Retailing is best characterized by which of the following?
a. independent ownership dominating sales
b. franchise organizations dominating sales
c. ease of entry into the marketplace
d. vertical marketing systems being fully integrated
It is important for franchisors to specify rigid operations standards and to restrict choice
of suppliers so that _____.
a. franchisors can receive operating revenues
b. financial resource requirements for franchisees can be limited
c. a uniform image can be presented to customers regardless of location
d. a professional manager system can be utilized
A retailer using the basic stock method wants its average monthly stock to equal 20
percent of its average monthly sales. Next year’s sales are forecast at $2,400,000.
Planned sales for January are $340,000. What is the January 1 planned inventory value
(at retail) using the basic stock method?
a. $380,000
b. $400,000
c. $432,000
d. The answer cannot be determined from the information provided.
A retailer seeks store loyalty, as well as greater channel control. Which branding
philosophy should the retailer use?
a. manufacturer branding
b. generic branding
c. private branding
d. mixed branding
Which of these location forms is unplanned as a unit?
a. regional shopping center
b. neighborhood shopping center
c. community shopping center
d. central business district
The most quantitative type of computerized trading analysis is _____.
a. the regression model
b. the analog model
c. the gravity model
d. license-plate analysis
The simplest organization pattern in retailing can be found in which retail format?
a. department store
b. supermarket
c. independent
d. chain
Which retail assortment strategy is used by a traditional department store?
a. wide and deep
b. narrow and shallow
c. wide and shallow
d. narrow and deep
A bicycle store desires a minimum 20 percent markup for all popular bicycle models. If
a retailer feels that a popular bicycle model should retail at $200, what is the maximum
price the retailer can pay for the bicycle model?
a. $60
b. $160
c. $167
d. $180
Audit forms generally resemble _____.
a. management reports
b. questionnaires/checklists
c. computer printouts
d. survey research data
An example of perishability of a service is _____.
a. the inseparability of the producer from the service
b. the variability of a service’s quality
c. that some services cannot be inventoried or stored
d. that the owner-operator is indispensable
Corner influence is generally positive due to _____.
a. larger trading areas
b. better retail balance
c. higher levels of affinity
d. greater visibility
In a credit management program, a retailer generally needs to balance the ability of
credit to generate additional revenues against the cost of processing credit payments
(including bad debts).
Knee-level displays have greater visibility and effectiveness than eye-level displays.
The purchase of a highly visible product, such as a costly high-fidelity system, can
involve financial, functional, and social risks.
In the main store control organization, most authority remains with managers at the
headquarters store.
Functional account expenses are reported by the names of the costs, not the purpose or
activity for which expenditures are made.
There are generally cost advantages associated with the use of prototype stores.
Items with rather high pilferage should receive electronic product tags in addition to
overall store security measures.
A retailer’s total merchandise available for sale (at cost) is $175,000. The total in
merchandise available for sale at retail equals $255,000. The retailer’s cost complement
is 1.46.