Retailing 8th Edition

A retailer ensures that customers are able to locate a needed item by having proper in-store signage, displays, helpful employees, and a well-designed layout. This is an example of: a. pretransaction services. b. transaction services. c. promotional services. d. posttransaction services. e. building and fixture management. Answer: B Answer: B Answer: B The 'psychology of merchandise presentation' refers to

It is important to know the history of retailing because it: a. teaches you the basics of retailing. b. gives you past retailing ideas that you can use today. c. helps you to understand current retailing theory. d. will help you understand where retailing is headed in the future. e. helps you learn from competitors. Answer:

When a retailer donates money to charity, this is considered a personal objective. Answer: F Answer: F Answer: F In addition to altering the types of products offered to these aging segments of the population, retailers will also need to shift the types of services provided if they are to gain the consumers' dollar. Answer:

Administered vertical marketing channels exist when one member of the channel takes the initiative to lead the channel by applying the principles of effective interorganizational management. Answer: T Answer: T Answer: T Closing the sale is the action the salesperson takes when the customer decides to leave the store without making a purchase. Answer: F Answer:

Customers who are confident in their ability to make decisions, and who are open to new ideas but want brevity, are characterized as: a. interrupters. b. decisive. c. sociable. d. defensive. e. impulsive. Answer: B Answer: B Answer: B Which of the following categories, who were between ages 30 and 42 in 2007, has been the most educated generation ever? a.

Which of the following statements about the makeup of the American household is FALSE? a. Household growth and consumer demand go together. b. The number of households without children has decreased in recent years. c. The retailer, like the social scientist, has little knowledge of how joint decision making occurs or does not

Population characteristics are the criteria most often used to segment markets. Answer: T Answer: T Answer: T A neighborhood shopping center typically has over 500,000 square feet in gross leaseable space. Answer: F Answer: F Answer: F A trading area is the geographic area from which a retailer, group of retailers, or community draws its customers. Answer: T Answer: T Answer:

The key to a successful sales presentation is to get the customer to want to buy your product or service. Answer: T Answer: T Answer: T A common error made by retail buyers is not buying too many trendy fashions. Answer: F Answer: F Answer: F JCPenney opened the nation's first discount department store in 1866. Answer: F Answer: F Answer:

Which of the following statements about NAICS codes is false? a. Three-digit NAICS codes are very useful to the retail analyst. b. In almost all instances, the NAICS code reflects the type of merchandise the retailer sells. c. Four-digit NAICS codes provide much more information on the structure of retail competition than three-digit

Retailers that recognize that they are selling intangibles, even if their merchandise is tangible, will be able to develop more effective retail marketing strategies. Answer: T Answer: T Answer: T The retailer's basic objectives can be summarized by stating: 'Get customers into the store, get them to buy what you have, and hope they

Retailers frequently use _____ for short-term loans to fund working-capital requirements. a. commercial banks b. factors c. e-tailing brokers d. stock and commodity exchanges e. venture-capital firms Answer: B Answer: B Answer: B One of the major advantages of shopping centers is that they have: a. cooperative planning and sharing of common costs. b. cheap rents. c. flexible store hours for tenants. d.

The three basic tasks of retailing are: a. getting consumers from outside your trading area into your store, getting these consumers to sign up for store credit, and keeping these consumers happy. b. getting consumers from inside your trading area into your store, getting these consumers to sign up for store credit,

If a retailer buys a product for $30 and sells it for $50, what is the markup percentage, if the markup is based on cost? a. 33 percent b. 40 percent c. 67 percent d. 80 percent e. 100 percent Answer: C Answer: C Answer: C Site analysis begins by evaluating the: a. traffic flow, land cost per square foot, and

Ten days before Halloween, your local candy wholesaler puts all of its Halloween candy on sale. This is an example of which type of discount? a. Seasonal discount b. Quantity discount c. Zone pricing d. Promotional allowance e. Smart discount, since Valentine's Day is approaching and the wholesaler does not want to be stuck with

