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A disadvantage of a leased department to the leased department operator is the _____.
a. restriction on goods/services carried
b. high promotional expense
c. poor cash flow due to centralized checkouts
d. creation of a one-stop shopping environment
Which medium lets a retailer closely target the potential audience so as to minimize
waste circulation?
a. daily newspaper
b. direct mail
c. radio
d. shopper
Inventory management programs can be facilitated through the use of _____.
a. item analysis
b. electronic article surveillance
c. computerized checkouts
d. electronic signature capture
The element of perceived risk that relates to how friends and relatives view the
purchase of a good or service is _____ risk.
a. social
b. physical
c. performance
d. psychological
The most important trading area for a retailer to study is the _____.
a. fringe trading area
b. secondary trading area
c. primary trading area
d. trading-area overlap
An example of an item that should be evaluated by a retailer that uses inspection is
_____.
a. college textbooks
b. antique furniture
c. color televisions
d. file cabinets
The difference between net sales and the cost of goods sold equals the _____.
a. net profit before taxes
b. total costs
c. operating expenses
d. gross profit
At a small retailer, responsibility for the promotion function is most likely with the
_____.
a. owner-manager
b. advertising agency
c. advertising department of a daily newspaper
d. in-house advertising agency
A shopping area in a city or town that is usually bounded by the intersection of two
major streets is a(n) _____ business district.
a. neighborhood
b. central
c. secondary
d. unplanned
Competition between manufacturer and dealer brands may result in a retailer's _____.
a. practicing market skimming
b. utilizing market pricing
c. utilizing price lining
d. selling against the brand
Credit-card fees paid by retailers average from _____ percent to _____ percent of sales.
a. 1.5; 5
b. 2.5; 3.5
c. 3.5; 5
d. 5; 6
Which statement about the use and interpretation of secondary data to measure a
retailer's performance is not correct?
a. A retailer has to develop performance standards based on the best retailers, regardless
of industry.
b. A retailer needs to adjust nationally-based data to reflect regional differences.
c. A retailer needs to adjust nationally-based data to reflect the size of the companies
used in the sample.
d. A retailer's performance measures must be comparable to those used by secondary
sources.
Assortment planning for fashion merchandise is accomplished by a _____.
a. want book
b. basic stock list
c. want slip
d. model stock plan
A retailer can minimize display costs by using _____ displays.
a. theme-setting
b. ensemble
c. cut case
d. assortment
Unit pricing legislation is necessary because of _____.
a. computerization and the UPC
b. item price removal
c. the existence of many different-sized packages
d. price advertising
Which of the following is not an element in the retailing concept?
a. customer orientation
b. high levels of customer service
c. coordinated effort
d. value driven
What type of consumer decision making is most likely to be used when the importance
of a purchase to a customer is very high?
a. routine decision making
b. limited decision making
c. extended decision making
d. brand loyalty
Third-party logistics is another term for _____.
a. outsourcing logistics
b. quick response inventory management
c. supply chain management
d. floor-ready merchandise
Which data collection technique cannot be used to study consumer attitudes?
a. mail questionnaires
b. telephone interviewing
c. observation
d. phone interviewing
A successful retailer usually realizes that it can alter demographic trends, change
lifestyle patterns, and impose tastes on consumers.
The traditional Mazur plan does not reflect the importance of store branch locations.
The checkout counter is more complicated for Web retailers than for physical store
retailers.
A destination store has a larger primary, secondary, and fringe trading area than other
stores in the same shopping center.
An appropriate time period for an audit is the busiest month of the year.
PMs are paid by manufacturers to retailers that meet sales goals.
Relationship retailing focuses on keeping existing customers, as well as attracting new
ones.
The major retailer in a neighborhood business district is a junior department store.
The sale of floor-ready merchandise by a supplier increases the responsibilities of the
supplier beyond just providing the merchandise.
The secondary business district is a shopping area that has emerged to satisfy the
convenience-shopping needs of a neighborhood.
