Here are 50+ MCQs with answers based on the content provided about Big Data at Gap Case Discussion:
Multiple Choice Questions (MCQs)
What was one of the main issues Gap was facing according to the case discussion?
- A) Increasing sales
- B) Declining sales
- C) Expanding market share
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D) Higher profit margins
Answer: B) Declining sales
What was another significant problem Gap encountered?
- A) Increase in store openings
- B) Market share growth
- C) Declining market share
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D) Stable market share
Answer: C) Declining market share
Why did Peck fire the creative directors at Gap?
- A) They were too data-focused
- B) To replace them with a data-driven creative process
- C) They increased production costs
-
D) They were successful
Answer: B) To replace them with a data-driven creative process
What was the primary argument in favor of a data-driven creative process?
- A) Brands need creative talent
- B) Data provides instant feedback
- C) Fashion cannot be predicted by data
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D) Visionaries forge trends
Answer: B) Data provides instant feedback
Which competitor of Gap successfully uses a data-driven approach?
- A) Old Navy
- B) H&M
- C) Banana Republic
-
D) Zara
Answer: D) Zara
What is a benefit of a creative director-led process according to the case?
- A) Predicts trends using data
- B) Creates instant product feedback
- C) Establishes a clear brand vision
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D) Data eliminates guesswork
Answer: C) Establishes a clear brand vision
One con of a creative director-led process is that:
- A) Collaborative effort benefits are limited
- B) There is no clear vision for the brand
- C) Designers may lose their creative touch
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D) Designers always predict future trends correctly
Answer: C) Designers may lose their creative touch
Why did retail analysts question Peck’s decision to eliminate creative directors?
- A) Gap’s competitors were not data-driven
- B) They believed a brand without a creative director was directionless
- C) They supported Gap's move towards data analytics
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D) They believed data alone could lead to success
Answer: B) They believed a brand without a creative director was directionless
What is one advantage of data-driven creative processes mentioned in the case?
- A) Visionary designers create unique trends
- B) Data helps manage inventory and production efficiently
- C) Data-driven processes are less expensive
-
D) Data-driven processes eliminate creativity
Answer: B) Data helps manage inventory and production efficiently
What is one potential drawback of relying on big data for fashion design?
- A) It eliminates guesswork in decision-making
- B) It may lead to homogenized product design across brands
- C) It increases innovation in product design
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D) It ensures trends are always accurately predicted
Answer: B) It may lead to homogenized product design across brands
Which assumption is discussed regarding consumer preferences?
- A) Consumer preferences are unstable
- B) Consumer preferences are stable across time
- C) Consumer preferences change randomly
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D) Consumer preferences are irrelevant to fashion decisions
Answer: B) Consumer preferences are stable across time
What is a key criticism of the data-driven approach for predicting fashion trends?
- A) Data provides no useful information
- B) Data can only reveal what worked in the past
- C) Data always predicts future trends accurately
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D) Data eliminates the need for creative directors
Answer: B) Data can only reveal what worked in the past
Which company is mentioned as a potential model for Gap to follow in terms of data usage?
- A) Amazon
- B) Banana Republic
- C) Old Navy
-
D) Zara
Answer: D) Zara
One advantage of selling Gap products on Amazon would be:
- A) Increased exposure to online shoppers
- B) Maintaining control over pricing
- C) Increasing brick-and-mortar store traffic
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D) Reducing competition with other brands
Answer: A) Increased exposure to online shoppers
What was one of Peck’s proposed solutions to improve sales at Gap?
- A) Increase in prices
- B) Offering deep discounts of 40%
- C) Reducing the number of stores
-
D) Eliminating online shopping
Answer: B) Offering deep discounts of 40%
Which of Gap’s brands is mentioned as the most popular in recent years?
- A) Banana Republic
- B) Old Navy
- C) Gap
-
D) Zara
Answer: B) Old Navy
Why might relying on big data not work equally well for all Gap brands?
- A) Different brands serve different markets and needs
- B) Data can homogenize product designs across brands
- C) Big data is only useful for high-fashion brands
-
D) Only Old Navy uses data-driven designs
Answer: A) Different brands serve different markets and needs
Which business model could Gap use if it sells products on Amazon?
