Archives: Quiz

Information that can be obtained only through personal observation and questioning is amassed by which selection method? a. case method b. job analysis c. interview d. achievement tests What percent of retail transactions are by either credit or debit card? […]

A retailer that owns several of its locations and desires capital to expand should consider using a _____. a. percentage lease b. sale-leaseback c. short-term lease with renewal options d. graduated lease Low perceived risk, high experience with a retailer, […]

In developing performance measures for a retailer, it is important to _____. a. focus on short-term measures b. develop measures unique to the firm c. use the same measures over time to allow trends to be ascertained d. use measures […]

(Total assets/net worth) equals _____. a. asset turnover b. cost of goods sold c. profit margin d. financial leverage The increased participation of women in the workforce, longer commuting times, and increased numbers of single parents all contribute to the […]

A fundamental concept of the value chain is the _____. a. interrelationship among manufacturer, wholesaler, and retailer b. independence of all channel members c. notion that value is interpreted similarly by all final consumers d. notion that value is affected […]

The difference between gross profit and total costs equals the _____. a. cost of goods sold b. net profit after taxes c. cost of goods available for sales d. net profit before taxes Partial, revolving payments are not permitted in […]

A major disadvantage of the use of the U.S. Census of Retail Trade is its _____. a. lack of accuracy b. dated nature c. low credibility d. sampling error Frequent shopper programs and customer and vendor analysis are made possible […]

A retailer can best implement a consumer’s right to be informed by _____. a. providing a money-back guarantee on all goods and services b. utilizing per-unit pricing c. monitoring store waiting lines d. installing automatic teller machines Which of the […]

Which group is not reflected in the traditional family life cycle? a. solitary retired b. single-parent families c. young marrieds d. old aged The most common form of planned shopping center is the _____. a. neighborhood shopping center b. regional […]

Efficient consumer response (ECR) is an example of _____. a. electronic data interchange b. floor-ready merchandise c. third-party logistics d. collaborative planning, forecasting, and replenishment A retailer can best implement a consumer’s right to safety by _____. a. selling foods […]

A retailer seeks to acquire and maintain a proper assortment of merchandise while keeping ordering, shipping, handling, and other costs in check in _____. a. retail operations b. just-in-time inventory planning c. store maintenance d. inventory management Which statement concerning […]

Respondent cooperation is not required in which primary data source? a. personal survey b. mail survey c. telephone survey d. observation Goods which are highly visible and which consumers feel they are judged by have high _____ perceived risk. a. […]

A stationery retailer generally prices portable copiers using a 30 percent markup. The retailer expects to sell 125 portable copiers at the 30 percent markup. How many units would it have to sell at a 40 percent markup to maintain […]

A unique disadvantage for independent retailers is a lack of _____. a. competitive advantages b. independence c. control over strategy d. management succession Order lead time is defined as _____. a. average sales per day b. extra inventory kept on […]

When the price elasticity of demand is elastic and prices go up, _____. a. revenues stay the same b. revenues decline c. revenues increase d. profits increase Inventory management planning is easiest for _____. a. fad products b. growing products […]

The regular products carried by a retailer constitute _____ merchandise. a. fashion b. staple c. assortment d. fad The job titles of channel member salesperson, vice-president of real-estate, vendor quality inspector, and channel member support person are most likely to […]

A retailer uses a 20-unit reorder point based on assuming a 3-day lead time, a 5-day usage rate, and a 5-unit safety stock. In how many days will a stockout occur if the lead time becomes 7 days and the […]

The most appropriate financial performance standard of a department store retail buyer is _____. a. customer satisfaction b. total unit sales c. total dollar gross profit in department d. total dollar sales Which inventory management system in retailing corresponds to […]

The system to process a direct marketing order is referred to as _____. a. outsourcing b. logistics c. inventory management d. order fulfillment The use of franchising and the designation of suggested retail selling prices are channel control strategies of […]

A central business district is characterized by a concentration of _____. a. convenience stores b. parking facilities c. suburban housing d. cultural and entertainment facilities A deduction from a bill made by a retailer due to such infractions as late […]

A discount department store aims its retailing strategy at a large homogeneous (similar) group of consumers. A wide assortment of goods is offered at popular prices. The retailer utilizes which target market strategy? a. mass marketing b. market segment c. […]

Which type of service is generally leased? a. rented-goods service b. owned-goods service c. nongoods service d. regulated-goods service In-store displays designed to increase sales are examples of _____. a. ensemble displays b. promotional displays c. point-of-purchase promotion d. personal […]

The four functional areas defined in the Mazur plan are _____. a. buying, selling, store operations, and accounting b. merchandising, communications, store management, and financial accounting c. marketing, management, accounting, and finance d. product, price, promotion, and distribution Total demand […]

A department store utilizes different personnel for the main store (central business district) and for the suburban (regional shopping center) locations. The store utilizes a _____. a. geographic classification b. product classification c. functional classification d. combination organization chart Which […]

A furniture retailer has a beginning-of-year inventory (at cost) of $400,000; ending inventory (at cost) is $270,000. Yearly purchases are $700,000 and transportation charges equal $5,700. The retailer’s cost of goods sold is _____. a. $570,000 b. $575,700 c. $835,700 […]

