Regional buying preferences are best served through which buying organization?
a. informal buying organization
b. formal buying organization
c. decentralized buying organization
d. centralized buying organization
The major advantage of a compensation cafeteria plan over a traditional salary and
bonus plan is the _____.
a. fixed cost nature
b. tie to productivity
c. flexibility
d. limits on compensation
Which retail strategy is typically based on benchmarking from firms in other industries?
a. potential retail strategy
b. primary retail strategy
c. augmented retail strategy
d. expected retail strategy
A danger to a firm’s having a high asset turnover is the _____.
a. high operating costs
b. high level of old inventory on hand
c. high probability of being out of stock
d. low profits as a percent of sales
The use of prototype stores, standardized product lines, and cooperative advertising
characterizes _____.
a. retail cooperatives
b. business format franchising
c. product/trademark franchising
d. vertical marketing systems
A retailer is concerned about the degree of integration of its overall strategy. While the
retailer prices goods above the market, customer service is uneven and, at times, the
parking lot is inadequate. What type of retail audit should the retailer pursue?
a. nondisguised audit
b. vertical audit
c. disguised audit
d. horizontal audit
Information from merchandise tags or product labels is recorded directly into in-store
computer terminals for immediate data processing in a _____ system.
a. point-of-sale
b. visual inspection
c. manual perpetual inventory
d. stock-counting
Which retail institution is organized into specific divisions for purposes of buying,
promotion, customer service, and control?
a. department store
b. variety store
c. full-line discount store
d. retail catalog showroom
An advantage of starting a new business (versus buying an existing business or
becoming a franchisee) is the _____.
a. established name and following
b. time lag before opening
c. flexibility in controllable variable selection
d. management assistance and training
High-risk products generally require _____.
a. impulse purchasing
b. extended decision making
c. limited decision making
d. routine decision making
There are three shopping locations with 300, 500, and 1,000 square feet of space
allocated to lighting accessories. A group of potential customers lives 5 minutes from
the first location, 10 minutes from the second location, and 15 minutes from the third
location. The retailer estimates the effect of travel time to be 1. The probability of
consumers shopping at location 2 _____.
a. is 28 percent
b. is 34 percent
c. is 38 percent
d. cannot be determined from the information provided.
The success of a manufacturer and its retailer customers is most directly interconnected
in which form of distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. dual distribution
The most well-known measurement tool of service quality is _____.
a. the PricewaterhouseCoopers index
b. the McKinsey service quality index
c. the American Customer Satisfaction Index
d. SERVQUAL
A retailer appealing to two distinct demographic groups is utilizing a _____ marketing
strategy.
a. differentiated
b. mass
c. concentrated
d. focused
Allowing workers to have discretion to satisfy customers most closely illustrates _____.
a. relationship retailing
b. employee empowerment
c. a customer loyalty program
d. the retailing concept
Marketing research in retailing involves _____.
a. secondary data collection and analysis
b. the collection and analysis of information relating to specific issues or problems
facing a retailer
c. marketing information systems development and implementation
d. the use of intuition in decision making
The standardization of retail operations is often associated with the use of _____.
a. participatory management
b. decentralized decision making
c. unionization by employees
d. prototype stores
A retailer should utilize the same recruitment sources for all positions within the firm.
Opportunistic buying generally relies upon negotiated contracts.
A retailer selling goods with volatile prices, such as home computers, should seek to
receive price guarantees from suppliers to protect itself against price declines.
The market coverage of direct mail is controlled by the advertiser.
Increases in the number of working women have negatively affected direct sellers from
the perspective of supply of workers and the presence of females in the home during
working hours.
An advantage to a retailer of negotiating a graduated lease (instead of a percentage
lease) is the lower rental terms for the graduated lease.