Service is the fundamental basis of exchange; therefore it is also the basis of all competition. Answer: T Answer: T Answer: T The "graying of America" phenomenon refers to the fact that consumers' ethnicities are becoming blurred as immigration to the United States continues to increase. Answer: F Answer: F Answer: F The optimal merchandise mix will be

As a general rule, a retailer should strive to have a net profit margin of 1.5 to 2.5 percent. Answer: F Answer: F Answer: F Gross margin return on inventory (GMROI) is based on both the retailer's inventory turnover and its profit margin. Answer: F Answer: F Answer: F The sales presentation is the first step in the

Net profit margin shows how much profit a retailer makes on each dollar of sales. Answer: T Answer: T Answer: T Competition is most intense in understored markets since many retailers are operating in stores too small to carry all the merchandise demanded by customers. Answer: F Answer: F Answer: F The increasing divorce rate is bad for

The value of intangibles is measured by what is referred to as the price to book ratio. Answer: T Answer: T Answer: T Retail salespeople and the service they provide are major factors in the consumer purchase decision. Answer: T Answer: T Answer: T The practice of advertising a low-priced model of a shopping good which the retailer

As long as there is a lack of spending power, the ability of ACSI alone to predict consumer spending will be limited. Answer: T Answer: T Answer: T A planogram is a graphic schematic which shows the precise location of every SKU on a shelf or other merchandise display. Answer: T Answer: T Answer: T Most types of

Service retailers can stockpile inventories in anticipation of future demand. Answer: F Answer: F Answer: F Fixtures and equipment are generally considered to be current assets. Answer: F Answer: F Answer: F Retailers want customers to make purchases in their stores; thus, retailers should mention the product's features, not its price, in their ads. Answer: F Answer: F Answer: F A stock/sales

An example of odd pricing would be: a. a low introductory price followed by a sharp price increase. b. 'buy one, get one free'. c. having the selling price end in any odd number. d. subtracting a trade-in from the selling price. e. selling a product for $39.98 instead of $40.00. Answer: E Answer: E Answer: E The four

The notion of unique value does not apply when the retail shopper is a group of individuals, such as a family. Answer: F Answer: F Answer: F Because odd prices are associated with low prices, they are typically used by retailers who sell at prices below the market or at the market. Answer: T Answer: T Answer:

Convenient operating hours are the most basic service a retailer should provide to a customer. Answer: T Answer: T Answer: T A retailer's maintained markup is usually lower than the retailer's initial markup. Answer: T Answer: T Answer: T The most successful new retailing format introduced in the United States during the last decade was the hypermarket. Answer: F Answer: F Answer:

Many retailers do a very poor job at engagement. Answer: T Answer: T Answer: T Private label branding is an example of using nonprice competition to achieve a protected niche. Answer: T Answer: T Answer: T Divertive competition can be intratype, but not intertype. Answer: F Answer: F Answer: F A markup of 100 percent based on cost is the same as

In order to develop competitively compelling value propositions, all of the following should be utilized EXCEPT: a. include customers social cost. b. consider how value propositions will resonate with customers as well as employees. c. include customers economic cost. d. focus strictly on sales revenue e. consider the resource integrating nature of your customers. Answer: D Answer:

The stock-to-sales ratio will fluctuate on a monthly basis because sales tend to fluctuate monthly. Answer: T Answer: T Answer: T Publicity is non-paid-for media communications about the company or product. Answer: T Answer: T Answer: T The only way U.S. retailers can be sure that they are not buying illegal merchandise is to inspect every manufacturing plant of

Reductions in the price of an item that are taken in order to stimulate sales are termed: a. maintained price cuts. b. promotional price cuts. c. shortages. d. markdowns. e. initial price cuts. Answer: D Answer: D Answer: D The eight marketing functions are buying, selling, storing, transporting, information gathering, financing, risk taking, and: a. managing. b. product development. c. facilitating. d. designing. e.

