Which one of the following is not a crucial element in Target’s overall retail strategy?
a. growth-oriented objectives
b. a focus on its discount store niche
c. sale of goods at the lowest competitive price
d. strong customer service for its retail category
In which stage of the decision process does a consumer recognize that the good or
service under consideration may solve a situation of shortage or unfulfilled desire?
a. evaluation of alternatives
b. information search
c. stimulus
d. problem awareness
If legally allowed, during periods of rising inventory values, a retailer using the FIFO
(first-in-first-out) method could reduce its tax liability by _____.
a. using the cost method of retail accounting
b. maintaining a book inventory
c. calculating deductions from retail value
d. switching to LIFO
Which retailer has the smallest amount of merchandise space?
a. full-service specialty store
b. department store
c. full-line discount store
d. membership club
Which audit technique should be used to determine the accuracy of a retail buyer’s sales
forecasts?
a. nondisguised
b. systematic
c. disguised
d. horizontal
Which productivity enhancement technique focuses on strategic business units?
a. category management
b. electronic data interchange
c. just-in-time inventory management
d. management by objectives
Decision making is usually centralized and the levels of management personnel are
minimized in which retail institution?
a. department store
b. chain
c. variety store
d. independent
The trading area of an existing store can best be estimated through examining _____.
a. the American Community Survey
b. customer delivery records
c. pedestrian and vehicle traffic
d. Census of Population data
A sales maximization goal for a retailer is reflected in which pricing strategy?
a. market penetration pricing
b. administered pricing
c. pricing above the market
d. market skimming pricing
A firm’s collection period is 46 days; its overall terms are 30 days. This indicates _____.
a. slow-turning accounts receivable
b. fast-turning accounts receivable
c. average-turning accounts receivable
d. full paying of accounts payable
A retailer requires a merchandise management organization in which sales personnel
are closely supervised. An appropriate organization focuses on _____.
a. merchandising
b. separate buying and selling functions and staff
c. a centralized buying organization
d. a decentralized buying organization
The primary advantage of a climate-controlled entry is that store temperatures are
efficiently maintained.
In a curving traffic-flow pattern, inventory control and security are simplified.
Generally, initial investment requirements are less in direct marketing as compared to
traditional store-based retailing.
A vertical audit is often referred to as a “retailing mix” audit.
An augmented retail strategy consists of the additional elements that differentiate one
retailer from another.
Outside buying organizations are generally used by small or medium-sized retailers or
by those who are far from their sources of supply.
Opportunistic buying is common among off-price retailers.