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 NAICS codes.
d. The U.S. Bureau of Census classifies all retailers using three-digit NAICS codes.
e. The major portion of a retailer’s competition comes from other retailers in its NAICS
category.
Identify the incorrect statement about e-tailing.
a. It enables consumers to shop when they like and from where they like.
b. It provides access to vast amounts of information, ranging from a product’s attributes
to who has the lowest price.
c. Many e-tailers offer personalized help online.
d. With some Internet websites, individuals can band together for group buying.
e. Some e-tailers may have to discontinue some product categories as consumers
engage in outshopping.
According to the wheel of retailing theory, _____ currently appear to be in the
vulnerability phase of their evolution.
a. outlet malls
b. warehouse clubs
c. health spas
d. The Internet
e. discount department stores
Net sales are:
a. gross sales less returns and allowances from customers.
b. gross sales less cost of goods sold.
c. profits less cost of goods sold.
d. cost of goods sold less returns and allowances.
e. gross margin plus fixed expenses.
The _____ is considered a softline feature fixture, because it presents merchandise in a
manner that features certain characteristics of the merchandise (such as color, shape or
style).
a. four-way rack
b. gondola
c. round rack
d. straight rack
e. flat-base deck
A change in any element of a retailer’s physical structure including check out counters,
merchandise fixtures or size of the store is known as:
a. possession reconfiguration.
b. time reconfiguration.
c. form reconfiguration.
d. target market reconfiguration.
e. place reconfiguration.
Once retailers determine the hiring criteria, they must then identify the potential
predictors of success. Which one of the following factors is NOT considered to be a
predictor of a salesperson’s future success?
a. Experience
b. Demographics
c. Personality
d. Gender
e. Intelligence
Lowe’s Home Improvement delivery, installation, and free appliance take away is an
example of:
a. target marketing reconfiguration.
b. time reconfiguration.
c. possession reconfiguration.
d. place configuration.
e. form reconfiguration.
____ is when a retailer reframes its business in terms of the time it performs certain
activities and offers service.
a. Form reconfiguration
b. Place reconfiguration
c. Possession reconfiguration
d. Target marketing reconfiguration
e. Time reconfiguration
A retailer wants to increase the number of customers coming into its store. Which of the
following pricing strategies has the greatest potential for success?
a. Promotional pricing
b. Bundle pricing
c. Price flexibility
d. Odd pricing
e. Leader pricing
Nordstrom’s return policy to ‘Replace anything on demand, no matter how expensive,
no questions asked,’ is an example of a:
a. pretransaction service.
b. personal shopping service.
c. transaction service.
d. price image of the store.
e. posttransaction service.
Jewelry stores are generally categorized as:
a. low-margin/high-turnover.
b. high-margin/low-turnover.
c. low-margin/low-turnover.
d. high-margin/high-turnover.
e. low-margin/moderate-turnover.
A successful retail manager will use the:
a. analytical method only.
b. creative method only.
c. strategic method only.
d. analytical and creative methods.
e. analytical, creative, and strategic methods.
The retail life cycle suggests that firms move from the _____ stage to the _____ stage
to the _____ to _____ stage.
a. introduction; growth; maturity; decline
b. introduction; development; maturity; decline
c. entry; development; maturity; decline
d. entry; trading-up; vulnerability; decline
e. innovation; growth; development; decline
_____ pricing is a policy in which the retailer sets prices for goods and services, with
the intent to maintain those prices over an extended period of time.
a. Leader
b. Variable
c. Flexible
d. Customary
e. Status quo
Green River Ordinances restrict selling:
a. via the Internet.
b. environmentally unsafe products.
c. door-to-door.
d. obscene material.
e. dangerous products.
Smaller stores and stores that are in non-traditional locations are demonstrating a new
logic around geographic locations known as:
a. form reconfiguration.
b. possession reconfiguration.
c. target market reconfiguration.
d. time reconfiguration.
e. place reconfiguration.
The retailer’s _____ is (are) NOT considered a current asset.
a. cash
b. inventory
c. accounts receivable
d. prepaid expenses
e. fixtures
If the retail store can be compared to a book, then the storefront, or store exterior, is like
the:
a. title.
b. prologue.
c. chapters.
d. ending.
e. book cover.
The following planned figures have been developed by a buyer for next month: sales =
$25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000;
commitments already made for delivery during next month = $5,600. What are planned
purchases and OTB for the buyer?
a. $18,500; $12,900
b. $34,500; $40,100
c. $18,500; $24,100
d. $34,500; $28,900
e. $26,500; $18,500
Which of the following media alternatives is most difficult to target toward a specific
target market?
a. Radio
b. Newspapers
c. Magazines
d. Direct mail
e. The Internet
High-quality service is service that meets or exceeds customers’ expectations.
Retailers often must deal with building safety regulations that vary from state to state.
As a rule, the more merchandise customers are exposed to, that is presented in an
orderly manner, the less they tend to buy.
A retailer’s intangible resources are always included on its balance sheet.
Angelo’s Paints has long-term notes payable of $30,000 and mortgage payable of
$60,000. Angelo’s long-term liabilities equal $90,000.
For most of the developed world, the ‘marketing to’ era is the time prior to 1900.
Disposable income is discretionary income minus the money needed for necessities to
sustain life, such as minimal housing, minimal food, and minimal clothing.
Shopping centers and malls account for one-half of all retail sales, excluding
automotive, in the United States.
A disadvantage of the retail method is that accounting statements can be prepared at
anytime without having to conduct physical inventories.
Most retailers have four seasons a year (1) spring (2) summer (3) fall and (4) winter.