Personal objectives relate to how a retail owner wishes to help individuals employed by the firm fulfill some of their needs. Answer: T Answer: T Answer: T Retailers who continue to use technology in innovative ways within the supply chain will achieve greater efficiency in their operations. Answer: T Answer: T Answer: T The traditional services marketing thought argues

Ethics is a set of rules for moral human behavior. Answer: T Answer: T Answer: T In today's environment, even so-called "reasonable" people may disagree as to what is "right" and "wrong" behavior in certain retail situations. Answer: T Answer: T Answer: T As a rule, retailers that offer greater levels of customer service tend to have lower

A service-dominant mindset views the customer or beneficiary as using what the firm sells to do something valuable or to create value. Answer: T Answer: T Answer: T Markdowns, employee discounts, and stock shortages are all various forms of reductions. Answer: T Answer: T Answer: T With annual spending of $40 billion and influence on another $450 billion,

Listening to a television advertisement or reading a newspaper or pop-up advertisement on the Internet is part of hard interfacing. Answer: F Answer: F Answer: F The average American is more likely to move than someone in England or France. Answer: T Answer: T Answer: T Many retailers think getting people to visit your website or your store is

The density of supply refers to the extent which retailers are concentrated in different areas of the market under question. Answer: T Answer: T Answer: T Common services provided by retailers, such as alterations, free delivery, bridal registries, check cashing, credit, short check-out lines, and gift wrapping, are not actually the merchandise or service

If a retailer is assessing the remodeling needs of its stores, as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments, the retailer is reviewing the firm's: a. strengths. b. weaknesses. c. opportunities. d. threats. e. operations. Answer: B Answer: B Answer: B In attempting to determine

The affordable approach to budgeting is used by many small retailers. Answer: T Answer: T Answer: T A retail store's pricing policies should reflect the expectations of its target market. Answer: T Answer: T Answer: T If a tire retailer sells you a passenger car tire, the retailer is implying that the tire is fit for use on

Flowers tend to be priced higher when demand is greatest, around Mother's Day and Valentine's Day. This is an example of _____ pricing. a. flexible b. dynamic c. psychological d. variable e. customary Answer: D Answer: D Answer: D Gen Y consumers were born between the years: a. 1922-1945. b. 1946-1964. c. 1965-1977. d. 1978-1994. e. 1995-2002. Answer: D Answer: D Answer: D The effectiveness of the buyer-vendor

Service retailers, such as a plumbers or house painters, may not be concerned about the convenience of their locations. Answer: T Answer: T Answer: T Culture is the buffer that humankind has created between itself and the raw physical environment. Answer: T Answer: T Answer: T A functional discount is a reduction in price given to retailers to

As a rule, a retailer's pricing and promotion decisions should be made independently of each other. Answer: F Answer: F Answer: F Retailers usually classify sales promotions as either sole sponsored or joint sponsored. Answer: T Answer: T Answer: T Demand density is the extent to which retailers are concentrated in different geographic areas of the community. Answer: F Answer:

Generation Xers is a term used to refer to those born between 1965 and 1977. Answer: T Answer: T Answer: T Total assets equal current assets plus noncurrent assets plus goodwill. Answer: T Answer: T Answer: T Given the financial pressure facing today's retailers, creativity is no longer a prerequisite for success in retailing. Answer: F Answer: F Answer: F Retailing does

There are actually three strategy decisions to be made when designing an efficient and competitive supply chain: supply chain length, width, and: a. convenience. b. depth. c. organization. d. type. e. control. Answer: E Answer: E Answer: E Your boss indicates that the store's stock/sales ratio is 5:1. This means that _____ should be invested in inventory for every

Market performance objectives compare a retailer's actions against those of competitors. Answer: T Answer: T Answer: T A retailer must identify its location before it decides how best to reach its target market. Answer: F Answer: F Answer: F An advantage of the early markdown policy is that it allows the retailer to replenish lower-priced lines from the

