A retailer uses the percentage variation method in inventory level planning. If the store
plans an average monthly stock of $200,000 and September sales are estimated at 15
percent more than average, the store’s planned inventory level for September is _____.
a. $120,000
b. $200,000
c. $215,000
d. $230,000
The optimum site for a particular store is called _____.
a. the retail balance gradient
b. the planned shopping center
c. the one-hundred percent location
d. affinity
An example of classification merchandising for a hardware retailer is recording sales by
_____.
a. season
b. time of day
c. hammers, less than $5; hammers $5-$10
d. hardware – do-it-yourself; hardware – commercial
A direct marketer can reduce the costs of catering to a market niche through the use of
_____.
a. specialogs
b. prototype stores
c. scrambled merchandising
d. rationalized retailing
A price floor is generally set through _____.
a. cost-oriented pricing
b. demand-oriented pricing
c. competition-oriented pricing
d. administered pricing
The major difference between zero-based and incremental budgeting is the _____.
a. degree of employee participation
b. resulting budget amount obtained
c. absence or presence of opportunity costs in the budgetary process
d. starting point in the budget process
An advantage to a retailer’s having a deep assortment is _____.
a. the appeal to innovative consumers
b. the appeal to one-stop shopping for a variety of product needs
c. being able to appeal to diverse consumer needs
d. less likelihood of having too much stock on hand
Retailers are often unable to earn an adequate return on investment in which type of
location?
a. overstored
b. saturated
c. understored
d. zone of indifference
In which stage of the consumer decision process does cognitive dissonance occur?
a. purchase act
b. post-purchase behavior
c. information search
d. evaluation of alternatives
Which retail institutions fit the scrambled merchandising concept?
a. warehouse store and conventional supermarket
b. warehouse store and box (limited-line) store
c. convenience store and conventional supermarket
d. combination store and superstore
Stores that have similar and/or complementary merchandise offerings have which
characteristic?
a. traffic count maximization
b. one-hundred percent location
c. visibility
d. affinity
A major disadvantage of the retail method of accounting is _____.
a. that it does not reflect markdowns
b. that perpetual inventory systems must be maintained
c. that book inventory value cannot be computed
d. the requirement of a detailed bookkeeping system
A major advantage of a merchandising philosophy is the _____.
a. specialization of functions
b. superior management of selling staff
c. higher morale for in-store personnel
d. integrated buying and selling effort
Generally, most products are in which traditional product life-cycle stage?
a. introduction
b. maturity
c. growth
d. competition
A firm organizes its store maintenance operations on the basis of location. Which
method of classifying jobs does the firm use?
a. product classification
b. functional classification
c. geographic classification
d. combination organization classification
The institution with the greatest assortment of any general merchandise retailer is the
_____.
a. department store
b. supermarket
c. full-line discount store
d. superstore
In the evaluation of alternatives stage of the consumer decision process, criteria for a
decision can include _____.
a. price, fit, and durability
b. attitudes, interests, and opinions
c. demographics and psychographics
d. commercial and social cues
The major difference between the top-down and bottom-up budgeting process is the
_____.
a. resulting budget amount obtained
b. degree of employee/manager participation
c. starting amount in the budget
d. absence or presence of opportunity costs in the budgetary process
It is currently illegal for manufacturers and wholesalers to control ultimate retail prices
for their goods under any circumstances.
The respondent is told the real purpose of data collection in all surveys.
The equivalent of a storefront for a Web retailer is its home page.
Only entry-level employees require pre-training.
A firm has accounts receivable of $400,000 and net sales of $365,000. Its collection
period is 111 days.
According to the law of demand, the consumer’s demand curve is negatively sloped.
Safety stock reduces stockouts since it anticipates variability in usage rates and lead
times.
A retail audit should be implemented at least once every five years.
The only stimulus that can be totally controlled by a retailer is a commercial cue.
Job standardization and cross-training are techniques designed to increase personnel
flexibility.