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.
The retailer’s first step in developing a cost-effective way for a retailer to reach its
customer with either a traditional store or virtual store is:
a. establish its budget.
b. identify its strengths and weaknesses.
c. identify its target market.
d. develop a list of constraining factors.
e. hire a real-estate consultant.
A(n) _____ is the introductory or first material viewers see when they access a retailer’s
Internet site. It is the equivalent to a retailer’s store-front in the physical world.
a. virtual store
b. web presence
c. home page
d. on-line presence
e. virtual reality
Which of the following is NOT an example of the ‘psychology of merchandise
presentation’?
a. Displaying merchandise in vertical bands of color can increase sales.
b. Consumers always turn left when entering a store for the first time.
c. Shoppers view merchandise at 45-degree angles from their path of travel.
d. Merchandise displays evoke images of how trendy or value oriented a retailer is.
e. Displaying hair-care products on a high series of shelves in the waiting area that is
lighted with fluorescent light fixtures.
Most shoplifting takes place in:
a. fitting rooms, aisles crowded with extra merchandise, and behind high displays.
b. layaway and customer service areas.
c. back rooms, especially the loading dock.
d. office spaces.
e. restrooms.
Retailers compete for customers on five major fronts or factors. Which of the following
is NOT one of the major fronts retailers compete for target customers?
a. The price for the value offered
b. Service level
c. Product selection
d. Customer experience
e. Employee compensation
An advantage of a(n) _____ markdown policy is that it allows the retailer to replenish
lower-priced lines from the higher priced lines that have been marked down.
a. low
b. early
c. segmented
d. late
e. flexible
An important characteristic of the “millennium generation” that retailers need to
remember is:
a. they have an annual spending power of nearly $500 billion.
b. they were born between 1965 and 1977 and thus are called the “Children of the ’80s.”
c. they number less than 50 million.
d. they tend to be more traditional and have a conservative lifestyle.
e. they are a relatively homogeneous group.
Rapidly growing chain stores usually find it necessary to transfer store managers for the
following reason:
a. to allow managers to live in the geographic location of their choice.
b. to open new stores in new geographic locations.
c. to make it possible for new managers to work in established business locations.
d. to gain additional retail experience.
e. to adhere to the principle of geographic mobility.
A _____ objective is a pricing objective that states a specific level of profit, such a as
percentage of sales or a return on capital invested, as an objective.
a. profit maximization
b. target-return
c. percentage-of-sales
d. competition-oriented
e. skimming
A _____ agreement exists when the supplier offers the retailer the exclusive distribution
of a merchandise line or product, and in return the retailer agrees not to handle
competing brands.
a. one-way exclusive
b. two-way exclusive
c. three-way exclusive
d. tying
e. full-line
Each of the following is a marketing function that retailers perform EXCEPT:
a. pricing.
b. information gathering.
c. selling.
d. financing.
e. storing.
Which of the following is NOT an ethical dilemma that a retailer faces when buying
merchandise?
a. The manufacturer’s country of origin
b. Whether to accept a slotting fee
c. The issue of product quality
d. The source of the merchandise
e. Whether to use or accept a bribe
What type of pricing policy increases both the efficiency and fairness in handling
customer transactions especially where the selling activity is delegated to salespersons
who have varying degrees of loyalty to the retailer?
a. Variable
b. Flexible
c. Price lining
d. One-price
e. Multiple-unit
When a retailer makes a single purchase of 25 or more cases of wine, the vendor offers
an extra 20 percent discount. This is an example of a:
a. noncumulative-quantity discount.
b. promotional allowance.
c. cash discount.
d. functional discount.
e. cumulative-quantity discount.
_____ involves breaking down heterogeneous materials or product into more
homogenous groups.
a. Organizing
b. Classifying
c. Synthesizing
d. Sorting
e. Grouping
The _____ is not an attempt to learn what the customer wants; instead, it concentrates
on the facts of their shopping experience.
a. customer service and sales enhancement audit
b. sales audit
c. consumer choice audit
d. service evaluation audit
e. audit
Cost of goods sold is the cost of merchandise that has been sold during the period.
Fair trade laws were considered violations of Section 1 of the Sherman Antitrust Act.
The most common measure of a salesperson’s or sales force’s performance is conversion
rate.
The creative method of retailing focuses on facts to make decisions systematically.
The promotion objectives of retailers and their channel partners are always in harmony.
The retail accordion theory is vague about the competitive importance of providing
wide assortments for various target customer groups.
A useful way for retailers to categorize seniors is in terms of their wealth and health.
Some national chains give each store manager the necessary flexibility to adjust
merchandise to local demands; this is called using the ‘optional stock list’ approach.
For a target market to be reached successfully by a retailer, the market should be
measurable, accessible, and accessible.
Single-loop learning looks at whether the retailer is doing the right things versus merely
doing things right.