Which of the following is an example of a non-traditional location that retailers are
selecting:
a. travel stop plazas along interstate highways.
b. multi retail store shopping centers.
c. suburban shopping malls.
d. outlet malls.
e. local corner stores.
The courts have interpreted this doctrine to suggest that retailers must be careful in how
they sell their products.
a. The substantial performance doctrine
b. The foreseeability doctrine
c. The doctrine of collective responsibility
d. The doctrine of reasonable expectations
e. The doctrine of approximation
Which of the following statements about divorce is FALSE?
a. Retail purchases may be stimulated as a new household is created.
b. Time may become an even more critical factor in shopping decisions for the
individuals involved.
c. Since 1960, the divorce rate in the U.S. has increased by 250 percent.
d. As women’s wages rose, it became more profitable for them to enter the labor force;
as a result, spouses have become less dependent on each other, and the divorce rate has
increased.
e. Divorce, while creating new households, does not actually stimulate any new retail
purchasing.
The extent to which retailers are concentrated in different geographic areas of a
community is referred to as:
a. overstorage.
b. store saturation.
c. supply metrics.
d. supply density.
e. supply leverage.
A channel captain:
a. is a retailer that carries a large amount of merchandise in the marketing channel at
good prices.
b. helps the customer gets needed information in the store and then orders it online for a
lower price and to avoid paying state sales tax.
c. is the institution in the marketing channel that is able to plan for and get other
channel institutions to engage in activities they might not otherwise engage in.
d. provides information on the structure of retail competition.
e. is a retailer that develops its own brand name and contracts with a manufacturer to
produce the product with the retailer’s brand.
When a community has a high amount of square feet per employee, it potentially
indicates:
a. that a low level of retail technology exists in the community.
b. a low level of self-service retailing.
c. a desire for more service.
d. that a low level of service technology exists in the community.
e. a high level of self-service retailing.
Operating profit is the difference between:
a. net sales and returns and allowances.
b. gross margin and operating expenses.
c. gross margin and cost of goods sold.
d. cost of goods sold and returns and allowances.
e. gross sales and cost of goods sold.
The _____ is the geographic area where the retailer can serve customers, in terms of
convenience and accessibility, better than the competition.
a. promotional area
b. primary trading area
c. secondary trading area
d. convenience area.
e. merchandise range
A neighborhood shopping center generally has a primary trade area of:
a. 1 mile.
b. 3 miles.
c. 8 miles.
d. 15 miles.
e. 25 miles.
All of the following are steps in a retail advertising campaign EXCEPT:
a. designing the message.
b. researching the target market.
c. budgeting for the campaign.
d. selecting the media to use.
e. evaluating the campaign’s results.
Suppose last year’s sales were $100,000; inflation is 3 percent and you expect your
market share to increase by 6 percent. What are your projected sales for this year?
a. $103,000
b. $106,000
c. $109,000
d. $109,180
e. $118,000
There are three types of primary marketing institutions: manufacturers, retailers and:
a. transporters.
b. agents/brokers.
c. wholesalers.
d. advertisers.
e. warehouses.
If a retailer cannot offer the same services as its competitors:
a. it should not worry about competitors’ services.
b. it should no longer consider them to be competitors.
c. it could move to a different trading area.
d. it could discontinue offering any services.
e. it could offer lower prices.
When designing a sales job, a retailer should consider all of the following factors
EXCEPT:
a. feedback from supervisors.
b. the amount of variety involved.
c. whether the applicant is outspoken or not.
d. the appropriate degree of autonomy.
e. the level of task identity present.
Most retail experts agree that _____ will NOT be one of the four new retail formats to
be successful in the near future.
a. liquidators
b. recyclers
c. off-pricers
d. supercenters
e. rental operations
_____ is the dividing of a heterogeneous consumer population into smaller, more
homogeneous groups based on their characteristics.
a. Target marketing
b. Customer satisfaction
c. Market segmentation
d. Customer services
e. Operations management
The first step in planning a retail advertising campaign is budgeting for the campaign.
Depreciation and wages are considered to be operating expenses.
Explain the components of the balance sheet.
Internet sales are considered to be retail sales only if a customer purchases a physical
product from the web site.
Although traditional stores are constrained by geographic factors, a ‘virtual store’ does
not face these geographic constraints.
The process of dividing the total market into smaller, more heterogeneous segments is
called market segmentation.
Return on assets is net profit divided by owner’s equity.
Explain the differences between a retailers long-term and short-term promotional
objects.