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Department stores are now facing increased competition from factory outlets,
membership clubs, and flea markets. This illustrates _____.
a. rationalized retailing
b. scrambled merchandising
c. the retail life cycle
d. the wheel of retailing
Low merchandise continuity and opportunistic buying characterize _____.
a. retail catalog showrooms and combination stores
b. superstores and combination stores
c. variety stores and membership clubs
d. off-price chains and membership clubs
A market skimming strategy should be used when consumer price elasticity of demand
is _____.
a. negative
b. elastic
c. inelastic
d. unitary
A direct marketer that seeks to reduce its inventory investment and risk through
purchasing its goods after they are paid for by consumers needs to be concerned with
_____.
a. the wheel of retailing
b. the four rights of consumers
c. employee empowerment
d. the 30-day rule
A major retailer studied the image of two of its units, a discount specialty store chain
and an upscale specialty store chain, using a positioning map technique. Both of these
units' images were clustered in the same quadrant. Which statement best explains this
phenomenon?
a. Each chain has a distinct image.
b. Both chains appeal to the mass market.
c. Both chains appeal to the same target market.
d.Both chains are perceived as being upscale.
Which concepts result in the same performance measure?
a. return on net worth and the strategic profit model
b. asset turnover and net profit margin
c. financial leverage and asset turnover
d. return on net worth and asset turnover
The purchase of a good with high perceived risk is likely to involve what type of
consumer decision making?
a. extended decision making
b. routine decision making
c. limited decision making
d. brand loyalty
Which types of consumers are most likely to respond to a direct marketer?
a. regulars and nonregulars
b. regulars and new trails
c. regulars and new contacts
d. buyers and users
Experiments generally utilize _____.
a. a semantic differential
b. mechanical observation
c. multidimensional scaling
d. a controlled environment
Independents can compete with chain organizations (in terms of image, promotional
effectiveness, and central organization assistance) through _____.
a. franchising
b. an off-price chain
c. a vertical marketing system
d. a leased department
A chain retailer can maximize its buying power advantages through use of a(n) _____.
a. informal buying organization
b. resident buying office
c. decentralized buying organization
d. centralized buying organization
An advantage of a retailer's maintaining its own credit card system versus outsourcing it
to an organization such as MasterCard is _____.
a. lower bad debt loss
b. economies of scale
c. ease of management
d. ability to be more flexible in demanding repayment
Which of these is not an advantage of franchising to the franchisee?
a. the training provided
b. strict contract provisions
c. exclusive selling rights
d. cooperative marketing programs
The notion of trading-area overlap is particularly relevant to chains.
Channel conflict can be minimized through intensive distribution and/or horizontal
integration.
A retailer reduces the price of stereos from $300 to $250 for a special "Back-to-School"
sale. Its off-retail markdown percentage equals 17 percent.
Business format franchisees operate in a relatively autonomous manner from their
franchisors.
Retailers can control the extent of impulse purchases through effective use of displays.
A consumer's degree of information search is largely dependent upon his/her perceived
risk.
Scrambled merchandising is an extension of cross-merchandising.
In the main store control organization, the main store and branch unit organizations are
decentralized.
