A limited target market consisting of high-income and innovative consumers exists in
which stage of the product life cycle?
a. decline
b. growth
c. maturity
d. introduction
Strategy and tactics need to be evaluated _____.
a. on a continuous basis
b. yearly
c. during a retail audit
d. prior to evaluating a retail unit for sale
Gross profit per square foot is utilized by a supermarket owner to assign space among
merchandise assortments within a department. Larger amounts of space go to the
product categories and brands with the highest profitability per square foot. This retailer
determines space needs by _____.
a. the sales-productivity ratio
b. market segment product groupings
c. the model stock approach
d. the law of diminishing returns
The tasks of personnel with similar positions in different departments are kept rather
uniform with _____.
a. management by objective
b. job standardization
c. risk-minimization retailing
d. rationalized retailing
Channel relations tend to be most volatile in which form of distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. vertical integration
The proportion of a store’s sales made to shoppers who live more than 15 miles from a
store (outshoppers) can be most reliably studied using _____.
a. a telephone survey
b. observation
c. a personal survey
d. customer billing data
An advantage of using company specialists in conducting a retail audit is the _____.
a. objectivity
b. high independence
c. ongoing nature of the process
d. low cost
A retail firm has net annual sales of $6,000,000. Its average monthly inventory at hand
(at retail) was $1,500,000. Its annual rate of stock turnover is _____.
a. 0.25
b. 3.0
c. 3.5
d. 4.0
A mannequin dressed in a matched outfit illustrates which display?
a. assortment
b. theme-setting
c. ensemble
d. fashion
Which of the following contributes to the very high sales per square foot in airport
retailing?
a. a captive audience
b. high rental costs
c. a transitory population
d. high security
Which of the following is an advantage of central warehousing for a chain retailer?
a. lower transportation costs to individual stores
b. closeness to individual stores
c. increased capability of quick response systems
d. increased use of mechanization in the processing of goods
Which is not a strategy for a retailer to increase its average sale?
a. placing impulse goods in high-traffic locations
b. opening additional hours
c. increasing impulse sales
d. suggestion selling
With an open payment credit account, _____.
a. a customer is billed at the end of the month on the basis of the outstanding balance
b. a consumer pays for a purchase in equal installments
c. a customer can exceed his/her credit limit
d. a customer must pay the bill in full when it becomes due
An advantage of buying an existing business versus starting a new business is _____.
a. the ability to generate new supplier relationships
b. the ability to generate immediate sales
c. no cost for goodwill
d. flexibility in developing and changing retail strategy
Which retail institution illustrates vertical integration?
a. off-price chain
b. factory outlet
c. membership club
d. department store
The use of company specialists in conducting a retail audit is most suitable for large
retail firms.
Managers in individual departments generally have greater autonomy in a centralized
structure than in a decentralized organization structure.
A major advantage of a Web site in comparison to a traditional catalog is the ability to
have almost unlimited space to present product assortments, displays, and information.
Expected customer services provide a competitive advantage to the retailer.
Greeting card displays utilize open assortments.
A book department has $400,000 in yearly operating expenses and planned yearly sales
of $4,800,000. If reductions of $55,000 are anticipated and a profit goal of $500,000 is
planned, its required initial markup should be 19.7 percent.
A comprehensive store security program needs to concentrate on losses due to
employee, customer, and vendor theft.
The property owner is freed from retail facility management and the retailer controls
maintenance in a net lease.