Retail MGMT Exam 2
Based on Reilly's law, a city with a population of 90,000 would draw people from about how many times the distance as a city with 10,000 population?
3 times
A store with a wide assortment of merchandise and a strong image in a particular merchandise category is a ________ store.
destination
What type of retailer has a very large primary trading area?
destination retailer
A retailer seeks input from employees at weekly meetings. Data on store performance is shared with employees and employees are rewarded on the basis of sales per square foot and a store's net profit as a percent of sales. This best illustrates ________.
dissatisfiers
A retailer seeking a stable economic environment should seek a trading area with a ________.
diversified economic base
What type of economic base is preferred by most retailers?
diversified economic base
A retailer decided to outsource its logistics operations to FedEx after studying its resources. This illustrates which stage in setting up a retail organization?
dividing the tasks among channel members
A retailer uses a functional classification system for jobs; in addition, some employees may be placed in special teams. An employee with two bosses (the functional boss and the team leader) ________.
does not have a clear hierarchy of authority
An area's commercial and industrial structure is referred to as its ________.
economic base
A problem with extreme specialization of tasks in retailing is ________.
employees not being aware of the importance of their tasks to the retailer's overall goals
A retailer seeking to decrease its collection period should ________.
encourage slow-paying customers to use bank credit cards
Which form of retail organization separates responsibility for buying and selling?
equal store
Which form of retail store organization seeks to achieve the benefits of both centralization and decentralization?
equal store
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
A retailer uses different buyers in its main store and its suburban branches so as to better reflect each target market. This illustrates which job classification method?
geographic classification
The equal store organization is a form of ________.
geographic classification
Reporting relationships among employees within a retail firm from the lowest levels to the highest levels are described in the ________.
hierarchy of authority
A retailer can increase its financial leverage through ________.
increasing short- and long-term debt
An isolated store location is most suitable to a retailer that ________.
is a category killer
A store has a disproportionately large primary, secondary, and fringe trading area. This situation can be caused by ________.
its being a destination store
The gathering of information about the functions and requirements of each job is referred to as ________.
job analysis
A retailer can overcome problems with extreme task specialization by ________.
job rotation and job enlargement
The least flexible element of a retailer's strategy mix is ________.
location
Which two lease provisions set rental terms on the basis of actual operating costs?
maintenance-increase-recoupment lease and net lease
The four functional areas in the modern version of the Mazur plan are ________.
merchandising, communications, store management, and financial accounting
Which shopping location appeals to a single residential area?
neighborhood business district
The least common form of planned shopping center is the ________.
neighborhood shopping center
Which planned shopping center emphasizes convenience-oriented goods and services (such as a bakery, laundry, and a dry cleaner)?
neighborhood shopping center
Which planned shopping center is generally arranged in a strip?
neighborhood shopping center
A retailer has the greatest control over property maintenance in which rental form?
net lease
The relationship between a retailer's net profits and net sales is its ________.
net profit margin
The return on net worth (RONW) ratio is based on a retailer's ________.
net profit margin, asset turnover, and financial leverage
A major disadvantage to an isolated store location is that ________.
on an ongoing basis, many people will not travel very far to shop in just one store
When a central business district closes a street to vehicular traffic as part of a renovation project, it plans to simulate a(n) ________ mall.
open
A retailer's net worth is also referred to as its ________.
owner's equity
A newspaper stand in a hotel lobby can best be described as a ________ store
parasite
Which location and site evaluation aspects can best be monitored by observation?
pedestrian and vehicular traffic
A retailer is currently in a shopping center with a large number of vacancies. Several of the vacant retail locations have high affinities with the existing retailer. The loss in pedestrian traffic can be partially offset through which form of lease?
percentage lease
Which type of shopping center is comprised of category killer stores?
power center
A retailer should concentrate the bulk of its promotional activity in its ________.
primary trading area
A retailer's revenues and expenses for a given period of time are summarized in a ________.
profit-and-loss (income) statement
A major advantage of a flat organization is ________.
quicker response time to the handling of important problems or opportunities
A major advantage of specialization is ________.
reduced training
A megamall is a form of a ________.
regional shopping center
Which planned shopping center is most similar to the central business district?
regional shopping center
Which planned shopping center type has a trading area of up to 30 minutes driving time?
regional shopping center
A department store uses a(n) ________ computer site selection model. This model contains a series of equations linking variables such as traffic patterns, population size, average income, and transportation adequacy to estimated sales.
regression
In a string location, a retailer has affinities with ________.
retailers selling the same product lines
A functional classification for a car dealer would classify jobs into which of the following divisions?
sales promotion, repairs, car sales, and store operations
The major difference between an application blank and a weighted application blank is that the weighted application blank is ________.
scored to determine if a job candidate meets the minimum cutoff point
Which unplanned business district is generally bounded by the intersection of two major streets?
secondary business district
Transferring stock between branches is most difficult in which form of retail organization?
separate store
A major refinement in Huff's law versus Reilly's law is Huff's use of ________.
