Which aspect of a direct marketing strategy involves the merging and purging of client
names?
a. business definition
b. customer response
c. order fulfillment
d. data-base maintenance
Retailers practice relationship retailing with _____ customers.
a. nonregular
b. regular
c. core
d. former
The wish list program is an updated version of _____.
a. cross selling
b. cross-merchandising
c. the bridal registry
d. scrambled merchandising
Shopping center leases generally control what merchandise lines a retailer can sell. This
practice _____.
a. ensures a one-hundred percent location
b. increases visibility
c. monitors affinities
d. promotes retail balance
Two methods of setting the costs of inventory on hand are _____.
a. inside and outside
b. book and physical
c. FIFO and LIFO
d. adjusted (for shortage/overages) and unadjusted
Which of the following is a major benefit to a retailer’s use of the Web as opposed to a
bricks-and-mortar facility?
a. better credit card security
b. simpler logistics
c. ability to target individual customers
d. lack of clutter
An advantage of maintaining a large inventory is _____.
a. customer satisfaction
b. a high stock turnover rate
c. fresh merchandise
d. low insurance costs
A(n) _____ retail strategy encompasses value chain elements not yet perfected by any
competing firm in a retailer’s industry category.
a. potential
b. expected
c. augmented
d. realized
The greatest concentration of office buildings and retail stores occurs in the _____
business district.
a. unplanned
b. central
c. neighborhood
d. secondary
Which element in the retail promotion mix most often emphasizes novelty?
a. public relations
b. personal selling
c. sales promotion
d. advertising
A retailer with high seasonality can best reduce its labor costs in the peak season
through _____.
a. job standardization
b. carefully screening employees
c. developing employee performance standards
d. cross-training and developing self-service options for consumers
Channel control is lowest for manufacturers/service sponsors in _____.
a. a fully integrated vertical system
b. an independent vertical marketing system
c. product/trademark franchising
d. business format franchising
Which types of consumers are least likely to respond to a direct marketer?
a. new contacts and nonrespondents
b. nonregulars and new contacts
c. nonregulars and nonrespondents
d. nonregulars and new trails
The depersonalization of many neighborhoods and the increase in working women have
had the greatest detrimental effect on which retailer?
a. direct marketing
b. direct selling
c. vending machines
d. retail catalog showroom
A camera shop develops kits for amateurs that include a camera, lens, film, case, and a
separate electronic flash. The kit is sold at a discounted price from the price of the
separate components. This concept is an example of _____.
a. a model stock approach
b. scrambled merchandising
c. solutions selling
d. experiential merchandising
An isolated store location is most suitable to a retailer _____.
a. that is a parasite
b. that can attract and hold its target market
c. with a mass marketing strategy
d. with a multiple segmentation strategy
A retailer has no intention of selling the advertised item in _____.
a. bait-and-switch advertising
b. item price removal
c. price discrimination
d. unit pricing
A high accounts payable to net sales ratio indicates a retailer’s use of suppliers to
finance operations.
While chains comprise about 30 percent of all retail institutions, they account for about
75 percent of retail sales.
Customer orientation, coordinated effort, value driven, and goal orientation are all parts
of the retailing concept.
The computation of direct product profitability includes an item’s share of allocated
overhead costs.
The percent of cashier mis-rings is an example of a performance standard for a cashier.
A retail strategy must anticipate and adapt to the changing business.