A retailer that carries such a large quantity of merchandise in a single category at such
good prices that it makes it impossible for customers to walk out without purchasing
what they need, thus killing the competition, is known as a(n):
a. capital-based retailer.
b. category killer.
c. divertive competitor.
d. killer bee.
e. supercenter.
According to the late retail consultant Robert Kahn, many retailers mistakenly believed
that simply placing more products in a store increased sales per square foot. Kahn
indicated that higher sales per square foot could be explained by understanding basic
consumer behavior. Kahn’s rationale can best be understood through the formula: sales
per square foot equals:
a. the number of retail customers multiplied by the length of time they spend in the
store.
b. the number of retail customers divided by the square foot of retail space.
c. the number of products carried multiplied by the number of retail customers.
d. the number of products carried multiplied by the shelf space available divided by the
number of retail customers.
e. retail sales divided by square footage.
The question of who makes the best pizza came to blows when Pizza Hut sued Papa
John’s over Papa John’s slogan “Better ingredients, better pizza.” This slogan is known
as:
a. overstating.
b. guaranteeing.
c. deceptive advertising.
d. puffery.
e. understating.
As a rule, most retailers do not try to serve all possible customer types. With one
possible exception, retailers seek to segment the total market into smaller, more
homogeneous segments. What type of retailer is this possible exception?
a. Discounters
b. Convenience stores
c. Supermarkets
d. High fashion apparel stores
e. Fast-food restaurants
_____ are services provided to customers after they have purchased merchandise or
services.
a. Transaction services
b. Informational aids
c. Posttransaction services
d. Personal selling
e. Pretransaction services
A retailer pays taxes on its:
a. gross margin before taxes.
b. net profit before taxes.
c. net sales before taxes.
d. gross sales before taxes.
e. operating profit before taxes.
Ease of access refers to:
a. the consumer’s ability to easily and quickly find a retailer’s Web site in cyberspace.
b. the ease with which a consumer can return merchandise.
c. the consumer’s ability to gain credit.
d. the consumer’s ability to obtain parking.
e. the amount of time between when an order is placed and when it is delivered to the
customer.
When all possible retailers are used in a trading area, the channel strategy is termed:
a. exclusive.
b. intensive.
c. selective.
d. partial coverage.
e. pull coverage.
The _____ layout is essentially a variation of the free-flow, grid, and loop layouts, and
combines the advantages of all three.
a. complex
b. spine
c. master flow
d. flexible
e. mixed
Which learning style asks the question: ‘Are we doing things right?’ to achieve our
goals?
a. Double-loop learning.
b. Pre-learning.
c. Beginning learning.
d. Single-loop learning.
e. Triple-loop learning.
An alternative to scrambling merchandise to increase profitability that many retailers
are implementing is:
a. limiting Internet access to customers in stores.
b. selling many different and unrelated items.
c. becoming a discount store.
d. reducing store size.
e. selling merchandise on line only.
Classic Jeans has informed its retailers that they must either sell its new line of jeans for
$39.99 or no longer be supplied by Classic Jeans. The retailers agree to this. Classic
Jeans and its retailers are involved in:
a. violation of the Wheeler-Lea Act.
b. horizontal price fixing.
c. violation of the Lanham Act.
d. vertical price fixing.
e. an attempt to maximize profits.
Although there are exceptions, as a general rule _____ distribution is associated with
_____ goods.
a. intensive; shopping
b. intensive; specialty
c. selective; specialty
d. selective; shopping
e. selective; convenience
Which of the following statements about the mobility of U.S. consumers is true?
a. As a rule, consumers are born, raised, married, widowed, and die in the same city or
immediate geographic area.
b. Consumers change their residence 2-4 times in a lifetime.
c. American consumers’ rate of mobility is more than that of the British or French.
d. A major factor for consumers’ heightened mobility is the country’s marriage rate.
e. Retailers should plan on the fact that the country’s mobility will begin to decrease.
Which of the following statements about metropolitan statistical areas (MSAs) is true?
a. In the past, the migration to MSAs was directed more toward central city areas than
suburban areas.
b. They are urban areas based around a core city with a population of 10,000 to 49,999.
c. The proportion of the population residing in these cities has increased dramatically,
from 54 percent in 1950 to 90 percent today.
d. They are freestanding urban areas with populations in excess of 50,000.
e. The urban or metropolitan population does not vary considerably by state.
Nonprice variables are directed at enlarging the retailer’s demand by offering customers
benefits beyond simply the lowest price.
The Federal Trade Commission’s main concern with deceptive advertising is not with
the intent of the advertiser, but whether the consumer was misled by the advertising.
The maintained markup percentage equals the retailer’s initial markup percentage minus
its reduction percentage multiplied by 100 percent minus its initial markup percentage.
Insurance firms can make it possible for retailers to have what would be otherwise risky
promotions.
Paying taxes is the retailer’s role in helping finance societal needs that the government
deems appropriate, from welfare programs to national parks.
List and discuss several factors that are expected to change the face of retailing during
the next decade.
During the 1900’s, the largest retailers were the general stores, which carried everything
from wedding dresses to funeral caskets.
Some retailers prefer to use prime locations rather than use their own promotions to
generate customer interest.
Market share refers to a retailer’s sales compared to the store’s sales for the same month
in the previous year.
A retailer should abandon a supply chain partner at the first sign of trouble.