Increased coordination among channel members is a major advantage of clear channel
roles to all channel members.
An area can be understored with regard to one type of good or service and overstored
with regard to another type of good or service.
A firm assuming that employees are self-managers is more likely to use a flat rather
than a tall organization.
The underlying principle of a strategic approach to the study of retailing is that a retail
firm needs to plan and revise its plans continually in order to adapt to a changing
environment.
The type of impulse shopping which is least planned by consumers is unplanned
substitution.
A retailer selling men’s clothing is anticipating changing its markup from 50 percent to
35 percent to stimulate additional sales. It needs a 43 percent sales increase to maintain
its former gross profit.
A Web-based bridal registry is an example of solutions selling.
It is generally easy to sell a business with a short-term lease in effect on the retail
property.
“Underachievers” in the category management matrix are cash cows.
Neither channel cooperation nor sales potential is maximized in _____ distribution.
a. vertical
b. intensive
c. exclusive
d. selective
When a retail location has appropriate retail balance, it is a saturated area.
Which inventory planning tool can be used for staple, fashion, or fad merchandise?
a. want slip
b. never-out list
c. model stock plan
d. basic stock list
A chain with 100 stores is currently opening between 7 and 10 stores per year. What
performance measure most accurately reflects continuing sales productivity?
a. total sales
b. sales increase on a year-to-year basis
c. compound sales growth
d. sales per square foot in stores open one year or more
Which buying organization often operates in important merchandise centers?
a. general buying office
b. resident buying office
c. inside buying office
d. outside buying office
In massed advertising, _____.
a. reach is irregular throughout the year
b. reach is regular throughout the year
c. frequency is irregular throughout the year
d. frequency is regular throughout the year
Ordering costs, holding costs, and loss in profits due to stockouts are effectively
controlled in _____.
a. prototype stores
b. zero-based budgeting
c. incremental budgeting
d. inventory management
Because impulse sales are so important to retailers, there is a need to _____.
a. control expenses
b. analyze consumer demographics
c. study store image
d. utilize point-of-purchase materials
A form of research in which present behavior or the results of past behavior are viewed
and recorded is _____.
a. a survey
b. experimentation
c. observation
d. simulation
Which marketing research company identifies communities on the basis of lifestyle
clusters?
a. A.C. Nielsen
b. Sales & Marketing Management
c. Editor & Publisher
d. Information Resources Inc. (IRI)
Which budgeting process uses important aspects of a participative management style?
a. incremental budgeting
b. zero-based budgeting
c. top-down budgeting
d. bottom-up budgeting
A department store in a major shopping center can be classified as a(n) _____ store.
a. parasite
b. destination
c. unsaturated
d. saturated
An evaluation of the how well a firm’s buyers understand the computation of
maintained markups can best be ascertained through a _____ audit.
a. mystery shopper
b. disguised
c. horizontal
d. nondisguised
A retailer’s assets, liabilities, and net worth are portrayed on its _____.
a. balance sheet
b. profit-and-loss statement
c. budget statement
d. sales forecast
A major advantage of a straight lease versus a percentage lease is _____.
a. its long lease term
b. the known rental fees for both the retailer and the property owner
c. that inflation and maintenance cost increases are reflected in rental changes
d. its use of renewal options
The growth of consumer cooperatives has been limited due to _____.
a. fair practice legislation
b. required consumer/member initiative and drive
c. competitive actions by full-service retailers
d. wholesaler use of full-time forcing
The questions “What is the firm’s current status?” and “In which direction should it be
heading?” are evaluated in which retail strategy stage?
a. philosophy of business
b. situation analysis
c. strategy determination
d. implementation and analysis
The recruitment source with which job candidates have the least degree of screening is
_____.
a. employment agencies
b. other channel members
c. advertisements
d. employee recommendations
Which retail institution is most likely to appeal to a concentrated market segment?
a. department store
b. specialty store
c. conventional supermarket
d. superstore
A job description contains an outline of _____.
a. superior/subordinate relationships
b. behaviorally-based job objectives
c. the job title, objectives, duties, and responsibilities
d. compensation benefits
In the second stage of the wheel of retailing, retailers broaden their assortments to
appeal to one-stop shopping needs of consumers.
Retail atmosphere is a major strategic variable in box (limited-line) and warehouse
stores.
The sorting process allows retailers to purchase goods from a variety of manufacturers
and to sell them in small quantities to consumers.
Advertising is any communication by a retailer that informs, persuades, and/or reminds
a target market.
Consumers order by mail, phone, fax, or computer, smart phone, or tablet in direct
marketing.
Video kiosks are especially suited for items such as gift certificates or tickets (for
concerts, airlines, and movies).
Consumer food cooperative sales have grown to a substantial share of total supermarket
sales due to consumer beliefs in low supermarket produce quality and high supermarket
price levels.