The retail ownership form that has the greatest capacity for raising funds through the
sale of stock is a _____.
a. sole proprietorship
b. corporation
c. partnership
d. franchise
A firm cannot devote its total promotional efforts to publicity since _____.
a. the sponsor is not identified
b. it has less credibility than advertising
c. public relations staff costs are high
d. there is no control over message, timing, placement, and degree of coverage
The total retail experience is best defined as _____.
a. a retail operating philosophy that stresses long-term relationships between a retailer
and its customers
b. value-generating elements in the retail transaction
c. all the elements in a retail offering that encourage or inhibit consumers during their
contact with a retailer
d. those retail strategies that contribute to total satisfaction among all retail stakeholders
The major difference between the Internet and the World Wide Web is based on _____.
a. the faster speed of the Internet
b. the regulated nature of the Internet
c. the audio-visual capability of the World Wide Web
d. the free nature of the Internet
What type of products may have cyclical sales due to changing tastes and lifestyles?
a. assortment merchandise
b. fashion merchandise
c. staple merchandise
d. fad merchandise
Which of the following is not a disadvantage associated with the use of TIGER maps?
a. Its Web site can be cumbersome to use.
b. Service on the TIGER site may be slow.
c. The maps cannot be tailored to reflect physical attributes of U.S. areas.
d. The maps do not include retail facilities, other commercial entities, population
characteristics, and so on.
Money-back guarantees and honest sales and advertising presentations aid in _____.
a. minimizing cognitive dissonance
b. AIO measurement
c. the problem awareness stage of consumer behavior
d. studying psychographics
A salesperson’s being honest in assessing a product’s use, features, and benefits can
reduce consumers’ _____.
a. social cues
b. commercial cues
c. cognitive dissonance
d. physical drives
The location of impulse items in high customer traffic areas illustrates a _____ product
grouping.
a. storability
b. market segment
c. functional
d. purchase motivation
A retailer’s problem with the use of PMs is _____.
a. that the costs are borne by the retailer
b. that self-service is encouraged
c. the reduction in a retailer’s channel control
d. that only a small portion of the target market is reached
The Robinson-Patman Act _____.
a. reduced the bargaining power of large retail chains
b. removed the fair trade laws in all states
c. limited mergers between large firms
d. reduced monopolies and restraints of trade
The form of promotion that can be distinguished by media payment, a nonpersonal
presentation, out-of-store mass media, and an identified sponsor is _____.
a. personal selling
b. sales promotion
c. advertising
d. public relations
What accounting method gives retailers a tax advantage when inventory values are
rising?
a. cost method of accounting
b. retail method of accounting
c. LIFO
d. FIFO
A major disadvantage to the cost method of accounting is that _____.
a. markdowns must be computed
b. costs must be assigned to each item in stock
c. sales receipts must be calculated
d. purchases must be determined
Which service attribute limits expansion possibilities for a service provider?
a. industrialization of services
b. intangibility
c. perishability
d. inseparability of the service from its provider
In the main store control organization, _____.
a. merchandise managers are placed in branch stores
b. most authority remains with headquarters managers
c. decentralization is practiced
d. each branch has autonomy for merchandising and operations
Manufacturers and wholesalers can legally control retail prices by _____.
a. limiting sales to intrastate commerce
b. owning their own retail facilities and through consignment selling
c. refusing to sell to price-cutting retailers
d. charging larger buyers lower prices
Satisfaction of publics as a retail objective is involved with which of the following?
a. stockholders only
b. consumers only
c. stockholders and consumers
d. stockholders, consumers, suppliers, employees, and government
A major advantage of the retail method of accounting is that _____.
a. costs do not have to be decoded
b. a physical inventory is required to prepare an operating statement
c. frequent operating statements are not possible or necessary
d. no adjustments to inventory values need be recorded
Which of the following productivity measures would not be part of category
management?
a. sales per capita
b. sales per linear foot of shelf space
c. direct product profitability
d. return on inventory investment
Sources of internal secondary data include budgets, profit-and-loss statements,
customer billings, and prior company research.
The trading-area overlap region represents customers who are served by two or more
branch units of a chain.
A retailer can reduce the risk inherent in a questionable but potentially profitable store
location through property ownership.
A mannequin dressed in a matching shirt, slacks, and sports jacket illustrates an
ensemble display.
Self-scanning enables retailers to reduce labor costs.
A retailer has a beginning inventory (at cost) of $62,000, purchases (at cost) of $17,000,
and transportation charges of $1,600. Its merchandise available for sale is $79,000.
An augmented retail strategy for a discounter could be an expected retail strategy for a
full-service retailer.