_____ price fixing occurs when a retailer collaborates with the manufacturer or
wholesaler to resell an item at an agreed upon price.
a. Deceptive
b. Horizontal
c. Vertical
d. Negotiated
e. Coordinated
What do the formats of stores such as those that recycle usable merchandise in good
condition, liquidators, and rental operations have in common?
a. They offer convenient locations
b. They offer the consumer value in an untraditional manner
c. They offer the customer one-stop shopping
d. They carry an ever-changing assortment of higher-quality merchandise
e. The growth for these formats appears to be limited
Cameron Brody wants 15 percent of an average dollar invested in the assets of his
bookstore to be returned in profit. Cameron is setting a(n) _____ financial objective.
a. gross margin return on sales
b. return on inventory
c. return on net worth
d. operating profit margin
e. return on assets
When all three generations (parents, grandparents, and children) of a family are under
the same roof, it is often referred to as a:
a. sandwich generational family.
b. nuclear family.
c. bigenerational family.
d. intentional community family.
e. grandfamily.
When a retailer uses productivity objectives, it is referring to the productivity of which
resources?
a. Market comparison, profitability, productivity
b. Net worth, financial leverage, and asset turnover
c. Sales, merchandise, and owner’s equity
d. Space, labor, and merchandise
e. space, owner’s equity, and merchandise
_______ occurs when a chain store retailer operating over a wide geographic area,
tailors its merchandise and services in each store to the needs of the immediate trading
area.
a. Target marketing
b. Microretailing
c. Stack-outs
d. Shrinkage
e. Merchandise planning
Applebaum’s ‘spotting’ technique can be used to determine a retailer’s trade area.
Which of the following factors is NOT normally considered by the retailer before
setting an advertising objective?
a. The supplier support available to the retailer
b. Size of trading area
c. Age of the store
d. Types of goods sold by the retailer
e. Media alternatives available to the retailer
_____ occur when there is a disagreement about which member of the marketing
channel should make decisions.
a. Perceptual incongruity
b. Domain disagreements
c. Goal incompatibility
d. Gray marketing
e. Dual distribution
_____ are primarily used by retailers starting a new operation or format.
a. Factors
b. Merchant banks
c. Stock and commodity exchanges
d. Venture-capital firms
e. Insurance firms
_____ is the cost of merchandise that has been sold during the period.
a. Gross sales
b. Operating margin
c. Cost of goods sold
d. Gross margin
e. Net sales
A vendor offers a retailer ‘FOB shipping point’ terms. This means that the retailer must
pay:
a. no transportation costs.
b. transportation costs from the shipping point.
c. all transportation costs from the vendor’s factory.
d. half of the transportation costs.
e. only for those transportation costs incurred after the goods leave the retailer’s factory.
Technological innovations in retailing can best be viewed under three main areas:
a. Internet, order processing, and order taking.
b. Internet, supply chain management, and order processing.
c. Internet, customer management, and order processing.
d. supply chain management, customer management, and order processing.
e. supply chain management, customer management, and customer satisfaction.
When there are too many stores in a community to yield a fair return on investment, a
community is said to be:
a. retail lacking.
b. understored.
c. unsaturated.
d. overstored.
e. oversaturated.
A(n) _____ pricing policy is likely to occur when a retailer’s sales staff offers the same
products and quantities to different customers at different prices.
a. flexible
b. customary
c. one-price
d. leader
e. variable
The theory of retail competition that states that new retail institutions enter the
marketplace as low-price, low-margin operations and eventually begin to offer more
services and charge higher prices is the:
a. retail accordion theory.
b. high/low theory.
c. natural selection theory.
d. retail life cycle theory.
e. wheel of retailing theory.
Which of the following factors is NOT a constraint on the retailer’s optimal
merchandise mix?
a. The space available in a store
b. The buyer’s experience with the current product line
c. The merchandise turnover rate
d. The way the target market behaves
e. The dollar investment available
Which of the following statements about liquidators is false?
a. Liquidators do more than $15 billion in sales annually and earn between 3 percent
and 7 percent of the sales.
b. Liquidators have a talent for pricing merchandise and estimating the expense of
everything from ad budgets and payrolls to utility bills.
c. They are often called retailing’s undertakers or vultures.
d. Most liquidators pay through credit for the merchandise’”a plus for the strapped
retailer’”and then take all the risks and gain the rewards.
e. They assume responsibility for a retailer’s leases, payroll, and other costs and agree
either to take a percentage of what they sell or agree in advance to purchase the existing
inventory.
Explain the four major orientations to the approach and practice of retailing.
The balance sheet identifies and quantifies the firm’s assets and liabilities.
A speciality running store that offers a shoe clinic on how to choose the right running
shoe is an example of providing a service through education.
Retailers should manage the five basic promotion components (advertising, publicity,
personal selling, and Internet selling) from a total system perspective.
Which laws, federal, state, or local, are the most important for a retailer to understand
and comply with? Explain your answer.