Unbranded, no-frills goods are classified as _____.
a. generics
b. private brands
c. manufacturer brands
d. scrambled merchandising
A significant difference between the organizational structure used by a chain retailer
and by a diversified retailer is that the chain retailer more often has _____.
a. elaborate financial controls
b. standardized operations in all units
c. a more complex organization structure
d. a large number of divisions
The equivalent of a storefront for a Web retailer is _____.
a. a search engine
b. the Web browser
c. its home page
d. the checkout
A firm’s usage rate is 25 units and its lead time is 10 days. Its safety stock requirement
is 40 units. Its reorder point is _____ units.
a. 250
b. 290
c. 400
d. 425
An advantage of a centralized management structure to a retail chain is _____.
a. better training opportunities for branch personnel
b. more autonomy to each branch manager
c. more uniform store image
d. better ability to adapt to individual markets
A retailer seeks to study the impact of price on consumers’ purchases. The most
appropriate technique is _____.
a. an experiment
b. simulation
c. the semantic differential
d. observation
Manufacturers can generate increased power in a channel of distribution through _____.
a. developing brand loyalty through extensive advertising
b. selling exclusively to major national retail chains
c. allowing retailers to set final retail selling prices
d. allocating promotional allowances to retailers based upon their overall sales volume
According to the Department of Commerce, annual U.S. retail store sales are nearly
_____.
a. $500 billion
b. $1 trillion
c. $3 trillion
d. $5 trillion
Which of the following often is not an example of a knockout factor for a retail
location?
a. a three-year lease for a clothing retailer
b. a landlord known for poor tenant relations
c. the opening of another competing retailer in the same regional shopping center
d. zoning restrictions restricting land use to residential purposes
A customer data base can more easily be developed and maintained in all forms of
direct marketing than in other forms of retailing because _____.
a. goods are shipped to a customer’s home or office
b. consumer concern for privacy is high
c. consumer responses to promotions are typically high
d. high direct marketing clutter exists
The store layout for a Web retailer has two components: the layout of each individual
page and the _____.
a. links that move from one page to another
b. links that connect to manufacturers’ sites
c. graphics intensity
d. degree of clutter on the site
According to the wheel of retailing, retail institutions _____.
a. become vulnerable when they engage in scrambled merchandising
b. stay as low-end strategy firms
c. begin as low-end strategy firms and become vulnerable when they upgrade their
strategy to medium or high end
d. always increase sales and profits when they upgrade their strategy
A firm’s ending retail book value of inventory is $30,000. A physical inventory (at
retail) shows a value of $24,250. If the retailer’s cost complement is .8, what is the
ending inventory value at cost?
a. $19,400
b. $24,000
c. $27,250
d. $30,000
Which of the following transactions is not part of direct marketing?
a. a consumer searching for a camera dealer via a Yellow Pages phone directory
b. a consumer bidding on a camera accessory on eBay
c. a consumer shopping for a camera accessory from a catalog
d. a consumer purchasing a camera accessory at an airport retailer
An effective retail information system should contain both primary and secondary data.
Which planned shopping center focuses its merchandise mix on convenience goods?
a. regional shopping center
b. community shopping center
c. neighborhood shopping center
d. string
The steps in a retail strategy are _____.
a. interdependent of each other
b. independent of each other
c. organized by specific and then general factors
d. organized by short- and then long-term factors
Bipolar adjective scales are used with which survey instrument?
a. store positioning
b. store-image testing
c. semantic differential
d. image analysis