Retail Management A Strategic Approach 13th Global edition Barry Berman, Joel R. Evans, Patrali Chatterjee - Solutions

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What is randomization? How is it important in testing? What does it help mitigate?
Why should an experiment use a control sample?
What is a model? What are the two components?
What is the difference between predictive and inferential models?
How can you reduce the chance of overfitting the model? What does it mean to cross-validate the model?
What is the difference between accuracy and precision?
What are the steps in the predictive modeling lifecycle?
What are some methods to check model fit?
What are some methods to check model performance?
What is linear regression? What kind of variable are you trying to predict?
In a simple linear regression (one X variable and one Y variable), what does the coefficient represent?
Assume that you have the output shown in Figure 10.31 for a regression model:a. Which variables are significant?b. How do you interpret the coefficient for Var1?c. Predict the value of Y, when Var1 = 100 and Var2 = 146. Variable DF Intercept 1 Var1 1 Var2 1 Variables in the Equation Parameter
Name some of the variable selection options available when building a regression model.
What is the difference between R2 and adjusted R2? Which should you use if you have many independent variables in your model?
What type of response variable is being predicted with a logistic regression model?
Assume the following data:• Group 1 has a 5% chance of winning.• Group 2 has a 8% change of winning.a. Calculate the odds of winning for Group 1 and Group 2.b. Calculate the odds ratio of Group 1 winning vs. Group 2 winning.
You have obtained the output shown in Figure 11.13 from a logistic regression model:a. Which variables are significant?b. How would you interpret the “Age” coefficient?c. How would you interpret the “Sex” coefficient?d. Compute the odds ratio for a one-year increase in age. Variable B
What are sensitivity and specificity?
What is a receiver operating characteristics curve? How is it used?
What is a Kolmogorov–Smirnoff statistic? How is it used?
List some of the pros associated with more complex models, such as neural network models.
List some of the cons associated with more complex models, such as neural network models.
What are classification and regression trees? How are they different from each other?
How can you ensure that your model is not fitting “noise”?
When should you consider fitting these advanced models instead of the more traditional model options (for example, regression)?
Who are the key team members to include in your analytics team?
Which analytics software package might you select for your organization? Why?
How can you assess whether your analytical infrastructure is nearing capacity?
A retailer has net sales of $1,000,000, net profit of $185,000, total assets of $600,000, and a net worth of $225,000.a. Calculate asset turnover, profit margin, and return on assets.b. Compute financial leverage and return on net worth.c. Evaluate the financial performance of this retailer.
Why does the concept of ease of entry usually have less impact on chain retailers than on independent retailers?
Cities A and B are 50 miles apart. City A has a population of 400,000 and City B has a population of 100,000. According to Reilly's law, what is the point of indifference for City B?a. 3.3 milesb. 16.7 milesc. 25.0 milesd. 33.3 miles
If City B, from the prior problem, has a population increase of 20 percent over the next three years while City A has an increase of 10 percent, what will the point of indifference be for City B?a. 5.0 milesb. 17.2 milesc. 25.0 milesd. 32.5 miles
Respectively, Cities A, B, and C have 5,000, 10,000, and 12,500 square feet of retail selling space allocated to gift items. Potential customers live 7 minutes from City A, 10 minutes from City B, and 20 minutes from City C. The effect of travel time is 1. According to Huff's law, what percentage
If the effect of travel time in the prior problem is really 2, what percentage of customers will shop in City A for gift items?a. 18b. 28.7c. 34d. 44
A community has 50,000 residents; 35,000 of them regularly shop in that community. These shoppers spend an average of $225 per week in the community. What are the expected annual sales in the community?a. $7,875,000b. $78,500,000c. $364,000,000d. $409,500,000
If the percentage of residents in problem 5 who shop in their community goes to 90 percent and the average expenditures stay constant at $225 per week, by what percentage will expected annual sales in that community increase?a. 1.3b. 2.9c. 28.6d. 38.6
In comparison to several trading areas with similar demographics, Area A has a high number of persons per retail establishment, high average sales per employee, and high average sales per square foot of selling area. What conclusion can you draw about Area A?a. Area A is understored.b. Area A is
A retailer uses a perpetual inventory system. Compute the firm's end-of-month inventory at cost, if monthly sales (at cost) = $600,000; monthly sales (at retail) = $750,000; monthly purchases (at cost) = $250,000; and beginning inventory (at cost) = $600,000.a. $75,000b. $150,000c. $250,000d.
