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.
The ‘psychology of merchandise presentation’ refers to the fact that:
a. different merchandising methods can strongly influence buying habits.
b. merchandise presentation teaches consumers how to shop effectively.
c. consumers in a store should be led around like mice through a maze.
d. social factors strongly influence shopping behavior.
e. shoppers can be classified according to psychological tests.
_____ sell products at a discount but do not carry certain brands on a continuous basis
and carry those brands they can buy from manufacturers at closeout or deep one-time
discount prices.
a. Full-price stores
b. Department stores
c. Specialty retailers
d. Discounters
e. Off-price retailers
A merchandise budget is a plan of:
a. projected sales for an upcoming season, when and how much merchandise is to be
purchased, and what segments of the market to target.
b. projected sales for an upcoming season when and how much merchandise is to be
purchased, and what markups and reductions will likely occur.
c. projected sales for an upcoming season, when and how much merchandise is to be
purchased (excluding potential markups and reductions).
d. projected sales for an upcoming year, when and how much merchandise is to be
purchased, and what reductions will likely occur.
e. projected reductions for the upcoming season.
_____ refers to the number of times per year, on average, that a retailer sells its
inventory.
a. Periodic inventory
b. Carrying cost of inventory
c. Inventory reserve
d. Perpetual inventory
e. Inventory turnover
Walmart’s Supercenters that serve people with low incomes who are obsessed with
names such as KitchenAid, belong to which general market segment?
a. Price-sensitive affluents
b. Brand aspirationals
c. Value-price shoppers
d. One-stop shoppers
e. Conscientious objectors
Which of the following is a store-based retail format?
a. Street peddling
b. Automated merchandising systems
c. Interactive television
d. A shopping mall
e. The Internet
The consumer shopping/purchasing model presented in the text:
a. always begins with active information gathering.
b. ends with the buying decision.
c. suggests that consumer behavior is a process, with a series of stages occurring against
a backdrop of factors.
d. always begins with passive information gathering.
e. usually begins with a buy trigger event.
‘˜_____ occurs when distinct multiple items, generally from different merchandise lines,
are offered at a special sale price.
a. Bundling
b. Multi-unit pricing
c. Odd pricing
d. Leader pricing
e. Price lining
A _____ business district is a shopping area that evolves to satisfy consumer
convenience, and is located on a major artery of a residential area.
a. central
b. community
c. secondary
d. suburban
e. neighborhood
High-performance retailers can develop programs to attract, retain, and enhance
relationships with their customers by offering _____ benefits.
a. social and product
b. product and convenience
c. convenience and image
d. financial and social
e. image and social
Which of the following is NOT an aspect of a good mission statement?
a. Broad and general in nature
b. Provide direction
c. Motivational
d. Changes with every new fad
e. It is a plan of action for the firm to follow
Which of the following is a key characteristic of monopolistic competition?
a. Few sellers
b. Substitutable products
c. Horizontal demand curve
d. One seller
e. Lack of government regulation
_____ is the planning and control of the buying and selling of goods and services, to
help the retailer realize its objectives.
a. Retailing
b. Retail reduction analysis
c. Merchandising
d. Forecasting
e. Store management
As a general rule, retailers should strive for a financial leverage of:
a. 1.0 to 2.0 times.
b. 2.0 to 3.0 times.
c. 3.0 to 4.0 times.
d. 4.0 to 5.0 times.
e. 5.0 to 6.0 times.
When a retailer chooses to use all the money it can afford to spend on advertising, the
retailer is using which method to determine its advertising budget?
a. Percentage-of-sales
b. Task-and-objective
c. Affordable
d. Competitive parity
e. Concentrated target market
Consumers who are between the age of 8 to 14 are known as:
a. Gen Xers
b. Boomers.
c. Gen Yers.
d. Teen- agers.
e. Tweeners
A product sold at or below cost is known as:
a. freebie marketing.
b. a loss leader.
c. product bundling.
d. a bait and switch.
e. product churning.
When physical inventory value exceeds book inventory value a retailer is said to have:
a. excess profits.
b. shortages.
c. overages.
d. markups.
e. inventory gains.
While they never actually take title to the goods, most agents and brokers take physical
possession of the merchandise.
Extra dating allows the retailer some extra or free days before the period of payment
begins.
The retailer is not the only marketing channel member that uses promotion.
Explain the most common pretransaction, transaction and posttransaction services and
how a retailer can strategically employ these services to position itself in the retail
marketplace. Why is it so important for a retailer to handle a customer’s complaint
correctly?
Possession reconfiguration is where and how a customer takes physical possession of
the merchandise.
The two most overlooked problems regarding transaction services are having clean
restrooms and minimizing dwell time.
Less than 60 percent of all retailers have a written mission statement.
Retailers generally promote the price of a product in their ads, while the manufacturers
promote the features of the product.