Which of the following is not a benefit to a department or discount store using leased
departments instead of company-operated units?
a. a one-stop shopping environment
b. low investment requirements
c. high control of operations
d. payment based on sales, not profits
Which of the following is not an adverse factor affecting direct selling?
a. the unavailability of female consumers in their homes due to a large proportion of the
female population that currently works
b. high sales turnover of sales personnel
c. a poor image associated with direct selling careers
d. high mailing and catalog production costs
Which location type is generally characterized by no competition, good road visibility,
and easy parking?
a. isolated store
b. business district
c. strip
d. shopping center
Computer and auto repair are examples of _____ services.
a. nongoods
b. repair
c. owned-goods
d. rented-goods
A major competitive advantage of chains in contrast to independents is _____.
a. freedom from antitrust legislation.
b. freedom from unionization.
c. independence of actions.
d. efficiencies due to doing wholesaling functions.
Which of the following is not an advantage of corner influence?
a. greater pedestrian and vehicular traffic
b. ability to reduce congestion due to multiple entrances and exits
c. lower rental costs due to better leasing terms
d. increased show-window display area
Small retailers can obtain volume discounts and buying power similar to chain
organizations through _____.
a. cooperative buying
b. resident buying offices
c. an inside buying organization
d. a centralized buying organization
What types of goods are transshipped by other retailers?
a. generic brands
b. private brands
c. manufacturer brands
d. gray market goods
The identifiable, but sometimes intangible, activities undertaken by a retailer in
conjunction with the basic goods and services it sells comprise the retailer’s _____.
a. level of commitment to the retail concept
b. peripheral services
c. customer satisfaction level
d. customer service
The use of stock cards for goods displayed on pegboards illustrates a _____ system.
a. perpetual inventory
b. point-of-sale
c. visual inspection
d. stock-counting
The major difference between an application blank and a weighted application blank is
that the weighted application blank _____.
a. is completed by the interviewer
b. is verified by references
c. is verified by personal questioning and observation
d. correlates specific factors to job success
Two cities have populations of 10,000 and 160,000. Based on Reilly’s law, the point of
indifference is 40 miles from the larger city. What is the total distance between each
city?
a. 40 miles
b. 45 miles
c. 50 miles
d. 60 miles
The retail training method that involves active participation by trainees is _____.
a. sensitivity training
b. video
c. lecture
d. pre-training
Quick response (QR) inventory planning is generally used in conjunction with
electronic data interchange (EDI).
Promotional allowances, quantity discounts, and seasonal discounts all come under the
jurisdiction of the Robinson-Patman Act.
A retailer’s assets do not fundamentally change if it raises capital through either debt or
the issuance of common stock.
Predicting the shape of a fashion curve is easier and more reliable than with a seasonal
curve.
The proportion of completely unplanned impulse purchases in a supermarket can be
studied using observation.