A retailer seeks to acquire and maintain a proper assortment of merchandise while
keeping ordering, shipping, handling, and other costs in check in _____.
a. retail operations
b. just-in-time inventory planning
c. store maintenance
d. inventory management
Which statement concerning retail information systems is not correct?
a. Developing and updating a retail information system in an ongoing process.
b. Developing a retail information system is generally simple.
c. Data is continuously collected and stored in a retail information system.
d. Retailers typically spend from 0.5 to 2.0 percent of their sales on their retail
information system.
Which inventory management system results in longer-term retailer-vendor
relationships and frequent reordering?
a. computer-based UPC scanning
b. automatic recording
c. quick response inventory planning
d. economic order quantity
Which of the following energy management strategies is most likely to have a negative
impact on a retailer’s atmosphere?
a. centrally managing lighting levels by each department by time of day to better reflect
outside lighting conditions
b. replacing an older central air-conditioning system with a new efficient unit that
requires 150 tons less capacity
c. installing high efficiency fluorescent bulbs in place of incandescent light bulbs
d. raising the temperature thermostat from 72 degrees in the summer to 74 degrees
According to the wheel-of-retailing theory, which pricing strategy is used by an
innovator?
a. pricing at the market
b. prestige pricing
c. competitive pricing
d. deep discount pricing
A major advantage of a late markdown policy is that _____.
a. lower markdowns are required
b. selling space is freed for new merchandise
c. the retailer has an opportunity to sell more merchandise at the original price
d. a retailer’s cash flow position is improved
Which lease arrangement is a straight lease with precise dollar rental increases specified
in future time periods?
a. graduated lease
b. lease with maintenance-increase-recoupment
c. net lease
d. percentage lease
A retailer found that a small percent of goods represented a large proportion of the
store’s total shrinkage. Which of the following strategies would be most effective?
a. use of in-store guards
b. electronic article surveillance on the affected goods
•c. use of employee background checks
•
d. use of mystery shoppers to watch for shoplifting
The four consumer rights as stated by President Kennedy about 50 years ago are _____.
a. value, choice, safety, and to be heard
b. safety, information, choice, and to be heard
c. low prices, competition, return policy, and credit
d. information, choice, safety, and credit
The major difference between consumerism and social responsibility is that
consumerism is _____.
a. based on legal issues, whereas social responsibility is based on moral issues
b. based on moral issues, whereas social responsibility is based on legal issues
c. concerned with an obligation to all parties, whereas social responsibility reflects an
obligation to final consumers
d. concerned with an obligation only to consumers, whereas social responsibility
reflects an obligation to all parties
Compensation cafeterias are characterized by _____.
a. earnings being related to productivity
b. employee choice of salary and fringe benefits components
c. a combination of salary and commission plans
d. a high bonus component
A firm’s quick ratio equals 1.5. This means that _____.
a. liquidity is very high
b. the firm’s collection period is poor
c. the firm is in financial difficulty
d. financial leverage is too high
What type of products sell well over nonconsecutive time periods?
a. fashion merchandise
b. seasonal merchandise
c. assortment merchandise
d. fad merchandise
The appearance of service technicians and of the service equipment is referred to as
_____ in SERVQUAL.
a. responsiveness
b. assurance
c. reliability
d. tangibles
The final stage in a channel of distribution is retailing.
It is wise for a retailer to maintain the highest possible financial leverage as a means of
maximizing return on net worth.
Top-down budgeting utilizes operating personnel in budget formulation.