A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing
enthusiasts who wish to purchase costly fishing accessories. The most appropriate
nonstore-based strategy mix (with the lowest waste coverage) is _____.
a. airport retailing
b. direct selling
c. vending machines
d. direct marketing
Senior management centrally directs and controls budgets based on _____ budgeting.
a. top-down
b. zero-based
c. bottom-up
d. incremental
Which statement concerning a value delivery system is not correct?
a. Each channel member is dependent on each other.
b. A value delivery system is as strong as its weakest link.
c. Value delivery systems are relatively simple to develop and administer.
d. Nonstore retailing requires a different delivery system than store-based retailing.
Controlled costs and the use of computerized data bases characterize _____.
a. daily newspapers
b. direct mail
c. local magazines
d. transit advertising
A home improvement chain plans for various contingencies such as higher interest rates
reducing home sales and the effect of electricity disruption due to major storms. This
analysis is _____.
a. scenario analysis
b. gap analysis
c. benchmarking
d. opportunity cost analysis
Rewards, value-added benefits, and customer recognition are three complementary
elements in _____.
a. relationship retailing
b. customer service
c. a service-based program
d. a customer loyalty program
A major advantage of the Census of Population for use by retailers in trading-area
analysis is _____.
a. the small size of census tracts and blocks
b. its timeliness
c. its projections of population, retail sales, and income
d. its economic base analysis
Merchandising includes _____.
a. all the steps in the buying and selling of products
b. the purchasing of products but not the sale of them
c. pricing and product assortment decisions only
d. cooperative buying arrangements only
A retailer has begun to pre-wrap gift items and to re-deploy checkout personnel to
reduce waiting times. The retailer is responding to which demographic and lifestyle
factor?
a. gender roles
b. poverty of time
c. component lifestyles
d. consumer sophistication and confidence
Retailers can be protected against price declines by _____.
a. one-price policies
b. price guarantees
c. unit pricing
d. minimum-price laws
Which statement concerning scrambled merchandising is correct?
a. Supermarkets have not engaged in scrambled merchandising.
b. Retailers typically trade up as part of scrambled merchandising.
c. Scrambled merchandising is contagious.
d. Scrambled merchandising typically occurs at the innovation stage of the retail life
cycle.
The potential performance of new goods, services, and/or store outlets can be assessed
using _____.
a. a sales opportunity grid
b. a market share/market growth grid
c. estimated markups
d. a product/market attractiveness grid
The sorting process implies that a retailer typically purchases _____.
a. from domestic suppliers
b. directly from a manufacturer
c. from multiple manufacturers
d. from a single manufacturer
“The revenues from an unrented hotel room are forever lost.” This statement refers to
which characteristic of services?
a. intangibility
b. perishability
c. variability
d. inseparability
The logistics aspect of a value delivery chain is _____.
a. quick response inventory management
b. supply chain management
c. third-party logistics management
d. electronic data interchange
A retailer’s asset turnover is 3 times; its profit margin equals 3 percent. Its return on
assets is 3 percent.
Exclusive distribution, fully integrated vertical marketing systems, and franchising are
used by manufacturers to increase their channel control.
High channel control is associated with the use of factory outlets as retail channels.
Retail training techniques such as role playing and behavior modeling are particularly
well suited for sales training.
The concept of atmospherics is only applicable to bricks-and-mortar-based retailers.
Off-price chains typically purchase their merchandise through traditional wholesale
channels.
To the extent possible, each retail employee should have clear performance standards
and be accountable for attaining them.