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RISE UP RETAIL INDUSTRY FUNDAMENTALS
QUESTIONS WITH CORRECT ANSWERS
ARRANGED ALPHABETICALLY
“Account Takeover - CORRECT ANSWER=> A type of economic fraud in which thieves steal customer
login information and then use it to access their retailer loyalty accounts. Also called loyalty fraud."
"Active Listening - CORRECT ANSWER=> A structured from of listening and responding that focuses the
attention on the speaker."
"Advertising - CORRECT ANSWER=> the activity of explicitly paying for media space or time in order to
direct favorable attention to certain goods or services"
"Add-on Services - CORRECT ANSWER=> Available services for specific product purchases that
costumers can opt for (e. g., payment options, product modifications etc.)"
"Alterations - CORRECT ANSWER=> Modifications to products that help them best meet the needs of
customers (e.g., the tailoring of clothing items or installing additional memory in a labtop)"
"Americans with Disabilities Act (ADA) - CORRECT ANSWER=> Passed by Congress in 1991, this act
banned discrimination against the disabled in employment and mandated easy access to all public and commercial buildings."
"analytical communication style - CORRECT ANSWER=> A communication style in which a person tends
to ask a lot of questions and behave methodically. Typically wants the important data, facts and logic."
"Anit-theft methods - CORRECT ANSWER=> Practices and devices used to manage and minimize
deliberate preventable losses. Examples include: non-electronic ink tags, mirrors, closed-circuit cameras, display or fixture locks, cables, chains and alarms and uniformed security guards."
"Asset Protection - CORRECT ANSWER=> Also referred to as loss prevention: The branch of retail in
charge of implementing actions plans to reduce waste, breakage or theft and increase safety."
"at-will employment - CORRECT ANSWER=> The employment relationship that exists when employers
can hire any employee they choose and dismiss an employee with or without cause at any time. Employees can also elect to work for the employer or to terminate the relationship anytime they desire to do so."
"Automated fraud - CORRECT ANSWER=> A type of ecommerce fraud in which cyber-criminals either
steal credit card information from customers or create programs to test randomly generated car
numbers and CVV codes until they find a combination that works; then bots place multiple transactions very quickly using the stolen credit card number."
"Audio ads on podcast - CORRECT ANSWER=> An advertising strategy in which retailers use podcast-
digital audio-messages to advertise their merchandise."
"Available inventory (on-hand) - CORRECT ANSWER=> The number of units within the total inventory
that are available to sell."
"Average customer spend - CORRECT ANSWER=> This refers to the average amount that a customer
spends during a store visit. This information might help a store plan their sales and marketing approaches."
"Barcode - CORRECT ANSWER=> A machine-readable series a parallel lines, used in retail to create a
unique item identifier."
"Body Language cues - CORRECT ANSWER=> Conscious or unconscious gestures and movements that
express intentions. These are a key form of nonverbal communication."
"Bonuses - CORRECT ANSWER=> Monetary incentives given to employees for great performance.
Retailers often give bonuses to employees, teams or departments or even the entire company."
"Brand promise - CORRECT ANSWER=> An extension of the company brand that reflects the benefits of
doing business with them-for example, providing quality customer service."
"Breakaway Statements - CORRECT ANSWER=> Phrases used to smooth the transition between on
customer and the next one (e.g. "Would it be ok if I grab a few items for another customer?")"
"broadcast advertising - CORRECT ANSWER=> Commercials produced for tv and radio. This terms also
included on-screen movie theater ads."
"Bundle pricing - CORRECT ANSWER=> A pricing model in which retailers sell multiple products and/or
services together for a lower retail price than if all of the items were purchased individually. This approach helps increase the perception of value with customers."
"Buying - CORRECT ANSWER=> The branch of retail responsible for selecting and purchasing
merchandise."
"Clientele - CORRECT ANSWER=> The collective group of customers that are served by a specific
retailer, when considered in total."
"Cost of Goods (COGS) - CORRECT ANSWER=> Direct costs associated with production of a product,
including the raw material used to make it and any labor costs."