Compute the cost of goods sold, if sales = $1,000,000; beginning inventory (at cost) = $700,000; ending inventory (at cost) = $150,000; purchases (at cost) = $200,000.a. $50,000b. $250,000c. $450,000d. $750,000
What is the cost complement for Adams Stationery?Calculation of Merchandise Available for Sale:Cost Method – Beginning inventory = $75,000; Net purchases = $60,000; Transportation = $1,500; Total merchandise available for sale = $136,500.Retail Method – Beginning inventory = $200,000; Net
A physical inventory of the merchandise of Adams Stationery as of December 31, 2016, showed a valuation of $160,000 (at retail). Compute the stock shortages that occurred during the period from January 1, 2016, to December 31, 2016.a. $2,500b. $5,000c. $10,000d. $105,000
Calculate the ending inventory at cost for Adams Stationery as of December 31, 2016.a. $45,600b. $60,800c. $76,300d. $82,400
A toy store has average monthly sales of $80,000. Its sales for December were $120,000. What is the monthly sales index for December?a. 153b. 67c. 150d. 400
A firm plans its average monthly stock at retail to be $34,000 and its average monthly sales to be $22,000. What is its basic stock at retail?a. $4,000b. $7,000c. $12,000d. $34,000
A camera retailer uses the weeks' supply method of inventory planning. If average weekly sales are $5,000, and a three-week supply of merchandise is desired, what is the planned inventory level?a. $4,000b. $8,000c. $12,000d. $15,000
A small appliance dealer estimates May sales to be $350,000 and plans reductions to be 20 percent of sales and ending inventory to be $65,000. Beginning inventory is $85,000. Compute planned purchases at retail for May.a. $240,000b. $260,000c. $340,000d. $400,000
A health food retailer has $120,000 in monthly operating expenses and planned monthly sales of $400,000. Reductions are planned to be $10,000. A profit goal of $40,000 is established. What is the required initial markup?a. 24.5%b. 36.6%c. 37.0%d. 41.5%
A mail-order retailer has an average inventory at retail of $300,000 and net annual sales of $5,000,000. What is the annual stock turnover rate at retail?a. 7.5 xb. 15.0 xc. 16.7 xd. 17.0 x
A clothing store has a gross margin of $35,000 and net sales of $100,000. What is the gross margin percentage?a. 15%b. 25%c. 35%d. 80%
A computer retailer has net annual sales of $150,000 and average inventory at cost is $35,000. What is the annual sales-to-stock measure?a. 4.3 xb. 6.0 xc. 7.5 xd. 8.0 x
A beauty supply retailer wants to receive a 35 percent markup (at retail) for all merchandise. If a magnifying mirror retails for $11 per tile, what is the maximum that the retailer would be willing to pay for a magnifying mirror?
A retailer can sell 100 printers per month at a price of $200 each or 275 printers per month at a price of $175 each. What is the elasticity of demand (expressed as a positive number)?a. 0.40b. 1.00c. 1.65d. 7.01
If the retailer in problem 1 can sell 400 printers at $155, what is the price elasticity of demand (expressed as a positive number) between the prices of $175 and $155?a. 0.48b. 1.83c. 2.44d. 3.05Data from problems 1A retailer can sell 100 printers per month at a price of $200 each or 275 printers
A men’s specialty shop uses a markup of 40 percent at retail for branded shirts. What is the markup equivalent at cost?a. 45%b. 66.7%c. 100%d. 122%
A ladies’ specialty shop buys merchandise for $20 and sells it for $35. What is the markup at retail?a. 42.8%b. 57.4%c. 100%d. 150%
A bookstore buys books for $70 and sells them for $100. What is the markup at retail?a. 30%b. 80%c. 140%d. 220%
A retailer purchases appliances for $10 and desires a 40 percent markup at retail. What should the retail price be?a. $11.70b. $13.00c. $14.28d. $16.67
A retailer purchases milk for $1.50 per quart and seeks a 30 percent markup at retail. What should the retail price be?a. $1.30b. $1.43c. $1.65d. $2.14
A belt shop requires a minimum markup of 40 percent at retail on leather belts. If the store owner feels that a line of leather belts should retail for $50.00 each, what is the maximum price he or she will pay per belt?a. $10.00b. $15.00c. $20.00d. $30.00
The belt retailer noted in problem 8 sells plastic belts for $10 and seeks a 25 percent markup at retail. What is the maximum price he or she will pay per belt?a. $5.00b. $6.00c. $7.50d. $9.00
A retailer has purchased a line of sports jackets for $125 each. The selling price is $200 per jacket. What is the markup at retail?a. 37.5%b. 42.0%c. 53.0%d. 63.0%
A retailer has purchased a line of suits for $200 each. The selling price is $375 per suit. What is the markup at retail?a. 46.7%b. 57.1%c. 75.0%d. 175.0%
A retailer has net annual sales of $300,000. Retail expenses are $75,000. Net profit is $25,000. Compute the maintained markup at retail.a. 20%b. 33.3%c. 44.4%d. 80%
A retailer has net annual sales of $3,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail.a. 13.0%b. 16.5%c. 20.0%d. 22.0%
For the retailer in problem 13, the retail selling price is $10.00. What are the merchandise costs?a. $3.33b. $6.67c. $12.00d. $14.92Data from problem 13A retailer has net annual sales of $3,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail.