- A) Direct selling to consumers
- B) Wholesale model
- C) Subscription-based selling
-
D) Digital-only marketing
Answer: B) Wholesale model
What is one potential challenge of selling on Amazon for Gap?
- A) Losing control over pricing and placement
- B) Higher in-store sales
- C) Limited exposure to customers
-
D) Reduced comparison with competitors
Answer: A) Losing control over pricing and placement
What advantage does Amazon’s recommendation system provide to brands?
- A) It eliminates competition
- B) It exposes products to new customers
- C) It reduces the need for marketing efforts
-
D) It prevents other brands from competing
Answer: B) It exposes products to new customers
What issue does Gap face with using big data to predict fashion trends?
- A) It cannot predict future trends accurately
- B) It leads to overly innovative designs
- C) It reduces costs too much
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D) It always succeeds in predicting consumer preferences
Answer: A) It cannot predict future trends accurately
What is one of the core issues Gap must balance in adopting big data?
- A) Balancing creativity with data analytics
- B) Eliminating creativity from fashion decisions
- C) Ignoring consumer preferences
-
D) Following trends exclusively from competitors
Answer: A) Balancing creativity with data analytics
1. What was a significant issue Gap was facing that led to declining sales?
A) Too many creative directors
B) A saturated fashion market
C) Lower margins and store closures
D) Lack of interest in consumer feedback
Answer: C) Lower margins and store closures
2. What major decision did Peck make in his leadership at Gap?
A) Increased reliance on celebrity endorsements
B) Fired creative directors and replaced them with a data-driven process
C) Increased advertising budget
D) Opened more stores to counter declining sales
Answer: B) Fired creative directors and replaced them with a data-driven process
3. The discussion about "Art vs. Science" in fashion at Gap highlights:
A) The need for technological upgrades
B) The balance between creative intuition and data analytics
C) The importance of hiring more creative directors
D) Gap’s history in the fashion industry
Answer: B) The balance between creative intuition and data analytics
4. What is a potential advantage of using analytics in Gap's operations?
A) Reduction in product wastage
B) Lower employee turnover
C) Increased number of physical stores
D) Improved brand identity
Answer: A) Reduction in product wastage
5. What is the criticism against using only data-driven decisions for fashion at Gap?
A) Data-driven processes can be expensive
B) Data can't predict new fashion trends
C) Competitors have better data
D) Big data processes are difficult to implement
Answer: B) Data can't predict new fashion trends
6. Which competitor has successfully implemented a data-driven creative process, according to the case?
A) H&M
B) Zara
C) Uniqlo
D) Forever 21
Answer: B) Zara
7. What is one advantage of a creative director-led creative process?
A) Instant feedback from consumers
B) Consistent brand identity
C) Higher profits
D) Faster production cycles
Answer: B) Consistent brand identity
8. One key assumption about consumer preferences in the case is that they are:
A) Stable across time
B) Highly unpredictable
C) Only influenced by creative directors
D) Dependent on marketing efforts
Answer: A) Stable across time
9. What challenge is associated with a data-driven creative process?
A) It eliminates all risks in decision-making
B) It may homogenize product designs across brands
C) It increases the cost of production
D) It gives more control to creative directors
Answer: B) It may homogenize product designs across brands
10. Which brand within Gap Inc. was identified as being the most successful in recent years?
A) Banana Republic
B) Old Navy
C) Gap
D) Athleta
Answer: B) Old Navy
11. The reliance on past purchase data is more effective for which category of clothing?
A) High-fashion women’s clothing
B) Basics and classics
C) Cutting-edge men’s clothing
D) Seasonal collections
Answer: B) Basics and classics
12. What type of companies are more likely to benefit from selling through platforms like Amazon?
A) Large established brands
B) Startups and manufacturers without strong supply chains
C) Brands with significant online presence
D) Companies focused on brick-and-mortar stores
Answer: B) Startups and manufacturers without strong supply chains
13. What is a potential downside to selling Gap Inc. brands on Amazon?
A) Increased exposure to new customers
B) Higher marketing costs
C) Loss of direct control over the brand
D) Enhanced customer feedback systems
Answer: C) Loss of direct control over the brand
14. One criticism against relying too heavily on consumer data for fashion decisions is:
A) Data can only show what has worked, not what will work
B) Data can be easily manipulated by creative directors
C) Data is too expensive to collect for fashion brands
