Retailers frequently use _____ for short-term loans to fund working-capital
requirements.
a. commercial banks
b. factors
c. e-tailing brokers
d. stock and commodity exchanges
e. venture-capital firms
One of the major advantages of shopping centers is that they have:
a. cooperative planning and sharing of common costs.
b. cheap rents.
c. flexible store hours for tenants.
d. freedom to set promotion programs without concern for other tenants in the center.
e. very little congestion.
A landlord charges the same apartment rent as last year, but now adds a fee for parking
spaces. This practice is known as:
a. entrapment.
b. unbundling.
c. bait-and-switch pricing.
d. bundling.
e. high-low pricing.
The single factor that distinguishes business districts from shopping centers/malls is
that business districts:
a. have a more balanced tenancy.
b. tend to dictate to retailers their operating hours.
c. tend to do more cooperative planning and have more sharing of common costs.
d. are usually unplanned.
e. have a greater diversity of retailers.
A customer visits Best Buy to learn about the different models, their features, and the
usage of new digital cameras. This customer then leaves the store without purchasing
the camera from Best Buy and makes the actual transaction on Amazon.com. This is an
example of:
a. diverting.
b. gray marketing.
c. free-riding.
d. goal incompatibility.
e. perceptual incongruity.
A(n) _____ is any legitimate financial claim against the retailer’s assets.
a. goodwill
b. asset
c. account receivable
d. liability
e. cost of goods sold
Which one of the following institutions involved in a supply chain would take title to
the goods it is dealing with?
a. Trucking company
b. Insurance company
c. Market researcher
d. Retailer
e. Public warehouse
Which stage of the retail life cycle is characterized by the entrance of many new
competitors and tremendous growth in sales and profits?
a. Vulnerability
b. Maturity
c. Growth
d. Entry
e. Introduction
Which of the following is PROBABLY NOT an important criterion to use when
selecting a merchandise source?
a. Distribution-center processing time
b. Consumers’ perception of the manufacturer’s reputation
c. Interest rates charged by your bank to finance this purchase
d. Reliability of delivery from the vendor
e. Where the product is manufactured
The main reason that Starbucks was able to have the main share of coffeehouses in the
world is just two decades is that they:
a. were the only coffeehouse to offer premium coffee during extended hours.
b. used tangible resources to provide their product.
c. capitalized on the economic climate at the most opportune time.
d. continually expanded their stores at the expense of customer service.
e. successfully applied their knowledge and skills to better serve customers.
Burger Blaster claims on its website that it uses only the best beef in making its burgers,
unlike Burger Barn, its largest competitor. Actually, Burger Blaster and Burger Barn
buy exactly the same type of beef from the same wholesaler, and Burger Blaster’s
management knows it. As a result of Burger Blaster’s claims, Burger Barn’s sales fall.
Burger Blaster is probably guilty of:
a. deceitful diversion of patronage.
b. bait advertising.
c. deceptive advertising.
d. puffery.
e. deceptive sales practices.
Which of the following figures is NOT found on a six-month merchandise budget?
a. Planned sales percentage
b. Planned retail purchases
c. Inventory depreciation
d. Planned gross margin dollars
e. Planned EOM stock
The fastest growing form of e-tailing or e-commerce is
a. texting
b. m-tailing or m-commerce
c. social network advertising
d. personalized on line help
e. on-line auctions
Most salespersons state that_____ is the most difficult step in the selling process.
a. determining the consumer’s ‘real’ need
b. asking them for more information
c. initial contact with the customer
d. closing the sale
e. listening to what the customer has to say
Nordstrom offers its customers a free dress shirt if it is ever out of stock on any of the
basic sizes. This policy is an example of:
a. price management.
b. building and fixture management.
c. promotion management.
d. credit management.
e. merchandise management.
Which of the following is a possible explanation for a retailer’s actual results falling
short of planned results?
a. Internal complaints
b. Poor identification of assets
c. Ineffective collaboration
d. Failure to meet financial goals
e. Environmental factors
Market share refers to:
a. the number of competitors a retailer must contend with.
b. a retailer’s total sales divided by total market sales.
c. agreements whereby retailers attempt to ‘share” certain costs.
d. the total sales a retailer has generated from the target market.
e. the portion of a retailer’s sales that represent profit.
Assume that the list price of an item is $1,200 and that the chain of discounts is
40-20-10. How much would a retail buyer pay?
a. $480.00
b. $518.40
c. $576.00
d. $720.00
e. $840.60
Twenty-five percent of households rarely pay off their credit card balance.
A value proposition places the customer in the role of attempting to see things from the
perspective of the retailer.
Truly one-way arrangements are illegal.
A price zone is a range of prices for a particular merchandise line that appeals to
customers in a certain market segment.
The most important skill the retailer can teach the new sales staff is common customer
etiquette and courtesy.
Bundling generally involves selling distinct multiple items offered together at a ‘special
price.’
Most retailers like to operate with a financial leverage ratio of 1.0 or greater so as to
minimize debt.