Reductions in the price of an item that are taken in order to stimulate sales are termed:
a. maintained price cuts.
b. promotional price cuts.
c. shortages.
d. markdowns.
e. initial price cuts.
The eight marketing functions are buying, selling, storing, transporting, information
gathering, financing, risk taking, and:
a. managing.
b. product development.
c. facilitating.
d. designing.
e. sorting.
A _____ is a range of prices for a specific merchandise line that appeals to customers in
a certain demographic group.
a. price zone
b. odd price
c. price line
d. price point
e. price range
What is the first thing that a salesperson should do during the sales presentation?
a. Inform the customer about the benefits of the retailer’s merchandise in an appealing
manner.
b. Help the customer to decide on the product that best fulfills the customer’s needs.
c. Listen to the customer’s needs so that the salesperson can first determine the right
price range of products.
d. Select the right product or service that the salesperson believes will satisfy the
customer’s needs.
e. Tell the customers that they are in goods hands.
Where and how a customer takes physical possession of the merchandise is known as:
a. place reconfiguration.
b. time reconfiguration.
c. target market reconfiguration.
d. form reconfiguration.
e. possession reconfiguration.
The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
a. satisfy the customer’s needs and wants better than the competition.
b. use a unique name.
c. use market segmentation to break up America’s homogeneous markets into more
heterogeneous population bases.
d. offer no “transaction” services.
e. sell below cost.
The IHIP characteristics refers to services that are:
a. intangible, heterogeneous, inseparable and performance based.
b. ineffective, heterogeneous, inseparable and performance based.
c. intangible, homogeneous, inseparable and performance based.
d. ineffective, homogeneous, inseparable and perishable.
e. intangible, heterogeneous, inseparable and perishable.
_____ are amounts that customers owe the retailer for goods and services.
a. Total assets
b. Accounts receivable
c. Current assets
d. Operating expenses
e. Prepaid expenses
Regarding women in the labor force, retailers should:
a. realize that full-time, working women tend to do more in-home shopping than any
other group.
b. remember that special services are more important than price in capturing the
time-pressed shopper’s store loyalty.
c. realize that price is the most important factor in determining store selection.
d. remember that this segment works hard during the week and wants to enjoy the
weekend; thus, retailers should avoid having weekend sales.
e. realize that household incomes for dual wage earner-couples are falling in
comparison to other households; thus, retailers should ignore this market.
Cooperative advertising:
a. is always a good deal for retailers since either the manufacturer or another retailer
will pay for part of their advertising costs.
b. requires that retailers ‘cooperate’ with advertising media when scheduling the ads.
c. is a practice used only in the apparel market today.
d. involves manufacturers or other retailers sharing a retailer’s advertising expense.
e. is used to determine what part of the ad budget will be spent in each medium.
Deceptive pricing occurs when retailers:
a. state that their lower prices were made in good faith in order to meet an equally low
price of a competitor.
b. ban “fair trade” items from their store.
c. advertise merchandise at an artificially low price and then try to add hidden, or extra,
charges.
d. tell lies about a competitor’s price in an attempt to make a sale.
e. sell merchandise above the manufacturer’s cap.
Chandler Markus is the store manager for a large discount drugstore. Chandler allows
his department managers to arrange the fixtures and schedule their employees as they
see fit. According to Chandler’s actions, the drugstore has set what kind of objective?
a. Benefactor objective
b. Power and authority objective
c. Space productivity objective
d. Employee-centered objective
e. Employee empowerment
Gross margin return on inventory (GMROI) equals:
a. gross margin percentage / dollars invested in inventory at retail.
b. (gross margin / net sales) (net sales / average inventory at cost).
c. gross margin percentage / inventory turnover rate.
d. net profit margin / markdown percentage.
e. (gross margin / net sales) (net sales / average inventory at retail).
_____ is (are) the retailer’s total sales including sales for cash or for credit.
a. Gross margin
b. Operating sales
c. Return sales
d. Gross sales
e. Net sales
The dominant behavior in successful supply chains is:
a. collaboration.
b. free-riding.
c. coercive power.
d. conflict resolution.
e. solidarity.
Retailers that practice both analytical and creative management should be consistently
more:
a. profitable.
b. vibrant.
c. liquid.
d. successful in terms of market share.
e. stable.
Which of the following statements is FALSE?
a. Sales promotions should seek to provide some type of short-term sales incentive.
b. Both sales promotions and publicity should be consistent with and reinforce the
retailer’s overall promotion objectives.
c. Sales promotions usually warrant more attention by retail decision makers than is
typically given.
d. Sales promotions can be significant in helping the retailer differentiate itself from
competitors.
e. Sales promotions play a very small role in most retailers’ overall promotion strategy.
_____ refers to the number of different lines the retailer stocks in the store.
a. Variety
b. Assortment
c. Breadth
d. Depth
e. Merchandise mix
Loyal customers are more price conscious and more prone to shop other retailers selling
the same merchandise mix.
A retailer cannot fully understand its customer if it does not go beyond simply trying
to understand how customers shop in its store.
In a conventional marketing channel, every member seeks to maximize its own
performance, and has little or no concern for the overall performance of the total supply
chain.
An advantage of using a private label is that some manufacturers will not sell a product
to certain retailers.
The terms ‘retailing’ and ‘merchandising’ are synonymous.
Fitting rooms, where most shoplifting occurs, should be placed near the receiving areas
so that an employee can monitor what is occurring in each room.
Change is truly the driving force behind retailing.
Market share is equal to the retailer’s total sales divided by total market sales.
A one-price policy speeds the amount of time needed to complete a customer
transaction.