A retailer’s organizational mission is its _____.
a. consumer orientation
b. commitment to a type of business and to a distinctive role in the marketplace
c. focus on determining and satisfying consumer wants and needs
d. good or service category determination
Which of the following is not a role of the Web from the vantage point of the retailer?
a. to furnish customer service in the form of E-mail and “hot links”
b. to replace mail, phone, and fax communications
c. to reach geographically dispersed consumers, including foreign consumers
d. to provide information to consumers
The retail life cycle stage characterized by excess capacity and overstoring is _____.
a. introduction
b. accelerated development
c. maturity
d. decline
A college bookstore that purchases goods from over 200 vendors demonstrates _____.
a. economies of scale
b. a channel of distribution
c. the sorting process
d. vertical integration
From a customer’s perspective, which of the following is not a major impediment to
Web-based retail transactions?
a. slow downloading times
b. local sales taxes to be paid
c. concern with credit card security
d. concern with privacy
An appropriate research technique for use when a retailer wants to determine
consumers’ perceptions of its store image and wishes to minimize bias is _____.
a. simulation
b. a disguised survey
c. a nondisguised survey
d. observation
An informal ranking of people in a culture is a(n) _____.
a. AIO group
b. social class
c. reference group
d. family life cycle
A(n) _____ card contains an electronic strip that stores and modifies information as
transactions take place.
a. smart
b. debit
c. credit
d. interactive
Which of the following has the greatest flexibility in developing and implementing a
retail strategy?
a. independent retailer
b. franchisee
c. chain store manager
d. leased department operator
A retailer with high inventory turnover is likely to have _____.
a. high gross margin return on investment
b. low operating costs
c. low employee turnover
d. high profits
A proactive, integrated approach to atmospherics by a retailer is referred to as _____.
a. aesthetics
b. visual merchandising
c. goodwill
d. retail image
Supermarkets and full-line discount stores have effectively reduced personnel costs
through the use of _____.
a. self-service facilities
b. vertical merchandising
c. prototype stores
d. just-in-time inventory management
Car dealers, antique stores, and clothing stores are most likely to be located in a(n)
_____.
a. neighborhood business district
b. secondary business district
c. string
d. isolated location
The distance between city A and city B is 25 miles; city A is 1/16 the size of city B. The
point of indifference between the two cities is _____ miles from A and _____ miles
from B.
a. 15; 10
b. 18; 7
c. 20; 5
d. 22; 3
An unsatisfactory evaluation may cause a retailer to reject an entire shipment. The
retailer is using which form of merchandise evaluation?
a. sampling
b. description
c. inspection
d. statistical evaluation
A chargeback is a form of _____.
a. manufacturer-based channel power
b. retailer-based channel power
c. channel cooperation
d. promotional allowance
Which of the following has had the greatest impact on making merchandise handling
and inventory control more efficient?
a. merger and acquisition activity
b. computer systems
c. multi-channel retailing
d. foreign ownership of U.S. retailers
A firm benchmarking its customer satisfaction on the basis of secondary data should use
_____.
a. reliability measures
b. the American Customer Satisfaction Index
c. gap analysis
d. SERVQUAL
A significant advantage to a consumer of a credit card system in comparison to a debit
card system is _____.
a. the delayed payment benefit
b. higher security
c. tightened privacy
d. lower cost
Primary data need not be collected when secondary research is relevant, current, and
reliable.
The cost per thousand rate represents the cost of a column inch of space per one million
circulation.
Geographic information systems enable retailers to easily scan a wide variety of
potential locations.
The model stock approach and sales-productivity ratio relate to the allocation of selling
and merchandise space, not personnel and customer space.
A retailer’s cost complement is equal to its gross margin.