"Credit - CORRECT ANSWER=> In finance, this refers to an agreement between a consumer and a
financial institution that allows him/her to obtain products and services without payment, buy with the promise of paying back within a certain timeframe."
"Cross-selling - CORRECT ANSWER=> The practice of recommending additional products that
complement a customer's purchase."
"Customer or Consumers - CORRECT ANSWER=> People who purchase goods or services from a
business"
"Customer service - CORRECT ANSWER=> The help, information and recommendations that company
representatives give to people who explore or buy its products and/or services."
"data privacy - CORRECT ANSWER=> The processes involved to ensure that customer's personal data
that they have shared with a retailer or its employees is kept private, and not shared with others or the public."
"Demand - CORRECT ANSWER=> Customer's need and/or willingness to buy a certain product or
service."
"Demographic data - CORRECT ANSWER=> Quantitative information describing age, income,
education, marital status, employment, etc., of target audience"
"Digital signage - CORRECT ANSWER=> Technology used to electronically display digital images, video,
web pages and text. Retailers use digital signs to attract in-store customers to merchandise, provide price and product information and share brand content and messaging with customers to enhance their shopping experience."
"Direct Competitor - CORRECT ANSWER=> Retailers that offer the same products or service with the
goal of selling it to the same audience. And example is Apple's iPhone vs. Samsung's Galaxy: they are similar phones from different companies, aimed at the same audience."
"Discount marketing - CORRECT ANSWER=> Marketing strategies aimed at specific customers and its
goals is to get the customer to take action-order a product online, buy an item via a social media site, visit a store or clip a coupon. Catalogs, loyalty program offerings and targeted emails are examples of direct marketing."
"Discount pricing - CORRECT ANSWER=> A pricing strategy in which coupons, rebates and other
promotional markdowns are used to get customers to buy and attract additional customer traffic to the store."
"Discrimination - CORRECT ANSWER=> The unfair treatment of someone less favorably than others
based on race, color, religion, gender, gender identity, sexual orientation, pregnancy, national origin, age, disability, genetic information and retailation."
"Display of fixture locks, cables, chains and alarms - CORRECT ANSWER=> Devices used to prevent
theft of high-priced items."
"Distribution channel - CORRECT ANSWER=> A path through which a product travels from its creation
to when it reaches the customer."
"E-Commerce fraud - CORRECT ANSWER=> A type of that is committed in the context of online
shopping or ecommerce retailing. Examples of ecommerce fraud are: identity frauds, account takeovers or loyalty frauds, return frauds and automated frauds."
"Economy pricing - CORRECT ANSWER=> A pricing strategy that targets the most price-conscious
shoppers. Under economy pricing, retailers, minimize all cost associated with certain items in order to keep their prices low."
"Electronic article surveillance (ESA) - CORRECT ANSWER=> Devices to prevent item theft that are
embedded in tags that are attached, sewn in or inserted into packaging by the manufacturer or store employee"
"Employee discount abuse - CORRECT ANSWER=> A type of employee fraud in which unauthorized
people (usually friends and family) use or gain from a discount that the retailer provides to its employees as a benefit."
"Employee fraud - CORRECT ANSWER=> Criminal deception in some form by an employee, generally
resulting in personal gain and a loss to the retailer."
"Excess inventory - CORRECT ANSWER=> When a retailer has too much merchandise in stock as a
result of inaccurately estimating product demand."
"Exchange - CORRECT ANSWER=> The action of swapping one purchased item for another one."
"Fair Labor Standards Act (FLSA) - CORRECT ANSWER=> THE FLSA established employment standards
that companies are required to follow, such as giving breaks and meal periods to employees."
"Family and Medical Leave Act (FMLA) - CORRECT ANSWER=> U.S act that provides employees with up
to 12 weeks of unpaid leave to care for family members or because of a serious health condition of the employee."
"Independent retailer - CORRECT ANSWER=> A retail business owned by an individual. Typically a
single store or a small regional chain."