Neighborhoods in the United States have been found to be very heterogeneous. Answer: F Answer: F Answer: F Visual merchandising is the artistic display of merchandise and theatrical props used as scene-setting decoration in the store. Answer: T Answer: T Answer: T Explain why a retailer may wish to engage in a private label branding strategy. Answer: As retailing

Disposable income is: a. all personal income after taxes and retirement savings. b. all personal income after savings. c. all personal income minus the money needed for necessities food, clothing, housing, etc. d. all personal income after taxes minus the money needed for necessities. e. all personal income after taxes. Answer: E Answer: E Answer: E Consider this mission

If the owner of the local Red Nails Beauty Salon has determined that 1,100 target customers will come in contact with its print advertisement in the local newspaper, the owner is estimating the _____ of the medium. a. frequency b. reach c. impact d. awareness e. coverage Answer: B Answer: B Answer: B The _____ is NOT considered when

_____ data is the most commonly available objective data that a retailer can obtain about a target market(s). a. Demographic b. Psychographic c. Biological d. Geographic e. Personality Answer: A Answer: A Answer: A _____ include(s) the activities the retailer performs that influence (1) the ease with which a potential customer can shop or learn about the store's offering,

Retailers should direct their promotional dollars first toward households in their primary trading areas. Answer: T Answer: T Answer: T The spine layout is heavily used by medium-sized specialty stores. Answer: T Answer: T Answer: T A major advantage of a freestanding location is that such locations are generally free of any zoning regulations. Answer: F Answer: F Answer: F Interdependency is

_____ occurs when the retailer and supplier have different perceptions of reality. a. Perceptual incongruity b. Domain disagreements c. Goal incompatibility d. Gray marketing e. Dual distribution Answer: A Answer: A Answer: A When a manufacturer quotes the same price for the same merchandise to buyers in Cleveland, Ohio; Los Angeles, California; and Orlando, Florida the manufacturer is probably

A common error made by retail buyers is having too much or too little basic stock on hand. Answer: T Answer: T Answer: T Whenever possible, begin the sales presentation with, 'May I help you?' Answer: F Answer: F Answer: F A secondary business district (SBD) is a shopping area that evolves to satisfy the convenience-oriented shopping needs

Which of the following is an off-price retailer that is owned and operated by the manufacturer, and stocks the manufacturers' surplus, discontinued, or irregular products? a. Warehouse club b. Factory outlet c. Supermarket d. Supercenter e. Independent carrier Answer: B Answer: B Answer: B The increase in square footage in a retailers store from 20,000 square feet to 40,000

Which of the following items would NOT be included on the balance sheet but would BE on the income statement? a. Noncurrent assets b. Cost of goods sold c. Current liabilities d. Net worth e. Accounts receivable Answer: BOBJ: Answer: BOBJ: Answer: B OBJ: The _____ Act makes it a federal crime to defraud consumers through use of the mail. a.

A cue refers to a motivating force that directs an individual's shopping behavior. Answer: F Answer: F Answer: F In North American retailing, there is an attitude that the retailers' 'plan' is correct and the failure to achieve this plan is attributed to people not working hard or smart enough. Answer: T Answer: T Answer: T Explain how channel

As goods are sold through more retail outlets, their markup percentage should decrease. Answer: T Answer: T Answer: T While a chocolate-covered donut would taste great right now, the second, third, or tenth one, purchased and consumed today, would be less desirable. This is an example of declining marginal utility. Answer: T Answer: T Answer: T Venture-capital firms are

A GIS can help develop an optimal mix of merchandise, but is not useful in site analysis. Answer: F Answer: F Answer: F Explain how population growth, age distribution and geographic trends are affecting retailers in the United States. Answer: Every shift in consumer population patterns has major implications for retailers, especially when it comes

Retailers seldom use newspaper advertising because of its short life span. Answer: F Answer: F Answer: F Retail analysts predict that only catalog sales will experience significant growth over the next decade, while other forms of nonstore retailing will remain steady or decline. Answer: F Answer: F Answer: F The retail life cycle has five stages: idea generation,

