When the price elasticity of demand is elastic and prices go up, _____.
a. revenues stay the same
b. revenues decline
c. revenues increase
d. profits increase
Inventory management planning is easiest for _____.
a. fad products
b. growing products
c. mature products
d. staples
Merchandise categories for which data are gathered are known as _____.
a. price-line classifications
b. control units
c. standard merchandise classifications
d. UPC classifications
A cue or drive meant to motivate or arouse a person to act is a _____.
a. commercial cue
b. social cue
c. want
d. stimulus
Which of the following does not enable a retailer to reduce its inventory levels?
a. direct store delivery
b. memorandum purchases
c. floor-ready merchandise
d. quick response inventory planning
The starting point in developing a budget based on zero-based budgeting is _____.
a. last year’s budget
b. zero
c. a competitor’s budget
d. the budgeted expense amount that maximizes profits
Ongoing studies are made available to many clients for a fee by _____.
a. commercial research houses
b. the U.S. government (federal)
c. channel members
d. the Business Periodicals Index
A high degree of online consumers enter the checkout counter and exit without
purchasing goods. This can be due to _____.
a. concern over high shipping and handling costs
b. the difficulty in completing the order format
c. fear of credit card security
d. all of the above
An ongoing benchmarking survey of customer satisfaction is _____.
a. the PricewaterhouseCoopers index
b. the McKinsey service quality index
c. the American Customer Satisfaction Index
d. SERVQUAL
The selling of both major appliances and extended warranties for them by an appliance
dealer illustrates _____.
a. trading up
b. selling complementary goods
c. scrambled merchandising
d. selling substitute goods
Planning for contingencies such as strikes, earthquakes, and lack of electricity is part of
_____.
a. insurance coverage
b. crisis management
c. reinsurance
d. productivity management
The canned sales presentation can be distinguished from the need-satisfaction approach
by its _____.
a. focus on the customer’s demographics
b. high training costs
c. repetitive nature
d. attention to a customer’s product-related needs
Direct marketing should be used to increase sales to the _____.
a. trading-area overlap
b. secondary trading area
c. primary trading area
d. fringe trading area
A firm that assumes that employees can be self-managers would most likely _____.
a. use a centralized management style
b. use a participatory management style
c. use extreme specialization
d. have a tall organization
A major disadvantage of publicity is that _____.
a. credibility is low
b. effectiveness cannot be assessed
c. a small audience is addressed
d. there is no control over message, timing, placement, and coverage
The economic order quantity formula balances gross profitability, expected sales, and
probability of stockouts.
While minimum expectations are viewed as “dissatisfiers,” desired goals are ‘satisfiers.”
Cognitive dissonance relates to pre-purchase anxiety.
Employee empowerment is a central concept to improving customer service.
Prototype stores are often used in conjunction with micromerchandising.
A change in retail productivity can have a large impact on consumers and the economy.
Self-service retailers usually have selling space as a large proportion of total store
space.
The total retail experience deals with a customer’s involvement with a retailer from
pre-sale discussions to post-sale service.