is known as point-of-sale (POS) signage. POS signage is intended to give details about specific mer chandise items, it usually contains more words and is affixed directly to fixtures. Special POS signs for
sales, clearance, and As Advertised are often different colors than the normal price signage to high light these special values.
PTS: 1
REF: p. 517-518
OBJ: LO 13-5
15. Some people say that retailers should be careful when using lifestyle graphics. Explain.
ANS:
Retailers must be careful when choosing lifestyle photography; as the saying goes, Beauty is in the
eye of the beholder. One persons lifestyle is not necessarily anothers, so lifestyle photography must
be kept very general to be attractive to the majority and offensive to none. Students are encouraged to
provide examples of signage that could sound offensive to some customers. A class discussion on this
could add more light to the comprehension of the topic.
PTS: 1
REF: p. 518
OBJ: LO 13-5
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Ole Miss - MKTG - 361
CHAPTER 14MANAGING PEOPLEMULTIPLE CHOICE1. Successful retailers of the future will be those that:a.develop ways to minimize the need for employee labor.b.minimize the need for re-training employees.c.devote the maximum effort to hiring good employ
Ole Miss - MKTG - 372
Linear Programming: Solution Interpretation and Sensitivity AnalysisMKTG 372 - Practice QuizInstructor: Dr. Cesar RegoQUESTIONSUse the following to answer questions 1-6:Here is a LP model of a situation that involves the production of three possible
Ole Miss - MKTG - 372
Chapter 1: Introduction to Operations Management1. Understand the concept of mass production The high-volume of mass production of a standardized product for a mass market Like Henry Ford shortening the assembly time per car to be produced in highvolu
Ole Miss - MKTG - 372
Supplement 1 Solutions to Selected ProblemsOperational Decision-Making Tools: Decision AnalysisS1-1. a. Minimin:South Korea 15.2China 17.6Taiwan 14.9Poland 13.8Mexico 12.5 minimumSelect Mexicob. Minimax:South Korea 21.7China 19.0 minimumTaiwan
Ole Miss - MKTG - 372
Chapter 1 SupplementDecision AnalysisSupplement 1-1Lecture OutlineDecision AnalysisDecision Making without ProbabilitiesDecision Analysis with ExcelDecision Analysis with OM ToolsDecision Making with ProbabilitiesExpected Value of Perfect Informa
Ole Miss - MKTG - 372
Mktg372IntroductiontoOperationsandSupplyChainManagement Instructor:Dr.CesarRego Spring2012Name:_ ID:_QUIZ2February20,20121. Here is a LP model of a situation that involves the production of three possible productsA, B, and C, each of which will yiel
Ole Miss - MKTG - 372
Statistical Process ControlMKTG 372 - Practice QuizInstructor: Dr. Cesar RegoQUESTIONS1. Statistical process control involves monitoring the process to detect and prevent poorquality.A) TrueB) False2. Special cause variability is due to natural va
Ole Miss - MKTG - 372
5/23/2011Chapter 3Statistical Process Control1Lecture OutlineBasics of Statistical Process ControlControl ChartsControl Charts for AttributesControl Charts for VariablesControl Chart PatternsSPC with Excel and OM ToolsProcess CapabilityCapabil
Ole Miss - MKTG - 372
Name: _ Date: _1. A unique, one-time operational activity or effort is referred to as a process.A) TrueB) False2. In general, projects are subject to less uncertainty than other types of processes.A) TrueB) False3. The three major components of pro
N.C. State - CHEMISTRY - CH
Quiz # 1 (January 24, 2012)EAS Reactions1. Draw products for the following reactions:ClAlCl3OOCH3ClO+AlCl32. Derive synthesis of m-chloronitrobenzene starting from benzene.ClCl2AlCl3HNO3H2SO4NO2NO2
N.C. State - CHEMISTRY - CH
Quiz # 2 (January 26, 2012)EAS SynthesisPropose a synthetic route for m-chloroethylbenzene from benzene.ClO1)Clwith AlCl32) Cl2, AlCl33) Zn(Hg), HCl -OR- H2NNH2, KOHSince the ethyl group and Cl are both o/p directors, a different metadirector m
N.C. State - CHEMISTRY - CH
Quiz # 3 (February 9, 2012)Chapter 14 and 15OHOH1) LiAlH42) H2OOHCH3ClAlCl3+ ortho productOOHNa2Cr2O7OHH2SO4Mechanism:MgBrHOH3 CHCH3+Mg saltsMechanism:H OH2OHC COOH
N.C. State - CHEMISTRY - CH