The Internet is playing an important promotional role for retailers. Answer: T Answer: T Answer: T The closure of more than 300,000 retail stores between 2008 and 2009 as a result of bankruptcy provided a new retail growth format: recycled merchandise retailers. Answer: F Answer: F Answer: F A low-margin, low-turnover retailer will generally not be able to

The conversion rate is computed by dividing the total number of customers who walk out of the store with a purchase by the total number of customers who entered the store. Answer: T Answer: T Answer: T Competition at the local level is often more complex than at the national or regional level. Answer: T Answer:

E-tailing restricts consumers from shopping when they like and from where they like. Answer: F Answer: F Answer: F There are two basic types of merchandising: visual merchandising and on-shelf merchandising. Answer: T Answer: T Answer: T Four-digit NAICS codes provide are easier to work with than three-digit NAICS codes. Answer: T Answer: T Answer: T In traditional logic, services are viewed

_____ price fixing occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed upon price. a. Deceptive b. Horizontal c. Vertical d. Negotiated e. Coordinated Answer: C Answer: C Answer: C What do the formats of stores such as those that recycle usable merchandise in good condition, liquidators, and rental operations have

Setting and presentation are now critical factors in serving the customer. Answer: T Answer: T Answer: T As nonstore-based retailing continues to grow, retailers need to recognize that the index of retail saturation may become less useful. Answer: T Answer: T Answer: T Inventory turnover refers to the number of times per year, on average, that a retailer

The _____ method of merchandise planning requires that, in addition to a base stock level, there will be a variable amount of inventory that will increase or decrease at the beginning of each sales period. a. base level b. base BOM contribution c. basic stock d. stock-to-sales e. average stock Answer: C Answer: C Answer: C Art's Appliances has

In recent years, the practice of counterfeiting trademarked products has had very little impact on U.S. firms. Answer: F Answer: F Answer: F The space-productivity index is a decision-making formula, not just a tool to help management make decisions. Answer: F Answer: F Answer: F A freestanding retailer generally locates along major traffic arteries and does not have

Discuss and cite examples of what resources need to be reconfigured in order for a retailer to reframe its business. Answer: In order to reframe a retailers' business, changes need to be made specially around form, time, place and possession.Form reconfiguration deals with the physical structure of the retail enterprise. This

Retailers need only to pay close attention to the behavior of consumers and not worry about other environmental factors. Answer: F Answer: F Answer: F Institutional advertising is an attempt by the retailer to gain long-term benefits by selling the store itself rather than the merchandise in it. Answer: T Answer: T Answer: T If the ending book

A community shopping center will typically offer general merchandise and convenience goods. Answer: T Answer: T Answer: T Loyalty programs are generally considered joint-sponsored promotions. Answer: F Answer: F Answer: F A local retailer offers T-shirts at three price levels. Consumers can pay $6.99, $14.99, or $27.99 for the shirts. This pricing strategy is called price lining. Answer: T Answer: T Answer: T A

If you choose the store-management path, which of the following statements would be true? a. Selecting, training, evaluation, and all other aspects of personnel management are your responsibility. b. You will have to use quantitative tools such as the merchandise budget in your work. c. You are responsible for selecting the merchandise. d. You

Retail gravity theory suggests there are underlying consistencies in shopping behavior that allow for mathematical analysis and prediction based on the notion or concept of gravity. Answer: T Answer: T Answer: T The Supreme Court ruled that a 'rule of reason' standard should apply to fair trade agreements, weighing their anticompetitive effects against their

Increasing sales should be a retailer's primary advertising objective. Answer: F Answer: F Answer: F By limiting the number of partners for each merchandise line, one can signal greater commitment and trust to partners, thus building stronger relationships. Answer: T Answer: T Answer: T FOB factory implies that the retailer takes title for merchandise at the manufacturer's factory. Answer:

Gross margin is the difference between net sales and cost of goods sold or the amount available to cover operating expenses and produce a profit. Answer: T Answer: T Answer: T There is no way for retailers to increase their OTB once they have met their limit. Answer: F Answer: F Answer: F The majority of the U.S.

