The high sales volume at off-price chains, factory outlets, membership clubs, and flea
markets can be explained by the retail life cycle.
Examples of negative feedback include consumer complaints, chronic out-of-stock
situations, and declining sales.
Only controllable variables can be manipulated in simulation.
In responding to a retail audit, management needs to be aware that the audit may have
been conducted by one person who has judged retail activities at one point in time.
Interviewer bias is minimized in which survey form?
a. telephone survey
b. mail survey
c. personal survey
d. semantic differential
Firms with perpetual inventory systems and reorder point data can utilize _____.
a. automatic reordering systems
b. GMROI data
c. management exception reports
d. economic order quantities
Which retail theory predicts that innovators will start with a low-cost structure and low
profit margin requirements?
a. scrambled merchandising
b. retail life cycle
c. wheel of retailing
d. rationalized retailing
In a purchase motivation product grouping, _____.
a. goods are categorized by end use
b. a market segment is attracted
c. impulse items are placed on the low floors in high-traffic locations
d. gift items are placed together
A type of shopping center with a large proportion of destination stores is the _____.
a. power center
b. neighborhood shopping center
c. central business district
d. regional shopping center
Extensive coverage is comprised of _____.
a. low reach and low frequency
b. low reach and high frequency
c. high reach and low frequency
d. high reach and high frequency
Excessive use of chargebacks by a retailer illustrates _____.
a. scrambled merchandising
b. channel power
c. the retail life cycle
d. channel cooperation
Which of these is an example of solutions selling by a supermarket?
a. placing a weekly menu in a newspaper insert and then stocking all of the required
ingredients in a single location in the store
b. selling seasonal merchandise such as outdoor grills at low prices
c. having in-store sampling of its private brands
d. opening longer hours during pre-holiday time periods
Impulse purchases and store loyalty are examples of _____.
a. extended decision making
b. routine decision making
c. problem awareness
d. limited decision making
In which strategy does a retailer adjust its self-space allocations to respond to customer
and other differences among local markets?
a. micromerchandising
b. concentrated marketing
c. cross-merchandising
d. niche marketing
In comparison to direct marketing and Web-based retailing, sales growth in direct
selling has been comparatively low.
An approach to the study of retailing which focuses on a retailer’s need to revise plans
continually in order to adapt to a changing environment is the retailing concept.
A retailer’s cash flow for a period corresponds to its sales revenue for the same period.
The need-satisfaction approach to retail selling focuses on the specific concerns and
wants of each customer.
An integrated approach to customer service needs to study the total retail experience.
A retailer will substantially increase sales (but not shift sales from brand to brand) when
many substitute goods are stocked.
A retailer can benchmark its customer satisfaction through use of the American
Customer Satisfaction Index (ACSI).
Trading-area delineation is more exact for new stores than for existing stores.