Each employee is responsible for limited functions under _____.
a. independent ownership
b. specialization
c. centralization
d. a branch-store system
Contingency planning for no store electricity, vendors being out-of-stock on key items,
and strikes need to be considered in _____.
a. crisis management
b. expense allocation
c. insurance planning
d. budget planning
Displays that contain piles of sale clothing and marked-down goods are called _____.
a. assortment displays
b. cut cases
c. dump bins
d. rack displays
If the use of credit varies among different geographic areas, credit-card customer
analysis will accurately reflect a store’s trading area.
A retailer allocates store space by first determining the total available store space and
then dividing the space into categories in _____.
a. rationalized retailing
b. mass merchandising
c. a top-down space management approach
d. a bottom-up space management approach
The process whereby individuals decide whether, what, when, where, how, and from
whom to purchase goods and services is _____.
a. commercial search
b. consumer behavior
c. marketing research
d. outshopping
In a disguised audit, _____.
a. store employees are unaware that an audit is taking place
b. the real purpose of the audit is told to employees, but not customers
c. consumers are aware of the audit
d. results of the audit are not given to management
A major problem associated with the use of want books (want slips) is that this
technique _____.
a. requires a sophisticated data base
b. relies on retail salespeople to enter the relevant information
c. requires a computer-based retail information system
d. requires electronic data interchange capability
A retailer generates channel control by attaining brand loyalty for its goods and
converting it to store loyalty. This retailer is utilizing _____.
a. private brands
b. franchising
c. bargaining power in negotiations
d. a fully integrated vertical marketing system
A retailer with a large fringe trading area should consider _____.
a. expanding the trading-area overlap
b. direct marketing opportunities to this segment
c. broadening the community’s economic base
d. establishing the point of indifference using Reilly’s law
The use of a retail audit is appropriate for a Web-based retailer.
The major advantages in the use of company department managers as auditors are
objectivity and lack of time pressure.
Web-based retailers can utilize experiential merchandising through developing
interactive demonstrations.
The greatest strength of generic brands is in the prescription drug industry.
The first step in the hierarchy of effects is awareness.
Return on assets is a ratio based on a retailer’s net sales, net assets, and financial
leverage.
Prototype stores and rationalized retailing generally are used in association with
decentralized management.
Strategic planning in retailing _____.
a. can be practiced by both small and large retailers
b. requires computer-based marketing research and accounting systems to be
successfully implemented
c. should focus on short-run profits
d. requires a high risk-taking philosophy to succeed