Which type of service is generally leased?
a. rented-goods service
b. owned-goods service
c. nongoods service
d. regulated-goods service
In-store displays designed to increase sales are examples of _____.
a. ensemble displays
b. promotional displays
c. point-of-purchase promotion
d. personal selling
While lower-level retail personnel are commonly paid on the basis of salaries, top retail
management personnel are commonly paid on the basis of _____.
a. salary only
b. a salary plus commission plan
c. commission only
d. a compensation cafeteria
Income, occupation, and education are important components of _____.
a. culture
b. a family life cycle
c. social class
d. reference group affiliation
Which retail location types generally have the largest primary trading areas?
a. regional shopping centers and central business districts
b. strings and isolated locations
c. secondary business districts and neighborhood shopping centers
d. strings and regional shopping centers
Which statement concerning the sales opportunity grid is not correct?
a. The sales opportunity grid includes such factors as sales, gross profit, and net profit.
b. The sales opportunity grid assumes that all products have the same markup.
c. The sales opportunity grid uses data on costs from direct product profitability.
d. The sales opportunity grid measures a product’s performance over multiple time
periods.
From a consumer’s perspective, a video kiosk most closely resembles a(n) _____.
a. vending machine
b. point-of-sale system
c. Web browser
d. ATM
Solutions selling is an extension of _____.
a. micromarketing
b. micromerchandising
c. cross-merchandising
d. scrambled merchandising
The sorting process helps final consumers through _____.
a. providing credit terms on purchases
b. enabling one-stop shopping
c. providing important product-based information
d. enabling consumers to purchase goods through direct marketing
A major advantage to the retail method of accounting is the _____.
a. ease of bookkeeping
b. accuracy of the cost complement figure
c. ability to prepare a profit-and-loss statement on the basis of book inventory figures
d. freedom from even having to take a physical inventory
A market skimming strategy can be used in conjunction with _____.
a. administered pricing
b. market pricing
c. price wars
d. elastic demand
A one-price policy does not allow _____.
a. markdowns and/or markups
b. employee discounts
c. quantity discounts
d. bargaining
Which stimulus provides retailers with the greatest degree of control?
a. problem awareness
b. social cue
c. physical drive
d. commercial cue
A characteristic of direct mail is _____.
a. a long lead time
b. a targeted audience
c. low flexibility
d. good editorial content
A retailer can generate channel control through each of the following strategies except
_____.
a. bargaining power due to many purchases from a manufacturer
b. private brands
c. the threat of switching vendors
d. franchising
A pharmacy (due to increased competition from a neighboring supermarket) has added
an exclusive line of cosmetics and expanded its line of greeting cards and gift-wrapping
items. This strategy illustrates _____.
a. scrambled merchandising
b. the retail life cycle
c. the wheel of retailing
d. rationalized retailing
In relationship retailing, a retailer _____.
a. seeks to maximize a customer’s short-term satisfaction
b. prefers to attract new customers over retaining existing customers
c. seeks to attract larger customers over smaller accounts
d. plans to establish and maintain long-term bonds with its customers
Manufacturers may prefer to sell their closeouts, canceled orders, and out-of-season
merchandise to factory outlets rather than off-price chains because _____.
a. off-price chains can generate high profit margins
b. off-price chains have too much power
c. factory outlets generate low short-term cash flow
d. greater control results in less disturbance to traditional channels
The use of a third-party logistics provider illustrates _____.
a. electronic article surveillance
b. crisis management
c. outsourcing
d. self-scanning
A major disadvantage to the use of a blind mailing is the _____.
a. high mailing-list cost
b. low response rate
c. high paper costs per unit
d. inability to purchase an appropriate list
The average monthly sales for a retailer always result in a monthly sales index of 100.
Tall organizations are characterized by loose supervision and fewer employees
reporting to each manager.
All elements of the value chain are visible to shoppers.
A retailer’s time demand requirements can be reduced through use of a partnership
organization, self-service formats, and automation/industrialization.
The best locations in a store are generally end-aisle display positions, eye-level
positions, and checkout-counter positions.
A store that has no trading area of its own is a parasite.