Retail Management FINAL Review
A retailer can become a ________ through low prices, specialized products, a large selection, and superb customer service.
destination retailer
A retailer aims efforts at two or more distinct consumer groups, with different retailing approaches for each group, in ________.
differentiated marketing
Which type of target market strategy is most likely to suffer from a blurred image and/or high marketing expenditures due to having multiple marketing plans?
differentiated marketing
A retailer seeking to sell luxury goods needs to evaluate which demographic statistic?
discretionary income
The lowest cost assembled display is a(n) ________ display.
dump bin
The difference between the retail book value of ending inventory, as compared to the actual physical ending inventory value, is ________.
either a shortage or an overage
The promotional strategy of shopping networks ________.
enables purchases to be made only while an item is being advertised
In Reilly's law of retail gravitation, the point of indifference is the ________.
geographic breaking point area at which shoppers are indifferent to shopping at either of two cities
Annual cash flow planning is especially difficult when a retailer ________.
has a highly seasonal business
Leveraged buyouts are characterized by ________.
high degrees of debt
An advantage of a leased department form of organization to a lessee is ________.
high traffic potential
A characteristic of direct mail is a ________.
highly targeted audience
The equivalent of a storefront for a Web-based retailer is a(n) ________.
home page
A retailer is concerned about how well integrated his or her overall strategy is coordinated. While customer service is excellent and merchandise within the store is distinctive, parking adequacy is poor and merchandise selection is narrow. What type of retail audit should the retailer pursue?
horizontal retail audit
Which of the following is an advantage of central warehousing for a chain retailer?
increased use of mechanization in the processing of goods
Retail price competition is generally highest in ________ distribution.
intensive
A company audit specialist is a(n) ________.
internal employee whose prime responsibility is the retail audit
In a leveraged buyout, a firm's financial leverage ratio ________.
is a high number
Which stage of the marketing research process in retailing is concerned with the development of a clear statement of the topic to be examined?
issue (problem) definition
Sampling of stores, products, or customers in a nonprobability sample is conducted on the basis of ________.
judgment or convenience
In which pricing technique does a retailer advertise and sell key items in the product assortment at less than the usual profit margin?
leader pricing
With cross-training, personnel ________.
learn tasks associated with more than one job
An advantage of a compensation cafeteria for top executives is the ability for executives to ________.
limit their state and federal income taxes through deferring benefits
The price floor represents the ________.
lowest acceptable price to a retailer
A retailer has the least control over retail price setting in ________.
market pricing
Department stores commonly classify female clothing into juniors, misses, and ladies. This represents a ________ grouping.
market segment
A retailer sells its goods and services to a broad spectrum of consumers in ________.
mass marketing
Most goods and services are at what stage of the traditional product life cycle?
maturity
Price competition by retailers is most intense in which product life cycle stage?
maturity
The relationship between a retailer's net profits and net sales is its ________.
net profit margin
Retailers spend the highest proportion of their advertising budgets in which medium?
newspapers
The most complex method of establishing an overall promotional budget is the ________.
objective-and-task method
A retailer is able to appeal to different target markets, as well as reach consumers through points of contact, through engaging in ________.
omnichannel retailing
Partial, revolving payments are not permitted in a(n) ________.
open credit account
The hierarchical relationships within the firm are displayed in a(n) ________.
organization chart
The use of a third-party firm handling a retailer's payroll illustrates ________.
outsourcing
Third-party logistics is another term for ________.
outsourcing logistics
Outside auditors are ________.
people who work as consultants on a fee basis
Direct selling is not considered part of direct marketing since ________.
personal communication is used to initiate customer contact
Store security relates to both ________.
personal security and merchandise security
A(n) ________ ad should be used to communicate a new retailer opening in a market area.
pioneer
Dollar control involves ________.
planning and monitoring a retailer's financial investment in merchandise over a stated time period
Further purchase and re-evaluation are components of which stage of the consumer decision process?
post-purchase behavior
Price discrimination is legal under the Robinson-Patman Act when ________.
price differences are equal to or less than a supplier's cost savings
Between 50 and 80 percent of a store's customers come from its ________ trading area.
primary
A major cost advantage associated with direct store delivery for a retailer is the ________.
reduction in warehouse expenses
Which prospective customers are most likely to respond to a direct marketer's offering?
regulars and nonregulars
Which is not a component of SERVQUAL?
retail image
In selling against the brand, ________.
retailers charge artificially high prices on manufacturer brands in order to sell their own private labels
When the price elasticity of demand is unitary and prices go down, total ________.
