The most common form of vertical marketing system is _____.
a. independent vertical marketing system
b. partially integrated marketing system
c. fully integrated marketing system
d. a retail cooperative
The evolution of the conventional supermarket into combination stores and
supercenters can be explained by which retail concept?
a. scrambled merchandising
b. Huff’s law
c. rationalized retailing
d. the wheel of retailing
An audit is doomed to failure if _____.
a. top management is not responsive to accepting the need for change
b. the audit is conducted by company specialists
c. the purpose of the audit is kept secret from middle managers
d. the audit must be conducted when the store is closed
Which vertical marketing system allows a firm to appeal to different customers through
different wholesale and retail distribution forms?
a. dual vertical marketing system
b. independent vertical marketing system
c. partially integrated vertical marketing system
d. fully integrated vertical marketing system
An interactive search engine within a retailer’s site _____.
a. enables consumers to shop for a product from any Web page
b. directs a consumer to a manufacturer’s site for additional product information
c. directs a consumer to related sites
d. directs a consumer to product testing sites
Direct product profitability equals an item’s _____.
a. annual sales divided by the total linear footage devoted to a product category
b. gross profit less its direct retailing costs
c. annual gross profit divided by the total linear footage devoted to the item
d. number of days’ supply that is on the shelf
The increased number of working women and the desire for personal fulfillment
contribute to _____.
a. component lifestyles
b. consumer confidence
c. poverty of time
d. performance risk
A retailer uses the weeks’ supply method of inventory-level planning. Average weekly
sales during a 4-month period are forecast to be $7,500; the retailer wants to stock 9
weeks of merchandise. What should the planned average inventory level be during this
period?
a. $67,500
b. $73,000
c. $262,800
d. $292,000
The major difference between vertical and horizontal fashion trends is based on _____.
a. the initial group which accepts the trend
b. whether the product changes form
c. the initial group which accepts the trend and whether the product changes form
d. the degree of fashion innovativeness
The determination of trading-area overlap is most important for which retailer?
a. chain
b. supermarket
c. independent
d. department store
A major advantage of the open-to-buy concept is that it _____.
a. underestimates demand
b. limits foreign sales
c. seeks to balance stock on hand and planned sales
d. controls stock shortages
A paperless, computer-to-computer relationship between retailers and their vendors is
_____.
a. electronic data interchange
b. quick response inventory planning
c. floor-ready merchandise
d. a basic automatic replenishment system