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A difficulty associated with the use of advertising by an independent or a chain with
few units is the _____.
a. high total costs
b. long lead time
c. high waste in geographic coverage
d. low opportunity for computerization
A horizontal audit is often conducted prior to a vertical audit, since the horizontal audit
_____.
a. often reveals areas that need further study
b. is less costly
c. is more likely to be conducted by a company specialist
d. is more likely to be nondisguised
A firm can determine information about inventory movement, sales by different
personnel, and sales volume through an analysis of _____.
a. store observation reports
b. customer billings
c. inventory records
d. written reports
The area set aside for merchandise displays, interactions between sales personnel and
customers, and demonstrations is _____ space.
a. customer
b. merchandise
c. personnel
d. selling
Two cities that have equal populations are 40 miles apart. Based upon Reilly's law, the
point of indifference _____.
a. is midway between each city
b. is 10 miles from the first city
c. is 15 miles from the first city
d. cannot be determined from the information provided
In comparing the isolated store to the unplanned business district and planned shopping
center, the major disadvantage of the isolated store is _____.
a. high rents
b. the absence of flexibility in store operations
c. the absence of affinities
d. lack of convenience in planning
Customers are encouraged to feel and/or try on a number of products in a(n) _____
display.
a. cut case
b. closed assortment
c. ensemble
d. open assortment
The major refinement in Huff's law versus Reilly's law is Huff's use of _____.
a. a point of indifference
b. sensitivity of the kind of shopping to travel time
c. mileage versus driving time
d. small versus large cities
Which of the following are characteristics of direct marketing?
a. exposure to a good or service through a nonpersonal medium and ordering via mail,
phone, fax, or computer
b. exposure to a good or service through a nonpersonal medium and ordering via
personal interaction
c. exposure to a good or service through a personal medium and ordering via mail,
phone, fax, or computer
d. exposure to a good or service through a personal medium and ordering via personal
interaction
According to a major study of inventory shrinkage, _____.
a. vendors' short shipping accounts for the major cause of inventory shrinkage
b. customers steal more than employees
c. employees account for more inventory shrinkage than customers
d. electronic article surveillance is not an effective deterrent of inventory shrinkage
A retailer is concerned about measuring the impact of Sunday store openings in
generating additional sales (beyond the current Monday through Saturday openings).
Which stage of the marketing research process is the retailer involved in?
a. generating primary data
b. examining secondary data
c. making recommendations
d. problem definition
The collection period measures _____.
a. the quality of accounts receivable
b. return on net worth
c. inventory turnover
d. order lead time
Word-of-mouth influences in consumer behavior relate to _____.
a. social cues
b. physical drives
c. commercial cues
d. social class structure
Channel cooperation, communication, and control is greatest when _____.
a. selective distribution is used
b. intensive distribution is used
c. manufacturers operate their own retailing facilities
d. exclusive distribution is used
Auto dealer and gasoline station franchises represent what type of structural
arrangement?
a. voluntary wholesaler-retailer
b. service sponsor-retailer
c. cooperative wholesaler-retailer
d. manufacturer-retailer
From a consumer's perspective, value is based on _____.
a. the perception of benefits received versus price paid
b. who performs each of the elements in a value chain
c. who performs the visible elements in a value chain
d. only the price paid
Direct marketing is characterized by reduced inventories, low rental costs, and low
display costs. These characteristics _____.
a. increase shopper convenience
b. enable ease of entry into direct marketing
c. make shopping safe for consumers
d. reduce direct marketing clutter
The last stage of the consumer decision process is the purchase.
All forms of vertical marketing systems involve centralized ownership and control.
The most widely used retail pricing technique is cost-plus pricing.
In the evaluation of alternatives stage of the decision process, a consumer develops
criteria, evaluates the importance of each criterion, and ranks the alternatives.
Three types of structural arrangements involving retail franchises exist:
manufacturer-retailer, wholesaler-retailer, and service sponsor-retailer.
A pedestrian traffic count for a fine jewelry retailer should count all people passing a
location.
In the equal store organization, buying functions are decentralized, but selling functions
are centralized.
The majority of franchising sales are made by franchisor-owned units.