Quiz # 4 (April 10, 2012)Draw products for the following:OONaOHheatHHOOO1) NaOCH32) H3O+OODraw a mechanism for the following:ONaOHOHOOHO+ H2OOHO
N.C. State - CHEMISTRY - CH
Homework # 1 (CH221 Review)Name_Due IN CLASS January 17, 20121. Identify the following functional groups found in these common herbicides.FClClOClHOClOAHNGOCODHNONPHOOBHOOHECF3Weedar 64A_ether_RoundupPropyzamideC_amine_D_a
N.C. State - CHEMISTRY - CH
Homework # 2Due IN CLASS January 24, 2012Using resonance structures, explain why SNAr reactions prefer nitro groups in theortho and para positions.FOCH3FNO2FOCH3OCH3NO2NOOFOCH3NOFOCH3FOOCH3FOOOCH3NOFOCH3NOIn the ortho and
N.C. State - CHEMISTRY - CH
Homework # 3 Chp 11,12,22Name_Due IN CLASS February 2, 20121. Draw the major mononitration product(s) of the following:OCH3OCH3NO2NO2NO2NO2NO2NO2AnisoleEthylbenzeneNitrobenzene2. Draw a mechanism for the bromination of acetophenone using Br
Keller Graduate School of Management - FIN - 516
Sean RussiWeek 38-1, 8-2 15-8, 23-3, 23-4Problem 8-1Find the Exercise Valueof the call optionWhat is the optionstime value$Stock price per shareMarket priceStrike PriceExercise Value = Stock Price Per Share- Strike Price30-25=5Ex. Value= 5 d
Keller Graduate School of Management - FIN - 516
Sean RussiWeek 1 Assignment14-10/19-614-10A.1) 2011 Dividend PaymentPerecentage2010 Dividends2011 Dividend Payment2) 2010 Dividend Payout Ratio2010 Dividends Payout2010 Net IncomePercentage to Payout100% + growth of 10 %*the 2010 dividends of
Keller Graduate School of Management - FIN - 516
Sean Russi15-9,15-10,26-8Week 2 Homework15-9WACCIncease LeverageWd= % of debtT= corporate tax rateRd= cost of debtRs= cost of stockWs= common equityWACC= Wd(1-T)Rd+WsRsWACC Calculation.7(1-.15).12+(.30)(.16).7(.85)(.12)+(.048).7(.102)+(.048
Keller Graduate School of Management - FIN - 516
(TCO C) Brammer Corp.'s projected capital budget is $1,000,000, its target capitalstructure is 60 percent debt and 40 percent equity, and its forecasted net income is$550,000. If the company follows a residual dividend policy, what total dividends, if a
Keller Graduate School of Management - FIN - 516
Sean RussiHomework Week 520-3, 20-4A.2010 Earnings Per Share Given 12,0002010 Dividends Per Share 600,000/100 shares= 6,000 dividendBook Value Per Share 9 million/100 shares= 90,000 BV per shareB.Dividend Growth Rates2005 Edelman Dividend 4200Gr
Keller Graduate School of Management - FIN - 516
Sean Russi21-1, 21-2Week 6Current Value of Vandells StockCost of EquityFormulaRfR+b*premiumRfr= Risk Free RateB=BetaPremium5%1.46%5%+1.4*6%0.13413.40%cost of equityFree Cash Flow2*1.05=2.1WACC.30(8%)(.60)+.70(13.4%)0.108210.82%Value
Keller Graduate School of Management - FIN - 516
Sean RussiWeek 7 Homework17-2,17-3,17-10,17-1117-2nominal ratebonds matureJapanese nominal rate on bonds @ 6 months1 yen=6 Month Forward Ex rateF=S * (1+ US Rate)/(1 + Exchage Rate (yen)F= .009 x (1+.07)/(1+.055)Must divide by 2 since only a 6
Ill. Chicago - ECE - 417
Complex Analysis Math 147Winter 2006Second MidtermMarch 6, 2006due March 13, 2006Each problem is worth 10 pointsYou are on the honor system to work by yourself1. Let fn be a sequence of functions which are continuous on the closed unit diskcfw_|z | 1
Ill. Chicago - ECE - 417
SOLUTION TO HW02
Ill. Chicago - ECE - 515
ECE 515: HW9Prof. Jezekiel Ben-Arie1. Design a network that solves the XOR problem. It has an output of +1 for X aTTTT=(1,0), X b = (0,1) and 0 output for X c =(0,0), X d =(1,1).2. What changes are necessary in the network of problem 1 if one want
Ill. Chicago - ECE - 515
HW 6: ECE 515 Image Analysis and Machine Vision IIProf. Jezekiel Ben-Arie1. Show that Eq. (1) and Eq. (2) perform the same function.D j ( x) = x m j , j = 1,2,., M(1)1d j ( x) = x T m j m T m jj2(2)2. Show that the surface given Eq. (3) is the p
Ill. Chicago - ECE - 515
ECE 515 Image Analysis II HW #5: Prof. J. Ben-Arie1) Compute two-dimensional masks of Laplacian of Gaussian (Mexican hat) of size 9x9,7x7 and 5x5. Use a for the Gaussians such that 6 fits in the mask.(a) Print the mask values.(b) Convolve these masks
Ill. Chicago - ECE - 515
Hough transformThe Hough transform is a feature extraction technique used in image analysis, computer vision,and digital image processing.The purpose of the technique is to find imperfect instances of objects within a certain class ofshapes by a votin
