A _____ business district usually consists of an unplanned shopping area around the
geographic point at which all public transportation systems converge; it is usually in the
center of the city and often where the city originated historically.
a. central
b. convenient
c. secondary
d. suburban
e. neighborhood
For a retailer to successfully reach its target market using market segmentation, three
criteria must be met: the target market should be:
a. measurable, precise, and be motivated to buy
b. measurable, accessible, and substantial enough to be profitable
c. measurable, have money, and be motivated to buy
d. neglected, motivated to buy, and substantial
e. financially attractive, quantifiable, and be motivated to buy
Which two methods of merchandise presentation have the greatest potential to convey
low-cost, low-price, and high-volume image?
a. Stacking and shelving
b. Pegging and folding
c. Dumping and shelving
d. Stacking and dumping
e. Hanging and pegging
Which of the following is the single most reliable indicator of a person’s income
potential, attitudes, and spending habits?
a. Race
b. Location
c. Educational attainment
d. One’s own efforts and abilities
e. Family status
The _____ usually works well in small stores where customers wish to browse through
all of the merchandise.
a. standard
b. free-flow
c. grid
d. loop
e. spine
Resale price maintenance is another word for:
a. horizontal price fixing.
b. deceitful diversion of patronage.
c. dual price setting.
d. fair trade.
e. predatory pricing.
The trend of people living alone, which has increased by 35 percent between 1990 and
2007, is due to all of the following EXCEPT:
a. an increased desire for privacy.
b. an increase in young adults delaying marriage.
c. an increase in never marrieds.
d. an increase in the number of dinks.
e. a large increase in the number of people who live alone after the death of a spouse.
The _____, which can hold a wide variety of merchandise by means of hardware hung
from the vertical spine, is the workhorse fixture in hardlines departments.
a. table
b. round rack
c. gondola
d. basket
e. flat-base decks
Attempts by a manufacturer to limit the geographical area in which a retailer may resell
its products are called _____ restrictions.
a. geographical
b. sales
c. territorial
d. tying
e. physical
The presentation of merchandise is a critical factor in the selling power of a store and
its overall image. For bookstores, a face-out merchandise presentation of books as
opposed to spine-out presentation:
a. is no longer used due to space constraints.
b. enhances store sales because face-out presentation allows the retailer to stock more
titles.
c. creates a discount store atmosphere.
d. results in a consumer perception of cramming a huge selection of titles at low prices.
e. creates the image of a specialty book boutique that carries a limited selection of
exclusive titles and is therefore a rather pricey place to shop.
If the percentage markup on cost is 50 percent, what is the percentage markup on
selling price?
a. 140 percent
b. 100 percent
c. 28.5 percent
d. 33.3 percent
e. 50 percent
The _____ Act establishes protection for trademarks.
a. Lanham
b. Hart-Scott-Rodino
c. Sherman
d. Clayton
e. Robinson-Patman
When Gap Stores get an exclusive contract to sell uniforms to your old high school, it is
an example of:
a. monopolistic competition.
b. oligopolistic competition.
c. pure monopoly.
d. pure competition.
e. perfect competition.
In supermarket retailing, _____ percent of endcaps should be unadvertised ‘sale’ items
that will cause the customer to be alert when looking at an endcaps while traveling
through the store.
a. 5
b. 10
c. 25
d. 40
e. 50
Identify the incorrect statement about expressed warranties.
a. They are the result of the interaction between the retailer and the customer.
b. They may be either written into the contract or verbalized.
c. They are based on custom, norms, or reasonable expectations.
d. They can cover all characteristics or attributes of the merchandise or only one
attribute.
e. An expressed warranty can be created without the use of the words warranty or
guarantee.
The four basic types of layout that retailers use today are:
a. spine, cluster, loop, and partition.
b. free flow, cluster, partition, and grid.
c. cluster, free flow, loop, and spine.
d. free flow, grid, loop, and spine.
e. cluster, loop, spine, and partition.
An example of a retailer using customary pricing would be:
a. a local barber shop maintaining the price of a haircut at $9.00.
b. a local hardware store promising to undersell the competition by at least 1 percent.
c. Wal-Mart promising to always have the lowest prices in town.
d. setting a price at $4.99 instead of $5.00.
e. charging different consumers different prices.
_____ occurs when the retailer trusts the supplier and the supplier trusts the retailer.
a. Solidarity
b. High dollar performance
c. Coercion
d. Mutual trust
e. Relationship marketing
Employee theft, which amounts to _____ per apprehension, is most prevalent in foods
stores, department stores, and discount stores.
a. less than $50
b. approximately $100
c. approximately $200
d. approximately $500
e. more than $800
When a retailer increases the number of customers coming into its store by advertising
a widely known and frequently purchased product below cost, it is following a _____
strategy.
a. promotional pricing
b. unit pricing
c. loss-leader pricing
d. leader pricing
e. below-market pricing
If an item costs a retailer $75 and the retailer’s markup percentage is 30 percent based
on cost, what is the retailer’s selling price?
a. $22.50
b. $97.50
c. $208.33
d. $283.33
e. Cannot be determined with the information provided.
The most important financial statement a retailer prepares is the:
a. merchandise budget.
b. sales report.
c. balance sheet.
d. statement of cash flow.
e. income statement.
The three primary forms of providing service are:
a. in person, via telephone, via Internet.
b. professionally, effectively, consistently.
c. openly, honestly, directly.
d. direct, via a good, via education.
e. courteous, kind, accepting.
The competition between American Airlines and Delta Airlines is an example of:
a. monopolistic competition.
b. oligopolistic competition.
c. pure monopoly.
d. pure competition.
e. perfect competition.
Which of the following demographic factors have been significant sources of change
over the last decade?
a. Fluctuating birth rate, the increasing number of immigrants, the growing importance
of Generation-Y consumers, the fact that Generation-Xers are starting to reach middle
age and that baby boomers are nearing retirement age.
b. Aging of baby boomers, declining household incomes, decline in part-time workers,
redistribution of income levels, and the rise in the number of college graduates.
c. Increasing number of women in the workplace, declining household incomes, rise in
part-time workers, rise in teenage suicide, and redistribution of income levels.
d. Fluctuating birth rate, the growing importance of Generation-X consumers, the fact
that Generation-Yers are starting to reach middle age, and the increasing number of
women in the workforce.
e. Fluctuating birth rate, the growing importance of Generation-X consumers, the fact
that Generation-Yers are starting to reach middle age, and the decline in household
incomes.
E-tailers must pay better attention to customer service.
The management of cooperative relations is facilitated by mutual trust, two-way
communication, and solidarity.
When the customer begins to reexamine the product carefully, the customer may be
nearing the closing phase of the sales process.
How do coverage, reach and frequency relate to media selection? What guidelines
should a retailer follow in terms of the timing of advertisements received by the
consumer?
The major advantage held by off-price retailers over discounters is that they provide
consumers with a consistent selection of top brands at reduced prices, whereas
discounters’ selections are more volatile.
The term “palming off” refers to when a retailer sells “gray market” products.
College-educated consumers are more alert to price, quality and advertised claims than
other workers of the same age and income level.
One reason employees need to be engaged with the retail enterprise is because
customers will notice the behavior and attitudes of the employees.
The best sales strategy to use when the customer does not have a prior criteria set is to
educate the customer on the best choice criteria and how to weigh them.
The Internet has completely destroyed bricks-and-mortar retailers.