The use of a firm’s total retail strategy to satisfy its target market represents the coordinated effort phase of the retailing concept. a. true b. false

The use of a firm’s total retail strategy to satisfy its target market represents the coordinated effort phase of the retailing concept.
a. true
b. false

Q2. Channel conflict can be minimized through intensive distribution and/or horizontal integration.
a. true
b. false

Q3. Only large firms can successfully adjust their retail strategies in response to consumer preferences.
a. true
b. false

Q4. A change in retail productivity can have a large impact on consumers and the economy.
a. true
b. false

Q5. In 2004, the ten largest U.S. retailers earned average after-tax profits amounting to about _____ percent of sales.
a. 1.1
b. 2.5
c. 3.3
d. 5.7

Q6. A retail strategy can be best defined as _____.
a. the selection and appeal to a specific retail target market
b. short-run activities conducted by a retailer to meet or exceed its retail objectives
c. the overall plan guiding a retail firm
d. a plan to reduce retail costs

Q7. On average, what percent of every sales dollar goes to department store retailers as compensation for the activities they perform?
a. 15
b. 22
c. 30
d. 50

Q8. An approach to the study of retailing which focuses on a retailer’s need to revise plans continually in order to adapt to a changing environment is the retailing concept.
a. true
b. false

Q9. Operating costs in supermarkets are higher than those in department stores.
a. true
b. false

Q10. Channel relations tend to be most volatile in which form of distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. vertical integration

Q11. The first stage in development of a retail strategy should be to determine the retailer’s _____.
a. most appropriate target market
b. short-run objectives
c. long-run objectives
d. type of business and orientation of the firm

Q12. Sherwin-Williams and Polo Ralph Lauren both operate their own retail stores.
a. true
b. false

Q13. An approach to the study of retailing that stresses activities such as buying, pricing, and personnel practices is a _____ approach.
a. strategic
b. functional
c. institutional
d. retail audit

Q14. Computerized checkout systems allow retailers to develop up-to-date sales reports.
a. true
b. false

Q15. An advantage of a retailer-generated credit card is _____.
a. no bad debt or slow-payment problems
b. no need for credit checks
c. low startup costs
d. the encouragement of store loyalty

Q16. A customer must pay the bill when it is due with a revolving credit account.
a. true
b. false

Q17. A fundamental concept of the value chain is the _____.
a. interrelationship among manufacturer, wholesaler, and retailer
b. independence of all channel members
c. notion that value is interpreted similarly by all final consumers
d. notion that value is affected by price alone

Q18. In an electronic debit payment plan, the purchase price _____.
a. must be paid by the consumer at the time the bill is received
b. must be paid by the consumer within 10 days of the time the bill is received
c. is immediately deducted from a consumer’s bank account and transferred to a retailer’s account
d. can be financed through many different payment plans

Q19. Variability in service quality can be reduced through _____.
a. standardizing services
b. development of branches
c. market research
d. warranties

Q20. As enunciated by President Kennedy about 45 years ago, consumers have the right to low prices, safety, full employment, and to be heard.
a. true
b. false

Q21. In a revolving credit account, _____.
a. a customer is billed at the end of the month on the basis of the outstanding cumulative balance
b. no interest is assessed if a consumer pays part of the bill when it is due
c. a customer can exceed his/her credit limit
d. a customer must pay his/her bill in full when it becomes due

Q22. Electronic banking enables cash transactions to occur using retail coding systems.
a. true
b. false

Q23. Owned-goods service providers often receive competition from _____.
a. outshoppers
b. do-it-yourselfers
c. in-home shoppers
d. personalizing shoppers

Q24. An augmented retail strategy for a discounter could be an expected retail strategy for a full-service retailer.
a. true
b. false

Q25. The reduction of customer defections by 5 percent may result in an increase in profits of 50 percent.
a. true
b. false

Q26. A retailer’s customers who are most loyal and who have the highest average sales can be classified as its _____.
a. outshoppers
b. target market
c. primary customers
d. core customers

Q27. A retailer’s time demand requirements can be reduced through use of a partnership organization, self-service formats, and automation/industrialization.
a. true
b. false

