When telling a customer about a product, the salesperson should:
a. give the customer all the technical information needed to understand how the product
works.
b. stress the features that are the product’s outstanding qualities.
c. tell the customer the price is right.
d. suggest that the customer do some comparison shopping before making the purchase
decision.
e. not let the customer handle the product until the salesperson has finished the
presentation.
The retailer’s _____ is (are) considered a current asset.
a. buildings
b. fixtures
c. equipment
d. inventory
e. parking lots for customer use
Most smaller retailers have more control over this important factor for successes than
larger retailers:
a. promotional strategy.
b. location.
c. personnel.
d. service levels.
e. credit policies.
_____ maps enable the retailer to use visual techniques such as colors, shading, and
lines to display cultural characteristics of the physical space.
a. Three-dimensional
b. Dymaxion
c. Geographic
d. Thematic
e. Sociographic
Merchandise productivity:
a. is net sales divided by the total square feet of retail floor space.
b. states how many dollars in sales the retailer wants to generate for each square foot of
store space.
c. is net sales divided by the number of full-time’“equivalent employees.
d. reflects how many dollars in sales the retailer desires to generate for each
full-time’“equivalent employee.
e. is net sales divided by the average dollar investment in inventory.
_____ are the dollar amount by which a physical inventory value is smaller than the
value that the book inventory records indicate.
a. Inventory reductions
b. Discounts to cost
c. Cost allocations
d. Shortages
e. Overages
Due to increased corporate responsibilities, the manager of a sporting goods store has
asked the assistant manager to take responsibility for screening and hiring new sales
associates. The manager is allowing the assistant to make the decisions independently,
but has scheduled weekly meetings for the two to discuss any issues of concern and to
provide insight, if needed. The manager is demonstrating which desirable retailing
attribute?
a. Prioritizing
b. Leadership
c. Creativity
d. Laziness
e. Enthusiasm
When service meets or exceeds customers’ expectations, it is said to be _____ service.
a. high-quality
b. top-notch
c. high-performance
d. 100 percent guaranteed
e. exemplar
Which of the following is NOT a salesmanship factor measured by the customer service
and sales enhancement audit?
a. Merchandise knowledge
b. Customer contact
c. Needs clarification
d. Active selling
e. Suggestion selling
Identify the first step in the retail location decision.
a. Evaluation of the trading area’s demand and supply density.
b. Identification of the most attractive markets in which to operate.
c. Evaluation of capital constraints facing the retailer.
d. Evaluation of the trading area’s supply related factors.
e. Identification of the trading areas that should be ignored.
The customer service and sales enhancement audit report should not list the causes of
walkouts for each selling area.
Retail historians have observed that, in the United States, retail trade was dominated by
_____ until 1860; this type of store carried a broad assortment of merchandise ranging
from farm implements to textiles to food.
a. mail order
b. general stores
c. door-to-door sales
d. corner stores
e. family owned business
A supply chain in which each member is loosely aligned with the others is a(n):
a. modified channel.
b. unadministered channel.
c. conventional marketing channel.
d. corporate marketing channel.
e. contractual marketing channel.
For a mission statement to be effective, it should:
a. be less than 10 words; after all, the more concise the mission statement, the more
focused the company.
b. provide a basic description of the fundamental nature, rationale, and direction of the
firm.
c. be changed annually to reflect changes in the environment.
d. follow the strategy laid out annually by senior management.
e. be developed only after the retailer sets its goals and objectives.
A(n) _____ pricing policy is a policy that regularly discounts merchandise from the
established market price in order to build store traffic, generate high sales, and enhance
gross margin dollars per square foot of selling space.
a. above-market
b. flexible
c. odd-pricing
d. below-market
e. loss leader
Which of the following is NOT a formal way of deciding inventory levels?
a. Stock-to-sales ratio
b. Gross margin contribution
c. Basic stock
d. Week’s supply
e. Percentage variation
Your local bike shop offers a wide variety of bicycles at the following price levels:
$99.99, $160.99, $320.95, $619.99, and $1039.99. The bike shop is using a _____
pricing strategy.
a. variable
b. price lining
c. standard price mix
d. stream lining
e. flexible
If average store profitability is high in a trading area, then the trading area is most likely
to be:
a. understored.
b. declining.
c. overstored.
d. undersaturated.
e. hypercompetitive.
Financial performance goals and objectives does which of the following:
a. Helps the firm’s employees to fulfill dome of their own personal needs.
b. Compares a firm’s actions to its competition.
c. Helps society to fulfill some of its needs.
d. Analyzes the firm’s ability to provide a profit level adequate to continue and grow in
business.
e. Helps stabilize the global financial market.
High shrinkage:
a. means the store is operating at a loss.
b. can be easily tracked.
c. means the store’s turnover rate is too high.
d. detracts from space productivity.
e. is anything above .5 percent.
All of the following EXCEPT _____ are included in the top categories for counterfeit
products sold in the United States.
a. video games
b. apparel
c. handbags
d. watches
e. golf clubs
A _____ refers to a cue that is external to the individual or a drive that is internal to the
individual.
a. demand
b. need
c. stimulus
d. want
e. necessity
Items for which are frequently purchased and the consumer is not willing to spend a
great deal of effort to purchase are known as:
a. shopping goods.
b. industrial goods.
c. convenience goods.
d. raw materials.
e. specialty goods.
Which of the following is NOT a characteristic of a retailer that prices below the
market?
a. Provides minimal customer services
b. Low sales volume
c. Stocks closeout merchandise
d. Stocks fast-selling merchandise
e. Occupies modest facilities in a low-rent location
The three era’s of retailing are:
a. ‘to market’, ‘marketing to’, ‘marketing with’
b. ‘marketing for’, ‘marketing with’, ‘marketing without.’
c. ‘target market’, ‘market strategy’, ‘market objective.’
d. ‘objective market,’ ‘subjective market’, ‘established market.’
e. ‘mass market’, ‘target market’, ‘performance market.’
Generally, predatory pricing charges are difficult to prove in federal court.
Servicing and repair are probably one of the most difficult customer services for a
retailer to manage.
Discuss the three types of behaviors and attitudes that facilitate relations to resolve
conflict that inevitably occur in every retail supply chain. Why is collaboration
important in channel relations?
Retailers must always match or be lower than the competitor’s price.
Germany remains the world’s largest consumer market.
Problem recognition occurs when the consumer’s desired state converges with their
actual state.