A retailer uses a 20-unit reorder point based on assuming a 3-day lead time, a 5-day
usage rate, and a 5-unit safety stock. In how many days will a stockout occur if the lead
time becomes 7 days and the usage rate continues at 5 units per day?
a. 0
b. 2
c. 3
d. 4
In a survey, _____.
a. information is systematically gathered from respondents by communicating with
them
b. the respondent is always told the real purpose of the study
c. past behavior is observed and recorded
d. a computer manipulates retailing factors on paper
Data that can be developed through surveys, experiments, observation, and simulation
are _____.
a. secondary data
b. marketing research data
c. primary data
d. marketing information systems data
Which of the following is not an attribute studied as part of the SERVQUALmeasure?
a. accuracy
b. tangibles
c. empathy
d. assurance
Direct selling involves _____.
a. personal contact with consumers in their homes and a consumer’s ordering via mail,
phone, fax, or computer
b. nonpersonal media and a consumer’s ordering via mail, phone, fax, or computer
c. personal contact with consumers in their homes and phone solicitations initiated by a
retailer
d. nonpersonal media and phone solicitations initiated by a retailer
The store location of a coffee shop in a hotel lobby can best be described as _____.
a. overstored
b. understored
c. parasite
d. saturated
Contingency planning is conducted in _____.
a. benchmarking
b. opportunity cost analysis
c. scenario analysis
d. gap analysis
Centralized decision making is generally associated with _____.
a. micromerchandising
b. risk-maximization retailing
c. rationalized retailing
d. category management
A movie theater finds that when it reduces its prices, its total revenues drop
significantly. Its price elasticity of demand is _____.
a. unitary
b. inelastic
c. positive
d. elastic
An individual attempting to enter retailing who desires and requires considerable
training and assistance should consider _____.
a. product/trademark franchising
b. business format franchising
c. independent retailing
d. a leased department operation
Leases for retail locations are often so complicated due to _____.
a. the need to protect creditors
b. their long time duration
c. tax laws
d. rent regulations on a federal, state, and municipal level
An example of an expected retail strategy for a new-car dealer is _____.
a. transportation to and from home during auto repair
b. warranty repair work conducted free-of-charge
c. coffee and danish served in a waiting room during auto repair
d. 24-hour-a-day, 7-day-a-week auto towing for customers
The first stage in the problem definition process is examination of secondary data
sources.
The social-class classification system is based on factors such as income, occupation,
education, and dwelling type.
Sales-related objectives are more important than return on investment or cash flow
objectives for a retailer with high debt and/or high growth.
Electronic banking enables cash transactions to occur using retail coding systems.
The use of collaborative planning, forecasting, and replenishment (CPFR) is generally
associated with outside, new suppliers.
The major advantage of observation is its ability to measure attitudes in a natural
setting.
A retailer must allocate total floor space among selling, merchandise, personnel, and
customer areas.
Frequently, retailers and their suppliers have divergent viewpoints that need to be
reconciled.
The cost method of accounting requires that the cost of each item be coded on a price
tag or merchandise container.
In the emulation stage of a vertical trend, an original design is modified and then sold
by fine department stores.