Archives: Quiz

A bricks-and-mortar retailer questions whether it should also sell goods through the Web as part of a dual distribution channel strategy. What step is involved in the retailer’s direct marketing strategy? a. order fulfillment b. customer contact c. customer response […]

Which one of the following is not a crucial element in Target’s overall retail strategy? a. growth-oriented objectives b. a focus on its discount store niche c. sale of goods at the lowest competitive price d. strong customer service for […]

Signals of performance such as employee satisfaction questionnaires, sales reports, and inventory records are examples of _____. a. retail audits b. feedback c. tactics d. retail demographic data The quick ratio equals _____. a. (total assets)/(annual net sales) b. (total […]

A theory which predicts that retail institutions have identifiable stages from introduction to decline is _____. a. the retail life cycle b. the wheel of retailing c. scrambled merchandising d. rationalized retailing A benefit of franchising to a franchisor is […]

Regional buying preferences are best served through which buying organization? a. informal buying organization b. formal buying organization c. decentralized buying organization d. centralized buying organization The major advantage of a compensation cafeteria plan over a traditional salary and bonus […]

The use of a survey and observation under controlled conditions most closely resembles _____. a. an experiment b. simulation c. a semantic differential d. multidimensional scaling Dead areas are in-store locations where _____. a. normal displays cannot be set up […]

A climate-controlled open entry _____. a. is a revolving door b. reduces congestion and enables customers to see inside the store c. is set at a different temperature than in the mall d. provides a moving walkway for pedestrians. Sole […]

A narrow but deep product assortment characterizes _____. a. department stores b. specialty stores c. variety stores d. retail catalog showrooms Prior to establishing a quick response (QR) inventory planning system, suppliers need to rethink their _____. a. credit terms […]

The high ease of entry into retailing _____. a. generates a great deal of competition for new and existing retailers b. means that investment per worker in retailing is generally higher than for most manufacturers c. contributes to low new-retailer […]

Which statement concerning customer service is correct? a. Customer service only concerns a retailer’s intangible activities. b. Different people almost always judge a retailer’s customer service in a similar manner. c. People’s assessment of customer service depends on perceptions€not necessarily […]

Both consignment purchases and memorandum purchases enable a retailer to _____. a. increase information flows b. lower insurance costs c. improve cash flow d. reduce inventory levels A retailer has $100,000 in cash, $300,000 in accounts receivable, $500,000 in inventory, […]

The opposite of in-home shopping, on a convenience dimension, is _____. a. routine decision making b. outshopping c. store loyalty d. mapping Direct marketers can be divided into two categories: _____ and _____. a. general; specialty b. mail; phone order […]

Most types of retail selling can be categorized as either _____. a. order taking or order getting b. clerical or professional c. institutional or direct d. promotional or institutional Defining and adhering to an organizational mission, evaluating ownership and management […]

The major difference between a consignment purchase and a memorandum purchase is based on _____. a. when title passes from seller to buyer b. when an item is paid for c. purchase price d. eligibility for cooperative advertising allowances The […]

Which statement concerning vending machines is correct? a. Over 95 percent of vending machine sales involve hot and cold beverages and food items. b. Eighty-five percent of vending machine sales involve cigarettes. c. There has been significant growth in the […]

The basic distinction between advertising and publicity is that _____. a. publicity only deals with print media b. in publicity, the media are not paid c. publicity is nonpersonal d. publicity is regulated by the Robinson-Patman Act Price discrimination is […]

An advantage of the use of a wireless scanner in conjunction with a radio frequency identification tag (RFID) over a Universal Product Code (UPC) is its _____. a. ability to scan a package without lifting it b. tie-in to speech […]

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 retailer uses the percentage variation method in inventory level planning. If the store plans an average monthly stock of $200,000 and September sales are estimated at 15 percent more than average, the store’s planned inventory level for September is […]

Which of the following is not a major advantage of having a large inventory for a retailer? a. quantity discounts in purchases b. lower risk of obsolescence and deterioration c. lower frequency of stockouts d. low per-item shipping costs The […]

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 […]

The concept stating that the type and number of stores within any planned center should complement each other as to the quality and variety of their product offerings is _____. a. balanced tenancy b. occupancy certainty c. retail balance d. […]

Which food-oriented retailer specializes in fill-in merchandise? a. convenience store b. supermarket c. specialty store d. superfood store The trading area that generally encompasses the greatest geographic area (in terms of square miles) is the _____. a. fringe trading area […]

The retail ownership form that has the greatest capacity for raising funds through the sale of stock is a _____. a. sole proprietorship b. corporation c. partnership d. franchise A firm cannot devote its total promotional efforts to publicity since […]