Q28. A retailer that sells to multiple segments should use which management alternative?
a. professional manager system
b. decentralized structure
c. owner-manager system
d. centralized structure

Q29. Which of the following is revolutionizing merchandise handling and inventory control?
a. competition
b. computerized checkouts
c. legal restrictions
d. seasonality

Q30. The lower the efficiency rating figure, the more efficient the retail firm.
a. true
b. false

Q31. Most department stores seek multiple market segments when they provide several distinctive boutiques.
a. true
b. false

Q32. The questions “What is the firm’s current status?” and “In which direction should it be heading?” are evaluated in which retail strategy stage?
a. philosophy of business
b. situation analysis
c. strategy determination
d. implementation and analysis

Q33. Signals of performance such as employee satisfaction questionnaires, sales reports, and inventory records are examples of _____.
a. retail audits
b. feedback
c. tactics
d. retail demographic data

Q34. A more uniform image, greater coordination, and quantity discounts in purchasing are advantages to the use of a centralized organizational structure.
a. true
b. false

Q35. An appliance retailer sells only national brands of major appliances, displays all products sold, delivers and installs appliances as part of the purchase price, and will meet all advertised competitor prices. This illustrates the retailer’s _____.
a. organizational mission
b. store positioning
c. competitive advantage
d. satisfaction of publics

Q36. An advantage of buying an existing business versus starting a new business is _____.
a. the ability to generate new supplier relationships
b. the ability to generate immediate sales
c. no cost for goodwill
d. flexibility in developing and changing retail strategy

Q37. A retailer’s organizational mission should reflect its competitive advantages as a retailer.
a. true
b. false

Q38. Rigid operations standards and restriction on the choice of supplier characterizes _____.
a. partnerships
b. the professional manager system
c. franchising
d. the owner-manager system

Q39. Uniformity of retail image is not a problem for _____.
a. independent retailers
b. chains
c. franchises
d. leased department lessees

Q40. Centralized purchasing and decision making, as well as cost efficiencies, are characteristics of which form of retail institution?
a. independents
b. chains
c. retail cooperatives
d. vertical marketing systems

Q41. FTC rulings, fair practice laws, and franchise-member organizations have the effect of _____.
a. shifting some channel power back to franchisees
b. limiting franchisor “right-to-purchase” laws
c. promoting service-sponsor versus manufacturer franchises
d. further constraining decision making relative to franchisees

Q42. Retailing is best characterized by which of the following?
a. independent ownership dominating sales
b. franchise organizations dominating sales
c. ease of entry into the marketplace
d. vertical marketing systems being fully integrated

Q43. A problem common to franchisors and department or discount stores that utilize leased departments is the _____.
a. short duration of most leases
b. potential negative effect on the firm’s overall image
c. inflexibility with regard to store hours and operating style
d. legality of contract provisions relating to use of approved vendors

Q44. A major competitive advantage of independent retailers is _____.
a. a good fit with other owned units
b. flexibility in devising retail strategy
c. quantity discounts in purchasing
d. specialization of retail functions

Q45. The use of prototype stores, standardized product lines, and cooperative advertising characterizes _____.
a. retail cooperatives
b. business format franchising
c. product/trademark franchising
d. vertical marketing systems

Q46. The most common form of vertical marketing system is _____.
a. independent vertical marketing system
b. partially integrated marketing system
c. fully integrated marketing system
d. a retail cooperative

Q47. Which vertical marketing system is involved when one channel member performs all production and distribution functions?
a. fully integrated vertical marketing system
b. partially integrated vertical marketing system
c. independent vertical marketing system
d. franchising

Q48. A unique disadvantage for independent retailers is a lack of _____.
a. competitive advantages
b. independence
c. control over strategy
d. management succession

Q49. The type of retailer with the largest percent of total retail franchise sales is _____.
a. gasoline service stations
b. hotels and motels
c. restaurants
d. auto and truck dealers

Q50. The overall process whereby one member of a channel can impose its will on other independent channel members is referred to as _____.
a. channel control
b. vertical integration
c. franchising
d. private branding