Functional account expenses are _____.
a. shared by two or more departments
b. reported by the names of their cost
c. classified on the basis of purpose or activity
d. related to a retailer’s performance during the budget period
Copies of all the data bases in a company are maintained in one location and accessible
to employees at any locale through _____.
a. a retail information system
b. marketing research
c. data-base management
d. data warehousing
A retailer considering undertaking significant additional debt to finance a regional
expansion needs to carefully evaluate its _____.
a. collection period
b. quick ratio
c. accounts payable to net sales
d. return on net sales
In the Mazur plan, the merchandising division is responsible for _____.
a. buying only
b. selling only
c. buying and selling
d. accounting and control
Outshopping refers to _____.
a. in-home shopping by catalog, mail, and phone
b. consumers who travel long distances to stores
c. consumers with very small or large-sized clothing
d. consumers who spend longer than average times in shopping centers/districts
Which of the following does not contribute to the difficulty in planning personnel
utilization in retailing?
a. high employee turnover
b. self-service merchandising
c. inflexibility due to union issues
d. large shifts in demand due to seasonality
The sorting process enables manufacturers to _____.
a. increase their power in the channel of distribution
b. specialize in one item or product line
c. fulfill government grading requirements
d. limit product distribution to the most profitable geographic areas
An example of an economic trading-area barrier is _____.
a. travel distance
b. travel time
c. high sales-tax rates
d. travel difficulty as measured by road conditions
A retailer views the sales of merchandise through store, catalog, and Web-based
operations as complementary to one another. This approach illustrates _____.
a. channel cooperation
b. multi-channel retailing
c. intensive distribution
d. selective distribution
PMs are _____.
a. bonuses paid to retail salespeople by manufacturers based on sales of their products
b. promotional allowances paid to retailers by manufacturers and wholesalers
c. point-of-purchase promotions developed by manufacturers
d. premiums to buyers to induce their purchase of a manufacturer’s products
A major advantage of a flat organization is _____.
a. good communication among levels of supervision
b. a long channel of communication
c. the existence of several levels of supervision
d. fewer employees reporting to each manager
Which type of shopping center has the largest primary trading area?
a. power center
b. regional shopping center
c. megamall
d. central business district
Variations of a basic product first appear and width and depth of assortment expand in
which product life-cycle stage?
a. introduction
b. growth
c. maturity
d. decline
In which product life-cycle stage do product sales reach their maximum?
a. growth
b. introduction
c. maturity
d. decline
Retail institutions evolving from introduction to accelerated development require a high
level of investment to sustain growth.
Frequency refers to the number of distinct people who are exposed to an advertisement
during a specific time period.
The value of foregone opportunities is evaluated in opportunity cost analysis.
Collaborative planning, forecasting, and replenishment (CPFR) and efficient consumer
response (ECR) rely upon supply chain management.
The market entry of a low-cost retailer in the wheel-of-retailing theory corresponds to
the introduction stage of the retail life cycle stage.
Under the FIFO accounting method, it is assumed that old stock is sold last and the new
stock remains on the shelves.
Marquees, entrances, windows, and lighting are all elements of store visibility.
A more uniform image, greater coordination, and quantity discounts in purchasing are
advantages to the use of a centralized organizational structure.
Delegation of a task involves the loss of some control by the retailer.
The top-down approach to space management involves less employee participation than
the bottom-up approach to space management.