The retailer in problem 13 has planned retail reductions of $100,000. What is the initial markup?a. 33.0%b. 36.2%c. 41.0%d. 43.4%Data from problem 13A retailer has net annual sales of $3,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail.
If the retailer in problem 13 has planned retail reductions of $200,000, what is the initial markup?a. 36.2%b. 39.1%c. 48.5%d. 63.0%Data from problem 13A retailer has net annual sales of $3,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail.
A retailer buys merchandise for $20.00 per piece. Half is sold for $25.00 and half for $35.00. What is the maintained markup?a. 25.0%b. 33.3%c. 37.1%d. 42.8%
Reclining chairs are reduced from $250 to $200 each. Calculate the off-retail markdown percentage.a. 20%b. 25%c. 36%d. 60%
A home furnishings retailer has additional markups totaling $950 on a line of table lamps. Net sales of the lamps equal $8,000. Compute the additional markup percentage.a. 7.5%b. 8.1%c. 11.9%d. 16.1%
A home furnishings retailer plans to sell a lamp with a cost of $100 at an original retail price of $200. The firm expects to sell 200 lamps over the next year. How many units would the retailer have to sell if it reduces the price to $175 but still earns the same profit?a. 225b. 250c. 267d. 300
Present a community relations program for a pharmacy chain.
Develop a checklist for a chain of large sporting goods stores to coordinate its promotional plan.
Exclusive channel distribution allows both parties to work together to maintain an image, assign shelf space, allot profits and costs, and advertise. It also usually requires that retailers limit their brand selection in the specified product lines; they might have to decline to handle other
1. What overall conclusions do you draw from this case? Explain your answer.2. What is the biggest “disconnect” between retailers and their customers today? How could this be fixed?3. What could other retailers learn from John Lewis and Warby Parker?4. Describe the findings shown in Figure 1.
1. Based on the information presented in this case, how would you describe Shake Shack’s retail image?2. How would you describe the store atmosphere that Shake Shack seeks to maintain?3. The Gramercy Tavern is more upscale than Shake Shack. Explain how you would expect its retail strategy to
1. Present a five-item ethics code that a retailer could impose on its suppliers with regard to fake and counterfeit merchandise.2. As the buyer for a retail chain, what would you do if you found out that one of your long time suppliers had been passing on counterfeit goods as authentic? Why?3.
1. What are the three most important trends cited in this case? Explain your answer.2. To date, what are the three most accurate predictions cited in the case? Explain your answer.3. To date, what are the three least accurate predictions cited in the case? Explain your answer.4. How can retail
1. How important are store locations in Food City’s overall retailing strategy? Explain your answer.2. Enumerate several criteria that Food City should consider when choosing a new location to open a supermarket?3. Outside of Arizona, where should Food City consider opening supermarkets? Why?4.
