A unique disadvantage for independent retailers is a lack of _____.
a. competitive advantages
b. independence
c. control over strategy
d. management succession
Order lead time is defined as _____.
a. average sales per day
b. extra inventory kept on hand to protect against stockouts
c. the stock level at which an order must be placed
d. the time period from when an order is placed until goods are ready for sale
In a model stock approach, a retailer determines its floor space needs on the basis of
_____.
a. perishability and storage needs
b. maintaining a proper assortment
c. profitability
d. opportunities to maximize sales
A retailer has anticipated yearly expenses of $300,000, a net profit objective of $72,000,
planned reductions of $24,000, and planned net sales of $1,000,000. What is its
required initial markup percentage?
a. 30.0
b. 37.2
c. 38.7
d. 39.6
A retailer that sells to multiple segments should use which management alternative?
a. professional manager system
b. decentralized structure
c. owner-manager system
d. centralized structure
Price elasticity is generally a negative number because _____.
a. demand is elastic
b. demand is unitary
c. demand is inelastic
d. of the law of demand
A(n) _____ retail strategy encompasses the extra elements in a value chain that
differentiate one retailer from another.
a. potential
b. augmented
c. expected
d. realized
An example of a chain retailer performing a wholesaling function is _____.
a. gaining exclusive rights to sell certain items
b. introducing private brands, such as Sears’ Kenmore
c. using point-of-sale equipment to determine inventory levels
d. buying directly from suppliers
Rigid operations standards and restriction on the choice of supplier characterizes _____.
a. partnerships
b. the professional manager system
c. franchising
d. the owner-manager system
A weighted application blank _____.
a. assigns values to education and experience factors and computes candidate scores
used in hiring decisions
b. is simpler than a conventional application blank
c. contains aptitude, as well as achievement test items
d. combines an interview with the conventional application process
The hub of retailing in a city is considered to be the _____.
a. central business district
b. neighborhood business district
c. secondary business district
d. string
A preliminary study of a retailer’s operations revealed that employees might feel
threatened by the retail audit process. What type of audit should be conducted?
a. disguised audit
b. audit by company department managers
c. audit by outside auditors
d. nondisguised audit
The Census of Population is conducted every _____ years.
a. 3
b. 5
c. 7
d. 10
Which statement concerning global direct marketing is not correct?
a. There is a decreasing acceptance of nonstore retailing outside the United States.
b. Outside the United States, annual direct sales are in the hundreds of billions of
dollars.
c. Eddie Bauer and Lands’ End are among the firms with a significant international
presence.
d. There are direct marketing trade associations in such diverse countries as Australia,
Brazil, China, and Russia.
A retailer with high customer loyalty is able to attract shoppers who come from long
distances. This retailer is described as a(n) _____.
a. destination retailer
b. parasite retailer
c. scrambled merchandising retailer
d. innovator
In most situations, leased departments have been used by existing retailers to _____.
a. deepen their merchandise assortment to customers
b. generate cash flow due to centralized checkouts
c. improve the store’s overall image
d. broaden their merchandise or service offerings into product categories on the fringe
of their business
Under the purchase-motivation product grouping, impulse items would be assigned to
which display position?
a. knee level
b. floor level
c. ankle level
d. eye level
Which retail institution commonly uses locations based in racetracks, stadiums, and
arenas?
a. off-price retail chain
b. flea market
c. factory outlet
d. membership club
A firm’s ending retail book value of inventory is $200,000. Its stock shortages are
$15,000. If its cost complement is 0.63, what is its closing inventory at cost?
a. $9,450
b. $116,550
c. $166,000
d. $170,150
Car rental and airplane travel are examples of _____ services.
a. regulated goods
b. owned-goods
c. nongoods
d. rented-goods
All retail activities are store-based.
The food-oriented retailer with the narrowest product assortment is the warehouse store.
In publicity, the media are not paid for the time or space utilized.
The partnership form of organization is ideal when two or more individuals possess
complementary skills and experiences.
A retailer’s average monthly sales are $50,000. If January’s monthly sales are $60,000,
January’s sales index is 110.
Slotting allowances illustrate the high power large retailers have over major vendors.