A retailer’s retail mix consists of all of the following EXCEPT:
a. location.
b. price.
c. customer service and selling.
d. traffic strategy.
e. merchandise.
Brynn’s Bakery runs an advertisement touting the importance of diet and exercise. It
also mentions how Brynn’s uses the finest ingredients and offers many heart healthy
choices. This is an example of _____ advertising.
a. promotional
b. institutional
c. positional
d. repetitive
e. positive
When a retailer speaks of accessibility, within the context of reaching a target market,
the retailer is referring to the:
a. access of the store to handicapped persons.
b. access of the store to major traffic arteries.
c. degree to which the retailer can target its promotional or distribution efforts to a
particular market segment.
d. ease with which consumers can shop the retailer’s location.
e. degree to which the retailer can target its pricing strategy to appeal to a particular
market segment.
The _____ theory of retail evolution describes retail institutions as evolving from
outlets that offer wide assortments to specialized stores that offer narrow assortments,
and then return to the wide assortment stores, continuing this pattern again and again.
a. wheel of retailing
b. retail life cycle
c. retail accordion
d. dominant competitive
e. turnover
Which of the following statements about the changing nature of work impacting
retailers is false?
a. For entry-level personnel in retailing, turnover approaches 75 percent or more per
year.
b. One major opportunity for retailers is employing home-based workers.
c. Because people are finding more meaning in their work, they are more loyal to their
employers.
d. Disabled workers may represent a previously untapped pool of talent for the retailer.
e. Retailers need to find ways to enrich job experiences and lower turnover.
An owner of a restaurant decided that 5 percent of next year’s projected sales will be
spent on advertising. The owner is utilizing the _____ method in determining the
restaurant’s advertising budget.
a. percentage-of-sales
b. task-and-objective
c. approximation
d. parity
e. affordable
_____ is non-paid-for communications of information about the company or product.
a. Publicity
b. Advertising
c. Promotion
d. Propaganda
e. Personal selling
A central business district offers a retailer all of the following advantages EXCEPT:
a. proximity to commercial activities.
b. easy access to public transportation.
c. exposure to a wide product assortment.
d. variety in services and merchandise for sale.
e. inexpensive parking.
_____ refers to the management of merchandise categories, or lines, rather than
individual products, as a strategic business unit.
a. Category management
b. Breadth management
c. Assortment management
d. Brand management
e. Merchandise management
Which of the following is NOT a trend shaping the retail landscape today?
a. Decrease in competition from nonstore retailers
b. The advent of new retailing formats
c. Heightened global competition
d. The integration of technology into current operations
e. The increasing use of private labels
An example of a _____ pricing policy is when movie theaters give discounts to special
groups, such as seniors.
a. customary
b. variable
c. leader
d. specified
e. flexible
Although there are exceptions, as a general rule _____ distribution is associated with
_____ goods.
a. intensive; shopping
b. intensive; convenience
c. selective; specialty
d. selective; luxury
e. selective; convenience
Identify the correct statement about the changing market conditions defense which
buyers and sellers use that enable some types of price discrimination to occur.
a. The burden of such a defense is with the buyer.
b. This defense would attempt to justify the price differential based on the danger of
imminent deterioration of perishable goods.
c. The seller can attempt to show that its lower price to a purchaser was made in good
faith in order to meet an equally low price of a competitor, provided that this ‘matched
price’ did actually exist and was lawful itself.
d. Such a defense would attempt to show that a differential in price could be accounted
for on the basis of differences in cost to the seller in the manufacture, sale, or delivery
arising from differences in the method or quantities involved.
e. This defense would attempt to justify the price differential based on the obsolescence
of seasonal goods.
During the holiday season, a decision is made by the retailers in a local mall to share
the costs of holiday advertising. When retailers engage in this type of activity, it is
called:
a. same-level advertising.
b. vertical cooperative advertising.
c. integrated mall advertising.
d. horizontal cooperative advertising.
e. shared-costs advertising.
_____ exists when a high value is placed on the relationship between a supplier and
retailer.
a. Mutual trust
b. Two-way communication
c. Solidarity
d. Category management
e. Gray marketing
Buying is defined as:
a. the career path that involves responsibility for selecting, for selecting,training and
evaluating personnel.
b. the career path that enables you to select merchandise lines through e-tailing.
c. the career path whereby one use quantitative tools to develop appropriate buying
plans for the store’s merchandise lines.
d. the career path that allows complete independence in ordering merchandise for the
store.
e. the career path that will eventually lead to vice president.
Creative retail ads should seek to accomplish all of the following EXCEPT:
a. attract attention.
b. be as short as possible.
c. retain attention.
d. achieve the objective of the advertising strategy.
e. avoid having any errors, especially legal ones.
The resource-advantage theory teaches that all retailers cannot achieve superior results
at the same time.
Increased state and city tobacco taxes is an example of outshopping caused by
lawmakers.
A retailer must consider the impact of a customer’s travel costs when determining what
price a customer will pay for merchandise.
Superior planning can enable retailers to offset some of the advantages their
competition may have, such as a better location.
One of the most important considerations when planning a store’s layout is visibility of
the merchandise.
Explain the steps in the retail sales process.