D) Consumers don’t provide accurate data for trends
Answer: A) Data can only show what has worked, not what will work
15. What is one argument in favor of combining both art and science in Gap’s approach?
A) To attract more investors
B) To leverage the strengths of both creative intuition and data
C) To avoid legal issues with competitors
D) To reduce inventory costs
Answer: B) To leverage the strengths of both creative intuition and data
16. What does the case suggest about consumer preferences?
A) They can be easily manipulated by marketers
B) They are resistant to persuasive efforts by brands
C) They are entirely dependent on celebrity influencers
D) They are always changing and unpredictable
Answer: B) They are resistant to persuasive efforts by brands
17. Which fashion approach relies heavily on establishing one clear brand vision?
A) Data-driven creative process
B) Creative director-led creative process
C) Crowdsourced design process
D) Dynamic pricing models
Answer: B) Creative director-led creative process
18. What aspect of online shopping can assist Gap with its big data approach?
A) Amazon's advertising tools
B) Personalized offline shopping experiences
C) Increased supply chain costs
D) Fashion-forward advertising campaigns
Answer: A) Amazon's advertising tools
19. What was one of the retail analysts’ concerns about Peck’s decision?
A) The store would become too trendy
B) The brand would be a “ship without a captain” without a creative director
C) Data would be too expensive to analyze
D) Creative directors would be resistant to change
Answer: B) The brand would be a “ship without a captain” without a creative director
20. Why did some analysts argue against Gap relying solely on data for fashion decisions?
A) It might limit creativity and differentiation
B) It increases marketing costs
C) It complicates supply chain management
D) It weakens brand loyalty among existing customers
Answer: A) It might limit creativity and differentiation
21. Peck proposed a 40% discount to boost sales. What concern does this raise?
A) It may diminish brand value
B) It would increase brand exclusivity
C) It could lead to higher profits
D) It would attract only niche markets
Answer: A) It may diminish brand value
22. Why might relying too much on data for Gap's creative process be problematic in high-fashion categories?
A) Data doesn't account for consumer preferences
B) High-fashion trends are unpredictable and fast-changing
C) Data lacks accuracy in luxury markets
D) High-fashion requires mass production
Answer: B) High-fashion trends are unpredictable and fast-changing
23. What is a benefit of predictive analytics for fashion brands like Gap?
A) It can forge entirely new trends
B) It helps in efficient inventory management
C) It eliminates the need for creative talent
D) It allows for more physical stores
Answer: B) It helps in efficient inventory management
24. Which of the following brands is least likely to benefit from a purely data-driven approach at Gap Inc.?
A) Old Navy
B) Gap
C) Banana Republic
D) All are equally suited
Answer: C) Banana Republic
25. What is the risk of relying on Amazon’s platform for selling Gap products?
A) Difficulty in managing inventory
B) Losing control over brand pricing and presentation
C) Lack of exposure to consumers
D) Difficulty in fulfilling orders
Answer: B) Losing control over brand pricing and presentation
26. How does a compositional approach to data help predict fashion demand?
A) By changing all the components of a product
B) By identifying shared characteristics driving demand
C) By reducing production time
D) By relying solely on past fashion trends
Answer: B) By identifying shared characteristics driving demand
27. What issue arises with using past purchase data to predict fashion-forward categories?
A) It is too expensive to analyze
B) It works better for basics and classics
C) It predicts trends too early
D) It can't accurately predict future cutting-edge designs
Answer: D) It can't accurately predict future cutting-edge designs
28. Why might combining creative directors with data-driven processes be beneficial for Gap?
A) To reduce overall production costs
B) To blend human creativity with data-driven insights
C) To increase their competitive advantage over Zara
D) To fully automate the design process
Answer: B) To blend human creativity with data-driven insights
29. Why might Banana Republic consumers "trade down" to Gap under a data-driven approach?
A) Because they prefer lower-quality products
B) If the styles become similar across the brands
C) Due to increased availability of products
D) Banana Republic will offer the same prices
Answer: B) If the styles become similar across the brands
30. What type of marketing approach would be best suited for data-driven strategies?
A) Creative branding campaigns
B) Personalized recommendation engines
C) Generalized mass marketing
D) High-cost advertising campaigns
Answer: B) Personalized recommendation engines
