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The major difference between a consignment purchase and a memorandum purchase is
based on _____.
a. when title passes from seller to buyer
b. when an item is paid for
c. purchase price
d. eligibility for cooperative advertising allowances
The major difference between bait-and-switch advertising and "trading the customer
up" to a more expensive substitute is that in bait-and-switch advertising, the
lower-priced item is _____.
a. not intended to be sold
b. sold below cost
c. sold to reduce competition from other retailers
d. sold to reduce seasonal sales trends
In a formal buying organization, _____.
a. existing personnel handle other functions
b. organization costs are low
c. the merchandising function is viewed as a distinct retail task
d. responsibility and authority are generally not clearly defined
A retailer takes 4 days to process an order and the supplier takes 12 days to deliver
merchandise. The retailer should begin to order merchandise how many days before the
old inventory runs out?
a. 3 days
b. 4 days
c. 16 days
d. 48 days
A massed advertising effort is most appropriate for retailers _____.
a. that stress personal selling
b. requiring high reach
c. with low advertising budgets
d. with peak sales periods
The most severe measure of a retailer's liquidity is the _____.
a. quick ratio
b. collection period
c. current ratio
d. assets to net sales ratio
An area's level of saturation can be calculated by examining average sales per retail
store, store sales per capita, and sales per square foot of selling area.
Which selection technique results in a minimum total score becoming a cutoff point for
hiring?
a. weighted application blank
b. application blank
c. goal-oriented job description
d. job analysis
Opportunistic buying is most commonly utilized by _____.
a. full-line discount houses
b. off-price retailers
c. supermarkets
d. specialty stores
The retail life cycle stage corresponding to a retail innovator first becoming vulnerable
to new discount retailers with a lower cost structure is _____.
a. introduction
b. decline
c. accelerated development
d. maturity
The planned shopping center whose store composition and trading area most closely
matches that of a central business district is the _____.
a. neighborhood shopping center
b. closed shopping mall
c. community shopping center
d. regional shopping center
Which of the following is not an example of a recent vending machine-related
innovation?
a. electronic cash-handling mechanisms
b. microprocessors that track consumer preferences and trace malfunctions
c. voice synthesizers
d. theft-resistant vending machines
Observation is most appropriately used in the study of which stage of the consumer
decision process?
a. purchase
b. post-purchase behavior
c. information
d. stimulus
A retailer's selling to consumers via store, catalog, and the Web illustrates _____.
a. selective distribution
b. impulse purchasing
c. intensive distribution
d. multi-channel retailing
A free alphabetical listing is provided to all advertisers in _____.
a. shoppers
b. the Yellow Pages
c. flyers/circulars
d. the White Pages
Agreements drawn up that require franchisees to abide by stringent regulations set by
the franchisor are legal if necessary to _____.
a. develop and maintain a uniform chain-like image
b. force franchisees to purchase goods and services from approved vendors
c. constrain franchisee decision making
d. provide franchisors with additional revenues
Pre-training involves the teaching of _____.
a. salesmanship principles and product knowledge
b. various training methods to determine their effectiveness
c. company history and policies and a job orientation
d. aptitude and achievement tests
An area that has too few retail stores to satisfy its population's needs is _____.
a. saturated
b. understored
c. not reaching its economic base potential
d. located at the point of indifference
A food-oriented retailer in which general merchandise accounts for 25 percent to 40
percent of total store sales is a _____.
a. superstore
b. combination store
c. box store
d. warehouse store
A common problem with all forms of direct marketing is the _____.
a. difficulty in a consumer's visualizing the product's texture, color, and fit
b. inability of a retailer to generate mailing lists from a customer data base
c. inability to classify shoppers on the basis of their past shopping behavior
d. high startup costs
Post-purchase behavior falls into either of two categories: further purchases or
re-evaluation.
Vendors can communicate shipping information with retailers through electronic data
interchange (EDI).
A retail firm commonly has a positive cash flow in its early years; therefore, drawing
accounts in this time period are unnecessary.
Consumers always utilize all the steps in the decision process.
Few good industrywide performance measures exist for retailers to be able to make
valid performance comparisons.
