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Doctor are examples of what kind of vertical marketing channel?
a. Wholesaler-sponsored voluntary group
b. Contractual channel system
c. Administered system
d. Retailer-owned cooperative
e. Conventional marketing system
When a retailer is attempting to determine its major advantage(s) over competitors, it is
analyzing its:
a. strengths.
b. weaknesses.
c. opportunities.
d. threats.
e. operations.
Which of the following statements regarding current U.S. population trends is correct?
a. The baby boomers are now moving into their 30s and 40s.
b. The country’s total population is expected to grow at a faster rate in the next 10 years
than in the previous 20 years.
c. Americans change their residences about a four times in their lifetime.
d. Most of the U.S. population resides in secondary markets, areas with populations less
than 50,000.
e. Between 2000 and 2007 the eight fastest-growing states were all in the West and the
South.
Which of the following statements about dual distribution is incorrect?
a. It may have an adverse effect on manufacturer-retailer relationships.
b. It can take place when a manufacturer opens it own retail store in a market area when
it feels that the current retailers handling the product line are not doing an adequate job.
c. All dual distribution arrangements are illegal.
d. It is legal for a manufacturer to manage a corporately owned vertical marketing
system that competes with independent retailers that the manufacturer also supplies.
e. It occurs when a manufacturer sells to independent retailers and also through its own
retail outlets.
All of the following are examples of financial goals EXCEPT:
a. sales growth.
b. sales ability.
c. gross margins.
d. labor productivity.
e. space productivity.
Consumers that desire to purchase a Porsche Boxster because of its reputation for speed
and status but also want to keep their insurance premiums down are experiencing:
a. explicit choice criteria.
b. well-defined choice criteria.
c. no active product choice criteria.
d. inadequate or vague choice criteria.
e. choice criteria in conflict.
This retail format combines a discount store and grocery store to carry 80,000 to
100,000 products in order to offer one-stop shopping.
a. Warehouse club
b. Off-price retailer
c. Supercenter
d. Recycled merchandise retailer
e. Liquidator
_____ is the result of the pressure being placed on many retailers to increase profits by
carrying additional merchandise or services that will also increase store traffic.
a. Cross-merchandising
b. Piggybacking
c. Automatic merchandising
d. Product diversification
e. Scrambled merchandising
Planned purchases at retail are $50,000 and the markup percentage is 45% of retail.
What is the correct planned purchases at cost figure?
a. $22,500
b. $11,111
c. $25,000
d. $77,500
e. $27,500
_____ is when the vendor allows the retailer extra time before payment is due for
goods.
a. FOB destination
b. Extra dating
c. Space reduction
d. FOB factory
e. Space constraints
Interfacing and experiences result in _______with the retailer in the from of
identification which further strengthens retailer/customer relationship.
a. friendship
b. loyalty
c. satisfaction
d. connecting
e. enabling
_____ advertising can be used by retailers to direct timed messages at a specific group
of consumers without being noticed by the competition.
a. Magazine
b. E-mail
c. Direct mail
d. Newspaper
e. Television
The major difference between primary marketing institutions and facilitating marketing
institutions is that facilitating members:
a. do not take title to the goods.
b. are paid only a percentage of profits made.
c. take title to the goods.
d. perform all eight functions in all channels situations.
e. are always paid by the manufacturer.
A(n) _____ policy should be adopted when the retailer wants to avoid disrupting the
sale of regular merchandise by marking down goods too frequently.
a. early
b. late
c. negative
d. flexible
e. steady
_____ signage describes the merchandising mission, customer-service policies, and
other messages on behalf of the retail institution, such as ‘Lowest Price Guaranteed.’
a. Mission signage
b. Store signage
c. Category signage
d. Institutional signage
e. Policy signage
As a general rule, a retailer should strive to have an asset turnover rate between 1.5 to
2.0 times.
By assessing changing environmental forces, strategic planning opportunities can be
found.
Retailers have found out that some consumers prefer smaller stores, since these stores
provide the convenience of being able to get in and out more quickly.
Every time different types of retail outlets sell the same lines of merchandise and
compete for the same limited amount of consumer dollars available, intertype
competition occurs.
Discuss how retailers manage their sales promotion and publicity.
Errors in buying occur on the demand side of the pricing equation.
Even if the channel is well-managed, there will always be some conflict between the
channel members.
Site analysis consists of an evaluation of the density of demand and supply within each
market.