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The increased deregulation of industries should have a positive impact on which
consumer right?
a. the right to safety
b. the right to be heard
c. the right to choose
d. the right to be informed
An area with a relatively large number of consumers per square foot of available store
space is _____.
a. understored
b. saturated
c. overstored
d. oversaturated
Minimum-price laws are intended to protect small retailers from _____.
a. price discrimination
b. the Robinson-Patman Act
c. predatory pricing by larger firms
d. item pricing removal
The largest shopping center (in terms of numbers of stores and size of trading area) is a
megamall.
Which of the following best illustrates a retail cost containment strategy?
a. buying refurbished equipment
b. closing down unprofitable locations
c. increasing services
d. expanding store hours
Which statement concerning marketing research in retailing is not correct?
a. The use of intuition is an example of the use of marketing research in retailing.
b. Marketing research reduces a retailer's risk.
c. Marketing research should be a continuous process.
d. Marketing research can involve such facets of a retailer's strategy as pricing, location,
and store image.
The forgoing of possible benefits is measured through _____.
a. zero-based budgeting
b. top-down budgeting
c. opportunity costs
d. bottom-up budgeting
A major disadvantage of planned shopping centers to a retailer is that _____.
a. the arrangement of stores follows no format
b. parking is generally limited
c. there are few retailers to share costs and to generate traffic
d. merchandise to be sold can be restricted
Sales objectives are generally in the form of _____.
a. satisfaction of stockholders and customers
b. return on investment, efficiency, and level
c. customer and industry image
d. growth, stability, and/or market share
The span of control refers to the number of subordinates reporting to one manager. A
firm with a large span of control utilizes a _____ organization.
a. tall
b. flat
c. decentralized
d. functional
A characteristic of an excellent "telling" Web site is _____.
a. ease of ordering
b. consumer privacy
c. the high level of credit-card security
d. store hours and locations
An example of a capital expenditure is _____.
a. personnel salaries
b. store fixtures
c. sales commissions
d. insurance
Stockholder satisfaction is an important objective for a retailer using which ownership
and management alternative?
a. corporation
b. partnership
c. sole proprietorship
d. franchise
A property owner wants to base rental terms for a retail location on sales and
anticipated property maintenance but wants total rental dollar amounts set for each year.
The best lease type is a _____ lease.
a. straight
b. percentage
c. graduated
d. net
City A is 4 times greater in population than city B. If the cities are 20 miles apart, the
point of indifference is 13.3 miles from city A based on Reilly's law.
It is important that a retail audit be conducted during a different month each year to
minimize time bias.
Although a wide and deep retail assortment strategy attracts customers through one-stop
shopping, it requires a high inventory investment.
The goal in a never-out list is to maximize inventory turnover.
In general, an outside retail auditor is most appropriate when the objectivity of
company-based personnel may be questioned.
A franchisee operating at one retail location can be classified as an independent, as well
as a franchise.
Lower-income consumer groups utilize the decision process more thoroughly than any
other income group.
Incremental budgeting is more flexible than zero-based budgeting.
In general, coordination and control are greater in a flat organization than in a tall
organization.
