QUESTION 1
One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. This shift in power is derived from:
The ability of consumers to purchase from retailers in other countries as a result of the Internet.
The inability of Internet retailers to compete with more traditional bricks-and-mortar retailers.
The loss of control of pricing information by retailers due to the information dissemination capabilities of the Internet.
The decreased power of consumers when transacting and negotiating with retailers.
QUESTION 2
Which type of retail establishment is least likely to adopt scrambled merchandising?
A convenience market
A drugstore
A supermarket
A specialty store
QUESTION 3
If a retailer had an average inventory of $80,000 (retail) and annual sales of $480,000, how many times has that retailer turned over its inventory?
Eight times a year
Six times a month
Eight times a month
Six times a year
QUESTION 4
Due to increased corporate responsibilities, the manager of a sporting goods store has asked the assistant manager to take responsibility for screening and hiring new sales associates. The manager is allowing the assistant to make the decisions independently, but has scheduled weekly meetings for the two to discuss any issues of concern and to provide insight, if needed. The manager is demonstrating which desirable retailing attribute?
Prioritizing
Leadership
Creativity
Laziness
QUESTION 5
Retail managers are often forced to deal with many issues, functions, and projects at the same time. Establishing priorities, plans, and follow through to achieve results demonstrates which prerequisite for success?
Initiative
Leadership
Risk Taking
Organization
QUESTION 6
Consider this mission statement: "Dad's Tasty Dogs will utilize the friendly, proven expertise of its employees and the finest ingredients to provide customers with great tasting hot dogs at a fair price." What element of a good mission statement is missing?
How the retailer uses or intends to use its resources
A SWOT analysis
How it expects to relate to the ever-changing environment
The kinds of value it intends to provide in order to serve the needs and wants of the customer
QUESTION 7
Sales volume and market share are the most popular measures of:
Financial productivity
Market performance
Merchandise productivity
Human resource allocation
QUESTION 8
A retailer has total assets of $6,000,000 and a net worth of $3,000,000. What is the retailer's financial leverage ratio?
0.5 times
2.0 times
1.0 times
0.2 times
QUESTION 9
If a retailer is assessing the remodeling needs of its stores, as well as evaluating the effect that the lack of a formal training program is having on the management of its establishments, the retailer is reviewing the firm's:
Strengths
Weaknesses
Opportunities
Threats
QUESTION 10
Identify the correct statement about "echo boomers."
They were the first to grow up with the Internet in its developed form
They want a family and home but place a higher priority on their professional career
This age group is a declining percentage of the population
This age group is a declining percentage of the population
QUESTION 11
Which of the following statements about Gen Yers is false?
Realizing the Yers' interests, many banks are allowing their customers to set their own rules for transferring funds into savings accounts
These antifashion and antiestablishment consumers do not want entertainment or events when they shop
Gen Yers seem to be turned off by promotions that do not take them seriously
Some banks have lured Gen Yers with online user friendliness whereby they can drag money from one account to another all on the same screen
QUESTION 12
Which of the following statements applies to members of the college-educated market?
They are especially watchful of price, quality, and advertised claims
Their buying behaviors do not differ from those of other consumers of their same age who are not college educated
They are less sophisticated, discriminating and more dependent than other consumers of their age and income level, when making retail purchases
With the advent of the Internet, they will have no need for in-store salespeople
QUESTION 13
A market offers rows of exotic produce, fresh prime meats, seafood flown in fresh, a bakery filled with artisan breads and over 220 cheeses. This market is competing for customers on which major front?
The price for the value offered
Service level
Product selection
Location or access
QUESTION 14
When two discount department stores such as Sears and JCPenney compete for the same customer, what type of competition is occurring?
Intertype
Intratype
Divertive
Intercept
QUESTION 15
Which one of the following institutions involved in a supply chain would take title to the goods it is dealing with?
Trucking company
Insurance company
Market researcher
Retailer
QUESTION 16
An attempt by a wholesaler to preserve a market for its products by strengthening the retailers that it sells to is an example of what type of channel arrangement?
Retailer-owned cooperative
Wholesaler-sponsored voluntary group
Corporate system
Retail-sponsored marketing system
QUESTION 17
An example of coercive power is a manufacturer's:
Refusal to sell merchandise to any retailer who sells to diverters
Offer to increase the cash discounts if the retailer meets a sales quota
Offer a co-op promotional plan to all retailers in a key city
Act of sending the retailer a Christmas card without a year-end bonus
QUESTION 18
When all airlines agree to set fares at the same price, they are:
Engaging in price discrimination
Violating fair trade laws
Engaging in horizontal price fixing
Violating the Federal Trade Commission Act
QUESTION 19
All of the pub owners in a small college town met and decided to charge $7.99 for a burger and beer during the school year. The pub owners may be in violation of the:
Wheeler-Lea Act
Clayton Act
Federal Trade Commission Act
Sherman Antitrust Act
QUESTION 20
A salesperson tells a customer, "Ninety percent of the people we've sold these tires to over the past five years have gotten at least 25,000 miles of use out of them without any problems. Therefore, I can assume that you should get no less than 30,000 miles with them given the way you drive." The salesperson:
May be creating an expressed warranty
Is engaging in false advertising
Could never be held responsible for the tire's longevity
May be creating an implied warranty of merchantability