Two components of problem awareness are _____.
a. information search and purchase behavior
b. commercial and noncommercial cues
c. recognition of shortage and recognition of unfulfilled desire
d. physical risk and social risk
An example of internal secondary data is _____.
a. ProQuest
b. government census data
c. a promotional budget obtained from your firm’s advertising department
d. an annual marketing report of a competitor obtained from a Web-based source
A retailer expects monthly sales to be $100,000 and planned reductions from sales to be
8 percent of sales. The retailer wants ending inventory to be $20,000 greater than
beginning inventory. Planned purchases at retail are _____.
a. $100,000
b. $120,000
c. $127,200
d. $128,000
An example of the contrasting viewpoints of retailers and manufacturers is a
manufacturer _____.
a. sponsoring a cooperative advertising program
b. attempting to increase national brand display space
c. sponsoring training programs for retail sales personnel
d. sponsoring point-of-sale materials
A characteristic associated with the bottom-up space management approach is that
_____.
a. retail space costs may be high
b. the total space available may be less than that required by the plan
c. planning is centralized
d. the needs of scrambled merchandising may not be met
A retailer’s assets are very small relative to its liabilities. The retailer has _____.
a. low fixed assets
b. low profit margin
c. high financial leverage
d. high net worth
The major objective of an institutional advertisement is _____.
a. sales to consumers
b. sales to businesses
c. awareness
d. store image development and reinforcement
Which of the following illustrates channel conflict between a manufacturer and its
retailer customers?
a. a discounter’s selling a manufacturer’s product below the price levels at full-service
retailers
b. a cooperative advertising program in which retailers are encouraged to use selected
advertising materials
c. a manufacturer assisting retailers with inventory financing for its products
d. a manufacturer developing a toll-free hot line for customer support
Stock levels at which new orders must be placed are known as _____.
a. reorder points
b. usage rates
c. order lead time
d. safety stock
Doubt that the correct product has been purchased is known as _____.
a. psychological risk
b. perceived risk
c. cognitive dissonance
d. information re-evaluation
A retailer found that inventory shrinkage rates varied greatly by department, as well as
by merchandise item within departments. The retailer should consider using _____.
a. in-store cameras
b. point-of-sale computers
c. electronic article surveillance
d. burglar alarms
A firm with a conservative financial leverage ratio has _____.
a. a lot of debt relative to assets
b. little debt relative to assets
c. no debt
d. high return on net worth
A research technique based on actual situations that does not require respondent
cooperation is _____.
a. a mail survey
b. simulation
c. experimentation
d. observation
The compensation plan characterized by high control, employee security, and known
expenses is a _____.
a. straight-salary plan
b. straight-commission plan
c. salary plus commission plan
d. compensation cafeteria
Comparatively few customers complain when dissatisfied.
Customer service is a part of the total retail experience.
A competitive advertisement is geared to the loyal customer.
Studies of vehicular traffic counts are particularly important in downtown shopping
areas with extensive mass transportation facilities.
Return on net worth equals return on assets times financial leverage.
A significant aspect to direct marketing is the development and maintenance of a
customer data base.
Consumers with high perceived risk are most prone to utilize routine decision making.
The first step in screening applicants is usually the goal-oriented job description.
Two aspects of psychological pricing are the price-quality association and prestige
pricing.
A firm’s current ratio is always lower than its quick ratio (for the same accounting
period).