A major advantage of advertising is that _____.
a. costs per viewer, reader, or listener are low
b. media costs are free
c. advertising has higher credibility than public relations
d. immediate feedback is provided
How many million people are employed by traditional retailers in the United States?
a. 7
b. 15
c. 25
d. 30
A department store uses a regression computer site-selection model. This model
contains data on the following variables: _____.
a. distance to store and store size
b. disposable income, retail sales, and population
c. traffic barriers, store size, and traffic counts
d. trading-area population and expected market share
Which retail assortment strategy is characterized by one-stop shopping appeals, an
emphasis on convenience customers, and a limited variety?
a. wide and deep
b. wide and shallow
c. narrow and deep
d. narrow and shallow
A potential problem that may limit the growth of warehouse stores is _____.
a. a lack of brand continuity
b. a concentration on private label or controlled brands
c. their high prices
d. manufacturers’ refusal to sell to them
A newspaper’s cost per thousand equals $20; however, only three-quarters of its readers
are in a retailer’s target market. The retailer’s real cost per thousand is _____.
a. $15.00
b. $25.00
c. $22.00
d. $26.67
Which of the following should be audited when the store is open?
a. fixture quality
b. inventory turnover
c. parking lot adequacy
d. employee records
An example of recognition of shortage is when a consumer _____.
a. sees an ad for a suit at a 50 percent price reduction
b. becomes aware of a product that he/she has not purchased before
c. gathers a list of products that will solve the problem at hand
d. runs out of a product
The use of boutiques by department stores to highlight designer clothing most closely
resembles the strategy of a _____.
a. specialty store
b. retail catalog showroom
c. variety store
d. full-line discount store
As compared with direct store delivery, a major advantage to the use of central
warehousing is the _____.
a. need for lower overall inventory levels
b. need for extra handling for perishables
c. ability to easily shift goods from one retail location to another
d. increased capability for quick response inventory planning
Which of these is a not a major advantage of cross-training?
a. the ability to shift employees during peak sales periods
b. lower employee boredom
c. lower overall staffing needs during peak sales periods
d. lower overall personnel training costs
Keeping a perpetual inventory unit control system has been most facilitated by _____.
a. store planograms
b. rationalized retailing
c. barcoding and point-of-sale systems
d. manual systems that record merchandise transfers
The use of leveraged buyouts by retailers has the greatest impact on which ratio?
a. quick ratio
b. accounts payable to net sales
c. collection period
d. assets to net sales
A heavily diversified retailer requires _____.
a. a separate retail strategy for each major retail business unit
b. a uniform strategy so that each retail business unit has a common image
c. a centralized organization structure for all key functional areas
d. the use of a mass marketing strategy
A major advantage of a retail information system is _____.
a. the continuous nature of data collection and analysis
b. its low cost
c. the use of competitor data
d. the use of verified data from government sources
Which objective is generally pursued by only large retailers or retail chains?
a. sales
b. market share
c. profitability
d. stability of profits
The point of indifference between two cities or communities can be studied _____.
a. based on economic base characteristics
b. using the index of retail saturation
c. using census data
d. based on the buying power index
The return on net worth ratio is based on a retailer’s _____.
a. net profit, fixed assets, and fixed liabilities
b. net profit, current assets, and current liabilities
c. net profit, net sales, total assets, and net worth
d. net profit, total assets, net sales, and net liabilities
The part of electronic retailing with interactive video and audio capability is referred to
as the _____.
a. Internet
b. World Wide Web
c. information superhighway
d. virtual network
A retailer’s customers who are most loyal and who have the highest average sales can be
classified as its _____.
a. outshoppers
b. target market
c. primary customers
d. core customers
A firm’s organizational mission is reflected in its general attitude toward consumers,
employees, suppliers, competitors, government, and others.
The cost complement is an average figure based upon the total cost of merchandise and
its total retail value.
A low asset turnover ratio may mean that a retailer has slow-selling inventory.
Experiments can be conducted in both laboratory and field (store) environments.
A major benefit to central warehousing is direct product shipment to each store.
In comparison to direct selling, in direct marketing, a consumer is first exposed to a
good or service through a nonpersonal medium.