A major disadvantage of the use of the U.S. Census of Retail Trade is its _____.
a. lack of accuracy
b. dated nature
c. low credibility
d. sampling error
Frequent shopper programs and customer and vendor analysis are made possible
through _____.
a. data-base management
b. data mining
c. electronic data interchange
d. data warehousing
An advantage of a leased department form of organization to a leasee is _____.
a. an enlarged market due to providing one-stop customer shopping
b. management assistance
c. protection from FTC regulations
d. financial support provided by the leasor
A logistics system can be best defined as the _____.
a. reduction of inventory in a system through more rapid reordering of goods in lower
quantities
b. use of a paperless, computer-to-computer relationship between retailers and their
vendors
c. total process of planning, implementing, and coordinating the physical movement of
merchandise from a manufacturer (wholesaler) to a customer in the most timely and
cost-efficient manner possible
d. acquisition and maintenance of a proper merchandise assortment while ordering,
shipping, handling, and other related costs are kept in check
The survey technique with the fastest response is a(n) _____.
a. telephone survey
b. mail survey
c. experiment
d. personal survey
Highly centralized management and strict operating procedures for each phase of
business characterize _____.
a. mass merchandising
b. rationalized retailing
c. positioned retailing
d. risk-minimization retailing
A major disadvantage of a merchandising philosophy is that _____.
a. coordination of buying and selling may be impaired
b. responsibility for success or failure may be unclear
c. buying and selling functions require different skills
d. communication between selling and buying staff may be unclear
In general, as more employees report to a supervisor, the retail organization tends to
become a _____ organization.
a. flat
b. tall
c. combination
d. self-service
Holding costs include _____.
a. computer time
b. inventory investment costs
c. purchase order costs
d. credit verification costs
“Do you want to pay for the item by cash, credit card, or check?” illustrates what selling
function?
a. greeting customers
b. closing the sale
c. sales presentation
d. demonstration of goods/services
Which of the following is not a major benefit of the World Wide Web to a small
retailer?
a. the ability to receive orders and inquiries on a 24/7 basis
b. the ability to reach distant customers, including foreign ones
c. the ability to reach all potential customers
d. the ability to project a large presence on the Web
There are three shopping locations with 300, 500, and 1,000 square feet of space
allocated to lighting accessories. A group of potential customers lives 5 minutes from
the first location, 10 minutes from the second location, and 15 minutes from the third
location. The retailer estimates the effect of travel time to be 2. The probability of
consumers shopping at location 1 is _____ percent.
a. 21
b. 23
c. 45
d. 56
A retailer uses a reorder point of 60 units. If its usage rate is 10 and its lead time is 6,
what is its safety stock?
a. 0
b. .6
c. 6
d. 10
Advertising messages need to be severely limited in the amount of copy in which
medium?
a. outdoor
b. radio
c. flyers
d. local magazine
The competitive advantage of a category killer is based on _____.
a. width of assortment
b. depth of assortment
c. imported merchandise prices
d. convenience of location
Limits are placed on a retailer’s merchandise lines in a planned shopping center to help
promote _____.
a. scrambled merchandising
b. affinities
c. balanced tenancy
d. a one-hundred percent location
The major difference between gross and net profit is that net profit _____.
a. includes transportation charges
b. uses a cost complement calculation
c. is based on LIFO, while gross profit is based on FIFO
d. deducts retail operating expenses