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.

 

5 points

QUESTION 2

 

Which type of retail establishment is least likely to adopt scrambled merchandising?

 

 

A convenience market

 

 

A drugstore

 

 

A supermarket

 

 

A specialty store

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

QUESTION 7

 

Sales volume and market share are the most popular measures of:

 

 

Financial productivity

 

 

Market performance

 

 

Merchandise productivity

 

 

Human resource allocation

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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

 

5 points

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