1. What do all Millennials have in common? Is this good or bad for retailers? Why?2. What do you think is the most misunderstood aspect of the Millennial generation? Why?3. As a furniture retailer, how would you appeal to “Mavens”?4. As a consumer electronics retailer, how would you appeal to
1. Differentiate between expendable and untouchable shopping. Why is this distinction important to retailers?2. As an independent jewelry retailer, what could you learn from Table 1? How should you adapt to this?3. Do you think that the revenues of retail cooperatives will go up during weak
1. Relate the material in this case to the concept of the total retail experience.2. What uncontrollable factors will affect a retailer’s ability to undertake the suggestions cited in the case? How would you handle them?3. Comment on this observation: “In business, you sell yourself first, your
1. Explain why the 2Es are so important for forward-looking retail planning.2. What’s the last retailer—physical store or online store— that excited you? Describe what excited you. Did this encourage you to buy more or pay a quick return visit? Why or why not?3. As a shopper, do you want the
1. What do you think about the methodology used to gather the data for this case? Explain your answer.2. “The first challenge is Differentiation and Relevance.” Why is this true for retailers of all types and sizes? Why will this be even more difficult in the future?3. “A second challenge is
1. For a deep discounter, should price be the only element of the retailer’s strategy that is promoted? Explain your answer. 2. In advertising prices, does Walmart have to enact the same prices for items sold in all of its stores throughout the United States and on online? Why or why not?3.
1. As an apparel retailer, would you be excited by utilizing eyeQ displays to tailor products to specific customers?2. As a one-way system— no questions are asked of shoppers— how accurate do you think that eyeQ would be in identifying customer characteristics and their desires? 3. What
1. How would you promote a proactive health-and-wellness theme as a drugstore chain?2. What does “transparency” mean with regard to the information provided by retailers? What grade would you give to the retailers you patronize? Why?3. How would you advertise differently to Millennials than to
1. From a retailer perspective, how would you exhibit “simplicity” in an omnichannel world?2. From a consumer perspective, what does “simplicity” mean to you? Is it important? Explain your answer.3. Should every kind of retailer— small, large, discount, upscale,and so on—strive to be
1. What retailer activities are involved with a price optimization strategy?2. Why don’t more retailers use price optimization strategies?3. How does price optimization relate to the concept of category management?4. How could a small retailer engage in a price optimization strategy?
1. What are your overall conclusions about the information presented in this?2. Do the data highlighted in the case affect both suppliers and retailers? Explain your answer.3. Comment on the results shown in Table 1. 4. What criteria should suppliers use in rating the retailers with which they
1. As a retail buyer, what criteria would you use in deciding whether your chain should carry the new Samsung Family Hub refrigerator?2. What kind of support would you require from Samsung with regard to training you (as the buyer) and the on-floor sales personnel?3. Discuss the logistics of the
Present a merchandising philosophy for this sporting goods retailer. Why do you think this retailer would prefer an inside buying organization, rather than an outside one?If this buyer position is responsible for tennis equipment, what decisions would he or she have to make?As described in the
1. What is the proper mix of humans and technology in preventing shrinkage losses?2. How would a small retailer’s theft avoidance strategy differ from that of a large strategy? Why?3. Develop an operations blueprint (see Figure 13-1 for an example) to reduce retail theft.4. What else could a
1.Based on the information this case, what kind of career path would you expect an SMDO to have? Why?2. How could an SMDO have an impact on a retailer’s cash flow?3. How could an SMDO have an impact on a chain retailer’s energy management systems?4. How could an SMDO have an impact on a
1. Based on the information this case, what kind of career path would you expect an MTD to have? Why?2. Using Figure 11-4 as an example, present a similarly formatted job description for an MTD.3. How could an MTD improve a retailer’s financial operations?4. What are the greatest challenges
1. What are the pros and cons of delineating such a long list of specific activities for an ASM to perform?2. Why is ASM a good starting point for a retail career?3. What criteria would you use to determine how well an ASM is doing in his/her job?4. What do you recommend that the retail employer
1. A new technology allows retailers to be sure the temperature in a delivery trailer is in the proper range for refrigerated or frozen food, and whether products can go on to the store, require more testing, or are rejected. Relate this to store location planning.2. Comment on this statement: A
What is the most surprising thing that you learned from reading this case? Explain your answer.What are the implications of this case for a U.S. retailer that wants to open in Europe?What are the implications of this case for an online retailer that wants to sell its products globally?Discuss the
Comment on this statement: “AEO established a strategy based on what its road map would look like for the next 5 years.”Explain the concept of “channel-immune” distribution centers. How does this fit with retailers’ store location decisions?What factors should be considered in determining
How is trading-area analysis different for a small store than a large store? Explain your answer.How should a food-delivery service such as Amazon Fresh define its trading area? Is it going to bigger or smaller than a traditional supermarket’s trading area? Why?What are the pros and cons of

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Retail Management A Strategic Approach 13th Global edition Barry Berman, Joel R. Evans, Patrali Chatterjee - Solutions

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