Which retail institution generally does not mention specific brand names and/or prices
in its advertising?
a. department store
b. off-price chain
c. full-line discount store
d. variety store
An area where nondisplayed items are stocked is _____ space.
a. merchandise
b. customer
c. selling
d. personnel
The difference between a vertical cooperative advertising agreement and a horizontal
cooperative advertising agreement is based on _____.
a. media utilized
b. cost sharing participation levels
c. message standards
d. which channel members are involved
The element of perceived risk that relates to the effect of a purchase on one’s
self-esteem is _____ risk.
a. psychological
b. social
c. physical
d. performance
The reporting relationships among employees within a retail firm are described by the
_____.
a. job description
b. weighted application blank
c. goal-oriented job description
d. hierarchy of authority
The basic difference between the quick ratio and the current ratio is that the _____.
a. quick ratio measures liquidity while the current ratio measures profitability
b. current ratio test is a more difficult one
c. current ratio includes inventories and marketable securities
d. current ratio measures only the most liquid assets
An approach to the study of retailing that stresses activities such as buying, pricing, and
personnel practices is a _____ approach.
a. strategic
b. functional
c. institutional
d. retail audit
A college store determines space needs for each department on the basis of assortment
guidelines for texts, stationery, computer supplies, dormitory needs, and school
signature clothing. It determines space needs by _____.
a. the sales-productivity ratio
b. the model stock approach
c. market segment product groupings
d. functional product groupings
When a physical inventory is conducted in the cost method of accounting, _____.
a. additional markups must be calculated
b. deductions from retail value must be determined
c. the cost complement must be computed
d. the costs of each item must be ascertained
An excellent retail location, a long-term relationship with suppliers, and access to
low-cost capital are examples of a firm’s _____.
a. store positioning
b. target market
c. competitive advantages
d. resources
Environmental issues are generally covered in _____.
a. social responsibility
b. consumer rights
c. ethics
d. consumerism
If a retailer’s average monthly sales are $253,000, what would its average monthly sales
index equal?
a. .25
b. 100
c. 253
d. The answer cannot be determined from the information provided.
A retailer can encourage long-term employment through a policy of promoting from
within the firm.
In an independent vertical marketing system, manufacturers seek out wholesalers, who
seek out retailers to stock and sell products.
The last stage of the wheel of retailing for a retailer (high-end strategy) is comparable to
the accelerated development stage in the retail life cycle.
A vertical audit typically precedes a horizontal audit.
A book or perpetual inventory system allows gross margins to be calculated with a cost
method of accounting system.
Open-to-buy is the difference between planned purchases and purchase commitments
made by a buyer during the month.
The weakest method of establishing an overall promotional budget is the
objective-and-task method.
The “30-day rule” affects direct marketers who are out-of-stock or who plan to order
goods after they are purchased by consumers.