Archives: Quiz

Disposable income is: a. all personal income after taxes and retirement savings. b. all personal income after savings. c. all personal income minus the money needed for necessities food, clothing, housing, etc. d. all personal income after taxes minus the […]

Customers who are confident in their ability to make decisions, and who are open to new ideas but want brevity, are characterized as: a. interrupters. b. decisive. c. sociable. d. defensive. e. impulsive. Which of the following categories, who were […]

There are actually three strategy decisions to be made when designing an efficient and competitive supply chain: supply chain length, width, and: a. convenience. b. depth. c. organization. d. type. e. control. Your boss indicates that the store’s stock/sales ratio […]

_____ data is the most commonly available objective data that a retailer can obtain about a target market(s). a. Demographic b. Psychographic c. Biological d. Geographic e. Personality _____ include(s) the activities the retailer performs that influence (1) the ease […]

A retailer’s retail mix consists of all of the following EXCEPT: a. location. b. price. c. customer service and selling. d. traffic strategy. e. merchandise. Brynn’s Bakery runs an advertisement touting the importance of diet and exercise. It also mentions […]

Which of the following statements about the makeup of the American household is FALSE? a. Household growth and consumer demand go together. b. The number of households without children has decreased in recent years. c. The retailer, like the social […]

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 […]

If the owner of the local Red Nails Beauty Salon has determined that 1,100 target customers will come in contact with its print advertisement in the local newspaper, the owner is estimating the _____ of the medium. a. frequency b. […]

An operator of which of the following establishments is NOT a retailer? a. A catering service specializing in weddings. b. A computer firm selling software to households via the Internet. c. A student going door-to-door selling magazine subscriptions. d. A […]

If a retailer buys a product for $30 and sells it for $50, what is the markup percentage, if the markup is based on cost? a. 33 percent b. 40 percent c. 67 percent d. 80 percent e. 100 percent […]

Ten days before Halloween, your local candy wholesaler puts all of its Halloween candy on sale. This is an example of which type of discount? a. Seasonal discount b. Quantity discount c. Zone pricing d. Promotional allowance e. Smart discount, […]

In order to develop competitively compelling value propositions, all of the following should be utilized EXCEPT: a. include customers social cost. b. consider how value propositions will resonate with customers as well as employees. c. include customers economic cost. d. […]

The first decision the retailer must make in planning a store is: a. deciding what graphics to use. b. how to allocate the store’s space. c. deciding what type of fixtures to use. d. deciding what type of lighting to […]

Which of the following is an off-price retailer that is owned and operated by the manufacturer, and stocks the manufacturers’ surplus, discontinued, or irregular products? a. Warehouse club b. Factory outlet c. Supermarket d. Supercenter e. Independent carrier The increase […]

______ are the cognitive and affective responses that result from interfacing. a. Consequences b. Experiences c. Results d. Effects e. Connections Which of the following is an important factor to consider when determining the service level to be offered by […]

When telling a customer about a product, the salesperson should: a. give the customer all the technical information needed to understand how the product works. b. stress the features that are the product’s outstanding qualities. c. tell the customer the […]

If a retailer is assessing the remodeling needs of its stores, as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments, the retailer is reviewing the firm’s: a. […]

Which of the following statements about NAICS codes is false? a. Three-digit NAICS codes are very useful to the retail analyst. b. In almost all instances, the NAICS code reflects the type of merchandise the retailer sells. c. Four-digit NAICS […]

McDonald’s and Burger King are sometimes forced to drop prices by promoting ‘value meals’ in the face of mounting competition. This is an example of a ______ objective. a. target b. status quo c. competitive d. comparable e. market share […]

If you choose the store-management path, which of the following statements would be true? a. Selecting, training, evaluation, and all other aspects of personnel management are your responsibility. b. You will have to use quantitative tools such as the merchandise […]

An example of odd pricing would be: a. a low introductory price followed by a sharp price increase. b. ‘buy one, get one free’. c. having the selling price end in any odd number. d. subtracting a trade-in from the […]

_____ occurs when the retailer and supplier have different perceptions of reality. a. Perceptual incongruity b. Domain disagreements c. Goal incompatibility d. Gray marketing e. Dual distribution When a manufacturer quotes the same price for the same merchandise to buyers […]

A _____ business district usually consists of an unplanned shopping area around the geographic point at which all public transportation systems converge; it is usually in the center of the city and often where the city originated historically. a. central […]

_____ centers are primarily general merchandise and convenience that range from 100,000- 350,000 square feet. They may include discount department stores, supermarkets, and home improvement stores. a. Neighborhood b. Regional c. Fashion/Specialty d. Outlet e. Community A retailer of luxury […]

Which of the following items would NOT be included on the balance sheet but would BE on the income statement? a. Noncurrent assets b. Cost of goods sold c. Current liabilities d. Net worth e. Accounts receivable The _____ Act […]

Which of the following is an example of a non-traditional location that retailers are selecting: a. travel stop plazas along interstate highways. b. multi retail store shopping centers. c. suburban shopping malls. d. outlet malls. e. local corner stores. The […]

