Retail Management: A Strategic Approach 12th Edition

All of the activities involved in managing the retailer's physical facilities comprise _____. a. store maintenance b. merchandising c. energy management d. operations management Answer: a Answer: a Answer: a Under what condition would it be rational for the trading areas of two branch locations to completely overlap? a. when the retailer desires cost economics in promotion b. when the

A danger to a retailer with a very high financial leverage is _____. a. the reduction in inventory valuation b. the reduction in return on net worth c. that high debt service must be paid d. high variable cost levels Answer: c Answer: c Answer: c A computer dealer determines customer satisfaction of recent computer buyers on the

A stationery retailer generally prices portable copiers using a 30 percent markup. The retailer expects to sell 125 portable copiers at the 30 percent markup. How many units would it have to sell at a 40 percent markup to maintain the same gross profit? a. 80 b. 94 c. 100 d. 105 Answer: b Answer: b Answer:

The four functional areas defined in the Mazur plan are _____. a. buying, selling, store operations, and accounting b. merchandising, communications, store management, and financial accounting c. marketing, management, accounting, and finance d. product, price, promotion, and distribution Answer: b Answer: b Answer: b Total demand drops from 500 to 400 units when a retailer increases car wash

Retailers can get some of the benefits of ownership and leasing through a _____. a. sale-leaseback b. graduated lease c. net lease d. straight lease Answer: a Answer: a Answer: a Which retail institution is often part retailer and part wholesaler? a. off-price retail chain b. factory outlet c. flea market d. membership club Answer: d Answer: d Answer: d The most widely dispersed group of

A retailer tries to appeal to consumers' one-stop shopping needs through _____. a. the retail life cycle b. vertical marketing systems c. the wheel of retailing d. scrambled merchandising Answer: d Answer: d Answer: d A mystery shopper is a form of which primary data collection technique? a. observation b. survey c. experimentation d. simulation Answer: a Answer: a Answer: a Computerized checkouts are generally used

A slotting allowance is a form of _____. a. channel conflict b. short-run strategy by a manufacturer c. channel cooperation d. electronic data interchange Answer: a Answer: a Answer: a A 100 percent markup at cost equals what markup at retail? a. 20 percent b. 40 percent c. 50 percent d. 80 percent Answer: c Answer: c Answer: c The small average transaction size, high theft

A retailer that owns several of its locations and desires capital to expand should consider using a _____. a. percentage lease b. sale-leaseback c. short-term lease with renewal options d. graduated lease Answer: b Answer: b Answer: b Low perceived risk, high experience with a retailer, and high satisfaction with past purchases generally are characteristics of _____. a. extended

The retail ownership form that has the greatest capacity for raising funds through the sale of stock is a _____. a. sole proprietorship b. corporation c. partnership d. franchise Answer: b Answer: b Answer: b A firm cannot devote its total promotional efforts to publicity since _____. a. the sponsor is not identified b. it has less credibility than advertising c.

A major difference between the sale of complementary goods/services versus the sale of substitute goods is that the sale of substitute goods may _____. a. have little impact on total retail sales b. increase inventory turnover c. give a retailer a one-stop shopping environment d. provide a weak retail image Answer: a Answer: a Answer: a The combination of

Which retail institution generally does not mention specific brand names and/or prices in its advertising? a. department store b. off-price chain c. full-line discount store d. variety store Answer: b Answer: b Answer: b An area where nondisplayed items are stocked is _____ space. a. merchandise b. customer c. selling d. personnel Answer: a Answer: a Answer: a The difference between a vertical cooperative advertising agreement

A retailer seeks to acquire and maintain a proper assortment of merchandise while keeping ordering, shipping, handling, and other costs in check in _____. a. retail operations b. just-in-time inventory planning c. store maintenance d. inventory management Answer: d Answer: d Answer: d Which statement concerning retail information systems is not correct? a. Developing and updating a retail information

The first step in undertaking a retail audit is _____. a. developing audit form(s) b. determining when and how often the audit is conducted c. determining who does the audit d. conducting the audit Answer: c Answer: c Answer: c A retail ownership form that combines independent ownership and management assistance is _____. a. sole proprietorship b. franchising c. partnership d. corporation Answer:

Efficient consumer response (ECR) is an example of _____. a. electronic data interchange b. floor-ready merchandise c. third-party logistics d. collaborative planning, forecasting, and replenishment Answer: d Answer: d Answer: d A retailer can best implement a consumer's right to safety by _____. a. selling foods with additives b. age-labeling all toys c. providing a money-back guarantee on all goods and