Which variable of the retailing mix has the greatest influence on a consumer's initial perception of a retailer? a. The store's personnel b. The store's price points c. The store's promotional campaign d. The store's merchandise e. The store itself Answer: E Answer: E Answer: E Retail managers are often forced to deal with many issues, functions, and projects

When telling a customer about a product, the salesperson should: a. give the customer all the technical information needed to understand how the product works. b. stress the features that are the product's outstanding qualities. c. tell the customer the price is right. d. suggest that the customer do some comparison shopping before making the

An operator of which of the following establishments is NOT a retailer? a. A catering service specializing in weddings. b. A computer firm selling software to households via the Internet. c. A student going door-to-door selling magazine subscriptions. d. A corporate property management firm. e. An ice cream shop in the student union. Answer: D Answer: D Answer:

An owner of a computer repair service has decided that 8 percent of next year's projected sales will be spent on advertising. The owner is utilizing the percentage-of-sales method in determining the service's advertising budget. Answer: T Answer: T Answer: T A small neighborhood drugstore is probably forced to use above-the-market pricing because of

The single factor that distinguishes business districts from shopping centers or malls is that business districts are unplanned. Answer: T Answer: T Answer: T The annual cost to retailers for carrying inventory is between 15 to 20 percent. Answer: T Answer: T Answer: T The new management mindset that retailers and businesses in general are moving toward is

______ are the cognitive and affective responses that result from interfacing. a. Consequences b. Experiences c. Results d. Effects e. Connections Answer: B Answer: B Answer: B Which of the following is an important factor to consider when determining the service level to be offered by a retailer? a. Target market income b. Selling policies of your channel partners c. Price image d.

The first decision the retailer must make in planning a store is: a. deciding what graphics to use. b. how to allocate the store's space. c. deciding what type of fixtures to use. d. deciding what type of lighting to use. e. designing the logo. Answer: B Answer: B Answer: B According to Reilly, the _____ is the breaking

The age distribution of the U.S. population is changing. Answer: T Answer: T Answer: T Channel members must work together with their partners to offer products at appropriate prices. No one will win if either partner is not honest and fair with the other or with the retail customer. Answer: T Answer: T Answer: T Retailers have enjoyed continued

Price promotions usually attract, and subsequently hold, customers. Answer: F Answer: F Answer: F Interior design can be broken into two types of elements: the finishes applied to surfaces and architectural shapes. Answer: T Answer: T Answer: T A merchandise budget is a plan of projected sales for an upcoming season, when and how much merchandise is to

Customers integrate three major types of resources as they co-create value in their daily lives: personal resources, public resources, and private resources. Answer: F Answer: F Answer: F Movies and vending machine products are common examples of items that use customary pricing. Answer: T Answer: T Answer: T How are recycled merchandise retailers, liquidators and rentals changing the retail

The level of one's desire to resolve a particular problem depends on the magnitude of the gap between the consumer's desired and actual states, and the importance of the problem. Answer: T Answer: T Answer: T The illegality of price discrimination is clear-cut and retailers no longer have to fear being discriminated against. Answer: F Answer:

_____ centers are primarily general merchandise and convenience that range from 100,000- 350,000 square feet. They may include discount department stores, supermarkets, and home improvement stores. a. Neighborhood b. Regional c. Fashion/Specialty d. Outlet e. Community Answer: E Answer: E Answer: E A retailer of luxury products offers personal shopping, free gift wrapping, and free delivery. The retailer is

Market structures characterized as pure competition have heterogeneous products, many buyers and few sellers, and ease of entry for both buyers and sellers. Answer: T Answer: T Answer: T What is the key difference between a retailer using the analytical method and one using the creative method? Answer: The analytical retail manager is a finder

