Signals of performance such as employee satisfaction questionnaires, sales reports, and
inventory records are examples of _____.
a. retail audits
b. feedback
c. tactics
d. retail demographic data
The quick ratio equals _____.
a. (total assets)/(annual net sales)
b. (total assets)/(total liabilities)
c. (current assets)/(total current liabilities)
d. (cash + accounts receivable)/(total current liabilities)
Which retail institution has disappeared from the U.S. marketplace?
a. off-price chain
b. catalog showroom
c. box (limited-line) store
d. conventional variety store
In general, as a retailer moves toward a wide and deep strategy, _____.
a. customer disappointment with selection increases
b. one-stop shopping appeals are lost
c. merchandise turnover decreases
d. a specialist image is received
Consumers have physical products that they possess repaired or altered with _____
services.
a. owned-goods
b. repair
c. rented-goods
d. nongoods
Markdowns, employee discounts, and stock shortages are examples of _____.
a. LIFO accounting entries
b. pilferage
c. deductions from retail value
d. entries in the cost method of accounting
Which type of retailer has a high proportion of merchandise space to selling space?
a. full-service specialty store
b. supermarket
c. warehouse store
d. gas station
What type of auditor is most appropriate for a small, independent retailer?
a. outside auditor
b. company department manager
c. company specialist
d. company founder
A supermarket has developed an analog model to aid in its site-selection process. The
model contains variables such as _____.
a. traffic counts, visibility, and manager ability
b. trading-area population and expected market share
c. disposable income, retail sales, and population
d. competition, store size, and total retail sales
A difficulty in the study of motives is that _____.
a. motives can be observed
b. a researcher needs to distinguish between rational and irrational motives
c. it is based on self-reports of consumers
d. a consumer’s motives may be related to his/her demographic characteristics
Further purchase and re-evaluation are components of which stage in the consumer
decision process?
a. information search
b. evaluation of alternatives
c. purchase act
d. post-purchase behavior
FTC rulings, fair practice laws, and franchise-member organizations have the effect of
_____.
a. shifting some channel power back to franchisees
b. limiting franchisor “right-to-purchase” laws
c. promoting service-sponsor versus manufacturer franchises
d. further constraining decision making relative to franchisees
The degree of price elasticity is based upon _____.
a. urgency of need and availability of substitutes
b. shopping orientation and market size
c. size of economic shoppers and economic conditions
d. inflation and age of target market
Which of these is not a basic strategic position according to the wheel-of-retailing
theory?
a. power position
b. high-end position
c. low-end position
d. medium position
A retailer needs to determine its customers’ attitudes in conjunction with a legal court
case. The retailer should utilize _____.
a. a nonprobability sample
b. observation
c. a probability sample
d. an experiment
The food-oriented retailer with the highest percent of fill-in sales is the _____.
a. convenience store
b. conventional supermarket
c. combination store
d. food-based superstore
(Net sales/total assets) equals _____.
a. financial leverage
b. asset turnover
c. cost of goods sold
d. profit margin
Which aspect of computerization is best used for retail training?
a. computerized checkouts
b. videoconferencing
c. electronic point-of-sales systems
d. simulation
A possible knockout factor in evaluating a retail site is a short-duration lease (fewer
than three years).
Retail franchisees generally have a large degree of latitude in the operation of their
businesses.
A department store’s product assortment is wider but less deep than a specialty store’s.
On average, a retailer keeps 15 days worth of average sales in inventory on hand. It
takes the supplier 10 days to deliver merchandise; therefore, the retailer has up to 5
days to process and order (or risk being out-of-stock).
A retailer’s net worth is computed as its assets plus its liabilities.
An important problem for small, family-run independent retail businesses is
overdependence on the owner.
Most department stores seek multiple market segments when they provide several
distinctive boutiques.
Responsibility and authority are generally clearly defined in an informal buying
organization.
The last point in the development of a price policy should be to develop objectives:
market penetration or market skimming.
In general, company retail auditors are appropriate when specialists with knowledge
about store strategies and policies are required.