Retailers can get some of the benefits of ownership and leasing through a _____.
a. sale-leaseback
b. graduated lease
c. net lease
d. straight lease
Which retail institution is often part retailer and part wholesaler?
a. off-price retail chain
b. factory outlet
c. flea market
d. membership club
The most widely dispersed group of customers can be found in which trading area
segment?
a. trading-area overlap
b. secondary trading area
c. primary trading area
d. fringe trading area
What type of management style should accompany the introduction stage of the retail
life cycle?
a. entrepreneurial
b. professional
c. centralized
d. caretaker
Which of the following is not a basic assumption of the wheel of retailing?
a. A large number of price-sensitive shoppers exist.
b. Retailers increase operating costs over time to improve their image.
c. New institutions are able to reduce operating costs.
d. Related-item merchandising increases sales because of one-stop shopping appeals.
A manufacturer seeking maximum channel control should utilize which type of retailer?
a. factory outlet
b. membership club
c. off-price chain
d. department store
Avon and Sherwin-Williams utilize _____.
a. an independent vertical marketing system
b. a partially integrated vertical marketing system
c. a fully integrated vertical marketing system
d. franchising
The arrangement of goods within a supermarket or department store is systematically
studied to maximize _____.
a. manufacturer cooperation
b. impulse sales
c. payments by manufacturers
d. self-service merchandising
Which system combines digitized mapping with key locational data?
a. geographic information system
b. primary trading-area analysis
c. secondary trading-area analysis
d. TIGER
Which one of the following activities by suppliers is not associated with a floor-ready
merchandise strategy?
a. requiring large minimum order sizes
b. placing of special tags on merchandise
c. placing merchandise on hangers
d. pre-ticketing of merchandise
A flat organization has _____.
a. a long channel of communication
b. a clear hierarchy of authority
c. many subordinates reporting to one supervisor
d. many levels of management
A retailer can increase the economic life of an asset through effective store
maintenance.
A retailer’s cost of goods sold during the year equals $750,000 and its average inventory
on hand (at cost) equals $375,000. Its annual rate of stock turnover equals 2.
In both property ownership and net lease arrangements, a retailer can incur risks
associated with maintenance expense increases.
Retail promotion in the growth stage of the product life cycle is geared to informing
customers about product attributes.
Retailers should measure productivity strictly from the perspective of cost cutting.
Recognition of shortage and recognition of unfulfilled desire are two components of the
information search stage of the consumer decision process.
A retailer with strong channel control may force manufacturers to give price guarantees
and may also use selling against the brand.
Chain retailer organizations are often characterized by a large number of functional
divisions, centralized authority and responsibility, standardized operations, and an
elaborate control system.
A fundamental assumption of the wheel-of-retailing theory is that a large proportion of
consumers are first attracted to a retail innovator through image appeals.