In a horizontal cooperative advertising agreement, _____. a. two or more retailers share an advertisement b. a manufacturer (or wholesaler) and a retailer share an advertisement c. retailers pay for half of the cost of an advertisement d. retailers must be competitive Answer: a Answer: a Answer: a A self-service food store with grocery, meat, and produce departments

A systematic procedure for analyzing the performance of a retailer is _____. a. tactical performance evaluation b. a retail audit c. feedback d. strategy evaluation Answer: b Answer: b Answer: b Ease of entry is simplest for which service retailer type? a. nongoods retailer b. rental-goods retailer c. retailer with extensive licensing requirements d. leased goods retailer Answer: a Answer: a Answer: a Which survey technique

A difficulty associated with the use of advertising by an independent or a chain with few units is the _____. a. high total costs b. long lead time c. high waste in geographic coverage d. low opportunity for computerization Answer: c Answer: c Answer: c A horizontal audit is often conducted prior to a vertical audit, since the

A climate-controlled open entry _____. a. is a revolving door b. reduces congestion and enables customers to see inside the store c. is set at a different temperature than in the mall d. provides a moving walkway for pedestrians. Answer: a Answer: a Answer: a Sole proprietorships are most likely to use which management alternative? a. professional manager system b.

Regional buying preferences are best served through which buying organization? a. informal buying organization b. formal buying organization c. decentralized buying organization d. centralized buying organization Answer: c Answer: c Answer: c The major advantage of a compensation cafeteria plan over a traditional salary and bonus plan is the _____. a. fixed cost nature b. tie to productivity c. flexibility d. limits

A disadvantage associated with the model stock approach to the determination of space needs is that _____. a. distinctive items with low sales or profit levels may not be stocked b. seasonal items may be placed in improper locations c. impulse goods may not be stocked in adequate quantities d. product placement may not

A major disadvantage to the use of census data in trading-area analysis is its _____. a. cost b. being limited to city and state data c. lack of comprehensiveness d. dated nature Answer: d Answer: d Answer: d A subculture can be based upon all of the following except _____. a. religion b. geographic region c. nationality d. geographic mobility Answer: d Answer: d Answer:

A department store utilizes different personnel for the main store (central business district) and for the suburban (regional shopping center) locations. The store utilizes a _____. a. geographic classification b. product classification c. functional classification d. combination organization chart Answer: a Answer: a Answer: a Which institution can be classified as either a wholesaler or retailer? a. off-price chain b.

Both consignment purchases and memorandum purchases enable a retailer to _____. a. increase information flows b. lower insurance costs c. improve cash flow d. reduce inventory levels Answer: c Answer: c Answer: c A retailer has $100,000 in cash, $300,000 in accounts receivable, $500,000 in inventory, $200,000 in marketable securities, and $800,000 in total current liabilities. What is

According to the wheel of retailing, a retailer is vulnerable when _____. a. consumers do not accept the retailer's old image b. its upgraded strategy gives new institutions a significant cost advantage c. its strategy is no longer considered unique d. sales and profits exhibit rapid growth Answer: b Answer: b Answer: b An example of a tactical

Which act prevents large retailers from using their bargaining power to receive price concessions not warranted by their sizable orders? a. Miller-Tydings Act b. Cellar-Kefauver Act c. Federal Trade Commission Act d. Robinson-Patman Act Answer: d Answer: d Answer: d Information search involves generating a list of alternative goods and services and _____. a. determining perceived risk levels b. judging

A store's merchandise is categorized and displayed by common end uses in a _____ product grouping. a. functional b. market segment c. purchase motivation d. storability Answer: a Answer: a Answer: a A retailer that increases its product line assortment width by adding new products unrelated to its original business and to each other is practicing _____. a. scrambled

Most types of retail selling can be categorized as either _____. a. order taking or order getting b. clerical or professional c. institutional or direct d. promotional or institutional Answer: a Answer: a Answer: a Defining and adhering to an organizational mission, evaluating ownership and management alternatives, and outlining the goods/service category to be sold are parts of

A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing enthusiasts who wish to purchase costly fishing accessories. The most appropriate nonstore-based strategy mix (with the lowest waste coverage) is _____. a. airport retailing b. direct selling c. vending machines d. direct marketing Answer: d Answer: d Answer: d Senior management centrally directs