Merchandise cannot generally be examined by consumers in which retail formats? a. membership clubs and flea markets b. direct selling and specialty stores c. direct marketing and vending machines d. retail catalog showrooms and membership clubs The quick ratio measures […]

In a horizontal cooperative advertising agreement, _____. a. two or more retailers share an advertisement b. a manufacturer (or wholesaler) and a retailer share an advertisement c. retailers pay for half of the cost of an advertisement d. retailers must […]

A danger to a retailer with a very high financial leverage is _____. a. the reduction in inventory valuation b. the reduction in return on net worth c. that high debt service must be paid d. high variable cost levels […]

Retailers can get some of the benefits of ownership and leasing through a _____. a. sale-leaseback b. graduated lease c. net lease d. straight lease Which retail institution is often part retailer and part wholesaler? a. off-price retail chain b. […]

Which aspect of a direct marketing strategy involves the merging and purging of client names? a. business definition b. customer response c. order fulfillment d. data-base maintenance Retailers practice relationship retailing with _____ customers. a. nonregular b. regular c. core […]

A store with the largest trading area in a shopping center is a(n) _____. a. parasite store b. destination store c. independent retailer d. leased department If selling expenses equal 40 percent of a retailer’s annual sales, its selling efficiency […]

The increased deregulation of industries should have a positive impact on which consumer right? a. the right to safety b. the right to be heard c. the right to choose d. the right to be informed An area with a […]

The high sales volume at off-price chains, factory outlets, membership clubs, and flea markets can be explained by the retail life cycle. Examples of negative feedback include consumer complaints, chronic out-of-stock situations, and declining sales. Answer: T Only controllable variables […]

Increased coordination among channel members is a major advantage of clear channel roles to all channel members. An area can be understored with regard to one type of good or service and overstored with regard to another type of good […]

Both capital and operating expenditures can be depreciated. Firms that promote mostly on a seasonal basis utilize massed advertising efforts. Answer: T Air travelers are captive audiences for a temporary time period. Answer: T Annual demand for color ink jet […]

At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very informal. The firm should pursue conservative strategies if the coordinates of a SPACE directional vector are (-1, +4). Answer: TRUE Time spent […]

The critical success factors in a Competitive Profile Matrix are often the same as those in an EFE Matrix. In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission. Answer: TRUE According […]

With market segmentation, a firm can better operate with limited resources. Established companies are coming to realize that their next generation of potential customers spends more time online than watching TV. Answer: TRUE Even though useful, strategic planning has been […]

The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance. Mission statements cannot be stated with too high […]

Regardless of the size of the organization, a certain amount of “management by wandering around” at all levels is essential to effective strategy evaluation. Leverage ratios measure a firm’s ability to meet maturing short-term obligations. Answer: FALSE Stars, Question Marks, […]

McDonalds currently owns more than 50 percent of its restaurants. Royal Dutch Shell PLC and several other companies recently paid a combined $236 million settlement due to allegations that they bribed foreign officials. Answer: TRUE Organizations that conduct business operations […]

Franchising is an effective means of implementing forward integration. Constructing an Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit. Answer: TRUE As a balance sheet entry, goodwill represents the favor a business has acquired […]

As long as the price and quality of a firm’s products and services are competitive on a local basis, they have nothing to worry about. IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages. Answer: FALSE To determine […]

Alternative-energy firms are struggling to find new customers, since the federal stimulus package failed to include adding alternative-energy infrastructure. The trend toward an older America is bad news for restaurants, hotels, airlines and home builders. Answer: FALSE For consumers who […]

Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as substantial tax savings. Most producers today sell their goods directly to consumers. Answer: FALSE Return on assets is the most widely used technique for determining whether […]

Divestiture is the selling of all of a company’s assets, in parts, for their tangible worth. Though China has more than 1.3 billion residents, the middle class segment that is able to buy goods and services is rapidly shrinking. Answer: […]

The Sarbanes-Oxley Act of 2002 has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies. Strategic management is an attempt to organize qualitative and quantitative information in a […]

Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide. When developing an organizational chart, the title president should be reserved fo the top executive of the firm. Answer: FALSE A […]

An organization’s culture compares to an individual’s personality in the sense that no two organizations have the same culture and no two individuals have the same personality. In most cases, at least 500 words are required to effectively state a […]

According to Peter Drucker, developing a clear business vision and mission is the first responsibility of strategists. Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts. Answer: TRUE The […]

The controlling function of management is synonymous with strategy formulation. Having a code of ethics ensures ethical business behavior. Answer: FALSE Whenever two firms merge, it becomes especially important to evaluate and consider culture-strategies linkages. Answer: TRUE Primary responsibility for […]