A disadvantage associated with the model stock approach to the determination of space
needs is that _____.
a. distinctive items with low sales or profit levels may not be stocked
b. seasonal items may be placed in improper locations
c. impulse goods may not be stocked in adequate quantities
d. product placement may not follow normal shopper patterns
Which of the following is not a control unit?
a. monthly sales by store department
b. total retail sales per census tract
c. price line classifications
d. standard merchandise classifications
In limited decision making, consumers _____.
a. use each purchase process step, but do not spend much time on each step
b. spend much time on information search
c. are unwilling to spend time on shopping
d. view products to have high perceived risk
The manner in which an individual lives and spends his/her time and money is his/her
_____.
a. lifestyle
b. consumer decision process
c. reference group behavior
d. social class structure
Sheets, towels, and bedding for a department store are most accurately characterized as
_____ merchandise.
a. seasonal
b. fashion
c. staple
d. fad
Which of SERVQUAL’s attributes relates to whether the service was performed
correctly the first time?
a. responsiveness
b. reliability
c. assurance
d. tangibles
In which pricing technique does a retailer advertise and sell key items in the product
assortment at less than their usual profit margins?
a. odd pricing
b. price lining
c. bait-and-switch advertising
d. leader pricing
From a data-base retailing perspective, which group most closely resembles the 80-20
principle?
a. regulars
b. new contacts
c. loyalists
d. nonregulars
During which stage of the retail life cycle do sales and then profits rise for the first
retailers in this category?
a. maturity
b. decline
c. introduction
d. accelerated development
Diversified retailers are characterized by the need to _____.
a. coordinate branch store policies with main stores
b. restrict competition
c. control merchandise lines
d. coordinate interdivision competition
Reilly’s law and Huff’s law are examples of what type of computer site-selection
model?
a. regression model
b. digital model
c. analog model
d. gravity model
A firm with a gross margin as a percent of sales of 20 and a sales-to-stock ratio of 5 has
a GMROI of _____.
a. 20
b. 75
c. 100
d. 400
Loss leaders are often used by retailers to _____.
a. generate store traffic
b. destroy competition by making small retailers go out of business
c. avoid Robinson-Patman Act prosecution
d. adhere to price advertising legislation
An audit which focuses on a retailer’s pricing strategy illustrates a _____ audit.
a. vertical
b. disguised
c. horizontal
d. nondisguised
Precise problem definition is necessary to _____.
a. restrict data collection and analysis to meaningful material
b. assume that marketing research is continuous
c. avoid the use of intuition in problem/opportunity analysis
d. integrate marketing research and marketing information systems
A retailer is looking for a means of describing consumer behavior that is preferable to
shoppers’ ages. One such technique is _____.
a. the social class structure
b. outshopping
c. perceived risk
d. the traditional family life cycle
Retailers seek to improve their productivity by having an outside party undertake one or
more of its operating functions. This illustrates _____.
a. crisis management
b. self-scanning
c. contingency planning
d. outsourcing
A firm that believes that employees must be closely supervised and controlled would
most likely employ _____.
a. a promotion-from-within policy
b. comprehensive training programs to enrich employees
c. job rotation and a flat organization
d. specialization and a tall organization
Attitudes cannot be studied through which primary data collection technique?
a. observation
b. mail survey
c. telephone survey
d. personal survey
A practice that combines some of the benefits of owning and leasing store locations is
the _____.
a. net lease
b. graduated lease
c. sale-leaseback
d. maintenance-increase-recoupment lease
In prestige pricing, the demand curve is negatively sloped at all price levels.
The analysis of sales figures for a retailer has been greatly facilitated by the use of
UPCs.
A retail firm can be correctly placed in only one institutional classification.
Horizontal retail audits focus on single elements of strategy and not the
interrelationships among elements.
Current traffic patterns (both vehicular and pedestrian) can be used to delineate the
trading area of a new store.