Which retail institution generally does not mention specific brand names and/or prices in its advertising? a. department store b. off-price chain c. full-line discount store d. variety store An area where nondisplayed items are stocked is _____ space. a. merchandise […]

A systematic procedure for analyzing the performance of a retailer is _____. a. tactical performance evaluation b. a retail audit c. feedback d. strategy evaluation Ease of entry is simplest for which service retailer type? a. nongoods retailer b. rental-goods […]

A limited target market consisting of high-income and innovative consumers exists in which stage of the product life cycle? a. decline b. growth c. maturity d. introduction Strategy and tactics need to be evaluated _____. a. on a continuous basis […]

A major difference between the sale of complementary goods/services versus the sale of substitute goods is that the sale of substitute goods may _____. a. have little impact on total retail sales b. increase inventory turnover c. give a retailer […]

A disadvantage associated with the model stock approach to the determination of space needs is that _____. a. distinctive items with low sales or profit levels may not be stocked b. seasonal items may be placed in improper locations c. […]

Functional account expenses are _____. a. shared by two or more departments b. reported by the names of their cost c. classified on the basis of purpose or activity d. related to a retailer’s performance during the budget period Copies […]

Retail managers in individual departments have major input into decisions in a(n) _____. a. franchise system b. centralized structure c. owner-manager system d. decentralized structure Which of the following is an element of perceived risk? a. physical risk b. reference […]

According to the wheel of retailing, a retailer is vulnerable when _____. a. consumers do not accept the retailer’s old image b. its upgraded strategy gives new institutions a significant cost advantage c. its strategy is no longer considered unique […]

Direct product profitability for a new product over a three-year period can be assessed through _____. a. use of a sales opportunity grid b. measuring a product’s sales potential c. estimating holding costs d. computing a product’s markup Which aspect […]

A retailer’s organizational mission is its _____. a. consumer orientation b. commitment to a type of business and to a distinctive role in the marketplace c. focus on determining and satisfying consumer wants and needs d. good or service category […]

Department stores are now facing increased competition from factory outlets, membership clubs, and flea markets. This illustrates _____. a. rationalized retailing b. scrambled merchandising c. the retail life cycle d. the wheel of retailing Low merchandise continuity and opportunistic buying […]

A major disadvantage to the use of census data in trading-area analysis is its _____. a. cost b. being limited to city and state data c. lack of comprehensiveness d. dated nature A subculture can be based upon all of […]

A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing enthusiasts who wish to purchase costly fishing accessories. The most appropriate nonstore-based strategy mix (with the lowest waste coverage) is _____. a. airport retailing b. […]

Retail tasks can be performed _____. a. by the retailer, manufacturer, wholesaler, specialists, or consumers b. only by the retailer c. by the retailer, manufacturer, or wholesaler d. by the retailer, manufacturer, wholesaler, or specialists Primary, secondary, and fringe trading […]

Under which method is it assumed that old stock is sold first and that new stock remains on the shelves? a. FIFO b. retail method of accounting c. LIFO d. cost method of accounting A firm’s markdown strategy has the […]

Retailing is best characterized by which of the following? a. independent ownership dominating sales b. franchise organizations dominating sales c. ease of entry into the marketplace d. vertical marketing systems being fully integrated It is important for franchisors to specify […]

Two components of problem awareness are _____. a. information search and purchase behavior b. commercial and noncommercial cues c. recognition of shortage and recognition of unfulfilled desire d. physical risk and social risk An example of internal secondary data is […]

A disadvantage of a leased department to the leased department operator is the _____. a. restriction on goods/services carried b. high promotional expense c. poor cash flow due to centralized checkouts d. creation of a one-stop shopping environment Which medium […]

A major advantage of advertising is that _____. a. costs per viewer, reader, or listener are low b. media costs are free c. advertising has higher credibility than public relations d. immediate feedback is provided How many million people are […]

A difficulty associated with the use of advertising by an independent or a chain with few units is the _____. a. high total costs b. long lead time c. high waste in geographic coverage d. low opportunity for computerization A […]

A retailer with a less-than-average profit margin could seek to increase its profit margin by _____. a. reducing its operating expenses b. increasing its asset turnover c. increasing its financial leverage d. increasing its inventory turnover Which of the following […]

In 2010, the ten largest U.S. retailers earned average after-tax profits amounting to about _____ percent of sales. a. 1.1 b. 2.5 c. 3.5 d. 5.7 The basic Mazur plan divides all retail activities into _____. a. main store and […]

The first step in undertaking a retail audit is _____. a. developing audit form(s) b. determining when and how often the audit is conducted c. determining who does the audit d. conducting the audit A retail ownership form that combines […]

Which of the following is not a benefit to a department or discount store using leased departments instead of company-operated units? a. a one-stop shopping environment b. low investment requirements c. high control of operations d. payment based on sales, […]

Customer requests for unstocked or out-of-stock merchandise are recorded in a(n) _____. a. generic product file b. UPC system c. OCR-A system d. want book or want slip Most data on the characteristics of residents of specific trading areas are […]