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A major difference between the sale of complementary goods/services versus the sale of
substitute goods is that the sale of substitute goods may _____.
a. have little impact on total retail sales
b. increase inventory turnover
c. give a retailer a one-stop shopping environment
d. provide a weak retail image
The combination of marquees, entrances, windows, lighting, and construction materials
comprises _____.
a. atmosphere
b. a prototype store
c. retail image
d. the storefront
The two components of TV-based direct marketing are _____.
a. catalogs and Web-based retailing
b. kiosks and shopping networks
c. shopping networks and infomercials
d. cable television and shopping networks
Department stores attempt to accomplish the benefits of both centralization and
decentralization in which retail organizational form?
a. diversified retailing
b. main store control
c. separate store
d. equal store
Information previously gathered for other purposes than the problem or issue under
study is _____.
a. primary data
b. syndicated data
c. secondary data
d. a marketing research system
The difference between merchandise costs and selling price is the retailer's _____.
a. markup
b. gross profit return on investment
c. net profit
d. markdown
A retailer, through its extensive selection and high service levels, is able to attract
shoppers from long distances. This phenomenon is known as _____.
a. cognitive dissonance
b. outshopping
c. store loyalty
d. extended decision making
Physical products are not involved in which type of service?
a. repair services
b. nongoods services
c. rented-goods services
d. owned-goods services
Which of the following is not a major advantage of the use of centralized customer
service areas?
a. The salesperson is able to recommend alternative goods and services.
b. A common store policy is ensured.
c. The department can be placed in a space with little activity.
d. Specialized personnel can be used.
A family-oriented Italian restaurant's strategy consists of appealing to budget-conscious
individuals and families with high-quality food, quick service, clean surroundings, and
a wholesome environment. This constitutes its _____.
a. goods/service category
b. target market
c. competitive advantage
d. organizational mission
A clear description of a trading area allows a retailer to determine _____.
a. customer shopping frequency
b. its overall store image
c. the focus of promotion activities
d. private-brand strategy
Off-price chains generally purchase merchandise on an opportunistic basis by focusing
on cancelled orders, irregulars, and end-of-season merchandise.
Bad debt risks are minimized with retailer-generated open credit accounts and revolving
credit accounts.
In the second stage of the retail life cycle, innovative retailers expand their geographic
bases of operations and newer firms enter the field.
A retailer fearful about lease renewal availability and/or renewal terms should consider
store ownership.
Secondary data sources such as the U.S. Census of Retail Trade may be inappropriate
for a researcher due to the categories used by the government to study demographics
such as age and income.
The use of a mystery shopper in assessing sales training involves a nondisguised audit
while the store is open.
Three shopping locations devote 1,000, 3,000, and 5,000 square feet to luggage. A
group of potential customers lives 5 minutes from the first location, 10 minutes from
the second, and 20 minutes from the third. A luggage retailer estimates the effect of
travel time to be 1. The probability of consumers shopping at location 1 is 40 percent.
A manufacturer seeking to maximize its market share should utilize selective
distribution.
