The opposite of a “moving-up-the-wheel-of-retailing” strategy is _____.
a. cost containment
b. mergers and acquisitions
c. value-driven retailing
d. power retailing
Which statement concerning customer satisfaction is not correct?
a. According to the American Customer Satisfaction Index, fast-food firms rate lowest
among retailers in customer satisfaction.
b. Most shoppers complain when they are dissatisfied.
c. “Very satisfied” shoppers are much more likely to remain loyal than ‘satisfied”
shoppers.
d. Customer expectations generally move upwards over time.
A retailer can reduce its bad debt on credit sales to zero through _____.
a. using third-party credit plans and debit cards
b. developing and implementing a systematic credit authorization plan
c. developing high fees for nonpayment
d. limiting credit sales to the best credit risks
A major advantage to a retailer’s use of private (dealer) brands is _____.
a. the generation of store loyalty
b. support by manufacturer advertising
c. less retailer investment
d. the extent to which they are pre-sold to customers
The primary difference between a merchandise mart and a trade show is based on
_____.
a. cost
b. location
c. membership requirement
d. permanence
Retailer power in a distribution channel can be increased through _____.
a. decentralized purchasing
b. the purchase of goods from multiple vendors
c. franchising
d. the development of large chains
A manufacturer with low company resources that seeks intensive distribution should
utilize which vertical marketing system?
a. a retail cooperative
b. partially integrated marketing system
c. independent vertical marketing system
d. fully integrated marketing system
The high total sales volume from off-price chains, factory outlets, membership clubs,
and flea markets can be explained by _____.
a. the retail life cycle
b. scrambled merchandising
c. retail downsizing
d. the wheel of retailing
Decentralized services keep shoppers with returns to process in the selling area.
According to a category management classification, a product with high profitability
but low unit sales would be classified as a _____.
a. traffic builder
b. problem child
c. sleeper
d. dog
A U.S.-based apparel retailer can best keep in touch with developments in the leather
accessories market based in Florence, Italy, through a(n) _____.
a. inside buying organization
b. resident buying office
c. informal buying organization
d. centralized buying organization
A market skimming strategy is most appropriate when customers are highly sensitive to
price and when low prices discourage actual and potential competition.
Initial markup is based on original value, while maintained markup is based on actual
prices received for merchandise sold.
Aspirational or membership reference groups have an important influence on the
purchase of goods viewed as conspicuous.
A straight traffic flow is ideally suited for self-service.
The growth stage of the retail life cycle is characterized by market saturation and
competition from newer retailer forms.
In the media selection stage of a direct marketing strategy, a retailer needs to decide to
rent or purchase an appropriate mailing list from a broker.
The stages in the marketing research process must be done sequentially.
A collection period of 50 days is good for a retailer that offers 30-day credit
arrangements.