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.
Which of the following categories, who were between ages 30 and 42 in 2007, has been
the most educated generation ever?
a. Baby Boomers
b. The Millennium Generation
c. Gen Xers
d. The Silent Generation
e. Gen Yers
Manufacturers usually listen to a retailer’s statements about the introduction of new
products because retailers are often more knowledgeable about how their consumers
will react. Manufacturers understand that retailers possess what type of power in this
example?
a. Legitimate
b. Expertise
c. Knowledge-based
d. Reward
e. Referent
A retailer has total assets of $6,000,000 and a net worth of $3,000,000. What is the
retailer’s financial leverage ratio?
a. .5 times
b. 2.0 times
c. 50 percent
d. 75 percent
e. 100 percent
The Magnuson-Moss Warranty Act only applies to written warranties on:
a. all products.
b. all products costing more than $5.
c. all products costing more than $15.
d. all products costing more than $50.
e. all products costing more than $100.
_____ and _____ are the two primary objectives of the store environment.
a. Effective sales management; creating a distinctive ambience
b. Creative merchandise presentation; effective store traffic control
c. Maximizing impulse purchase opportunities; effective shelf space allocation
d. Creating the desired store image; increasing space productivity
e. Maintaining a pleasant selling environment; effective merchandise control
As a rule, if a retailer wants to attract customers from a greater it must_____ its
merchandise.
a. lower the prices of
b. double both its prices and promotion of
c. deemphasize the services it provides with
d. increase the services provided the customer and reduce the promotional activities
associated with
e. reduce the promotional activities associated with
_____ is the process of locating or identifying potential customers that have the ability
and willingness to purchase your product.
a. Prospecting
b. Suggestion selling
c. Sales presentation
d. Closing the sale
e. Approach
Post-purchase resentment:
a. usually only has short-term negative consequences for the retailer.
b. cannot be fixed.
c. is easily detected.
d. is often transferred from the product to the retailer where it was purchased.
e. only occurs after the evaluation stage.
Which of the following statements about the implications for retailers of urban centers
is false?
a. During the past decade, retail activity has grown rapidly in secondary markets.
b. Recent shifts in consumer population patterns have resulted in an increase for
downtown retail activity.
c. Secondary markets are attractive because of the low level of retail competition.
d. Sales increases in freestanding suburban locations have more than offset any decline
in retail activity.
e. As MSAs have begun to stabilize, secondary markets have become more attractive.
In-store displays, product demonstrations, samples and coupons are all forms of _____
promotions.
a. jointly-sponsored
b. in-store sales
c. sole-sponsored
d. publicity
e. institutional
In general, the largest in-store signage is usually:
a. logo signage at the rear of the store.
b. directional and departmental signage.
c. signage comparing the store’s prices to competitors.
d. signage that points out the product’s features.
e. point-of-sale signage.
The _____ provides a three-year financial summary as well as the names, titles, and
negotiating points of all the vendor’s sales staff.
a. black book
b. vendor classification book
c. vendor profitability book
d. buyer’s guide
e. confidential vendor analysis
A _____ is defined as a set of institutions that moves goods from the point of
production to the point of consumption.
a. retail system
b. transporter
c. supply chain
d. franchisee
e. value chain
_____ pricing is used when differences in demand and cost force the retailer to change
prices in a fairly predictable manner.
a. Unbundled
b. Uncustomary
c. Variable
d. Flexible
e. Leader
The manager of a neighborhood hobby shop has decided that this year, due to an
adverse local economy, she can only afford to spend $1,200 promoting through
newspaper and radio advertisements. The manager is utilizing the _____ method in
determining the shop’s advertising budget.
a. percentage-of-sales
b. task-and-objective
c. affordable
d. competitive parity
e. maximization
Ineffective advertising is usually the result of the retailer making all of the following
mistakes EXCEPT:
a. the consumer is bombarded with too many messages.
b. the advertising was not creative or appealing.
c. the retailer had too high of a CPM-TM.
d. there may have been poor internal communications among salesclerks, cashiers,
stock clerks, and management.
e. the advertisement may not have been directed at the proper target market.
Assets are classified as:
a. cash and noncash.
b. stable and unstable.
c. current and noncurrent.
d. temporary and permanent.
e. liquid and fixed.
Markdown percentage is calculated by:
a. dividing the amount of the reduction by the original selling price.
b. dividing the amount of the reduction by the original cost.
c. dividing the amount of the reduction by the price after the markdown.
d. dividing the amount of the reduction by difference between the cost and the original
selling price.
e. dividing the amount of the reduction by the net sales.
When a retailer’s advertising message shows how its products fit in with the consumer’s
everyday style of living, the retailer is said to be using a(n) _____ approach.
a. mood/image
b. fantasy
c. reality
d. lifestyle
e. slice-of-life
Which of the following statements is true regarding retailers’ use of advertising?
a. Over time, television ads do not maintain their effects on consumer memory to the
same extent as radio ads
b. Radio lacks the ability to target messages to select groups
c. Retailers are increasingly using television to create an image in the marketplace
d. Television advertising is the least expensive form of media available to retailers
e. ‘Surfing the tube’ has decreased in recent years
According to the text, what is the one important difference between off-price retailers
and discounters?
a. Discounters carry only brands that they are able to get on special deals from the
manufacturer.
b. Off-price retailers offer better prices
c. Discounters offer greater selection
d. Off-price retailers offer more convenient locations
e. Discounters offer continuity of brands
In _____ pricing, a high-demand item is priced low and advertised heavily in an effort
to attract consumers into a store.
a. bait
b. multiple-unit
c. variable
d. leader
e. odd
The central business district (CBD) is usually a unplanned shopping area in the center
of a large city where all public transportation systems converge and shoppers can visit
on their way to/from work.
As a general rule, exclusive distribution is associated with specialty goods.
The actions of supply chain members typically do not impact a retailer’s strategy.
Most federal laws affecting retailing seek to ‘promote competition.’
The most important function of POS signage is to clearly state the price of the
merchandise being signed.
Discuss the phenomenon of scrambled merchandising and the effect it is having on
tangible merchandising as well as services.
Managers are usually evaluated on financial leverage since return on assets is beyond
their control.
Retailing is responsible for matching the individual demands of the consumer with vast
quantities of supplies produced by manufacturers and service providers.
Markup is the difference between the cost of the merchandise and the selling price.