revenues stay the same
Data that have already been gathered for purposes other than the problem or issue under study are ________.
secondary data
The use of in-store displays and the sale of well-known national brands can effectively reduce selling costs through use of ________.
self-service facilities
Informal buying organizations are most likely to be found in ________.
small independents
A ready-to-heat meal offered for sale by a supermarket is an example of ________.
solutions selling
Description buying is most appropriate for ________.
standardized, nonbreakable, and nonperishable merchandise
Perishable items are categorized and displayed on the basis of ________ product groupings.
storability
An area with a relatively large number of consumers per square foot of available store space is ________.
understored
The regression computer site selection model ________.
utilizes a series of mathematical equations
A retail audit that focuses on one area of a retailer's strategy mix is a ________ retail audit.
vertical
Which retail assortment strategy is used by a specialty store?
Narrow and deep
Wholesalers can possess channel control through ________.
Private brands
The average relationship of cost to retail value for a retailer's merchandise that is available for sale is the ________.
cost complement
Poor morale and boredom caused by extreme specialization can be overcome by ________.
cross-training
A central business district is characterized by a concentration of ________.
cultural and entertainment facilities
The identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells is referred to as ________.
customer service
In the retail method of accounting, sales, employee discounts, and stock shortages are viewed as ________.
deductions from retail value
Which type of salesperson is generally associated with a self-service retail environment?
an order-taking salesperson
What major law mandates that persons with disabilities be given appropriate access to retailing facilities?
Americans with Disabilities Act
Loyalty has what two unique dimensions?
Attitudinal and behavioral
A group of independent retailers seeks to establish a common identity and to generate increased bargaining power through centralized purchasing. Which of the following institutional arrangement should they consider?
Cooperative
The retail training method which involves no active participation by trainees is ________.
Lecture
What involves transactions in which consumers do not purchase or acquire ownership of tangible products?
Service retailing
All of the activities involved in managing the retailer's physical facilities comprise ________.
Store maintenance
A huge form of combination store is a ________.
Supercenter
A retailer's focusing on store atmosphere, customer service, and exceeding a consumer's expectations is concerned with ________.
The total retail experience
A string is composed of ________.
a grouping of stores with similar or compatible product lines
In a flat organization, ________.
a large number of subordinates reports to one supervisor
The purpose of ________ is to study what a retailer is presently doing, appraise performance, and make recommendations for the future.
a retail audit
A regular order is characterized by ________.
a uniform contract with standardized terms
A major benefit to data warehousing is its ________.
ability for data access and retrieval at multiple locations
In scrambled merchandising, a retailer ________.
adds goods and services that may be unrelated to each other and to the firm's original business
Which recruitment source involves the least degree of screening of potential job candidates?
advertisements
A retailer's descriptions of goods to be stocked in its assortment plan are constant over a five-year period. The assortment plan analyzed is a(n) ________.
basic stock list
A curving traffic pattern is most widely used by ________.
boutiques
A retailer's planned expenditures for a given time period, based on its expected performance, is its ________.
budget
A direct marketer determines the goods and services sold as well as its target market in the ________ stage of a direct marketing strategy.
business definition
In which of the following does a dealer receives assistance on site location, start-up practices, accounting systems, and management training in ________.
business format franchising
A shopping area in a city or town that is the hub of retailing in a city and is synonymous with the term "downtown" is the ________ business district.
central
Which planned shopping center has a moderate assortment of both shopping and convenience-oriented goods and services?
community shopping center
Which compensation plan allows executives to choose among bonuses, deferred bonuses, stock options, and other fringe benefits?
compensation cafeteria
A firm's target market best represents the ________.
consumer group sought by a retailer
The food-oriented retailer with the narrowest width and depth of assortment is the ________.
convenience store
Which form of ownership is a legal entity apart from its individual officers or stockholders?
corporation
Perceived risk is high since a consumer is purchasing a complex good in which he or she has had little experience. What type of consumer decision making accompanies this situation?
extended decision making
Safety stock is defined as ________.
extra inventory kept on hand to protect against out-of-stock conditions
Which sales promotion form seeks to develop store loyalty?
frequent shopper programs
Which brands generally receive secondary shelf locations and receive little or no promotion support?
generic brands
The logistics aspect of a value delivery chain is ________.
supply chain management
The cost of goods sold equals ________.
the cost of merchandise available for sale minus ending inventory
The relationship among asset turnover, net profit margin, and financial leverage is known as ________.
the strategic profit model