The high ease of entry into retailing _____. a. generates a great deal of competition for new and existing retailers b. means that investment per worker in retailing is generally higher than for most manufacturers c. contributes to low new-retailer failure rates d. is due to complex licensing provisions for many retailers Answer: a Answer: a Answer:

Merchandise cannot generally be examined by consumers in which retail formats? a. membership clubs and flea markets b. direct selling and specialty stores c. direct marketing and vending machines d. retail catalog showrooms and membership clubs Answer: c Answer: c Answer: c The quick ratio measures a retailer's ability to _____. a. raise capital with a stock offering b. earn

A central business district is characterized by a concentration of _____. a. convenience stores b. parking facilities c. suburban housing d. cultural and entertainment facilities Answer: d Answer: d Answer: d A deduction from a bill made by a retailer due to such infractions as late shipping or improper labeling is called a _____. a. penalty b. liquidated damage c. chargeback d.

Customer requests for unstocked or out-of-stock merchandise are recorded in a(n) _____. a. generic product file b. UPC system c. OCR-A system d. want book or want slip Answer: d Answer: d Answer: d Most data on the characteristics of residents of specific trading areas are primary data. Answer: F Answer: F Answer: F A retailer's net profit margin times its asset

A retailer with a less-than-average profit margin could seek to increase its profit margin by _____. a. reducing its operating expenses b. increasing its asset turnover c. increasing its financial leverage d. increasing its inventory turnover Answer: a Answer: a Answer: a Which of the following retailers is most likely to be a parasite in a shopping center? a.

A furniture retailer has a beginning-of-year inventory (at cost) of $400,000; ending inventory (at cost) is $270,000. Yearly purchases are $700,000 and transportation charges equal $5,700. The retailer's cost of goods sold is _____. a. $570,000 b. $575,700 c. $835,700 d. $1,105,700 Answer: c Answer: c Answer: c The Universal Product Code (UPC) system allows a retailer to

In 2010, the ten largest U.S. retailers earned average after-tax profits amounting to about _____ percent of sales. a. 1.1 b. 2.5 c. 3.5 d. 5.7 Answer: c Answer: c Answer: c The basic Mazur plan divides all retail activities into _____. a. main store and branch store components b. line components only c. line and staff components d. staff components only Answer:

An example of a product/trademark franchise is a _____ franchise. a. McDonald's fast-food b. Wendy's fast-food c. Super 8 hotel d. Chevrolet auto dealership Answer: d Answer: d Answer: d A retailer's planned expenditures for a given time period based on its expected performance is its _____. a. asset turnover b. net worth c. budget d. sales forecast Answer: c Answer: c Answer: c No interest

Department stores are now facing increased competition from factory outlets, membership clubs, and flea markets. This illustrates _____. a. rationalized retailing b. scrambled merchandising c. the retail life cycle d. the wheel of retailing Answer: d Answer: d Answer: d Low merchandise continuity and opportunistic buying characterize _____. a. retail catalog showrooms and combination stores b. superstores and combination stores c.

Which aspect of a direct marketing strategy involves the merging and purging of client names? a. business definition b. customer response c. order fulfillment d. data-base maintenance Answer: d Answer: d Answer: d Retailers practice relationship retailing with _____ customers. a. nonregular b. regular c. core d. former Answer: c Answer: c Answer: c The wish list program is an updated version of _____. a. cross selling b.

Which type of service is generally leased? a. rented-goods service b. owned-goods service c. nongoods service d. regulated-goods service Answer: a Answer: a Answer: a In-store displays designed to increase sales are examples of _____. a. ensemble displays b. promotional displays c. point-of-purchase promotion d. personal selling Answer: c Answer: c Answer: c While lower-level retail personnel are commonly paid on the basis of salaries, top

Signals of performance such as employee satisfaction questionnaires, sales reports, and inventory records are examples of _____. a. retail audits b. feedback c. tactics d. retail demographic data Answer: b Answer: b Answer: b The quick ratio equals _____. a. (total assets)/(annual net sales) b. (total assets)/(total liabilities) c. (current assets)/(total current liabilities) d. (cash + accounts receivable)/(total current liabilities) Answer: d Answer: d Answer:

