A retailer with a less-than-average profit margin could seek to increase its profit margin
by _____.
a. reducing its operating expenses
b. increasing its asset turnover
c. increasing its financial leverage
d. increasing its inventory turnover
Which of the following retailers is most likely to be a parasite in a shopping center?
a. high-fidelity specialty retailer
b. men’s shoe store
c. snack bar
d. department store
A retailer can reduce labor costs associated with shopping-line waiting time through
_____.
a. logistics management
b. mass customization
c. self-scanning
d. inventory scheduling
Rationalized retailing is often conducted in conjunction with _____.
a. micromerchandising
b. decentralized management
c. electronic data interchange
d. the desire for a uniform image
Which department store organizational format is most suitable when local customer
tastes vary widely?
a. centralized organization
b. separate organization
c. equal store organization
d. main store control organization
There are three shopping locations with 300, 500, and 1,000 square feet of space
allocated to lighting accessories. A group of potential customers lives 5 minutes from
the first location, 10 minutes from the second location, and 15 minutes from the third
location. The retailer estimates the effect of travel time to be 2. The probability of
consumers shopping at location 2 is _____.
a. 17
b. 21
c. 23
d. 42
Under the model stock approach, the retailer determines space needs by _____.
a. calculating the amount of floor space necessary to carry and display a proper
assortment of merchandise
b. assigning space on the basis of sales or profits per foot
c. dividing merchandise into impulse and specific intent categories
d. assigning goods into complementary and substitute categories
An important implication of the rise in electronic banking to retailers is the _____.
a. growth in national credit and debit cards
b. growth in banking from home
c. increase in collection responsibilities
d. increase in importance of retailer-generated credit cards
An example of nonsystematic retailing research is _____.
a. interviewing consumers
b. experimentation
c. observing consumers
d. the use of intuition
The price-quality association and prestige pricing are two aspects of _____.
a. competition-oriented pricing
b. cost-oriented pricing
c. psychological pricing
d. odd pricing
Computers often form the foundation for a retail information system.
Discontinuity of merchandise is a characteristic of both factory outlets and membership
clubs.
The use of RFID (radio frequency identification) is an alternative to the Universal
Product Code (UPC).
A retailer’s return on net worth equals asset turnover times profit margin times
(financial leverage).
Channel relationships in a value delivery system need to be characterized by trust,
commitment, and open communication.
A major difficulty associated with independent vertical marketing systems is that one
firm may not have adequate expertise in manufacturing and retailing operations.
Cutoff points for hiring are developed through the use of a weighted application blank.
Retailers generally have more geographically concentrated target markets than
manufacturers.