In a horizontal cooperative advertising agreement, _____.
a. two or more retailers share an advertisement
b. a manufacturer (or wholesaler) and a retailer share an advertisement
c. retailers pay for half of the cost of an advertisement
d. retailers must be competitive
A self-service food store with grocery, meat, and produce departments and minimum
annual sales of $2 million is a _____.
a. convenience store
b. specialty store
c. superfood store
d. supermarket
Which of the following is not an example of an effective response to the changed
environment affecting direct selling?
a. placing greater emphasis on workplace, as opposed to home-based, sales
b. supplementing direct selling with Web-based sales
c. reducing sales commissions to encourage direct salespeople to become more
productive
d. hiring community residents to gain access to developments and housing complexes
that block nonresidents
Which customers are generally not studied in trading-area analysis?
a. outshoppers
b. mail and telephone order shoppers
c. fringe trading-area customers
d. parasites
A mail-order retailer found that its percent of loyal customers (those ordering $100 or
more of merchandise in two consecutive years) has declined from 15 percent to 8
percent. Which form of marketing research was the retailer utilizing?
a. a retail information system
b. simulation
c. an experiment
d. observation
A sign used to display a store’s name is a _____.
a. marquee
b. modular structure
c. store logo display
d. prototype display
Which of these is not a disadvantage of using audio on a Web site?
a. The downloading time may be long.
b. Consumers may not have the appropriate plug-in.
c. Consumers may view the music as inappropriate.
d. The site may appear to be cluttered.
A major advantage of the use of strategic planning by a retailer is that _____.
a. crises are anticipated and often avoided
b. it focuses mostly on controllable factors
c. it focuses mostly on uncontrollable factors
d. inventory needs and stock on hand are balanced
Suggestion selling, point-of-purchase displays, and attractive store layouts are used by
retailers to _____.
a. reduce selling costs
b. increase customer service
c. increase impulse sales
d. reduce channel conflict
In the growth stage of the product life cycle, _____.
a. a wide variety of retailers offer a large range of prices, services, and quality
b. promotion must be explanatory in nature
c. a skimming price strategy is used
d. product sales reach their maximum
Which lease type allows a new retailer to pay lower rent in early periods, but raises rent
as sales increase?
a. maintenance-increase-recoupment provision
b. straight lease
c. net lease
d. percentage lease
What type of advertisement should be used to communicate a new branch location to
potential customers?
a. institutional ad
b. competitive ad
c. reminder ad
d. pioneer ad
Key-item merchandising is budgeted using a _____.
a. never-out list
b. basic stock list
c. model stock plan
d. merchandise assortment plan
The human resource environment facing retailers is characterized by _____.
a. inexperienced workers, long hours, and high variations in demand
b. low costs, short hours, and low variations in demand
c. highly visible workers, few part-time workers, and low variations in demand
d. less visible workers, few part-time workers, and low variations in demand
Which of the following is not a component of an electronic kiosk?
a. a printer
b. full motion audio and video
c. a magstripe card reader
d. cash receipt equipment
Uniform construction, layout, and operations standards are used in _____.
a. scrambled merchandising
b. everyday inventory planning
c. prototype stores
d. crisis management
Which of the following relates to a minimum expectation?
a. recognition for good performance
b. the right to a safe workplace
c. a sense of achievement from doing a job well
d. additional compensation for exceptional performance
The major difference between pre-training and training is that pre-training is more
_____.
a. related to federal and state regulations
b. related to future, as well as present positions
c. related to selling and buying functions
d. company specific
A retail strategy can be best defined as _____.
a. the selection and appeal to a specific retail target market
b. short-run activities conducted by a retailer to meet or exceed its retail objectives
c. the overall plan guiding a retail firm
d. a plan to reduce retail costs
Chains can receive new items as soon as they are introduced, get proper service and
selling support from suppliers, and obtain the best prices. These advantages refer to
_____.
a. economies of scale
b. a centralized organization
c. quantity discounts
d. bargaining power
A major advantage of a centralized buying organization is low prices due to high
bargaining power and quantity discounts.
A retailer’s ability to understand and predict the effects of controllable and
uncontrollable variables is enhanced by the use of marketing research.
The retail strategy of box (limited-line) stores is based on aggressively priced private
label or controlled brands.
Generally, costly one-of-a-kind merchandise is evaluated via inspection.
Flat organizations have a large number of subordinates reporting to one supervisor.
Store employees are unaware that an audit is taking place in a disguised audit.