When the price elasticity of demand is elastic and prices go up, _____. a. revenues stay the same b. revenues decline c. revenues increase d. profits increase Answer: b Answer: b Answer: b Inventory management planning is easiest for _____. a. fad products b. growing products c. mature products d. staples Answer: d Answer: d Answer: d Merchandise categories for which data are gathered are known

A limited target market consisting of high-income and innovative consumers exists in which stage of the product life cycle? a. decline b. growth c. maturity d. introduction Answer: d Answer: d Answer: d Strategy and tactics need to be evaluated _____. a. on a continuous basis b. yearly c. during a retail audit d. prior to evaluating a retail unit for sale Answer:

Functional account expenses are _____. a. shared by two or more departments b. reported by the names of their cost c. classified on the basis of purpose or activity d. related to a retailer's performance during the budget period Answer: c Answer: c Answer: c Copies of all the data bases in a company are maintained in one

The high sales volume at off-price chains, factory outlets, membership clubs, and flea markets can be explained by the retail life cycle. Answer: F Answer: F Answer: F Examples of negative feedback include consumer complaints, chronic out-of-stock situations, and declining sales. Answer: T Answer: T Answer: T Only controllable variables can be manipulated in simulation. Answer: F Answer: F Answer: F In

A retailer can best implement a consumer's right to be informed by _____. a. providing a money-back guarantee on all goods and services b. utilizing per-unit pricing c. monitoring store waiting lines d. installing automatic teller machines Answer: b Answer: b Answer: b Which of the following is not a structural arrangement involving retail franchisees? a. manufacturer-retailer b. vertical marketing

A theory which predicts that retail institutions have identifiable stages from introduction to decline is _____. a. the retail life cycle b. the wheel of retailing c. scrambled merchandising d. rationalized retailing Answer: a Answer: a Answer: a A benefit of franchising to a franchisor is _____. a. the ability to develop a national presence with less franchisor investment than

An objective, easily identifiable, and measurable population characteristic is called a(n) _____. a. AIO inventory b. demographic statistic c. lifestyle measure d. reference group measure Answer: b Answer: b Answer: b A retailer with sales of $10 million and selling expenses of $3 million has an efficiency rating of _____. a. 20 percent b. 40 percent c. 60 percent d. 70 percent Answer:

A retailer specifically attempts to increase its average sale through carrying complementary goods and services in _____. a. cross-merchandising b. impulse sales c. scrambled merchandising d. merchandising Answer: a Answer: a Answer: a Which computer-based site-selection model generally includes the largest number of variables? a. analog b. gravity c. regression d. interactive Answer: c Answer: c Answer: c Other retailers' canceled orders, manufacturers' irregulars and overruns,

(Total assets/net worth) equals _____. a. asset turnover b. cost of goods sold c. profit margin d. financial leverage Answer: d Answer: d Answer: d The increased participation of women in the workforce, longer commuting times, and increased numbers of single parents all contribute to the increased importance of _____ through direct marketing. a. low costs b. greater personalization c. convenience d.

A string is composed of _____. a. a supermarket or a variety store and convenience-oriented stores b. at least one major department store and a broad group of specialty stores c. at least one junior department store, a variety store, and service shops d. stores with similar or compatible product lines Answer: d Answer: d Answer: d Which

Which of the following is not a major advantage of having a large inventory for a retailer? a. quantity discounts in purchases b. lower risk of obsolescence and deterioration c. lower frequency of stockouts d. low per-item shipping costs Answer: b Answer: b Answer: b The relationship among net profit margin, asset turnover, and financial leverage is known

Direct product profitability for a new product over a three-year period can be assessed through _____. a. use of a sales opportunity grid b. measuring a product's sales potential c. estimating holding costs d. computing a product's markup Answer: a Answer: a Answer: a Which aspect of retail computerization has had the greatest impact on retailing? a. videoconferencing b. debit

The use of a survey and observation under controlled conditions most closely resembles _____. a. an experiment b. simulation c. a semantic differential d. multidimensional scaling Answer: a Answer: a Answer: a Dead areas are in-store locations where _____. a. normal displays cannot be set up b. pedestrian traffic is very low c. impulse merchandise should not be sold d. sales personnel gather Answer:

A narrow but deep product assortment characterizes _____. a. department stores b. specialty stores c. variety stores d. retail catalog showrooms Answer: b Answer: b Answer: b Prior to establishing a quick response (QR) inventory planning system, suppliers need to rethink their _____. a. credit terms and quantity discount schedule b. quantity discount schedule and minimum order sizes c. purchase prices

