ganger
Sarah purchased 75 sweaters from a wholesaler for $16 each. She wants the markup percentage to be 18 percent. How much will Sarah's profit be per sweater?
$2.88
Suppose a retailer makes a purchase costing $4,823 from a vendor and then makes a payment in full within nine days of the purchase. If the bill is written with a 2/10 net 30, the buyer would get a two percent discount. How much would the total be?
$4,823 - ($4,823 x .02) = $4,726.54
If a company has planned purchases costing $6,392, merchandise received costing $3,866 and merchandise ordered costing $1,302, how much is their open-to-buy amount?
. $6,392 - ($3,866 + $1,302) = $1,224
What is the typical number of attendees for trade shows, NOT including exhibitors?
10,000
What is the sales tax rate in Kansas?
6.3 percent
Which of the following terms describes the product path from the producer to the final customer?
A channel of distribution
Which of the following checking methods involves writing a description of the shipment and counting the items before actually looking at the shipping invoice?
Blind check
A real estate agent is an example of which of the following types of intermediaries?
Broker
Which of the following types of discounts is characterized by a customer paying for the more expensive of two items and getting the less expensive item for free?
Buy one get one
Deciding how much money is available for purchasing, selecting a vendor and negotiating terms with the chosen vendor are whose responsibilities?
Buyer
How are employee discounts usually calculated?
By percentage off
Which of the following accurately describes a "blind check" of merchandise?
Checking the shipment before checking the invoice
Which of the following is an advantage of trade shows?
Companies can reach many more potential customers compared to other methods of selling and promotions
Suppose a customer purchases Tide® laundry detergent every time they make a trip to the grocery store. Even when there is a sale on three other kinds of detergent, the customer always chooses Tide®. What is this an example of?
Customer loyalty
Which of the following is NOT a responsibility of a buyer?
Delivering merchandise
The markup percentage does which of the following?
Determines how much profit a store will make on their products
Which of the following defines markup percentage?
Difference between the initial cost of a product and the price a store charges for the product
Which is NOT an intensity level of distribution?
Distinctive
Which of the following types of storage is a balance between public and private warehousing?
Distribution center
Which of the following types of wholesalers deals with special products in bulk without physically handling the actual products?
Drop shippers
Which of the following is NOT encouraged for vendors at trade shows?
Eating in the booth
Which of the following does NOT cause inventory shrinkage?
Embezzlement
Which of the following is the leading cause of shrinkage?
Employee theft
What is the first step in determining price?
Establishing price objectives
What is a trade show?
Event allowing companies of specific industries to exhibit, promote and demonstrate their goods and services
Which of the following types of distribution involves distributing products to one intermediary within a protected territory of a geographic area?
Exclusive distribution
Air transportation is the most common form of transportation in physical distribution.
False
Perpetual inventory systems are usually conducted once a year.
False
Suppose a customer goes to Bed, Bath & Beyond® hoping to find a specific type of bed linen. They do not carry the linen, so what might the store suggest the customer do?
Fill out a want slip
FOB is an acronym for which of the following?
Free/Freight on Board
Which of the following is NOT a way purchases can be made?
Handwritten IOUs
Which of the following is NOT a benefit of marketing?
Higher prices
Which of the following accurately describes storage?
Holding goods until they are sold
Bait-and-switch advertising, a form of fraud in which customers are enticed with a low-price product the seller does not actually intend to sell, is ____.
Illegal in most states
Which of the following types of distribution involves distributing products to all suitable intermediaries for complete market coverage?
Intensive distribution
Which of the following is a disadvantage of rail transportation?
Lack of flexibility
Which of the following often contains free samples of perfume and makeup?
Magazines
Stocking refers to which of the following?
Maintaining merchandise within the store to ensure there is an adequate amount ready to be purchased
Which of the following is NOT a physical inventory system?
Manual system
Which of the following is a reason retailers may use rebates?
Many customers forget to redeem their refund after purchasing
A company is wanting to develop a new flavor of toothpaste. In order to determine which flavors are most popular the company is researching the current flavors and how well each flavor performs in the market. The company is conducting which type of research?
Market intelligence
An office supply store trading supplies to a newspaper company for advertising is an example of which of the following:
Non-monetary terms for pricing
Online shopping can be categorized into which of the following types of retailers?
Non-store retailers
Which of the following describes vendors?
People or companies which supply merchandise, parts or services to retail stores
Oil and natural gas are frequently transported through which of the following distribution methods?
Pipeline
What is the formula for calculating open-to-buy amounts?
Planned purchases - (merchandise received + merchandise ordered)
___ is setting an artificially high price in order to create a feeling of status.
Prestige Pricing
A car dealership setting a high price in order to create a feeling of high quality is know as which pricing practice?
Prestige pricing
Which of the following types of storage is created to meet the needs of its owner?
Private warehouse
Which of the following is the key method for moving heavy and bulky products, such as coal and lumber, across long distances?
Railroad
Which of the following describes buyers?
Retail stores which purchase merchandise from vendors
A store is offering 50 percent off of Halloween decorations on November 1st since Halloween is past. This is an example of which type of discount?
Seasonal
Data which has been previously collected and was not generated specifically is which type of data?
Secondary
Which of the following is encouraged for buyers to do at trade shows?
Setting goals and objectives ahead of time
Which of the following methods for marketing goods involves marking the price before delivering to distributor or retailer?
Source marking
Which of the following checking methods involves randomly inspecting one carton of a shipment for quantity and another carton for quality?
Spot check
What does the acronym SWOT mean?
Strengths, weaknesses, opportunities, threats
A company's ________ are evaluated internally as opposed to a company's ___________ which are evaluated based on external factors.
Strengths; Opportunities
Which of the following is another term for vendors?
Suppliers
Open-to-Buy refers to which of the following?
The amount of money left for purchases after other purchases have already been made
Dating terms refers to which of the following?
The financial terms of the deal with the buyer
What does it mean if a dating term is written 2/10, net 30?
The retailer will receive a two percent discount on the order if the bill is paid within ten days of the purchase statement; if not, the full amount is due within 30 days of purchase
What is the purpose of a want slip?
They are used by customers to request specific merchandise when a retailer either does not carry a specific item or the item is not in stock
Free samples can be effective for what kinds of products?
Those first being introduced in the market
What is the purpose of a retailer offering a coupon?
To attempt to maximize the redemption rate
Which of the following is NOT a goal of pricing?
To determine the need for updates
Why are prices usually fairly consistent between retailers?
To keep up with competition
What is the purpose of point-of-sale displays?
To promote impulse purchases by placing products in high traffic areas
Physical distribution connects a business to its customers.
True
UPC bar codes can capture product information at the point of sale.
True
____ is the level of satisfaction associated with a particular good or service.
Value
Which of the following shipping methods is particularly important in international product shipping?
Waterway
When is decentralized buying used?
When a store which is part of a chain wants to have specific merchandise other stores within their chain do not carry
When is the percentage-off discount often used?
When merchandise is not selling fast enough
When do discounts for buying in bulk occur?
When merchandise is purchased from wholesalers