CLASS / COURSE: Retail Management
An overall plan or framework of action that guides a retailer is its _____.
A) mission statement
B) retail strategy
C) retail tactics
D) corporate philosophy
A heavily diversified retailer requires _____.
A) the use of a mass marketing strategy
B) a uniform strategy so that each retail business unit has a common image
C) a centralized organization structure for all key functional areas
D) a separate retail strategy for each major retail business unit
Agreements drawn up that require franchisees to abide by stringent regulations set by the franchisor are legal if necessary to _____.
A) provide franchisors with additional revenues
B) develop and maintain a uniform chain-like image
C) constrain franchisee decision making
D) force franchisees to purchase goods and services from approved vendors
An example of a product/trademark franchise is a(n) _____ franchise.
A) McDonald's fast-food
B) Chevrolet auto dealership
C) Super 8 hotel
D) Wendy's fast-food
In a revolving credit account, _____.
A) a customer can exceed his/her credit limit
B) no interest is assessed if a consumer pays part of the bill when it is due
C) a customer must pay his/her bill in full when it becomes due
D) a customer is billed at the end of the month on the basis of the outstanding cumulative balance
Independent retailers are characterized by _____.
A) a partnership form of organization
B) ownership of only one retail unit
C) a franchise form of distribution
D) vertical integration
The sorting process helps final consumers through _____.
A) enabling consumers to purchase goods through direct marketing
B) enabling one-stop shopping
C) providing important product-based information
D) providing credit terms on purchases
Sole proprietorships are most likely to use which management alternative?
A) Owner-manager system.
C) Professional manager system.
D) Decentralized structure.
A retailer with the least degree of diversification in its product line or service category is a _____ store.
B) full-line discount
A characteristic of a retail strategy is its _____.
A) attention to personnel availability and training
B) focus on past operations and success
C) attention to short-run success
D) systematic assessment of the environment to ascertain opportunities and constraints
A value delivery system is based on _____.
A) cost minimization
C) one channel member conducting all activities
D) a high degree of cooperation among all channel members
A family-oriented Italian restaurant's strategy consists of appealing to budget-conscious individuals and families with high-quality food, quick service, clean surroundings, and a wholesome environment. This constitutes its _____.
A) goods/service category
B) competitive advantage
C) target market
D) organizational mission
Fair practice laws are designed to prevent a franchisor from _____.
A) terminating, canceling, or failing to renew a franchise without sufficient cause
B) enforcing a tying agreement
C) selling additional franchises in a protected territory
D) incorrectly reporting franchise profits and investments
A retailer can reinforce its competitive advantage by providing _____ services.
A) ancillary customer
B) augmented customer
C) expected customer
A retailer that increases its product line assortment width by adding new products unrelated to its original business and to each other is practicing _____.
A) life cycle retailing
B) scrambled merchandising
C) the wheel of retailing
D) rationalized retailing
A retail ownership form that combines independent ownership and management assistance is a _____.
D) sole proprietorship
The activities of government, business, and independent organizations designed to aid and protect shoppers involve _____.
B) a consumer orientation of business
C) social responsibility
D) advertising regulation
A retailer attempting to improve its selling efficiency from 60 percent to 70 percent reduced its selling expense budget from $400,000 to $300,000. However, its new selling efficiency was reduced to 50 percent. What happened?
A) Sales decreased from $1,000,000 to $600,000.
B) Sales decreased from $1,000,000 to $500,000.
C) Sales increased from $1,000,000 to $1,250,000.
D) Sales decreased from $1,000,000 to $700,000.
A retailer does not generally stock a broad selection of brands in which form of distribution?
A) Exclusive distribution
B) Operational distribution
C) Selective distribution
D) Intensive distribution
Retailers use private labeling to generate channel control because _____.
A) retailers can switch vendors with no impact on their customer loyalty
B) greater channel communication is fostered
C) a large proportion of a manufacturer's output is sold to one retailer
D) retailers can more easily obtain bank financing
A fundamental concept of the value chain is the _____.
A) independence of all channel members
B) notion that value is interpreted similarly by all final consumers
C) interrelationship among manufacturer, wholesaler, and retailer
D) notion that value is affected by price alone
A major disadvantage of the partnership form of ownership and management is that it _____.
A) may separate ownership from management
B) binds all partners to actions made by any individual partner acting on behalf of the firm
C) is subject to double taxation
D) faces more government rules than other ownership forms
A manufacturer seeking maximum channel control should utilize which type of retailer?
A) Membership club
B) Off-price chain
C) Factory outlet
D) Department store
A retailer with sales of $10 million and selling expenses of $3 million has an efficiency rating of _____.
A) 20 percent
B) 40 percent
C) 70 percent
D) 60 percent
A significant factor in the growth of factory outlets is the _____.
A) ability of outlets to purchase merchandise for cash
B) desire/need for manufacturer control where discounted merchandise is to be sold
C) success of catalog sales
D) success of wholesale sales
Car rental and airplane travel are examples of _____ services.