The opposite of in-home shopping, on a convenience dimension, is _____. a. routine decision making b. outshopping c. store loyalty d. mapping Answer: b Answer: b Answer: b Direct marketers can be divided into two categories: _____ and _____. a. general; specialty b. mail; phone order c. low-end; high-end d. store; nonstore-based Answer: a Answer: a Answer: a The activities of government, business, and independent organizations

A bricks-and-mortar retailer questions whether it should also sell goods through the Web as part of a dual distribution channel strategy. What step is involved in the retailer's direct marketing strategy? a. order fulfillment b. customer contact c. customer response d. business definition Answer: d Answer: d Answer: d A traditional bricks-and-mortar camera retailer also operates a Web

A disadvantage of a leased department to the leased department operator is the _____. a. restriction on goods/services carried b. high promotional expense c. poor cash flow due to centralized checkouts d. creation of a one-stop shopping environment Answer: a Answer: a Answer: a Which medium lets a retailer closely target the potential audience so as to minimize

The distinction between internal and external secondary data is based on the _____. a. focus of the data (company or industry) b. firm collecting the data (government or commercial research house) c. cost of data collection d. source of the data (within or outside the firm) Answer: d Answer: d Answer: d A retailer's location strategy can be

A store with the largest trading area in a shopping center is a(n) _____. a. parasite store b. destination store c. independent retailer d. leased department Answer: b Answer: b Answer: b If selling expenses equal 40 percent of a retailer's annual sales, its selling efficiency would be _____. a. 20 percent b. 40 percent c. 60 percent d. 80 percent Answer: c Answer:

A major advantage of advertising is that _____. a. costs per viewer, reader, or listener are low b. media costs are free c. advertising has higher credibility than public relations d. immediate feedback is provided Answer: a Answer: a Answer: a How many million people are employed by traditional retailers in the United States? a. 7 b. 15 c. 25 d. 30 Answer:

Which of the following is not a benefit to a department or discount store using leased departments instead of company-operated units? a. a one-stop shopping environment b. low investment requirements c. high control of operations d. payment based on sales, not profits Answer: c Answer: c Answer: c Which of the following is not an adverse factor affecting

Which statement concerning vending machines is correct? a. Over 95 percent of vending machine sales involve hot and cold beverages and food items. b. Eighty-five percent of vending machine sales involve cigarettes. c. There has been significant growth in the sale of items priced above $5.00 in vending machines. d. Most vending machines are

The concept stating that the type and number of stores within any planned center should complement each other as to the quality and variety of their product offerings is _____. a. balanced tenancy b. occupancy certainty c. retail balance d. the one-hundred percent location Answer: a Answer: a Answer: a The promotion form that most stresses increasing short-run sales

Unbranded, no-frills goods are classified as _____. a. generics b. private brands c. manufacturer brands d. scrambled merchandising Answer: a Answer: a Answer: a A significant difference between the organizational structure used by a chain retailer and by a diversified retailer is that the chain retailer more often has _____. a. elaborate financial controls b. standardized operations in all units c.

A retailer uses the percentage variation method in inventory level planning. If the store plans an average monthly stock of $200,000 and September sales are estimated at 15 percent more than average, the store's planned inventory level for September is _____. a. $120,000 b. $200,000 c. $215,000 d. $230,000 Answer: c Answer: c Answer: c The optimum site

Two components of problem awareness are _____. a. information search and purchase behavior b. commercial and noncommercial cues c. recognition of shortage and recognition of unfulfilled desire d. physical risk and social risk Answer: c Answer: c Answer: c An example of internal secondary data is _____. a. ProQuest b. government census data c. a promotional budget obtained from your

An advantage of the use of a wireless scanner in conjunction with a radio frequency identification tag (RFID) over a Universal Product Code (UPC) is its _____. a. ability to scan a package without lifting it b. tie-in to speech recognition c. lower hardware costs d. lower software costs Answer: a Answer: a Answer: a An advantage to

A retailer's organizational mission is its _____. a. consumer orientation b. commitment to a type of business and to a distinctive role in the marketplace c. focus on determining and satisfying consumer wants and needs d. good or service category determination Answer: b Answer: b Answer: b Which of the following is not a role of the Web

