A discount department store aims its retailing strategy at a large homogeneous (similar)
group of consumers. A wide assortment of goods is offered at popular prices. The
retailer utilizes which target market strategy?
a. mass marketing
b. market segment
c. multiple segmentation
d. store positioning
At the consumer’s option, an option credit account can be either paid in full or be a
_____.
a. layaway plan
b. deferred billing account
c. COD account
d. revolving credit account
The use of prototype stores is commonly associated with _____.
a. fast-food outlets
b. no form of retailing
c. independent retailers
d. branches of department stores
A major disadvantage of advertising is that _____.
a. a small audience is attracted
b. retail control over message timing and content is low
c. few alternative media are available
d. the message is standardized and inflexible
The optimal type of economic base is a _____ economic base.
a. specialized
b. commercial
c. governmental
d. diversified
Difficulty in adjusting inventory values to reflect style changes is a problem associated
with _____.
a. the cost method of accounting
b. the retail method of accounting
c. FIFO
d. LIFO
The major distinction between primary and secondary data is that secondary data
_____.
a. are less costly
b. have been previously gathered for other purposes
c. have been generated by commercial research houses
d. are conducted at fixed time periods
Which type of retailer ad is most likely to include a coupon or response card?
a. institutional advertisement
b. reminder advertisement
c. pioneer advertisement
d. competitive advertisement
The hierarchy of authority within a firm is described in _____.
a. a goal-oriented job description
b. a job description
c. job analysis
d. the organization chart
The retailer most likely to have a flat organization is a _____.
a. small independent retailer
b. chain retailer
c. department store
d. diversified retailer
The major problem with the sales-productivity ratio method of assigning space is that
_____.
a. storability may not be considered
b. too much space may be assigned for merchandise space
c. too little space may be assigned for merchandise space
d. an inadequate selection of merchandise may be stocked
The use of point-of-sale cash register-based data in conducting a study of fast-selling
merchandise illustrates _____.
a. external secondary data
b. internal secondary data
c. an experiment
d. observation
If a wide retail assortment enables customers to undertake one-stop shopping, what is
the benefit of a deep assortment?
a. less likelihood of having national brands
b. ample selection within a product category
c. quantity discounts on purchases
d. meeting family members’ needs
The major advantage of Census of Population data is that they are available annually.
Perceived risk levels vary only slightly among consumers.
In an effort to better appeal to retailers, many magazines are creating regional and local
editions.
A merchandising philosophy is appropriate to a retailer that feels that buying and selling
functions each require different skills.
Electronic banking involves the use of automatic teller machines and the instant
processing of retail purchases.
Through the sorting process, consumers are provided one-stop shopping and retailers
are provided with impulse purchases through related-item merchandising.
A retailer can improve its cash flow through reducing the effects of seasonality and
through purchasing goods from vendors with faster delivery.
Charging manufacturers for shelf space for their new products is an example of a
retailer’s channel power.
A location classified as a one-hundred percent location for one retailer would be a
one-hundred percent location for all retailers.