According to the wheel of retailing, a retailer is vulnerable when _____.
a. consumers do not accept the retailer’s old image
b. its upgraded strategy gives new institutions a significant cost advantage
c. its strategy is no longer considered unique
d. sales and profits exhibit rapid growth
An example of a tactical pricing decision is _____.
a. pricing at market levels
b. charging list prices on all items
c. reducing prices on specific seasonal merchandise which is overstocked
d. allowing in-store negotiation
The characteristics of Web users can be most accurately summarized as being _____.
a. empty nesters
b. upscale
c. sole survivors
d. newly married
A factory outlet represents an example of a(n) _____.
a. independent vertical marketing system
b. partially integrated vertical marketing system
c. fully integrated vertical marketing system
d. distorted vertical marketing system
A handbag retailer plans to sell $40,000 worth of handbags in January. Planned
reductions are $2,000. Planned inventory for January 1st is $70,000 and planned
inventory for January 31st is $60,000. As of January 8th, the retailer has ordered $6,000
worth of handbags for January delivery. What is the open-to-buy for the rest of the
month?
a. $26,000
b. $32,000
c. $36,000
d. $52,000
A researcher notes the percentage of shoppers who pass by and who purchase
detergents in a supermarket. The researcher is utilizing _____.
a. a personal survey
b. contrived observation
c. structured observation
d. mechanical observation
Wireless scanners, radio frequency identification tags, and speech recognition are
among the recent technological developments related to _____.
a. debit card systems
b. logistics systems
c. self-scanning
d. computerized checkouts
An advantage to a high level of stock turnover is that _____.
a. there are few lost sales
b. quantity discounts are high
c. merchandise on shelves is fresh
d. low prices affect gross margins
The major difference between advertising messages and personal selling presentations
is the _____.
a. total costs
b. flexibility
c. creation of awareness
d. wholesaler involvement
Which organization chart best describes a retailer that has adapted the Mazur plan with
separate managers for main stores and branches?
a. functional classification
b. geographic classification
c. product classification
d. combination organization chart
The primary trading area can be delineated in Huff’s law of shopper attraction by
studying the _____.
a. probability of consumers shopping at a location
b. point of indifference between two communities
c. average purchase made by consumers
d. traffic counts in different locations
Item price removal is controversial since consumers _____.
a. cannot determine a product’s ingredients
b. will have less price advertising
c. cannot choose generic brands
d. find it difficult to verify the prices of items purchased
“Traffic builders” are valuable in that they can generate customers for the overall store.
There is tremendous clutter with regard to the number of Web sites.
A difficulty associated with the equal store organization is that quantity discounts and
buying power advantages are lost due to decentralized buying in branch locations.
Resident buying offices are generally located near a chain’s headquarters.
In general, consumer lifestyles are more difficult to categorize than consumer
demographics.
Lack of privacy, fear of credit card security, and inability to examine merchandise prior
to purchase are major impediments to Web-based sales.
The concepts of intangibility, variability, and inseparability are most applicable to
rented-goods services.
Store maintenance and energy management are synonymous concepts.