The three basic tasks of retailing are:
a. getting consumers from outside your trading area into your store, getting these
consumers to sign up for store credit, and keeping these consumers happy.
b. getting consumers from inside your trading area into your store, getting these
consumers to sign up for store credit, and offer these consumers the lowest prices
possible.
c. getting consumers from your trading area into your store, converting these consumers
into loyal customers, and doing so in the most efficient manner possible.
d. getting consumers from your trading area into your store, getting these consumers to
sign up for store credit, and converting them into loyal customers.
e. getting consumers from your trading area into your store, keeping them happy while
in the store, and getting them to join the store’s frequent buyers program.
_____ is a term used to refer to brands that are owned by the retailer.
a. Name brand
b. Retail brand
c. House brand
d. Private label brand
e. Manufacturer brand
Selective distribution:
a. means that all possible retailers are used to reach the target market.
b. means only one retailer is used in the trading area.
c. means that a smaller number of retailers are used to reach the target market.
d. is associated with the distribution of convenience goods.
e. is identified with specialty goods.
Which of the following elements is NOT a part of the strategic profit model (SPM)?
a. Net profit margin
b. Stockouts
c. Asset turnover
d. Financial leverage
e. Return on assets
Identify the incorrect statement about warehouse clubs.
a. They charge patrons an annual membership fee.
b. They sell a limited selection of brand-name grocery items, appliances, and clothing.
c. These mature-stage retailers operate out of enormous, low-cost facilities.
d. They sell a vast, unlimited selection of miscellaneous items at a deep discount.
e. Warehouse stores, which have low costs because they buy products at huge quantity
discounts and use limited labor, usually have low gross margins.
Baby busters were born between the years:
a. 1922-1945.
b. 1946-1964.
c. 1965-1977.
d. 1978-1994.
e. 1995-2002.
If a retailer had an average inventory of $80,000 (retail) and annual sales of $480,000,
how many times has that retailer turned over its inventory?
a. Four times a month
b. Six times a month
c. Four times a year
d. Six times a year
e. Eight times a year
Current liabilities include all of the following EXCEPT:
a. notes payable within the six months.
b. payroll payable.
c. mortgage payable.
d. accounts payable.
e. taxes payable.
A salesperson tells a customer, “Ninety percent of the people we’ve sold these tires to
over the past five years have gotten at least 25,000 miles of use out of them without any
problems. Therefore, I can assume that you should get no less than 30,000 miles with
them given the way you drive.” The salesperson:
a. may be creating an expressed warranty.
b. is engaging in false advertising.
c. could never be held responsible for the tire’s longevity.
d. may be creating an implied warranty of merchantability.
e. is creating a warranty of title.
Sales volume and market share are the most popular measures of:
a. financial productivity.
b. market performance.
c. merchandise productivity.
d. consumer choice.
e. human resource allocation.
_____ is a practice where a low-priced model of a shopping good is used to lure
shoppers into a store where the salesperson will attempt to persuade them to purchase a
higher-priced model.
a. Leader pricing
b. High-low pricing
c. Multiple-unit pricing
d. Price lining
e. Bait-and-switch pricing
Usually high-prestige branded products that the consumer expressly seeks out, such as
Rolex watches, are known as:
a. shopping goods.
b. industrial goods.
c. convenience goods.
d. raw materials.
e. specialty goods.
Which of the following is NOT an example of a Buyer Behavior Characteristic?
a. Consumer lifestyle.
b. Store loyalty.
c. Geographic conditions.
d. Climatic conditions.
e. Consumer education.
All of the following are typical pricing objectives EXCEPT:
a. target-return.
b. sales maximization
c. status quo.
d. profit maximization
e. sales-oriented.
When discussing advertising selection, the term ‘impact’ refers to the:
a. number of consumers reached by an advertisement.
b. total dollar amount allocated for a retailers advertising budget.
c. number of units of the advertised item sold.
d. cost per thousand.
e. strength of the impression made, and if the ad ultimately leads to a purchase.
Geographic information systems are computerized systems that combine _____
geography with _____ geography.
a. meteorological; spatial
b. physical; cultural
c. physical; sociological
d. spatial; economic
e. physical; economic
In retailing, how the customers interface, experience, and connect to various other
actors in the economic system to include retailers is known as:
a. enabling.
b. relieving.
c. co-producing.
d. engagement.
e. assessment.
If a merchandise line has a gross margin of 35 percent and sales per dollar of inventory
investment of 4.0, what is its GMROI?
a. $ 2.60
b. $ 1.40
c. $ 6.15
d. $11.43
e. $14.00
Which of the following is NOT a characteristic of an effective visual merchandising
display?
a. It is not typically associated with a shopable fixture.
b. It is usually located in a focal point or feature area of the store.
c. It is most widely used by discounters and other low-price retailers.
d. It makes use of props in addition to the merchandise.
e. It does not have to include merchandise.
The best way to categorize retailers is:
a. by the U.S. Bureau of Census’ three-digit North American Industrial Classification
Systems (NAICS).
b. by the retailers’ locations.
c. by the number of outlets the store maintains.
d. by the retailers’ margins and turnover.
e. there is no single accepted method of classifying retail competitors.
A fast food restaurant is more likely to employ order takers than order getters.
A retailer located downtown will likely offer different services than one located in a
suburban shopping center, even if they sell the same merchandise.
Garments can be hung on a wall at a higher level than they can be displayed on floor
racks thereby enabling retailers to show more merchandise.
Employee skills and knowledge is an example of an operand resource.
When a consumer has a strong retailer preference and a strong brand preference he/she
typically engages in habitual problem solving.
If planned reductions for June increase by $1,000, June OTB will increase by $1,000.