A unique disadvantage for independent retailers is a lack of _____. a. competitive advantages b. independence c. control over strategy d. management succession Answer: d Answer: d Answer: d Order lead time is defined as _____. a. average sales per day b. extra inventory kept on hand to protect against stockouts c. the stock level at which an order must be

In developing performance measures for a retailer, it is important to _____. a. focus on short-term measures b. develop measures unique to the firm c. use the same measures over time to allow trends to be ascertained d. use measures that cannot be directly compared to widely respected secondary sources Answer: c Answer: c Answer: c Improving employee

The most appropriate financial performance standard of a department store retail buyer is _____. a. customer satisfaction b. total unit sales c. total dollar gross profit in department d. total dollar sales Answer: c Answer: c Answer: c Which inventory management system in retailing corresponds to a just-in-time inventory management system? a. automatic reordering b. computer-based UPC scanning c. economic order

The increased deregulation of industries should have a positive impact on which consumer right? a. the right to safety b. the right to be heard c. the right to choose d. the right to be informed Answer: c Answer: c Answer: c An area with a relatively large number of consumers per square foot of available store space

The difference between gross profit and total costs equals the _____. a. cost of goods sold b. net profit after taxes c. cost of goods available for sales d. net profit before taxes Answer: d Answer: d Answer: d Partial, revolving payments are not permitted in _____. a. revolving credit accounts with a maximum credit limit b. monthly payment credit

The most common form of vertical marketing system is _____. a. independent vertical marketing system b. partially integrated marketing system c. fully integrated marketing system d. a retail cooperative Answer: a Answer: a Answer: a The evolution of the conventional supermarket into combination stores and supercenters can be explained by which retail concept? a. scrambled merchandising b. Huff's law c. rationalized

A discount department store aims its retailing strategy at a large homogeneous (similar) group of consumers. A wide assortment of goods is offered at popular prices. The retailer utilizes which target market strategy? a. mass marketing b. market segment c. multiple segmentation d. store positioning Answer: a Answer: a Answer: a At the consumer's option, an option credit

Increased coordination among channel members is a major advantage of clear channel roles to all channel members. Answer: T Answer: T Answer: T An area can be understored with regard to one type of good or service and overstored with regard to another type of good or service. Answer: T Answer: T Answer: T A firm assuming that

A retailer uses a 20-unit reorder point based on assuming a 3-day lead time, a 5-day usage rate, and a 5-unit safety stock. In how many days will a stockout occur if the lead time becomes 7 days and the usage rate continues at 5 units per day? a. 0 b. 2 c.

Under which method is it assumed that old stock is sold first and that new stock remains on the shelves? a. FIFO b. retail method of accounting c. LIFO d. cost method of accounting Answer: a Answer: a Answer: a A firm's markdown strategy has the greatest impact on which ratio? a. collection period b. current ratio c. quick ratio d. overall

Retailing is best characterized by which of the following? a. independent ownership dominating sales b. franchise organizations dominating sales c. ease of entry into the marketplace d. vertical marketing systems being fully integrated Answer: c Answer: c Answer: c It is important for franchisors to specify rigid operations standards and to restrict choice of suppliers so that _____. a. franchisors

Retail managers in individual departments have major input into decisions in a(n) _____. a. franchise system b. centralized structure c. owner-manager system d. decentralized structure Answer: d Answer: d Answer: d Which of the following is an element of perceived risk? a. physical risk b. reference group risk c. purchase risk d. lifestyle risk Answer: a Answer: a Answer: a Which shopping orientation has the highest

Which food-oriented retailer specializes in fill-in merchandise? a. convenience store b. supermarket c. specialty store d. superfood store Answer: a Answer: a Answer: a The trading area that generally encompasses the greatest geographic area (in terms of square miles) is the _____. a. fringe trading area b. trading-area overlap c. secondary trading area d. primary trading area Answer: a Answer: a Answer: a Delineating a central

The major difference between a consignment purchase and a memorandum purchase is based on _____. a. when title passes from seller to buyer b. when an item is paid for c. purchase price d. eligibility for cooperative advertising allowances Answer: a Answer: a Answer: a The major difference between bait-and-switch advertising and "trading the customer up" to a

Respondent cooperation is not required in which primary data source? a. personal survey b. mail survey c. telephone survey d. observation Answer: d Answer: d Answer: d Goods which are highly visible and which consumers feel they are judged by have high _____ perceived risk. a. time b. financial c. physical d. social Answer: d Answer: d Answer: d A sales opportunity grid evaluates retail good/service