Although most retailers have frequent shopper card programs, few retailers utilize the economic information they have access to. Answer: F Answer: F Answer: F Lowering the lighting levels in a fashion department can actually discourage sales, because the low lighting may suggest a discount-store image. Answer: F Answer: F Answer: F It is just as bad to have

Territorial restrictions may be a violation of the Sherman Antitrust Act. Answer: T Answer: T Answer: T A retailer selling a seasonal item would want to be 75 percent sold out at the planned out-of-stock date. Answer: F Answer: F Answer: F Horizontal price fixing violates Section 1 of the Clayton Act. Answer: F Answer: F Answer: F Without spending money on

The growth of nonstore retailing growth can be attributed to: a. Accerelerated communication technology and changing consumer lifestyles. b. Heightened global competition and increasing use of private labels. c. The development of off price retailers and supercenters. d. The rapid growth of qualified sales help in bricks-and-mortar stores and more convenient retail locations. e. The

The break-even point is where total revenues equal total expenses. Answer: T Answer: T Answer: T An equity objective reflects the retailer's desire to treat the consumer and suppliers fairly and not endanger their living conditions. Answer: T Answer: T Answer: T The method of merchandise presentation can have a dramatic impact on the store's image and space

A _____ business district usually consists of an unplanned shopping area around the geographic point at which all public transportation systems converge; it is usually in the center of the city and often where the city originated historically. a. central b. convenient c. secondary d. suburban e. neighborhood Answer: A Answer: A Answer: A For a retailer to successfully reach

A retailer has a cost per unit of $22 on a pair of pants and a selling price of $38. The markup equals $22. Answer: F Answer: F Answer: F Local sales taxes can influence the outshopping behavior of consumers. Answer: T Answer: T Answer: T Two types of implied warranties are "warranties of merchantability" and "warranties of

The services offered by competitors will have a little effect on the level and variety of customer services offered. Answer: F Answer: F Answer: F The best way to improve sales is to place as much merchandise as possible into the store. Answer: F Answer: F Answer: F An item that is sold below a retailer's cost is

A retailer's retail mix consists of all of the following EXCEPT: a. location. b. price. c. customer service and selling. d. traffic strategy. e. merchandise. Answer: D Answer: D Answer: D Brynn's Bakery runs an advertisement touting the importance of diet and exercise. It also mentions how Brynn's uses the finest ingredients and offers many heart healthy choices. This

A retailer's location decision making process begins with an evaluation of supply and demand densities. Answer: F Answer: F Answer: F Customer service standards vary throughout the world. Answer: T Answer: T Answer: T Value proposition is the difference between the benefits offered by one retailer versus those of the competition. Answer: T Answer: T Answer: T Compare and contrast the four

Same-store sales compare an individual store's sales to its sales for the same day of the week (e.g., Friday) to that day in the previous two weeks. Answer: F Answer: F Answer: F Approximately 30 percent of American workers have admitted stealing from their employers. Answer: T Answer: T Answer: T A retailer's primary consideration in choosing a

Employee and customer discounts are some of the reasons for the difference between initial and maintained markup. Answer: T Answer: T Answer: T Reductions should be included in a merchandise budget only when they exceed 5% of sales. Answer: F Answer: F Answer: F During negotiations between buyer and seller, price and discount terms are seldom negotiated, because

McDonald's and Burger King are sometimes forced to drop prices by promoting 'value meals' in the face of mounting competition. This is an example of a ______ objective. a. target b. status quo c. competitive d. comparable e. market share Answer: B Answer: B Answer: B The retailer who never makes a buying error is probably: a. missing profit opportunities

Prospecting is the process of attempting to locate and identify potential customers. Answer: T Answer: T Answer: T The purpose of the statement of cash flow is to enable a retailer to project the cash needs of the firm. Answer: T Answer: T Answer: T Micromarketing is the tailoring of merchandise in each store to the preference of

As a rule, truly one-way exclusive dealing arrangements between vendors and retailers are: a. legal. b. illegal. c. illegal only if they involve a chain store. d. legal in every state but Minnesota. e. illegal if they involve a weak manufacturer. Answer: A Answer: A Answer: A _____ regulate the importing and exporting activities of American firms. a. Tying agreements b.

