A danger to a retailer with a very high financial leverage is _____.
a. the reduction in inventory valuation
b. the reduction in return on net worth
c. that high debt service must be paid
d. high variable cost levels
A computer dealer determines customer satisfaction of recent computer buyers on the
basis of questionnaires mailed to recent customers. These questionnaires cover all
aspects of the transaction from the first encounter with a salesperson to initial quality of
the computer to satisfaction with any servicing the computer might require. The survey
involves _____.
a. coordinated effort
b. the total retail experience
c. long-run planning
d. relationship retailing
A major disadvantage of centralized buying is _____.
a. disjointed planning
b. excessive uniformity
c. a quick order process
d. an inconsistent image
Which element in the retail promotion mix most often has the greatest focus on the
short-run?
a. public relations
b. sales promotion
c. advertising
d. personal selling
A positioning approach involving retailers that present a discount or value-oriented
image, a wide and/or deep merchandise assortment, and large store facilities is _____.
a. positioned retailing
b. mass merchandising
c. bifurcated retailing
d. multiple segmentation
Which vertical marketing system is involved when one channel member performs all
production and distribution functions?
a. fully integrated vertical marketing system
b. partially integrated vertical marketing system
c. independent vertical marketing system
d. franchising
Lounge areas, dressing facilities, and wide aisles are components of _____ space.
a. customer
b. personnel
c. selling
d. merchandise
When the price elasticity of demand is unitary and prices go up, total _____.
a. revenues stay the same
b. revenues increase
c. revenues decline
d. profits increase
Which of the following is a not a disadvantage of a Web site as compared to traditional
store retailers?
a. The site can be slow in downloading complex graphics and video files for dialup
shoppers.
b. It is likely to be exited without a purchase.
c. The site requires constant attention to keep it current.
d. There is uncertainty with regard to paper and postage costs.
An overall plan or framework of action that guides a retailer is its _____.
a. mission statement
b. retail strategy
c. corporate philosophy
d. retail tactics
A diversified retailer can best be defined as a _____.
a. multi-line firm operating under central ownership
b. chain form of ownership
c. descrambled merchandising form
d. leased department operation
Pedestrian traffic can best be monitored through _____.
a. simulation
b. experimentation
c. surveys
d. observation
A major advantage to a straight (gridiron) traffic flow is that _____.
a. a friendly atmosphere is developed
b. customers can shop quickly
c. self-service is simplified for consumers
d. it is most applicable to full-service stores
Assortment planning for staple merchandise is accomplished by a _____.
a. want book
b. want slip
c. basic stock list
d. model stock plan
A firm compares its actual performance against its potential performance in _____.
a. benchmarking
b. scenario analysis
c. gap analysis
d. opportunity cost analysis
Merging (adding new customers) and purging (eliminating customers on multiple lists
and customers who have not ordered merchandise over a given time period) are key
functions in customer contact.
The principles of strategic planning in retailing are equally applicable to small and large
retailers.
Decentralized buying organizations are generally used by independent retailers.
Data from want books, want slips, and competition shopping reports should be stored
and accessed in a retail information system.
Retailers with level sales (by hour and/or day) need to be particularly concerned with
planning and implementing workload forecasts and cross-training.
A membership club has a higher inventory turnover than a traditional department store.
The decision process is always used consciously by consumers.