Retail tasks can be performed _____. a. by the retailer, manufacturer, wholesaler, specialists, or consumers b. only by the retailer c. by the retailer, manufacturer, or wholesaler d. by the retailer, manufacturer, wholesaler, or specialists Answer: a Answer: a Answer: a Primary, secondary, and fringe trading areas for an existing store can be described on the basis of

Which one of the following is not a crucial element in Target's overall retail strategy? a. growth-oriented objectives b. a focus on its discount store niche c. sale of goods at the lowest competitive price d. strong customer service for its retail category Answer: c Answer: c Answer: c In which stage of the decision process does a

The basic distinction between advertising and publicity is that _____. a. publicity only deals with print media b. in publicity, the media are not paid c. publicity is nonpersonal d. publicity is regulated by the Robinson-Patman Act Answer: b Answer: b Answer: b Price discrimination is allowable under the Robinson-Patman Act if _____. a. price differences can be justified

A major disadvantage of the use of the U.S. Census of Retail Trade is its _____. a. lack of accuracy b. dated nature c. low credibility d. sampling error Answer: b Answer: b Answer: b Frequent shopper programs and customer and vendor analysis are made possible through _____. a. data-base management b. data mining c. electronic data interchange d. data warehousing Answer:

Both capital and operating expenditures can be depreciated. Answer: F Answer: F Answer: F Firms that promote mostly on a seasonal basis utilize massed advertising efforts. Answer: T Answer: T Answer: T Air travelers are captive audiences for a temporary time period. Answer: T Answer: T Answer: T Annual demand for color ink jet printers for a computer retailer is 500 units;

The system to process a direct marketing order is referred to as _____. a. outsourcing b. logistics c. inventory management d. order fulfillment Answer: d Answer: d Answer: d The use of franchising and the designation of suggested retail selling prices are channel control strategies of _____. a. consumer cooperatives b. wholesalers c. retailers d. manufacturers Answer: d Answer: d Answer: d A retailer with a

The regular products carried by a retailer constitute _____ merchandise. a. fashion b. staple c. assortment d. fad Answer: b Answer: b Answer: b The job titles of channel member salesperson, vice-president of real-estate, vendor quality inspector, and channel member support person are most likely to be found in what type of retail institution? a. independent b. consumer cooperative c. leased

The opposite of a "moving-up-the-wheel-of-retailing" strategy is _____. a. cost containment b. mergers and acquisitions c. value-driven retailing d. power retailing Answer: a Answer: a Answer: a Which statement concerning customer satisfaction is not correct? a. According to the American Customer Satisfaction Index, fast-food firms rate lowest among retailers in customer satisfaction. b. Most shoppers complain when they are dissatisfied. c.

Each employee is responsible for limited functions under _____. a. independent ownership b. specialization c. centralization d. a branch-store system Answer: b Answer: b Answer: b Contingency planning for no store electricity, vendors being out-of-stock on key items, and strikes need to be considered in _____. a. crisis management b. expense allocation c. insurance planning d. budget planning Answer: a Answer: a Answer: a Displays that

Which statement concerning customer service is correct? a. Customer service only concerns a retailer's intangible activities. b. Different people almost always judge a retailer's customer service in a similar manner. c. People's assessment of customer service depends on perceptionsnot necessarily reality. d. Customer service only concerns a retailer's tangible activities. Answer: c Answer: c Answer: c A retailer

A fundamental concept of the value chain is the _____. a. interrelationship among manufacturer, wholesaler, and retailer b. independence of all channel members c. notion that value is interpreted similarly by all final consumers d. notion that value is affected by price alone Answer: a Answer: a Answer: a Which auditor provides a retailer with the highest level

Which group is not reflected in the traditional family life cycle? a. solitary retired b. single-parent families c. young marrieds d. old aged Answer: b Answer: b Answer: b The most common form of planned shopping center is the _____. a. neighborhood shopping center b. regional shopping center c. community shopping center d. string Answer: a Answer: a Answer: a The difficulty in classifying consumers by

Information that can be obtained only through personal observation and questioning is amassed by which selection method? a. case method b. job analysis c. interview d. achievement tests Answer: c Answer: c Answer: c What percent of retail transactions are by either credit or debit card? a. 10 b. 15 c. 25 d. 50 Answer: d Answer: d Answer: d Which of the following distribution functions