A theory which predicts that retail institutions have identifiable stages from introduction
to decline is _____.
a. the retail life cycle
b. the wheel of retailing
c. scrambled merchandising
d. rationalized retailing
A benefit of franchising to a franchisor is _____.
a. the ability to develop a national presence with less franchisor investment than
ownership
b. lack of uniformity
c. total channel control
d. intrafranchise competition
The early stages of the hierarchy of effects are most likely to utilize _____.
a. public relations
b. personal selling
c. pioneer advertisements
d. competitive advertisements
A major advantage to the use of point-of-sale scanning equipment by retailers is _____.
a. lower fixture investment costs
b. ease in consumer ability to read prices
c. compatibility of codes for supermarkets and department stores
d. better inventory control
The major difference between an order-taking salesperson and an order-getting
salesperson is based on _____.
a. the degree to which a salesperson informs and persuades customers
b. the method of compensation
c. who pays the salesperson
d. the salesperson’s experience
“How large is your family?” and “How critical is gasoline mileage to you?” are
examples of questions asked in the _____.
a. canned sales presentation
b. need-satisfaction approach
c. order-taking approach
d. promotional money approach
A traditional pharmacy that adds a line of school supplies during August and September
illustrates which merchandising strategy?
a. scrambled merchandising
b. trading up
c. selling complementary goods
d. handling substitute products
Which of the following is not a major benefit to direct marketing for a retailer?
a. Startup costs can be very low.
b. Customers are given a convenient method of shopping.
c. A very large geographic area can be inexpensively covered.
d. Products can be examined prior to purchase.
Tactics involve _____.
a. target market determination
b. daily and short-run operations of a retailer
c. organization mission determination
d. evaluation of performance
At least one major department store and a broad grouping of specialty and convenience
stores are found in the _____ business district.
a. neighborhood
b. secondary
c. unplanned
d. central
A firm’s planned purchases for a given month are $30,000 and its purchase
commitments are $7,000. If its merchandise costs as a percent of selling price are .75;
its open-to-buy at cost is $17,250.
The off-retail markdown percentage equals average dollar markdown as a percent of net
sales.
In a horizontal fashion trend, a fashion is passed from the upper through lower classes
through distinctive, emulation, and economic emulation stages.
A jeweler plans June sales to be $67,000 and planned reductions to be 15 percent of
sales. If planned July 1 inventory is $225,000 (at retail) and the June 1 inventory (at
retail) is $260,000, planned purchases (at retail) are $32,000.
Market saturation and product obsolescence characterize the maturity stage of the
product life cycle.
A store plans average monthly stock of $80,000. September’s sales are estimated at 20
percent more than average. The store’s planned inventory for September should be
$96,000.
Retailers are often sought after as acquisitions due to their significant hidden assets.
When a retailer bypasses a wholesaler to purchase goods directly from a supplier, an
independent vertical marketing system is utilized.
A supermarket’s developing a system to handle returnable bottles is an example of
reverse logistics.