Customer requests for unstocked or out-of-stock merchandise are recorded in a(n)
_____.
a. generic product file
b. UPC system
c. OCR-A system
d. want book or want slip
Most data on the characteristics of residents of specific trading areas are primary data.
A retailer’s net profit margin times its asset turnover equals its _____.
a. return on assets
b. strategic profit model
c. return on net worth
d. financial leverage
Which type of insurance most directly affects employees?
a. workers’ compensation
b. property damage
c. public liability
d. directors’ liability
Which statement about leased departments is not correct?
a. The proprietor of a leased department is responsible for all aspects of its operations.
b. The leasor provides management assistance, training, and troubleshooting for the
leasee.
c. The leasor imposes various stipulations on the leasee to ensure consistency and
coordination.
d. Leased departments tend to operate on the fringe of a department store’s product
lines.
A trading area can best be defined as _____.
a. the geographic area containing the customers of a particular retailer or group of
retailers for specific goods and services
b. those competitive stores that interchange customers
c. a specific cluster of similar stores
d. stores that are located in a free-trade zone
Which of the following retailers is most likely to use market share as an objective?
a. national discount store chain
b. neighborhood luncheonette
c. a local dry cleaner
d. new car franchise
A retailer offers a revolving credit account to its customers; interest is charged at 18
percent per year. If a customer buys $400 in merchandise in November and carries the
total balance over for one month, how much must the customer remit to pay the account
in full?
a. $400
b. $403
c. $406
d. $409
A retailer plans store space by starting planning at the individual product level and then
proceeds to the category, total store, and overall company levels in _____.
a. rationalized retailing
b. mass merchandising
c. a top-down space management approach
d. a bottom-up space management approach
What type of insurance protects retailers from claims due to customers falling due to a
wet floor or loose carpeting?
a. directors’ liability
b. workers’ compensation
c. public liability
d. product liability
The processing of returns and damaged goods is part of _____.
a. third-party logistics planning
b. quick response inventory planning
c. slotting fees
d. reverse logistics
The Web is the least effective medium in reaching what type of customer?
a. the elderly
b. the affluent
c. college graduates
d. professionals
Retailers use private labeling to generate channel control because _____.
a. retailers can switch vendors with no impact on their customer loyalty
b. a large proportion of a manufacturer’s output is sold to one retailer
c. retailers can more easily obtain bank financing
d. greater channel communication is fostered
The consumer’s right to be informed by retailers is more difficult due to the increase in
_____.
a. suburban branch locations
b. self-service
c. self-fulfillment
d. store hours
Which of the following is not a major limitation of direct marketing?
a. high direct marketing clutter
b. dated prices and styles due to catalog printing dates
c. the ability to target niche markets
d. inability of customers to examine products prior to purchase
Closing inventory value is determined by calculating the average relationship between
the cost and retail values of merchandise available for sale during a period in _____.
a. the cost method of accounting
b. the retail method of accounting
c. LIFO
d. FIFO
Which display position is the most desirable in a supermarket?
a. eye level
b. waist level
c. knee level
d. ankle level
A major benefit to central warehousing is direct product shipment to each store.
Secondary data sources may be internal or external.
Centralized buying enables chain retailers to receive quantity discounts, greater
bargaining power, and better fit with local market needs.
Organizational mission is a broader concept than the goods/service category.
Retailing transactions must always involve a retailer.
A retailer’s average monthly sales are $120,000. If its monthly sales index for January is
72, January’s sales are $166,667.
Generally, a manufacturer can maximize its long-run sales potential through use of
exclusive distribution.
Ideally, quick response (QR) inventory planning should be used in conjunction with
electronic data interchange (EDI) and floor-ready merchandise.