"Indirect Competitors - CORRECT ANSWER=> Retailers that offer different products or services but
seek to meet the same customer need. For example, Smashburger and KFC sell very different products but both strive to meet the same need: satisfy hunger."
"Information Technology (IT) - CORRECT ANSWER=> The branch of retail in which employees collect,
store, and process data from Point of Sale (POS) devices; create and maintain systems for inventory management, customer service management, and communications; maintain the organization's technological infrastructure and more."
"Innovation buyer - CORRECT ANSWER=> A customer who is motivated to be one of the first to
purchase the newest technology, fashion, or car, eat at the just-opened restaurant, or see the latest movie. This type of person has an early adopter mindset and wants to be recognized as a trendsetter by others."
"Installment financing - CORRECT ANSWER=> A financing model in which the retailer loans a customer
money-which comes from an internal lending department or a third-party bank-to buy the product as a part of the sale. Borrowers typically pay the retailer in monthly installments."
"intuitive communication style - CORRECT ANSWER=> A person with this style of communication
typically wants big-picture ideas to determine what is import and will lose interested in the conversations if there is too much structure or a deep dive into product features."
"Inventory replenishment - CORRECT ANSWER=> The process of automatic or manual ordering to
meet product demands. Inventory life cycle: The process that starts when inventory arrives to the store and ends when it leaves the store with a customer"
"Inventory tracking systems - CORRECT ANSWER=> Systems that specify the amount of inventory in a
store or distribution center, identify how much inventory was sold, track the price that each item was sold for, pass information to ordering systems, record product price reductions, and more."
"Invoice - CORRECT ANSWER=> A written statement that contains information about a sale
transaction. Invoices typically include information such as the price, number of products purchased, etc."
"job description - CORRECT ANSWER=> A written statement about a specific job, which may include
details such as the company name, the job title, the purpose of the position, the job's duties and responsibilities, the scope of the role, the qualifications and requirements for the position, the title of the role's supervisor, and the job's working conditions."
"Key Performance Indicators (KPIs) - CORRECT ANSWER=> Values used to measure performance, such
as overall sales and customer retention levels. Examples in a retail store include: sale per square foot, average customer spend. and stock turnover rate."
"Keystone Pricing - CORRECT ANSWER=> A pricing method in which a retailer simply doubles the cost
of an item in order to determine its retail price."
"Layaway - CORRECT ANSWER=> A type of add-on service that allows customers to make an initial
deposit on merchandise and then pay for the rest over time."
"Loss Leaders - CORRECT ANSWER=> A pricing strategy in which items are sold at prices below the
retailer's cost, with the goal of encouraging customers to visit the retailer to get the "loss leader" products and then end up buying other items, too."
"Loss Prevention (asset protection) - CORRECT ANSWER=> The branch of retail in charge of
implementing action plans to reduce waste, breakage or theft and increase safety."
"Loyal Customers - CORRECT ANSWER=> A shopper who repeatedly chooses to shop at the same
retailer over others usually because of positive customer experiences with the retailer and their products and/or services."
"Loyalty and rewards programs - CORRECT ANSWER=> Marketing programs that provide incentives to
repeat customers who are loyal company brand shoppers. These programs generally use customer's personal information, purchase history and preferences to refine their product and service assortment, target promotions to consumer groups or individual customers and reward loyal shoppers."
"Manufacturer - CORRECT ANSWER=> Any entity that produces finished products"
"Marketing - CORRECT ANSWER=> The branch of retail in charge of developing strategies to promote a
company's brand and its specific products and services."
"Marketing mix - CORRECT ANSWER=> A combination of marketing tools and strategies that a retailer
uses to influence customers to purchase its products."
"Markdowns - CORRECT ANSWER=> Reductions to the original selling price of items, done to
encourage rapid sales. Markup: The amount of money that a retailer adds to its cost of a product to cover expenses and provide a profit."
"Merchandise (product) - CORRECT ANSWER=> Physical gods that are bought and sold, such as food,
clothes, and household items."
"Mindset - CORRECT ANSWER=> Customer's attitudes and expectations about retailers, customer
service and their shopping experiences."
