A retailer that owns several of its locations and desires capital to expand should
consider using a _____.
a. percentage lease
b. sale-leaseback
c. short-term lease with renewal options
d. graduated lease
Low perceived risk, high experience with a retailer, and high satisfaction with past
purchases generally are characteristics of _____.
a. extended decision making
b. cognitive dissonance
c. routine decision making
d. limited decision making
A measure of a store’s affinity is its _____.
a. pedestrian traffic
b. vehicular traffic
c. degree of customer interchange
d. road visibility
The best method for establishing an overall promotional budget is the _____ method.
a. all-you-can-afford
b. incremental
c. objective-and-task
d. percentage-of-sales
Which of these is not a benefit to using prototype stores?
a. The stores use custom buildings for each city and town.
b. The stores enable a retailer to take advantage of quantity discounts in purchases.
c. The stores ease the employee interchange among branches.
d. These stores help portray a uniform image among franchise and chain store units.
Which statement concerning the ease of entry into retailing is correct?
a. Ease of entry generates a high degree of competition.
b. Investment per worker in retailing is significantly greater than that of manufacturing
establishments.
c. Ease of entry is reflected in high market shares for leading firms.
d. Ease of entry into retailing contributes to the need for effective stockholder relations.
Days Inn, Midas Muffler, and McDonald’s are examples of which type of retail
franchising structural arrangement?
a. service sponsor-retailer
b. voluntary wholesaler-retailer
c. manufacturer-retailer
d. cooperative wholesaler-retailer
Which media can be classified as dailies, weeklies, and/or shoppers?
a. telephone directories
b. newspapers
c. direct mail
d. flyers/circulars
In a regional shopping center, the store with the largest trading area is a _____.
a. shoe store
b. variety store
c. department store
d. supermarket
A major advantage to the use of primary (versus secondary) data in solving a retail
research problem is primary data’s _____.
a. speed of collection
b. source credibility
c. lower cost
d. currency
Which ownership and management alternative is simple to form, fully controlled by the
owner, and subject to single taxation by the government?
a. corporation
b. sole proprietorship
c. partnership
d. franchising
Personnel in a retail chain are specialists overseeing either buying or selling. This firm
has a _____ philosophy.
a. decentralized
b. centralized
c. merchandising
d. buying
Delayed payment of bills by consumers is not possible with _____.
a. credit card systems
b. bank-based credit cards
c. debit card systems
d. retailer-based credit cards
The use of habit in consumer decision making is associated with _____ decision
making.
a. routine
b. extended
c. limited
d. generalized
A way of collecting, storing, and using relevant information about consumers is _____.
a. marketing research
b. retail information systems
c. data-base retailing
d. direct selling
The division of authority and responsibility in a major retail organization by product
categories and geographic areas illustrates a(n) _____.
a. centralized structure
b. decentralized structure
c. professional manager system
d. owner-manager system
Budgeting decisions are centralized in _____ budgeting.
a. incremental
b. bottom-up
c. zero-based
d. top-down
Which form of direct marketing uses advertising to first expose a consumer to a good or
service?
a. specialogs
b. video kiosks
c. Web-based retailing
d. infomercials