1. Service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a consequence of _____.
a. intangibility
b. perishability
c. necessity
d. durability
e. availability
2. Service retailers:
a. do not deal in perishables.
b. are involved in the sale of tangible goods.
c. must try to maintain consistent high-quality services.
d. are not affected by the time and location of service.
e. are not dependent on customer feedback to evaluate the quality of their offerings.
3. What is an advantage of an independent, single-store over other forms of retail ownership?
a. Economies of scale
b. Ability to react quickly to market changes
c. Bureaucratic operation
d. Specialized managers to oversee specific tasks
e. Presence of a decision making managerial board
4. Which of the following is true of corporate chain retailers as compared to single-store retailers?
a. They rely on their owner-managers’ capabilities to make the broad range of necessary retail decisions.
b. They are more likely to tailor their offerings to their customers’ immediate needs.
c. They can effectively negotiate lower prices for merchandise.
d. They are more likely to incur high charges for advertising.
e. They are more likely to respond quickly to the customer needs.
5. The _____ ownership format combines the advantages of owner-managed business with the efficiencies of centralized decision making in chain store operations.
a. franchise
b. retail chain
c. full-line discount stores
d. single-store establishment
e. wholesale-sponsored voluntary cooperative chain