"Open-ended Questions - CORRECT ANSWER=> Questions that cannot be answered with yes or no,
and that are used to get customers to provide details about what they want or need. Open-ended questions begin with the words, who, what, when, where, why, and how."
"Operational expenses - CORRECT ANSWER=> All of the overhead expenditures, or indirect cost,
incurred by a business. These included the physical space-mortgage or rent for anything you own or lease, such as a store a warehouse, or office space plus utilities-labor and staff expenses for maintaining and selling the products, advertising cost, insurance, taxes, and other expenses."
"Out-of-stock - CORRECT ANSWER=> The term used when there is not enough merchandise to satisfy a
product demand."
"Package switching - CORRECT ANSWER=> This fraudulent activity occurs when a thief takes a lower-
priced item out of a package and replaces it with a higher-priced item."
"Physical Inventory - CORRECT ANSWER=> The process of counting every piece of merchandise in the
store and creating a record of the store's inventory on hand at a specific point in time. The goal is to compare this record to the expected inventory value from the beginning of the period."
"Periodic Inventory - CORRECT ANSWER=> Using a predetermined schedule, the total value of the
inventory is counted and compared to the inventory from the beginning of the period."
"Perpetual inventory - CORRECT ANSWER=> Inventory is tracked in real time, as items enter and exit
total inventory."
"Personal selling - CORRECT ANSWER=> The process involves the face-to-face interaction between the
customer and a sales associate. These relationship-based activities between people are the cornerstone of retail."
"Planograms (POGs) - CORRECT ANSWER=> Schematic diagrams that visually represent the way in
which merchandise should be displayed on the sales floor. They may contain drawings, images, measurements, and/or words describing precisely which products, signs and labels should be places in specific locations on shelves, rack, tables, bin, cases, peg hooks, endcaps-display placed at the end of aisles-and other displays."
"Point-of sale (POS) system - CORRECT ANSWER=> Part of the inventory tracking system that assists in
tracking the reduction of on-hand inventory as it is sold. It includes barcode scanners, registers, card readers, receipt printers, tablet devices, online and in-app checkouts and may include self-service kiosks in stores."
"Prestige (premium) pricing - CORRECT ANSWER=> A competitive pricing strategy in which prices are
set higher than the competition based on the promise of exclusive, high-quality and unique products. For example, Nike is a retailer that uses this pricing strategy."
"Preventable Loss - CORRECT ANSWER=> The cost caused by either deliberate or unintentional human
actions. Examples include shoplifting, employee theft, operational errors, and vendor fraud."
"Price Look-Up (PLU) - CORRECT ANSWER=> A system of numbers that is used to uniquely identify bulk
produce items or occasionally, other types of items."
"Price skimming - CORRECT ANSWER=> A pricing strategy that involves a retailer setting a high price on
a new product in order to make a higher profit margin on the "innovation buyers" who will be the first to purchase the product. The price is then lowered later to attract more price-conscious customers."
"Print advertising - CORRECT ANSWER=> This includes advertising in newspapers, magazines,
newsletters, signs, weekly retailer ads, coupons and other printed materials that are intended to reach a wide audience and encourage purchases."
"Private company - CORRECT ANSWER=> A company whose stock is not traded on the stock market. In
retail, this term typically refers to large companies with many retail locations and centralized business operations. Privately-owned retailers include large chains such as Albertsons, Ashely Stewart, and Belk."
"Products (or merchandise) - CORRECT ANSWER=> Physical goods that are bought and sold, such as
food, clothes, and household items."
"Product benefits - CORRECT ANSWER=> The advantages that make a certain product a good choice
for the customer."
"Product features - CORRECT ANSWER=> A product's characteristics. They can be touched, tasted,
seen, smelled, and/or heard and include things like color, size, flavor, scent, sound, and texture."
"Product and/or service knowledge - CORRECT ANSWER=> Information learned and used to help
customers understand how a product or service will meet their needs. IT includes knowing the features, benefits, functions, uses, and required support for products and/or services."