Dollar merchandise control over inventory purchases is frequently accomplished through a technique called open to buy. Answer: T Answer: T Answer: T Omitting key facts during a sales presentation is considered a type of deceptive sales practice. Answer: T Answer: T Answer: T Bricks-and-click strategies that integrate a single message and seamless operations will be more powerful than

Which of the following is an example of a non-traditional location that retailers are selecting: a. travel stop plazas along interstate highways. b. multi retail store shopping centers. c. suburban shopping malls. d. outlet malls. e. local corner stores. Answer: A Answer: A Answer: A The courts have interpreted this doctrine to suggest that retailers must be careful in

All forms of price discrimination are illegal. Answer: F Answer: F Answer: F The first step in strategic planning is to determine the firm's retail marketing strategy. Answer: F Answer: F Answer: F Should facilitating institutions be eliminated from the supply chain? Why or why not? Answer: The institutions involved in performing the eight marketing functions are usually broken

What are the various factors that a customer service and sales enhancement audit seeks to measure? What value is provided to management by measuring these factors? Answer: The audit provides management with a detailed analysis of current sales activity by location and by selling area. It identifies how and where additional

Success in retailing is a function of strategic planning and operations management. Please explain the retail strategic planning and operations management model and the ways a retailer can employ this model in a globally competitive environment. Answer: Exhibit 2.6 provides the strategic planning and operations management model. Strategic planning involves adapting

Sylvan Learning, The UPS Store, AAMCO Transmissions, H&R Block, and Lawn Doctor are examples of what kind of vertical marketing channel? a. Wholesaler-sponsored voluntary group b. Contractual channel system c. Administered system d. Retailer-owned cooperative e. Conventional marketing system Answer: B Answer: B Answer: B When a retailer is attempting to determine its major advantage(s) over competitors, it is

Convenience stores often employ a scrambled merchandising technique. Answer: T Answer: T Answer: T Because it is important to always have the correct stock on hand, the amount of space being devoted to the back room has increased in recent years. Answer: F Answer: F Answer: F Today specialization in merchandise categories has once again become a dominant

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need, thus killing the competition, is known as a(n): a. capital-based retailer. b. category killer. c. divertive competitor. d. killer bee. e. supercenter. Answer:

On-shelf merchandising refers to the merchandise which is displayed on shelves and on counters, but not carried on racks and fixtures. Answer: F Answer: F Answer: F Category killers are not allowed to divert business away from traditional wholesale supply houses. They can only compete with other retailers. Answer: F Answer: F Answer: F 'Breadth' refers to the

Trade discounts are sometimes referred to as functional discounts. Answer: T Answer: T Answer: T Vertical price fixing is also referred to as resale price maintenance or 'fair trade.' Answer: T Answer: T Answer: T Frequency is the average number of times each person who is reached is exposed to an advertisement during a given time period. Answer: T Answer:

It is important for retailers to realize that working women are often more concerned with convenience than with price. Answer: T Answer: T Answer: T Auto dealers that want to handle BMW's because of the cars' status is an example of expertise power. Answer: F Answer: F Answer: F Bribery occurs when a retail buyer is offered an

One of the cues a customer uses in determining a retailer's image is the retailer's prices. Answer: T Answer: T Answer: T Markets with a population of less than 50,000 do not present many opportunities for retailers and hence should be avoided. Answer: F Answer: F Answer: F Explain how the concepts of demand density, supply density and

Answer: Answer: Answer: Markdowns are always the result of buyer errors. Answer: F Answer: F Answer: F To enhance sales productivity, retailers must incorporate planning, merchandise presentation, and design strategies which minimize shrinkage. Answer: T Answer: T Answer: T The "wealth effect" claims that for every $100 of additional wealth generated in an individual's stock market holdings, the