separate trading-area calculations for different product categories
The quality of pedestrian traffic counts can be improved by ________.
separating the count by time of day and day of week
A neighborhood business district generally is comprised of a minimum of ________.
several service stores (such as a dry cleaner and restaurant)
"A grouping of stores may actually increase the trading area for each store." This statement especially applies to ________.
shopping products
A firm can increase its asset turnover performance by ________.
stocking inventory that is fast-moving
The addition of retail stores to a shopping center increases the trading area for each store. This indicates that ________.
store affinities exist between the new and existing stores
In retail balance, ________.
store facilities for each merchandise or service classification are equal to the location's market potential
"While competition among similar stores can increase the size of a trading area for all merchants, it can result in each merchant receiving a smaller market share." This statement is most applicable to a(n) ________.
string
A proposed location for a supermarket chain is within three miles of a current store. What is the major factor that
the trading-area overlap of both locations
A retailer's location strategy can be made more flexible through ________.
the use of short-term leases with multiple renewal options versus a long-term lease
Leases for retail locations are often very complicated due to ________.
their long time duration
A major advantage of an isolated store location is that ________.
there are no group rules which must be abided by in operation
Blocks and census tracts are important units in the Census of Population to retailers because ________.
these can be combined to fit a retailer's trading area
A retailer with a supervisory orientation that assumes that the average worker lacks ambition and dislikes responsibility would most likely employ a ________.
tightly structured supervision style
A retailer with a higher than average profitability is most likely to have which level of saturation?
understored
An area with a relatively large number of consumers per square foot of available store space is ________.
understored
A retailer with three retail stores located within a 10-mile radius wishes to advertise in a county-based daily newspaper which covers a very large geographic area. The retailer should ________.
use a regional edition to minimize waste
A firm determines that job candidates for part-time cashier positions that have B or better averages are three times more likely to successfully complete six months with a firm than those with averages less than C. Where in the human resource management process should the firm use this information?
weighted application blank
Which job selection technique requires that a job candidate score above a minimum cutoff as a pre-condition for being hired?
weighted application blank
Under what condition would it be rational for the trading areas of two branch locations to completely overlap?
when the retailer decides to switch store locations due to loss of a lease on the first store location
Which computer-based system classifies and describes communities by lifestyle clusters?
Nielsen's PRIZM
Which statement concerning the central business district (CBD) is not correct?
Over the past 40 years, the share of the CBD relative to the planned shopping center has increased.
The quick ratio equals ________.
(cash + accounts receivable) divided by total current liabilities
The distance between city A and city B is 30 miles; city A's population is 1,000,000 and city B's is 16,000,000. The point of indifference between the two cities is ________.
6 miles from A, 24 miles from B
The trading area overlap between two shoe stores of the same chain is significant. What conclusion can we make about the level of saturation in this geographic area?
It is overstored.
Which statement concerning the U.S. Census Bureau's national digital map, TIGER, is not correct?
TIGER maps include retail facilities and population characteristics.
A string is composed of ________.
a grouping of stores with similar or compatible product lines
A retailer structures and assigns tasks, policies, resources, authority, responsibilities, and rewards through ________.
a retail organization
A retailer's assets, liabilities, and net worth are summarized at a specific period of time in a ________.
balance sheet
A separate store organization should be utilized when ________.
branches are large and customer tastes vary by location
Which are examples of fixed assets to a retailer?
buildings, store fixtures, and real-estate
Under the modern version of the Mazur plan, which executive has responsibility for reaching profit goals?
buyer
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
Planned shopping centers are characterized by ________.
central ownership and management and balanced tenancy
In the main store control organization, ________.
centralization is practiced
Which of the following retailers is most likely to be a parasite in a major shopping center?
coffee shop
The first step in choosing a store location is to ________.
evaluate alternate geographic (trading areas) in terms of the characteristics of residents and existing retailers
A span of control refers to the number of subordinates reporting to one manager. A firm with a large span of control utilizes a ________ organization.
flat
Which trading area covers the greatest distance?
fringe trading area
The modern version of the Mazur plan most closely corresponds to which method of classifying jobs?
functional classification
The ________ method of job classification places store-based personnel under the direct control of the branch manager.
geographic
Which form of organization is most in accord with the notion of motivation that argues that the average worker dislikes responsibility and prefers to be led?
tall
A major advantage to leasing (versus store ownership) is ________.
the ability to secure regional shopping center locations
A major advantage of the Census of Population for use by retailers in trading-area analysis is ________.
the availability of information on small geographic units
A major benefit of a trading-area analysis is that it allows a retailer to determine ________.
the demographic and socioeconomic characteristics of consumers
A major advantage of ownership versus leasing is ________.
the increased ability to predict occupancy costs in future time periods
A disadvantage of delegating a retail task to another party is ________.
the loss of control over the activity
The minimum expectations/desired goals concept is most closely in accord with ________.
the notion that employees can be self-managers and assigned authority