Ill. Chicago - ECE - 515
ECE 515 Image Analysis II HW #4: Prof. J. Ben-Arie1. Generate a binary image of the shape in Fig. 1. Pixels which are entirely in the shapeare considered as 1, pixels on the boundary should have values between 0 and 1proportional to their area within t
Ill. Chicago - ECE - 534
i=1 ni=1=i=1 I (Xi ; Xi )(10.166)and (f ) follows from the denition of the distortion rate function. 16. Probability of conditionally typical sequences. In Chapter 7, we calculated the probability that two indep endently drawn sequences X n and Y n
Ill. Chicago - ECE - 534
Entropy of functions of a random variableNational Taiwan Ocean UniversityNational Taiwan Ocean UniversitySolution:FunctionsNational Taiwan Ocean UniversityNational Taiwan Ocean UniversitySolutionSolution cont.National Taiwan Ocean UniversityMut
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 2Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 2.28p +pp +pLet pmf P1 (p1 , . . . , pi , . . . , pj , . . . , pm ) and pmf P2 (p1 , . . . , i 2 j , . . . , i 2 j , . . . , pm )H (
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 3Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 3.1a) Let X have a probability distribution function f(x)E (X ) =0txf (x) dx =t0xf (x) dx txf (x) dx +txf (x) dxtf (x) dx =
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 4Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 4.8We Have X = cfw_1, 2, t = cfw_1, 2, Pr cfw_X = 1 = p1 , Pr cfw_X = 2 = p2 , p1 + p2 = 1H (X ) = p1 log p1 (1 p1 ) log(1 p1 )T (X )
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 5Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 5.4a) Binary code:SymbolX1X2X3X4X5X6X7Prob0.490.260.120.040.040.030.020.490.260.120.050.040.040.490.260.120.0
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 6Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 7.2Y =X +ZXP r (X )0pP r (Y )0.5p0+a1+a0.5p0.5(1-p)11Y00.5(1-p)1-pWe can see that the value of Y always depend on a.L
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 7Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 7.23Y = XZ, X and Z are independent. X = 0, 1, Z = 0, 1Let P (X = 1) = X0101Z0011Y0001P(Y=y)(1 )(1 )(1 )()( )(1 )(
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 9Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 9.14a)C = h(Y ) h(Y |X ) = h(Y ) h(Z )But Z has a discrete component, hence h(Z) = -;Since h(Y) is , hence C = .b) We can transmit
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 9Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 9.14a)C = h(Y ) h(Y |X ) = h(Y ) h(Z )But Z has a discrete component, hence h(Z) = -;Since h(Y) is , hence C = .b) We can transmit
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 10Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 10.1From the lecture we reached that x( 1 ) = E [X |X > 0]x( 1 ) =xf (x)dx =0The above by settingx22202x2 2x2e 2 2 dx =0
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 11Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 10.14a) Since X and Y are independent we have:p(x, y, x, y ) = p(x)p(y )p(, y |x, y )xHenceI (X, Y ; X, Y ) = H (X, Y ) H (X, Y, X
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 12Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 15.7(1)(1)nLet R1 and R2 be achievable rate pairs, hence we are sure of the existence of a (2nR1 , 2nR2 ), n) codes with Pe1 0(2)
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Homework 13Name: Johnson Jonaris GadElkarimUIN 656 312 844Problem 15.20a) Exploring the possibilities for the output we can construct the following table:X12424X21122Y24416It is clear
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2009Homework 2Johnson Jonaris GadElkarimUIN 656 312 844Problem 2.28p +pp +pLet pmf P1 (p1 , . . . , pi , . . . , pj , . . . , pm ) and pmf P2 (p1 , . . . , i 2 j , . . . , i 2 j , . . . , pm )H (P2 ) H
Ill. Chicago - ECE - 534
ECE 534: Elements of Information Theory, Fall 2010Name: Johnson Jonaris GadElkarimUIN 656 312 844Information theory and Neuroscience:Topic Covered: Neural coding and neural models Tractography fMRI Brain Network Analysis1. C. E. Shannon. A mathem