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Both capital and operating expenditures can be depreciated.
Firms that promote mostly on a seasonal basis utilize massed advertising efforts.
Air travelers are captive audiences for a temporary time period.
Annual demand for color ink jet printers for a computer retailer is 500 units; order
placement costs are $35; each printer averages $200 at cost; and annual carrying costs
per unit are $50. The economic order quantity is 27 units.
Social responsibility is a broader concept than consumerism.
A retailer's most loyal customers comprise its fringe trading area.
A major advantage to the use of an everyday low pricing (EDLP) strategy to a retailer is
its _____.
a. reduction of advertising and relabeling costs
b. generation of customer traffic that accompanies special sales events
c. ability to receive increased allowances from major suppliers
d. providing of special sales events to consumers to generate traffic
In cross-training, personnel _____.
a. are trained to sell in self-service facilities
b. have clear performance standards
c. learn tasks associated with more than one job
d. are encouraged to engage in long-term employment in the firm
Which lease provisions specifically guard against operating cost increases to the
property owner?
a. graduated lease and percentage lease
b. maintenance-increase-recoupment provision and net lease
c. percentage lease and straight lease
d. graduated lease and straight lease
The first step in enacting a direct marketing strategy is to _____.
a. define one's business
b. select media
c. generate customers
d. arrange order fulfillment
Whereas image refers to how a retailer is perceived by customers, positioning refers to
a retailer's image with regard to its _____.
a. atmosphere
b. target market
c. direct competitors
d. former customers
A retailer's return on assets equals 5 percent. Its financial leverage is 4. What is its
return on net worth?
a. 10 percent
b. 16 percent
c. 20 percent
d. The answer cannot be determined from the information provided
An integral component of any differentiated marketing strategy is _____.
a. a unique set of product/service offerings to each customer group
b. an overall company-based integrated strategy
c. coordination of retailing strategy across units
d. geographic differentiation to meet customer needs
Cash, inventory on hand, and accounts receivable are examples of _____.
a. liabilities
b. net worth
c. current assets
d. current liabilities
A traditional retailer contemplating a Web operation is concerned about its ability to
ship small orders to individual consumers in a timely manner. Which aspect of its direct
marketing strategy is the retailer questioning?
a. order fulfillment
b. business definition
c. data-base maintenance
d. customer response
The planning and monitoring of a retailer's financial investment in merchandise over a
stated time period is _____.
a. dollar control
b. a central unit
c. unit control
d. open-to-buy decision making
A major advantage of publicity is _____.
a. ease in planning
b. no costs for total publicity effort
c. high believability
d. control over message placement
Primary data may be developed through surveys, observation, experiments, and
simulation.
A retailer that utilizes a form of organization that allows branch personnel to order
merchandise classifies jobs through a geographic classification system.
For an organization to be considered successful, it must meet the needs of its target
market, employees, and management.
Some retailers excessively use chargebacks as a means of getting price reductions from
vendors.
Planned shopping centers are characterized by central ownership/management, central
planning, and balanced tenancy.
Web-based retailers can either operate their own fulfillment operation or assign these
responsibilities to a third party.
In a market penetration strategy, goals are generally expressed in terms of sales and
market share.
Orders for merchandise in a quick response (QR) inventory system are generally made
using negotiated contracts.
Geographic information systems enable retailers to see graphical depictions of
trading-area characteristics for current, proposed, and competitor locations.
