The most appropriate financial performance standard of a department store retail buyer
is _____.
a. customer satisfaction
b. total unit sales
c. total dollar gross profit in department
d. total dollar sales
Which inventory management system in retailing corresponds to a just-in-time
inventory management system?
a. automatic reordering
b. computer-based UPC scanning
c. economic order quantity
d. quick response inventory planning
Centralized purchasing and decision making, as well as cost efficiencies, are
characteristics of which form of retail institution?
a. independents
b. chains
c. retail cooperatives
d. vertical marketing systems
Sales revenue by goods/service category, gross margin return on investment, employee
turnover, and financial ratios are examples of _____.
a. performance measures
b. specific activities
c. objectives
d. a retail audit
The difference between planned purchases and purchase commitments already made by
a buyer for a given time period is _____.
a. the cost complement
b. the required initial markup percentage
c. reduction planning
d. the open-to-buy
A major difference between retailer and manufacturer advertising strategies is that
retailers _____.
a. have more geographically concentrated target markets than manufacturers
b. are more prone to use radio and television media than manufacturers
c. generate cooperative advertising programs
d. are more concerned with institutional advertising
Reilly’s law of retail gravitation can be improved through the use of _____.
a. perceived travel time
b. distances on major thoroughfares
c. convenience in driving
d. distance on different types of roads
Unlike other methods of inventory management, logistics _____.
a. is concerned with the flow of information via paperless means
b. regards order processing, transportation, warehousing, customer service, and
inventory management as interdependent
c. seeks to minimize inventory accumulations in the whole channel system
d. seeks to trade off the lower inventory levels with lower levels of customer service
Which type of retailer generally has the most complex organizational structure?
a. diversified retailer
b. small independent retailer
c. chain store
d. department store
In a revolving credit account, _____.
a. a customer is billed at the end of the month on the basis of the outstanding
cumulative balance
b. no interest is assessed if a consumer pays part of the bill when it is due
c. a customer can exceed his/her credit limit
d. a customer must pay his/her bill in full when it becomes due
2/10/net 30 means a 2 percent discount will be given if the full bill is paid in 10 days;
the full bill is due in 30 days.
A high stock turnover rate is generally associated with merchandise cost savings due to
quantity discounts.
Poor morale and personnel not being aware of the importance of their jobs may be
consequences of extreme specialization.
Internal secondary data are based on attitudes, whereas external secondary data are
based on behavior.
The reliability and responsiveness measures of SERVQUALdeal with service outputs
(how well and promptly the service was performed).
Vending machines allow for around-the-clock sales.
A disadvantage of advertising as a promotional form is its standardized message
content.