_____ data is the most commonly available objective data that a retailer can obtain
about a target market(s).
a. Demographic
b. Psychographic
c. Biological
d. Geographic
e. Personality
_____ include(s) the activities the retailer performs that influence (1) the ease with
which a potential customer can shop or learn about the store’s offering, (2) the ease with
which a transaction can be completed once the customer attempts to make a purchase,
and (3) the customer’s satisfaction with the purchase.
a. Customer services
b. Customer satisfaction
c. Segmentation analysis
d. Transaction verification
e. Posttransaction satisfaction
If a salesperson persuades a customer to purchase a higher-priced item than the
customer initially intended, the salesperson has _____ the customer.
a. flexed
b. tricked
c. traded up
d. baited
e. deceived
_____ occurs when a resident of a community travels to another community to shop.
a. Trade area shopping
b. Transitory shopping
c. Mobility shopping
d. Impulse shopping
e. Outshopping
Retailing is defined as:
a. any exchange of cash and/or credit for goods or services between channel members.
b. a fairly stable and unchanging industry that has a major impact on society.
c. the final activities and steps needed to place merchandise made elsewhere into the
hands of the consumer or to provide services to the consumer.
d. the sale of any good or service by the producer to a channel member.
e. the activities and steps needed to transfer goods and/or services between channel
members.
Fashion Barn’s total cost valuation of inventory is $120,000 and its total retail valuation
is $300,000. The adjusted retail book inventory figure has been determined to be
$250,000. Using the retail method of inventory valuation, what would be Fashion
Barn’s approximate closing inventory figure at cost?
a. $50,000
b. $70,000
c. $100,000
d. $130,000
e. $180,000
Given the following information, what is the initial markup percentage? Planned sales =
$180,000; planned expenses = $48,000; planned profit = $12,000 and planned
reductions = $4,000.
a. 33 percent
b. 39 percent
c. 35 percent
d. 37 percent
e. 40 percent
Which of the following is an example of a retail transaction?
a. A firm pays a printer for printing business cards.
b. A supermarket purchases eggs from a local farmer for resale.
c. A student purchases a magazine subscription from a door-to-door salesperson.
d. A manager of a college bookstore purchases extra copies of your Retailing text from
the publisher.
e. A department store purchases cosmetics from a manufacturer for sale in its stores.
Specialty stores typically have a _____ than discounters.
a. lower asset turnover
b. lower profit margin
c. lower return on net worth
d. lower market share
e. lower return on net worth and lower market share
All of the following EXCEPT _____ are transaction services that retailers should offer
customers.
a. check cashing
b. personal selling
c. gift cards
d. layaway
e. complaint handling
Customers with intense and impatient personalities are characterized as:
a. sociable.
b. defensive.
c. interrupters.
d. indecisive
e. impulsive.
Dawn needed to drop off a few garments at the dry cleaners. On her way to work, she
stopped at the local SuperCenter to pick up pastries for her staff at work. While at the
SuperCenter, Dawn noticed that they now offer dry cleaning services. So, instead of
going to the dry cleaner’s on the corner, Dawn dropped off her garments at the
SuperCenter. By offering dry cleaning, SuperCenter successfully engaged in what form
of competition?
a. Perfect monopoly
b. Mixed-share
c. Divertive
d. Intratype
e. Interactive
_____ signage consists of large signs that are usually placed fairly high, so they can be
seen throughout the store.
a. Fixture
b. Directional
c. Point-of-sale
d. Price/info
e. Category
A women’s shoe store that offers a play area for children is an example of the:
a. service as basis for exchange principle.
b. combined service and value principle.
c. value as unique principle.
d. resource integration principle.
e. value co-creation principle.
Kansas City and Des Moines are 200 miles apart. Kansas City has a population of about
450,000, while the population of Des Moines is 200,000. Given Reilly’s law, what is a
possible breaking point between these two cities?
a. 138 miles from Kansas City
b. 138 miles from Des Moines
c. 120 miles from Kansas City
d. 120 miles from Des Moines
e. 80 miles from Kansas City
Which of the following types of retail operations would be most likely to use the cost
method of inventory valuation?
a. A grocery store
b. A antique furniture store
c. A full-line department store
d. A discount department store
e. A bakery
The Equal Credit Opportunity Act:
a. regulates the reporting and use of credit information; limits consumer liability for
stolen credit cards to $50.
b. prohibits discrimination in credit transactions because of gender, marital status, race,
national origin, religion, age, or receipt of public assistance.
c. empowers the FTC to determine rules concerning consumer warranties and provides
for consumer access to means of redress, such as the ‘class action’ suit.
d. makes it a federal crime to defraud consumers through use of the mail.
e. requires lenders to state the true costs of a credit transaction; established a National
Commission on Consumer Finance.
Which age group, by its very nature, is acquisition oriented?
a. Young children
b. Young adults
c. Middle-aged adults
d. Older adults
e. Adolescents
Retailers using institutional advertising generally seek to establish what two major
long-term promotion objectives?
a. Creating a positive store image and public service promotion
b. Increasing sales to existing customers and attracting new customers
c. Reinforcing institutional objectives and reducing sales promotional activities
d. Advertising a sale and generating store traffic
e. Increasing sales and increasing profits
Which of the following is NOT true regarding a neighborhood business district (NBD)?
a. It is located at a major artery of a residential area.
b. It is developed around a major department store.
c. Its major retailer is either a supermarket or a variety store.
d. It is developed to satisfy the convenience-oriented shopping needs of a
neighborhood.
e. It generally contains several small stores.
A retailer uses a _____ to graphically illustrate the extent to which potential demand for
the retailer’s goods and services is concentrated in certain census tracts, ZIP codes, or
parts of the community.
a. boundary density typography
b. demand density map
c. census tract concentration statistics
d. demand analysis graphing
e. neighborhood size visuals
Closure strategy is:
a. often referred to as a ‘retailer’s cost management’ strategy.
b. just getting shoppers into the store.
c. getting shoppers in the store and converting them into customers at the lowest
operating cost possible.
d. often referred to as a retailer’s traffic strategy.
e. having the right merchandise, using the right layout and display, and having the right
sales force.
Which of the following statements regarding current U.S. population trends is correct?
a. The average age of the U.S. population is decreasing.
b. The nation’s overall growth rate has been decreasing over the past three decades.
c. Americans life expectancy is decreasing.
d. The majority of population growth in the U.S. is projected to come from the baby
boomers.
e. The overall population is decreasing.
The shipping arrangement whereby the vendor pays all transportation costs is called
FOB shipping point.
A retailer is experiencing a negative cash flow when its cash outflows exceed its cash
inflows.
The goal of every channel member should be to ‘minimize the suboptimization’ of the
supply chain.
A retailer’s characteristics, such as store location, store size, and store type, help
determine which services a retailer should offer its customers.
The use of legitimate and coercive power tends to elicit conflict and destroy
cooperation.
What type of errors can a retailer make that will later cause the retailer to take a
markdown? Discuss the advantages and disadvantages of early and late markdown
policies that would be used to remedy these errors.
Institutional signage describes the merchandising mission and customer-service policies
of the retailer.
Retailers typically can not control the environmental factors that may impact them.
The distinction between monopolistic competition and oligopolistic competition is that
in monopolistic competition there are fewer sellers than in oligopolistic competition.