As a rule, truly one-way exclusive dealing arrangements between vendors and retailers are: a. legal. b. illegal. c. illegal only if they involve a chain store. d. legal in every state but Minnesota. e. illegal if they involve a weak […]

Retailers frequently use _____ for short-term loans to fund working-capital requirements. a. commercial banks b. factors c. e-tailing brokers d. stock and commodity exchanges e. venture-capital firms One of the major advantages of shopping centers is that they have: a. […]

Generation Xers is a term used to refer to those born between 1965 and 1977. Total assets equal current assets plus noncurrent assets plus goodwill. Answer: T Given the financial pressure facing today’s retailers, creativity is no longer a prerequisite […]

It is important for retailers to realize that working women are often more concerned with convenience than with price. Auto dealers that want to handle BMW’s because of the cars’ status is an example of expertise power. Answer: F Bribery […]

The affordable approach to budgeting is used by many small retailers. A retail store’s pricing policies should reflect the expectations of its target market. Answer: T If a tire retailer sells you a passenger car tire, the retailer is implying […]

Prospecting is the process of attempting to locate and identify potential customers. The purpose of the statement of cash flow is to enable a retailer to project the cash needs of the firm. Answer: T Micromarketing is the tailoring of […]

Flowers tend to be priced higher when demand is greatest, around Mother’s Day and Valentine’s Day. This is an example of _____ pricing. a. flexible b. dynamic c. psychological d. variable e. customary Gen Y consumers were born between the […]

Discuss and cite examples of what resources need to be reconfigured in order for a retailer to reframe its business. Explain the complexities involved with product warranties. Please be sure to address all forms and types of warranties. Answer: Retailers […]

Dollar merchandise control over inventory purchases is frequently accomplished through a technique called open to buy. Omitting key facts during a sales presentation is considered a type of deceptive sales practice. Answer: T Bricks-and-click strategies that integrate a single message […]

Net profit margin shows how much profit a retailer makes on each dollar of sales. Competition is most intense in understored markets since many retailers are operating in stores too small to carry all the merchandise demanded by customers. Answer: […]

In recent years, the practice of counterfeiting trademarked products has had very little impact on U.S. firms. The space-productivity index is a decision-making formula, not just a tool to help management make decisions. Answer: F A freestanding retailer generally locates […]

One of the cues a customer uses in determining a retailer’s image is the retailer’s prices. Markets with a population of less than 50,000 do not present many opportunities for retailers and hence should be avoided. Answer: F Explain how […]

As a rule, a retailer’s pricing and promotion decisions should be made independently of each other. Retailers usually classify sales promotions as either sole sponsored or joint sponsored. Answer: T Demand density is the extent to which retailers are concentrated […]

When a retailer donates money to charity, this is considered a personal objective. In addition to altering the types of products offered to these aging segments of the population, retailers will also need to shift the types of services provided […]

Convenient operating hours are the most basic service a retailer should provide to a customer. A retailer’s maintained markup is usually lower than the retailer’s initial markup. Answer: T The most successful new retailing format introduced in the United States […]

The level of one’s desire to resolve a particular problem depends on the magnitude of the gap between the consumer’s desired and actual states, and the importance of the problem. The illegality of price discrimination is clear-cut and retailers no […]

Service is the fundamental basis of exchange; therefore it is also the basis of all competition. The “graying of America” phenomenon refers to the fact that consumers’ ethnicities are becoming blurred as immigration to the United States continues to increase. […]

Price promotions usually attract, and subsequently hold, customers. Interior design can be broken into two types of elements: the finishes applied to surfaces and architectural shapes. Answer: T A merchandise budget is a plan of projected sales for an upcoming […]

Listening to a television advertisement or reading a newspaper or pop-up advertisement on the Internet is part of hard interfacing. The average American is more likely to move than someone in England or France. Answer: T Many retailers think getting […]

Service retailers can stockpile inventories in anticipation of future demand. Fixtures and equipment are generally considered to be current assets. Answer: F Retailers want customers to make purchases in their stores; thus, retailers should mention the product’s features, not its […]

A cue refers to a motivating force that directs an individual’s shopping behavior. In North American retailing, there is an attitude that the retailers’ ‘plan’ is correct and the failure to achieve this plan is attributed to people not working […]

A community shopping center will typically offer general merchandise and convenience goods. Loyalty programs are generally considered joint-sponsored promotions. Answer: F A local retailer offers T-shirts at three price levels. Consumers can pay $6.99, $14.99, or $27.99 for the shirts. […]

Personal objectives relate to how a retail owner wishes to help individuals employed by the firm fulfill some of their needs. Retailers who continue to use technology in innovative ways within the supply chain will achieve greater efficiency in their […]

Retail gravity theory suggests there are underlying consistencies in shopping behavior that allow for mathematical analysis and prediction based on the notion or concept of gravity. The Supreme Court ruled that a ‘rule of reason’ standard should apply to fair […]