A department store utilizes different personnel for the main store (central business
district) and for the suburban (regional shopping center) locations. The store utilizes a
_____.
a. geographic classification
b. product classification
c. functional classification
d. combination organization chart
Which institution can be classified as either a wholesaler or retailer?
a. off-price chain
b. factory outlet
c. membership club
d. department store
An independent can limit the overdependence on the owner problem by _____.
a. life insurance
b. incorporating
c. centralized decision making
d. decentralized decision making
A dealer agrees to sell a supplier’s products and to operate under that supplier’s name in
_____.
a. a chain
b. a leased department
c. product/trademark franchising
d. independent channel ownership
An integral component of a concentrated marketing strategy is _____.
a. a high-fashion image
b. a clear organizational mission statement
c. a focus on one specific market segment
d. a mass market appeal
Which retail assortment strategy is used by a specialty store?
a. narrow and shallow
b. narrow and deep
c. wide and shallow
d. wide and deep
A major difference in outbound logistics for store-based versus Web-based retailers is
the need for Web-based retailers to _____.
a. decentralize warehousing
b. work closely with suppliers to ensure timely receipt of merchandise by the retailer
c. ensure that products are delivered to final customers
d. utilize floor-ready merchandise
Horizontal price fixing involves an agreement _____.
a. among manufacturers, among wholesalers, or among retailers to set certain prices
b. to charge larger retail firms lower prices
c. by retailers to charge manufacturer suggested list prices
d. by retailers not to sell merchandise below cost
The relationship between gross margin in dollars and the average investment at cost is
known as _____.
a. asset turnover
b. gross margin return on investment
c. the strategic profit model
d. inventory turnover
A disadvantage of using company department managers in conducting a retail audit
involves the _____.
a. costs per day
b. time pressure
c. inability to conduct a vertical audit
d. company knowledge
Payment for shelf space by manufacturers to supermarkets illustrates _____.
a. the role of manufacturers’ representatives
b. channel power by a retailer
c. channel cooperation by retailers
d. competition in the marketplace
Retailers seeking to study the population characteristics of small trading areas should
utilize _____.
a. the Census of Population
b. the American Community Survey
c. Editor & Publisher Market Guide
d. Survey of Buying Power
The opposite strategy to a variable pricing policy is _____.
a. a one-price policy
b. flexible pricing
c. price lining
d. customary pricing
Which of the following is not a merchandise source?
a. outside, new supplier
b. resident buying office
c. outside, regularly used supplier
d. company-owned
The lambda value ( ) in Huff’s law is used to _____.
a. reflect the purpose of the trip and the type of good/service sought
b. measure sales tax differentials between adjacent counties
c. study actual and perceived travel times
d. measure road conditions
The first stage in the hierarchy of effects is _____.
a. awareness
b. knowledge
c. liking
d. desire
All purchases originate from one office in a(n) _____ buying organization.
a. centralized
b. decentralized
c. informal
d. inside
A problem with balanced tenancy is that a retailer may not be able to utilize _____.
a. downsizing
b. scrambled merchandising
c. affinities
d. site visibility
While a differentiated marketing strategy allows a firm to diversify, a major difficulty
associated with differentiated marketing is _____.
a. the need to create and maintain distinct images
b. that a market segment may be cluttered
c. that competition is increased
d. that one market plan may not adequately cover both segments
Retail price competition is generally greatest in which stage of the traditional product
life cycle?
a. introduction
b. competition
c. growth
d. maturity
Examples of the effective use of retail research are the continuation of past strategies
and tactics and assuming that past trends will continue into the future.
Order-taking sales positions are common in stores that rely on self-service.
Those business activities that involve the sale of goods and services to consumers for
personal, family, or household use make up a definition of retailing.
Common performance measures used by retailers are sales revenues, gross margin
percentages, markdown percentages, and financial ratios.
A store attempting to increase sales of impulse goods should utilize storability product
groupings.
The use of a firm’s total retail strategy to satisfy its target market represents the
coordinated effort phase of the retailing concept.
A sales opportunity grid can be used in conjunction with direct product profitability
analysis.
In a shopping district, a destination store has the largest trading area, whereas a parasite
has no trading area of its own.