In developing performance measures for a retailer, it is important to _____.
a. focus on short-term measures
b. develop measures unique to the firm
c. use the same measures over time to allow trends to be ascertained
d. use measures that cannot be directly compared to widely respected secondary sources
Improving employee performance and reducing costs through automation are two ways
to increase _____.
a. inventory turnover
b. retailer productivity
c. asset turnover
d. financial leverage
The total retail experience, customer service, and relationship retailing directly focus on
which aspect of the retailing concept?
a. long-run planning
b. customer orientation
c. goal orientation
d. coordinated effort
The earnings of an employee are directly related to productivity in which compensation
plan?
a. straight-commission plan
b. straight-salary plan
c. salary plus commission plan
d. compensation cafeteria
Return on net worth equals return on assets times _____.
a. profit margin
b. cost of goods sold
c. asset turnover
d. financial leverage
A major advantage of the Census of Population is that data on blocks and tracks can be
combined to match the size and shape of a retailer’s trading area.
The procedure to gather, integrate, apply, and store information related to specific
subject areas is _____.
a. a retail information system
b. data-base management
c. marketing research
d. data storage
A retailer is concerned about such issues as tradeoffs between faster delivery times from
suppliers and higher shipping costs and support from suppliers in storing merchandise.
These issues concern _____.
a. store security
b. inventory management
c. crisis management
d. outsourcing
A retailer wants an audit to be as objective as possible. The retailer recognizes that there
is significant rivalry and competition within the firm. The retailer should use a(n) _____
to conduct the audit.
a. outside auditor
b. company department manager
c. team auditor
d. company specialist
Which of the following has developed because existing retail institutions are
inadequately fulfilling market needs?
a. consumer cooperatives
b. independent channel ownership
c. leased departments
d. total vertical integration
In a debit card system, the _____.
a. customer can either pay the full amount due immediately or defer payment
b. customer is not billed until his or her billing cycle date
c. retailer still has the risk of customer nonpayment
d. purchase price is automatically deducted from a consumer’s bank account and then
entered into the retailer’s account through a computer terminal
A firm’s average monthly sales are $250,000. If December’s sales are $445,000, its
monthly sales index is _____.
a. .51
b. 2.10
c. 48
d. 178
A vertical fashion trend assumes that _____.
a. a fashion is passed from the upscale customers to the mass market
b. New York is the fashion capital of the world
c. innovative customers may come from any social class
d. merchandise must be sold across the social class spectrum
A retailer can eliminate use of its own warehouses through _____.
a. ordering goods in large quantities
b. use of direct store delivery
c. use of electronic data interchange with key vendors
d. supply chain management initiatives with key suppliers