The growth of nonstore retailing growth can be attributed to:
a. Accerelerated communication technology and changing consumer lifestyles.
b. Heightened global competition and increasing use of private labels.
c. The development of off price retailers and supercenters.
d. The rapid growth of qualified sales help in bricks-and-mortar stores and more
convenient retail locations.
e. The development of recycled merchandise retailers and liquidators.
The set of _____ refer to the characteristics of the store and its products and services.
a. attributes
b. cues
c. drives
d. needs
e. wants
Retailers would like to compete in _____ since many retailers in such markets achieve
an above-average return on investment due to the low level of competition in the
marketplace.
a. intratype markets
b. overstored markets
c. understored markets
d. pure monopolies
e. divertive markets
A salesperson should illustrate how a certain product fits a customer’s already-defined
criteria when the customer has what kind of choice criteria?
a. Choice criteria in conflict
b. No active product choice
c. Inadequate choice
d. Explicit choice
e. Vague choice
The _____ method of inventory record keeping allows for more ‘inventory profits’
during inflationary periods.
a. revenue
b. retail
c. LIFO
d. FIFO
e. inflationary accounting
What is the geographic area where the retailer can still be competitive despite a
competitor having some locational advantage?
a. The promotional area
b. The primary trading area
c. The secondary trading area
d. The advertising range
e. The merchandise range
Which of the following statements about sensory marketing is true?
a. Effective store designs should appeal only to the senses of sight and sound.
b. Background music is no longer considered a valuable marketing tool to influence
shopper behavior.
c. Retailers today are trying to use lighting as a key in-store marketing tool to put
consumers in the ‘mood’.
d. The tempo of music affects how long shoppers stay in a store.
e. The placement of ads in a store’s background music is illegal in the United Sates.
When a retailer’s advertising message creates a scenario for the customer’s imagination
that is built around the retailer’s products, the retailer is said to be using a(n) _____
approach.
a. mood/image
b. fantasy
c. humorous
d. lifestyle
e. slice-of-life
Which of the following is NOT an example of a financial performance goal?
a. Increase return on assets from 8 percent to 9 percent.
b. Increase asset turnover from 2.5 to 2.8.
c. Increase market share by 20 percent.
d. Increase space productivity by 5 percent.
e. Reduce financial leverage from 2.1 to 2.0.
Gross margin can be defined as:
a. net sales minus the cost of the goods sold.
b. the selling price charged for a piece of merchandise or a service plus variable
operating expenses.
c. the difference between total profits and total expenses.
d. the cost of merchandise in a retailer’s inventory.
e. the cost of goods sold at less operating expenses.
In double-loop learning, the retailer asks itself if the _____ and_____ on which it is
focused are the appropriate or ‘right’ ____ and _____.
a. co-creations, co- productions.
b. gross margins, net margins.
c. profits, losses.
d. goals, measures.
e. investments, assets.
When a retailer has a yearly turnover rate that is _____ or more times a year, the
percentage variation method is most commonly used for determining planned stock
levels.
a. 8
b. 12
c. 4
d. 10
e. 6
According to most retail analysts, as a result of several key forces at work today, which
of the following forms of nonstore retailing will experience significant growth over the
next decade while the other forms will remain steady or decline?
a. Telemarketing
b. Vending machines
c. Catalog sales
d. Direct selling
e. Internet shopping
To determine net sales, a retailer should subtract _____ from gross sales.
a. inbound freight
b. returns and allowances
c. goodwill
d. an account receivable
e. other expenses
_____ is an unwritten but well understood set of rules or standards of moral
responsibility.
a. Ethical regulations
b. Explicit codes of ethics
c. Implicit codes of ethics
d. Moral laws
e. Ethical standards
The three dimensions of the optimal merchandise mix are:
a. breadth, depth, and concentration.
b. merchandise lines, breadth, and density.
c. variety, density, and merchandise lines.
d. breadth, consistency, and depth.
e. variety, breadth, and depth.
_____ is the anticipation and organization of what needs to be done to reach an
objective.
a. Analyzing
b. Forecasting
c. Planning
d. Strategic realignment
e. Tactical adaptation
Which learning style asks the question: ‘What is our right business model?’
a. Double-loop learning.
b. Pre-learning.
c. Triple-loop learning.
d. Single-loop learning.
e. Beginning learning.
A(n) _____ is the total collection of all the pages of information on the retailer’s
Internet site.
a. web presence
b. virtual store
c. on-line presence
d. virtual reality
e. megastore
A retailer who has already done a great job of developing a strategy:
a. should also be aware of changes on the national retailing scene, but need not concern
itself with local changes.
b. need not worry what competitors are doing.
c. should never be seen visiting a competitor’s store.
d. must make sure that its fixed costs exceed its variable costs.
e. must always remember that no retailer can ever design a strategy that will totally
insulate it from the actions of competitors.
Given the ever-changing needs of the retail environment, retail managers who possess
_____ are highly sought after as these managers have the ability to quickly alter plans
to accommodate changes in trends, styles and attitudes.
a. flexibility
b. leadership
c. initiative
d. enthusiasm
e. creativity
Today, retailers typically view private label brands as:
a. secondary to national brands.
b. leading brands that serve as a destination draw.
c. too high cost to maintain effectively.
d. lower margin offerings of the retailer when compared to national brands.
e. throwaway brands.
Customers who tend to postpone all decisions, and who want the salesperson to make
the decision for them, are characterized as:
a. sociable.
b. defensive.
c. interrupters.
d. indecisive.
e. impulsive.
In addition to the Robinson-Patman Act, the _____ Act addresses the legality of price
discrimination.
a. Trade Discrimination
b. Clayton
c. Federal Trade Commission
d. Sherman Antitrust
e. Equal Rights
Most jewelry stores and automobile dealerships use the flexible pricing policy.
Price discrimination occurs when two retailers buy identical amounts of “like grade and
quality” merchandise from the same supplier but pay different prices.
A retailer operating with a profit margin of 20 percent is making $20 on each $100 of
sales.
Domain disagreements occur when there is disagreement about which member of the
marketing channel should lead the channel and make the decisions.
When a retailer experiences actual results that are below plan, the cause is always
management or lazy workers.
Explain the difference between disposable and discretionary income. Which is more
important to retailers?
Mutual trust occurs when both the retailer and its supplier have faith that each will be
truthful and fair in their dealings with each other.
Situations of near monopoly do exist.