A bricks-and-mortar retailer questions whether it should also sell goods through the
Web as part of a dual distribution channel strategy. What step is involved in the
retailer’s direct marketing strategy?
a. order fulfillment
b. customer contact
c. customer response
d. business definition
A traditional bricks-and-mortar camera retailer also operates a Web site. While the store
location features new cameras, the Web site features collectible cameras, as well as used
equipment. This strategy illustrates _____.
a. multi-channel retailing
b. the retail life cycle
c. mass marketing
d. the theory of retail evolution
While some manufacturers specialize by producing one product, consumers generally
favor retailers with extensive selections from many manufacturers. These divergent
viewpoints can be reconciled through _____.
a. the sorting process.
b. selective distribution
c. intensive distribution
d. exclusive distribution
The greatest advantage to a manufacturer’s use of exclusive distribution is _____.
a. retailer concentration on key items
b. smooth channel relations
c. a high level of retail price competition
d. maximization of long-run sales potential
Centralized buying organizations, outside buying organizations, and cooperative buying
are examples of _____.
a. merchandising organizations
b. formal buying organizations
c. diversified retailer-based buying organizations
d. retail chain-based buying organizations
Which general merchandise retailer is most likely to appeal to a small, niche market
segment?
a. variety store
b. specialty store
c. department store
d. off-price chain
What type of retail audit can be conducted as exploratory research in evaluating a
retailer’s response to problems and opportunities?
a. nondisguised audit
b. vertical audit
c. disguised audit
d. horizontal audit
A retailer offers an option credit account to its customers; interest is charged at 15
percent per year. If a consumer buys $400 in merchandise on January 1 and receives the
bill January 15, how much must the consumer remit to pay the account in full?
a. $400
c. $403
b. $406
d.$409
Which of the following is not a major difficulty in conducting a retail audit?
a. An audit may be very time-consuming.
b. An audit may be quite costly.
c. A yearly audit may be much too frequent.
d. Employees may feel threatened and not fully cooperate.
The control of retail prices by manufacturers or wholesalers relates to _____.
a. price discrimination
b. vertical price fixing
c. horizontal price fixing
d. predatory pricing
While _____ assets are recorded on a balance sheet on the basis of cost, _____ assets
are recorded on the basis of cost less accumulated depreciation.
a. fixed; hidden
b. fixed; current
c. hidden; fixed
d. current; fixed
The majority of membership club sales are made to final consumers.
In administered pricing, retailers seek to develop a niche and reduce the effect of price
competition.
Dead areas are awkward spaces where normal displays cannot be set up.
In retailing, market share is usually an objective for only large retailers or retail chains.
Horizontal cooperative advertising agreements are most likely to involve two or more
competing retailers.
Diversified retailers generally appeal to one market segment.
In goods retailing, consumers purchase goods; in rented-goods services, they lease
goods.
A retail firm with high personnel turnover should consider the canned sales
presentation.