In 2010, the ten largest U.S. retailers earned average after-tax profits amounting to
about _____ percent of sales.
a. 1.1
b. 2.5
c. 3.5
d. 5.7
The basic Mazur plan divides all retail activities into _____.
a. main store and branch store components
b. line components only
c. line and staff components
d. staff components only
Contingency planning is an important part of _____.
a. personnel management
b. outsourcing
c. crisis management
d. personnel productivity planning
A retailer can encourage long-term employment by _____.
a. using job standardization
b. adhering to a promotion-from-within philosophy
c. utilizing self-service facilities
d. utilizing a Theory X orientation
A firm should seek to increase service tangibility by _____.
a. adding computers
b. utilizing only the services of the owner
c. offering warranties
d. matching demand and supply
In a straight traffic flow, _____.
a. displays and aisles are constructed in a rectangular or gridiron pattern
b. impulse goods are placed in the rear of a store
c. shoppers are encouraged to walk through the store in any direction they desire
d. floor space utilization is not maximized
The type of service retailing that most closely resembles goods-based retailing involves
_____ services.
a. professional
b. rented-goods
c. owned-goods
d. nongoods
A manufacturer seeking to maximize its sales should utilize _____ distribution.
a. dual
b. intensive
c. selective
d. exclusive
Expected customer services are generally offered _____.
a. to all customers
b. free-of-charge
c. at a fee which enables the retailer to break even
d. at a fee which enables the retailer to earn a fair profit over the cost of the service
A firm using a differentiated marketing strategy should utilize a(n) _____.
a. independent vertical marketing system
b. partially integrated vertical marketing system
c. fully integrated vertical marketing system
d. dual vertical marketing system
The major difference between a traditional and a goal-oriented job description is that
the traditional job description _____.
a. relates each job to overall organizational goals
b. limits a worker’s activities to those listed
c. details informational flows
d. describes the interdependence of job positions
The family life cycle shows _____.
a. families which share a distinctive heritage
b. how a typical family evolves from bachelorhood to children to solitary retirement
c. the extent to which groups influence a person’s thoughts and actions
d. the ranking of people within a culture
An advantage of a tall retail organization is _____.
a. many employees reporting to one manager
b. quick handling of problems within the organization
c. quick communication throughout the organization
d. close worker supervision
Sales forecasts for price line classifications within a department are generally based on
_____.
a. regression models
b. simulation
c. experimentation
d. qualitative techniques
A firm’s comparing its performance to competitors based on the components of the
strategic profit model illustrates _____.
a. SERVQUAL
b. benchmarking
c. opportunity cost analysis
d. gap analysis
The gathering of information about each job’s functions and requirements is a major
attribute of _____.
a. job analysis
b. an application blank
c. a weighted application blank
d. a job description
A major advantage of ownership versus leasing is _____.
a. no difficulty in lease renewals
b. lower capital requirements
c. the long-term commitment to a given location
d. the ability to purchase locations in major shopping centers
In a civil restitution law, _____.
a. shoplifters cannot plea bargain the minimum state sentence for their crime
b. shoplifters must undertake community service as restitution for their crime
c. shoplifters must pay for stolen merchandise or face arrests and criminal trials
d. employees convicted of stealing merchandise must be registered with local police
departments
Examples of fixed assets to a retailer are _____.
a. taxes payable, accounts payable, and mortgage interest due
b. owner’s equity, cash on hand, and inventory on hand
c. property, store fixtures, and trucks
d. cash on hand, inventory, and accounts receivable
In comparing the performance of seasonal retailers, the same time periods (such as the
fourth quarter of 2011 and the fourth quarter of 2010) should be used.
A significant disadvantage to consumer acceptance of warehouse stores is their lack of
brand continuity.
In general, retailing is characterized by the relative ease of entry when compared with
manufacturing activities.
Direct product profitability corresponds to a product’s gross profit.
The current ratio is a more strict measure of liquidity than the quick ratio.