SOLVED

Section 4Â Â Retail Layout 1) One guideline for a retail layout is to locate high-draw items around the periphery of the store. 2) Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories. 3) Servicescape refers to the physical surrounding in which the service is delivered. 4) One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations. A) minimizing material handling cost. B) minimizing customer confusion regarding location of items. C) minimizing storage costs. D) minimizing space required. E) maximizing profitability per square foot of floor space. 6) Retail layouts are based on the notion that: A) handling costs should be minimized. B) storage costs should be minimized. C) average customer visit duration should be maximized. D) space used should be minimized. E) maximizing customer exposure rate maximizes sales and profit. 7) Slotting fees: A) are charged by retailers to stock a product. B) can amount to as much as $25,000. C) are not a part of Walmart’s business practices. D) can reduce the ability of small businesses to introduce new products. E) all of the above 8) Which of the following is NOT a retail layout practice? A) Locate the high-draw items around the periphery of the store. B) Distribute power items throughout the store. C) Use end-aisle locations to maximize product exposure. D) Use prominent locations for high-impulse and high-margin items. E) All of the above are retail layout practices. 9) What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible. 10) Which of the following does NOT support the retail layout objective of maximizing customer exposure to products? A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store’s mission with the careful positioning of the lead-off department. 11) Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A) indicators of imbalance on an assembly line. B) indicators that cross-docking has been successful. C) elements of customization in a warehouse layout. D) elements of servicescapes. E) elements of successful office layouts. 12) A(n) ________ addresses flow, allocates space, and responds to customer behavior. 13) ________ are charges that manufacturers pay to get their products displayed. 14) ________ refers to the physical surroundings in which a service takes place, and how they affect customers and employees. 15) ________ is the use of computer software to evaluate the profitability of merchandising plans in a retail layout.