Disposable income is:
a. all personal income after taxes and retirement savings.
b. all personal income after savings.
c. all personal income minus the money needed for necessities food, clothing, housing,
etc.
d. all personal income after taxes minus the money needed for necessities.
e. all personal income after taxes.
Consider this mission statement: ‘Dad’s Tasty Dogs will utilize the friendly, proven
expertise of its employees and the finest ingredients to provide customers with great
tasting hot dogs at a fair price.’ What element of a good mission statement is missing?
a. How the retailer uses or intends to use its resources
b. A market share goal
c. How it expects to relate to the ever-changing environment
d. The kinds of value it intends to provide in order to serve the needs and wants of the
customer
e. A SWOT analysis
TrueValue, Ace, and Handy Hardware are all examples of a(n):
a. retailer-owned cooperative.
b. contractual vertical marketing system.
c. wholesaler-sponsored voluntary group.
d. independent retailer.
e. franchisee.
Which of the following does NOT result in a larger trade area for a retail store?
a. Sale of specialty products
b. Higher consumer mobility
c. Larger store size in terms of square feet of space
d. A larger distance between competing stores
e. Sale of convenience goods
Sun Fashions offered to display Shark Sportswear’s new line of swimwear at the
entrance of its store if Shark pays 50 percent of the advertising expenses for Sun
Fashions’ Spring/Summer Catalog. Sun Fashions is employing which type of power?
a. Reward power
b. Traffic power
c. Referent power
d. Legitimate power
e. Expertise power
Your have just calculated the cost complement. Under the retail method of inventory
valuation, what do you do next?
a. Determine planned sales
b. Calculate reductions from retail value
c. Convert adjusted retail book inventory to cost
d. Determine planned purchases at cost
e. Determine the cost complement’s inverse
If a buyer lowers planned reductions by $7,000 for the month, this will:
a. reduce planned reductions for the following month by one half that amount; $3,500.
b. reduce BOM inventory by $7,000.
c. lower this month’s OTB by $7,000.
d. raise planned purchases by $7,000 for this month.
e. raise this month’s OTB by $7,000.
The active involvement of the customer in the retailer’s core activities is known as:
a. co-production.
b. co-creation of value.
c. co-participation.
d. co-exchange.
e. co-involvement.
_____ signify what the retailer wants to accomplish, while _____ indicate how the
retailer will attempt to achieve them.
a. Objectives; mission statements
b. Mission statements; plans
c. Strategies; plans
d. Objectives; strategies
e. Action plans; strategies
A balance sheet can be expressed as:
a. profit = sales – reductions.
b. net worth = operating profit – operating expenses.
c. net worth = assets – expenses.
d. assets = liabilities + net worth.
e. assets = sales – expenses.
During the _____ stage of the retail selling process, a salesperson locates or identifies
potential customers that have the ability and willingness to purchase the retailer’s
product.
a. approach
b. closing the sale
c. sales presentation
d. prospecting
e. suggestion selling
What type of competitive environment is characterized by a horizontal demand curve,
where the retailer must sell all of its merchandise at the going “market” or equilibrium
price?
a. Perfect competition
b. Oligopolistic competition
c. Pure competition
d. Pure monopoly
e. Monopolistic competition
The “wealth effect” claims that for every $100 of additional wealth generated in an
individual’s stock market holdings, the individual will spend:
a. $4.
b. $8.
c. $10.
d. $12.
e. $15.
The retailer’s _____ is a clear statement of the tangible and intangible results a customer
receives from using the retailer’s products or services.
a. mission statement
b. customer interaction tracker
c. value proposition
d. customer type indicator
e. vision statement
The three main sources of conflict between retailers and their suppliers are:
a. power, control, and interdependency.
b. perceptual incongruity, goal incompatibility, and interdependency.
c. goal incompatibility, perceptual incongruity, and domain disagreement.
d. power, control, and domain disagreement.
e. power, interdependency, and perceptual incongruity.
A portable CD player was originally priced at $79.95 and cost $39 is ultimately sold for
$64.95. What was the reduction percentage on the portable CD player?
a. 19 percent
b. 23 percent
c. 38 percent
d. 49 percent
e. 58 percent
Generally, retailers with high margins and high levels of customer service place more
emphasis on which type of salesperson?
a. Order getters
b. High-pressure sellers
c. Profit-oriented sellers
d. Order takers
e. Persuasive sellers
When a retailer sets goals and objectives based on a comparison of its actions against its
competitors, it is establishing:
a. financial performance objectives.
b. market performance objectives.
c. personal objectives.
d. competitive pricing objectives.
e. societal objectives.
The more dependent the supplier is on the retailer, the less power the retailer has over
the supplier.
Dual distribution occurs when a manufacturer sells to independent retailers and also
through its own retail outlets.
Idle time is when the salesperson is on the sales floor but is not involved in any
productive work.
Successful retailers place merchandise randomly throughout the store.
For best results, a retailer’s ads should be run on the day, not before the day, when a
customer is most likely to purchase the retailer’s products.
The floor plan is the fundamental structure around which every other element of the
store environment takes shape.