C) regulated goods
Channel control is greatest for manufacturers/service sponsors in _____.
A) a fully integrated vertical marketing system
B) business format franchising
C) an independent vertical marketing system
D) product/trademark franchising
FTC rulings, fair practice laws, and franchise-member organizations have the effect of _____.
A) further constraining decision making relative to franchisees
B) promoting service-sponsor versus manufacturer franchises
C) shifting some channel power back to franchisees
D) limiting franchisor right-to-purchase laws
In 2004, the three largest retailing companies (based on annual sales) in order of size (from the largest firm) were _____.
A) Wal-Mart, Sears Roebuck, and Kroger
B) Sears, Kmart, and Federated Department Stores
C) Wal-Mart, Home Depot, and Kroger
D) Sears, Wal-Mart, and J.C. Penney
Manufacturers can generate increased power in a channel of distribution through _____.
A) allocating promotional allowances to retailers based upon their overall sales volume
B) allowing retailers to set final retail selling prices
C) selling exclusively to major national retail chains
D) developing brand loyalty through extensive advertising
Manufacturers/service sponsors can exert channel control through _____.
A) store loyalty
B) brand loyalty
C) private branding
D) fair practice legislation
Retailers practice relationship retailing with _____ customers.
Service quality can be standardized and made more efficient by _____.
D) greater dependence on the owner
The consumer group that a retailer tries to satisfy is called its _____.
A) market segment
B) store positioning market
C) target market
D) mass market
The high total sales volume from off-price chains, factory outlets, membership clubs, and flea markets can be explained by _____.
A) retail downsizing
B) the wheel of retailing
C) scrambled merchandising
D) the retail life cycle
The major difference between consumerism and social responsibility is that consumerism is _____.
A) based on legal issues, whereas social responsibility is based on moral issues
B) based on moral issues, whereas social responsibility is based on legal issues
C) concerned with an obligation only to consumers, whereas social responsibility reflects an obligation to all parties
D) concerned with an obligation to all parties, whereas social responsibility reflects an obligation to final consumers
The overall process whereby one member of a channel can impose its will on other independent channel members is referred to as _____.
B) private branding
C) channel control
D) vertical integration
"The revenues from an unrented hotel room are forever lost." This statement refers to which characteristic of services?
The Robinson-Patman Act _____.
A) reduced monopolies and restraints of trade
B) limited mergers between large firms
C) removed the fair trade laws in all states
D) reduced the economic power of large retail chains
Which concept characterizes all destination retailers?
A) Destination retailers are chains.
B) Destination retailers have large locations.
C) Destination retailers have low prices.
D) Destination retailers are dominant in terms of some aspect of their overall retail strategy.
Which of the following best illustrates a retail cost containment strategy?
A) Buying refurbished equipment.
B) Expanding store hours.
C) Closing down unprofitable locations.
D) Increasing services.
Which of the following has developed because existing retail institutions are inadequately fulfilling market needs?
A) Consumer cooperatives.
B) Total vertical integration.
C) Independent channel ownership.
D) Leased departments.
Which of the following illustrates channel conflict between a manufacturer and its retailer customers?
A) A discounter's selling a manufacturer's product below levels at full-service retailers.
B) A cooperative advertising program in which retailers are encouraged to use selected advertising materials.
C) A manufacturer developing a toll-free hot line for customer support.
D) A manufacturer assisting retailers with inventory financing for its products.
Which of these is a successful European store type that has not done well in the United States?
A) Warehouse store
D) Convenience store
Which of these is not a characteristic that distinguishes retailing from other types of business?
A) Retail sales are more cyclical than organizational sales.
B) Store location is more important for retailers than for wholesalers.
C) The average size of a sales transaction for retailers is less than for manufacturers.
D) While final consumers make many impulse purchases, organizational consumers are more systematic in their purchasing activity.
Which one of the following is not a crucial element in Target's overall retail strategy?
A) Sale of goods at the lowest competitive price.
B) A focus on its discount store niche.
C) Strong customer service for its retail category.
D) Growth-oriented objectives.
Which retail institution is most likely to be an example of a destination store?
B) Specialty store
C) Category killer
D) Variety store
Which retail institutions do not require advertising support from suppliers?
A) Variety stores and membership clubs.
B) Superstores and traditional department stores.
C) Off-price chains and membership clubs.
D) Department stores and variety stores.
Which retail philosophy directly focuses on maintaining long-term bonds with past customers?
A) Relationship retailing.
B) Employee empowerment.
C) A strategic approach to retailing.
D) Coordinated effort.
Which statement concerning customer service is correct?
A) People's assessment of customer service depends on perceptions not necessarily reality.
B) Different people almost always judge a retailer's customer service in a similar manner.
C) Customer service only concerns a retailer's tangible activities.
D) Customer service only concerns a retailer's intangible activities.
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SUBJECTS / CATEGORIES:
2. Operations Management
3. Strategic Business Management