The four functional areas defined in the Mazur plan are _____.
a. buying, selling, store operations, and accounting
b. merchandising, communications, store management, and financial accounting
c. marketing, management, accounting, and finance
d. product, price, promotion, and distribution
Total demand drops from 500 to 400 units when a retailer increases car wash prices
from $3 to $4. Price elasticity of demand (expressed as a positive number) equals
_____.
a. 0.57
b. 0.78
c. 1.75
d. 2.60
The ideal retail management system to use when a chain has few branches and the
buying preferences of branch customers are similar to those of main store customers is
the _____.
a. separate store organization
b. equal store organization
c. independent organization
d. main store control organization
Which compensation system is most appropriate for a pure order-taking position?
a. compensation cafeteria
b. straight-commission plan
c. PMs
d. straight-salary plan
The trading area with the highest average purchase by a customer is the _____.
a. parasite
b. primary trading area
c. secondary trading area
d. fringe trading area
To be successful, strategic planning should be _____.
a. conducted by a planning group
b. viewed as an integrated and ongoing process
c. focused on short-term objectives
d. focused on technology
A disadvantage to a curving traffic-flow pattern is that _____.
a. shoppers feel rushed
b. an austere, efficient atmosphere is created
c. there is wasted floor space
d. few impulse purchases are made
A broad-based approach to supply chain management among a network of trading
partners is _____.
a. third-party logistics
b. collaborative planning, forecasting, and replenishment
c. applied procurement planning
d. electronic data interchange
The opposite strategy to rationalized retailing is _____.
a. micromerchandising
b. risk-minimization retailing
c. centralized management
d. category management
The systematic examination and evaluation of a retailer’s effort (or some aspect of it) is
a _____.
a. consultant’s report
b. situation analysis
c. primary data analysis
d. retail audit
In exclusive distribution, suppliers _____.
a. enter into agreements with one or a few retailers that designate the latter as the only
companies in specified geographic areas to carry certain brands and/or product lines
b. sell to as many retailers as possible
c. sell to a moderate number of retailers
d. utilize multiple channels of distribution to reduce channel conflict
A retailer and a supplier both utilize relationship marketing. Which merchandise source
do they best illustrate?
a. company-owned
b. outside, new supplier
c. opportunistic buying
d. outside, regularly used supplier
The use of independent channel members in a channel of distribution allows
manufacturers to _____.
a. improve channel communication and control
b.increase the average order size to retailers
c.receive payment based on when goods are shipped to retailers, not when goods are
sold to final consumers
d. maximize profitability through vertical integration
Large gaps between price levels are a major problem associated with multiple-unit
pricing.
A retailer has a usage rate of 12 units per day, a lead time of 5 days, and a safety stock
level of 4 units for a popular floor lamp. Its reorder point equals 55 units.
A disguised retail audit is most appropriate when employee reports must be evaluated
and employees must be questioned about specific tactics as part of the audit.
Percentage lease arrangements are most common with small, independent retailers.
A retailer’s organizational mission should reflect its competitive advantages as a retailer.
Conventional supermarkets, food-based superstores, combination stores, box stores, and
warehouse stores are all included in the general definition of a supermarket.
A medium that appeals to a large geographic audience may have substantial waste for a
local retailer.