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Which food-oriented retailer specializes in fill-in merchandise?
a. convenience store
b. supermarket
c. specialty store
d. superfood store
The trading area that generally encompasses the greatest geographic area (in terms of
square miles) is the _____.
a. fringe trading area
b. trading-area overlap
c. secondary trading area
d. primary trading area
Delineating a central business district may be difficult because _____.
a. retail balance may confuse normal boundaries
b. affinities may confuse normal boundaries
c. the Census of Population may be obsolete
d. there are no set boundaries to mark its beginning or end
A firm that spends too much on promotion in good sales periods and too little in poor
sales periods probably uses which overall promotional budgeting technique?
a. retailer buildup
b. competitive parity
c. incremental
d. percentage-of-sales
A retailer plans retail expenses for the following year to be 30 percent of net sales,
desires a 5 percent (of net sales) profit margin, and assumes total reductions will be 8
percent of net sales. What is its required initial markup percentage?
a. 35.0
b. 39.8
c. 43.0
d. The answer cannot be determined from the information provided.
Which medium is associated with a low response rate and a high throwaway rate?
a. local magazine
b. daily newspaper
c. weekly newspaper
d. direct mail
Which of the following is not a cause of inventory shrinkage?
a. markdowns due to stale merchandise
b. theft by employees
c. shoplifting by consumers
d. administrative errors by vendors (such as short weighing)
A firm's current assets equal $40,000; its fixed assets are $200,000; its current liabilities
are $20,000; and its fixed liabilities are $80,000. What is its net worth?
a. $40,000
b. $60,000
c. $140,000
d. $240,000
The personal needs of the retailer during the early, unprofitable stage of business are
paid through _____.
a. a bank credit plan
b. life insurance loans
c. personal savings
d. a personal drawing account
Which type of planning is in accord with the principles of participative management?
a. top-down
b. bottom-up
c. short range
d. long range
A major advantage to store ownership (versus leasing) is the _____.
a. low investment
b. lower property taxes
c. freedom from lease renewal concerns
d. ability to secure regional shopping center locations
A category killer is a form of _____ store.
a. department
b. variety
c. specialty
d. full-line discount
Perishable goods need to be grouped using storability product groupings.
For a weighted application blank to be effectively used, individual factor scores (for
education, experience, and so on) must be correlated with such criteria as job turnover
and high job achievement.
A retailer can decrease its collection period by offering its customers cash discounts.
Order-taking salespersons are most likely to engage in cross-selling and trading up of
customers.
Class-conscious shoppers are concerned with both brand and store image.
The nearness to parking and the side of the street are more important store locational
factors to a shopping-oriented store than to a convenience-oriented store.
A customer must pay the bill when it is due with a revolving credit account.
A bottom-up space management approach is based upon participative management.
The vast majority of all retail institutions are chain operated.
