A furniture retailer has a beginning-of-year inventory (at cost) of $400,000; ending
inventory (at cost) is $270,000. Yearly purchases are $700,000 and transportation
charges equal $5,700. The retailer’s cost of goods sold is _____.
a. $570,000
b. $575,700
c. $835,700
d. $1,105,700
The Universal Product Code (UPC) system allows a retailer to _____.
a. monitor sales in nonfood retail establishments
b. store and monitor product sales data on an item-by-item basis
c. develop a payroll system
d. monitor accounts receivable
Which statement concerning reduction planning is not correct?
a. Changes in pilferage control will affect reduction planning.
b. Reductions can include markdowns, employee discounts, and stock shortages.
c. Reduction planning is crucial in the cost method of retail accounting.
d. Merchandise carryover from one period to another affects the magnitude of
reductions.
Which of the following is an example of a controllable variable to an independent
family-oriented shoe retailer?
a. consumer acceptance of the store’s above-average pricing strategy
b. development and implementation of a cheerful, friendly store atmosphere
c. competition from a new family-oriented shoe chain with below-average pricing
d. high seasonality during the week before school, at Easter, and before camp time
periods
Web-related global sales should have the highest market penetration for which type of
goods and services?
a. cars
b. flowers
c. books
d. toys/dolls
Proper use of specialization gives each employee _____.
a. a relatively homogeneous cluster of work tasks
b. more discretion on the job
c. greater job satisfaction
d. greater job-related incentives
A newspaper has a circulation of 800,000 and a per-page advertising rate of $10,000. Its
cost per thousand equals _____.
a. $8.00
b. $10.00
c. $12.50
d. $80.00
In a curving traffic flow, _____.
a. self-service opportunities are maximized
b. all available floor space is utilized
c. a free-flowing pattern is used
d. distinct aisles are created
A demand-related difficulty with a retailer utilizing loss leaders is that it affects _____.
a. variable markups
b. prestige pricing
c. legal provisions
d. price-floor pricing
Perishable items and nonperishable items are categorized and displayed on the basis of
_____ product groupings.
a. functional
b. market segment
c. purchase motivation
d. storability
Store hours and days during which retailers can conduct business are regulated by
_____.
a. blue laws
b. Green River laws
c. the Robinson-Patman Act
d. the Universal Product Code
The use of relationship marketing is most important for _____.
a. new contacts
b. regulars
c. loyalists
d. nonregulars
The use of quick response inventory planning, electronic data interchange, and logistics
planning by supermarkets is referred to as _____.
a. supermarket logistics
b. efficient inventory management
c. efficient consumer response
d. effective inventory management
Inventory management planning is most difficult for _____.
a. staples
b. fad products
c. growing products
d. mature products
A horizontal retail audit _____.
a. identifies the relative importance of each retailing mix element
b. focuses on separate functional elements
c. evaluates the environment facing a retailer: the economy, demographics, competition,
and consumers
d. is always disguised
An example of a modified centralized/decentralized buying organization is when
_____.
a. local store managers can vary some of their orders
b. buying and selling have separate organizations
c. some orders are store-originated while others are conducted by external personnel
d. some orders are placed by retailers while others are placed by a retailer-based
association
Existing customers are encouraged to bring in new customers with _____.
a. prizes
b. referral gifts
c. sweepstakes
d. special events
The overall performance of a retailer is evaluated in a horizontal retail audit.
The sales-productivity ratio assigns floor space on the basis of sales or profit per foot.
The American Customer Satisfaction Index produces a measure of customer service
quality based on surveys of consumers.
A category killer is a form of destination retailer that focuses its retail strategy on an
enormous selection.
A new store location being announced in an advertisement is an example of a reminder
advertisement.
Only continuously available data are stored in a retail information system.
An independent retailer generally can match the bargaining power of a large chain or
franchisor in negotiating with suppliers.