"Product return - CORRECT ANSWER=> The process of the customer taking previously purchased
merchandise back to the retailer to receive a refund in the original form of payment, an exchange for another item or a store credit."
"Profit - CORRECT ANSWER=> The amount of money the retailer keeps for itself. This is defined as
revenue-the amount of money that comes in-minus expenses-the amount of money that the retailer spends."
"Profit margin (retail margin) - CORRECT ANSWER=> The difference between an item's retail price-the
amount that the item is sold for-and the cost of goods sold, or how much the retailer paid for the item."
"goal of retail - CORRECT ANSWER=> provide customers with the goods and services they want--when,
where, and how they want them"
"multichannel retail - CORRECT ANSWER=> customers have many channels, but the channels are not
connected to one another"
"omnichannel retail - CORRECT ANSWER=> customers have many channels, and the channels are
connected using technology"
"manufacturer - CORRECT ANSWER=> they produce or make finished products"
"wholesaler - CORRECT ANSWER=> buys large quantities of products from the manufacturer and then
sells small quantities to retailers"
"what are the 3 distribution channels - CORRECT ANSWER=> selling directly to customers, selling
through retailers, and selling through wholesalers"
"4 types of retail ownership - CORRECT ANSWER=> independent, corporation, private company, and
franchise"
"the majority of retailers have what type of ownership? - CORRECT ANSWER=> independently owned"
"approximately what percentage of U.S. jobs are retail jobs, as of 2019? - CORRECT ANSWER=> 20-
"allocation - CORRECT ANSWER=> distributing merchandise from the manufacturer to the retailer"
"replenishment - CORRECT ANSWER=> to fill in a store's supply or inventory as it runs low"
"on hand inventory - CORRECT ANSWER=> products that are sitting on shelves or in a stockroom
**they are NOT making money"
"shelf life - CORRECT ANSWER=> the time an item remains usable or fit for consumption"
"markdowns - CORRECT ANSWER=> reductions to the original selling price in order to encourage rapid
sales"
"what is the term for physical goods that are bought and sold? - CORRECT ANSWER=> products"
"what is the term that describes the audience of retail stores--the people who buy things from the store?
- CORRECT ANSWER=> customers"
"what is the term for intangible things, such as providing delivery, that is sold be retailers? - CORRECT
ANSWER=> services"
"a grower of potatoes is a......manufacturer, wholesaler, distribution center, or retailer? - CORRECT
ANSWER=> manufacturer"
"the majority of retailers are......independently owned, corporations, franchises, or online only retailers?
- CORRECT ANSWER=> independently owned" "what is the retailing approach that places the focus on a seamless shopping experience for customers
by integrating multiple channels? - CORRECT ANSWER=> omnichannel"
"approximately what percentage of jobs in the U.S. are retail? - CORRECT ANSWER=> 20-25%"
"what kinds of things does a manufacturer produce? - CORRECT ANSWER=> finished products"
"what holds large quantities of product that are later sent either to retail locations or directly to
customers? - CORRECT ANSWER=> distribution center"
"what term describes distributing merchandise from the manufacturer to a a retailer location? -
CORRECT ANSWER=> distribution center"
"what's the term for reducing the price of an item in order to encourage sales? - CORRECT ANSWER=>
markdown"
“What is the primary goal of effective selection in retailing? - CORRECT ANSWER=> to ensure that
customers can find the products they want when they want them" "The period key term in retail, for a period of time that an item remains usable, or fit for consumption is
called: - CORRECT ANSWER=> shelf life"
"What is the primary purpose of implementing markdowns in retail? - CORRECT ANSWER=> to
encourage rapid sales of products"
"What is the primary purpose of geotargeting in the retail industry? - CORRECT ANSWER=> to provide
personalized service offers based on location"
"What is retail? - CORRECT ANSWER=> the sale of good/services directly to customers (shoppers)"
"Which of the following is the standard definition of a retail ecosystem? - CORRECT ANSWER=> an
interconnected system of approaches for meeting the goal of retailing, which is to provide customers with the merchandise and services they want"
