Question 17 What is an important difference between elements of the retail mix and environmental factors? Most environmental factors are beyond the control of the retailer, retail mix decisions can be planned and should be adapted to changes in the environment. They are equally important in determining an overall strategy O The retail mix elements are not as important as the environmental factors are for a firm's success. Retail mix factors are not controlled by the retailer. O Environmental factors do not play much of a role for a retailer when planning their retail mix. Question 18 Why is it important for department stores such as Macy's and Nordstrom's to achieve big gross margins? It is a stated financial objective The strategic profit model will otherwise change the strategy of the retailer O Without a high gross margin, department stores would be unable to achieve high asset turnover ratios. O A low gross margin will turn it into a discount type operation. Their operating expenses are higher than many other retail formats