Question 1

Which of the following is NOT an operating expense?

Accepted Answer

A)  Rent 
B)  Cost of goods sold 
C)  Depreciation 
D)  Utilities 
E)  Wages 
A)  Rent 
B)  Cost of goods sold 
C)  Depreciation 
D)  Utilities 
E)  Wages

Question 2

What are the five most popular methods of classifying retailers?

Accepted Answer

A)  Census Bureau, inventory method, margin versus turnover, location, and size 
B)  Census Bureau, margin versus turnover, inventory method, channel system, and size 
C)  Census Bureau, number of outlets, margin versus turnover, location, and size 
D)  number of outlets, margin versus turnover, location, size, and inventory method 
E)  number of outlets, Census Bureau, inventory method, location, and size 
A)  Census Bureau, inventory method, margin versus turnover, location, and size 
B)  Census Bureau, margin versus turnover, inventory method, channel system, and size 
C)  Census Bureau, number of outlets, margin versus turnover, location, and size 
D)  number of outlets, margin versus turnover, location, size, and inventory method 
E)  number of outlets, Census Bureau, inventory method, location, and size

Question 3

Career progression in retailing is typically slow.

Accepted Answer

A) True 
 B)False

Question 4

Same-store sales compare an individual store's sales to its sales for the same day of the week (e.g.,Friday)to that day in the previous two weeks.

Accepted Answer

A) True 
 B)False

Question 5

An environmental orientation will allow retailers to:

Accepted Answer

A)  anticipate and adapt continuously to external forces. 
B)  adapt systematically to a changing environment. 
C)  focus on fundamental management of assets, sales revenues and expenses. 
D)  focus on the need to collect and analyze data. 
E)  to acquire merchandise from suppliers. 
A)  anticipate and adapt continuously to external forces. 
B)  adapt systematically to a changing environment. 
C)  focus on fundamental management of assets, sales revenues and expenses. 
D)  focus on the need to collect and analyze data. 
E)  to acquire merchandise from suppliers.

Question 6

Inventory turnover refers to the number of times per year,on average,that a retailer sells its inventory.

Accepted Answer

A) True 
 B)False

Question 7

Retail managers must be skillful at managing changes that occur in their markets.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  An ATM 
B)  A drugstore 
C)  A supermarket 
D)  A specialty store 
E)  A convenience market 
A)  An ATM 
B)  A drugstore 
C)  A supermarket 
D)  A specialty store 
E)  A convenience market

Question 9

Convenience stores often employ a scrambled merchandising technique.

Accepted Answer

A) True 
 B)False

Question 10

The Internet has completely destroyed bricks-and-mortar retailers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about private label brands is false?

Accepted Answer

A)  Private labels allow the retailer to control the costs associated with developing, making, sourcing, and promoting the label. 
B)  Private labels are advertised in the newspaper as brands and are heavily promoted in stores. 
C)  Private label brands are usually sold at lower prices than manufacturer's brands. 
D)  Private label brands have been successful in the grocery industry, while failing in most other retail sectors. 
E)  Some retailers can't use private labels unless they are part of a buying group. 
A)  Private labels allow the retailer to control the costs associated with developing, making, sourcing, and promoting the label. 
B)  Private labels are advertised in the newspaper as brands and are heavily promoted in stores. 
C)  Private label brands are usually sold at lower prices than manufacturer's brands. 
D)  Private label brands have been successful in the grocery industry, while failing in most other retail sectors. 
E)  Some retailers can't use private labels unless they are part of a buying group.

Question 12

_____ occurs when the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax.

Accepted Answer

A)  Channel Surfing 
B)  Same-store retailing 
C)  Bricks-and-mortar retailing 
D)  Social shopping 
E)  Outshopping 
A)  Channel Surfing 
B)  Same-store retailing 
C)  Bricks-and-mortar retailing 
D)  Social shopping 
E)  Outshopping

Question 13

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need,thus killing the competition,is known as a(n):

Accepted Answer

A)  capital-based retailer. 
B)  category killer. 
C)  divertive competitor. 
D)  killer bee. 
E)  supercenter. 
A)  capital-based retailer. 
B)  category killer. 
C)  divertive competitor. 
D)  killer bee. 
E)  supercenter.

Question 14

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:

Accepted Answer

A)  the ability of consumers to purchase from retailers in other countries as a result of the Internet. 
B)  the inability of Internet retailers to compete with more traditional bricks-and-mortar retailers. 
C)  the loss of control of pricing information by retailers due to the information dissemination capabilities of the Internet. 
D)  the lack of competition in e-tailing. 
E)  the decreased power of consumers when transacting and negotiating with retailers. 
A)  the ability of consumers to purchase from retailers in other countries as a result of the Internet. 
B)  the inability of Internet retailers to compete with more traditional bricks-and-mortar retailers. 
C)  the loss of control of pricing information by retailers due to the information dissemination capabilities of the Internet. 
D)  the lack of competition in e-tailing. 
E)  the decreased power of consumers when transacting and negotiating with retailers.

Question 15

Department stores are closing their downtown locations,which often were their largest stores,because the downtown areas of many cities have become "ghost towns."

Accepted Answer

A) True 
 B)False

Question 16

The NAICS codes are an effective means of categorizing retailers as they reflect all types of retail activity.

Accepted Answer

A) True 
 B)False

Question 17

_____ refers to the number of times per year,on average,that a retailer sells its inventory.

Accepted Answer

A)  Periodic inventory 
B)  Carrying cost of inventory 
C)  Inventory reserve 
D)  Perpetual inventory 
E)  Inventory turnover 
A)  Periodic inventory 
B)  Carrying cost of inventory 
C)  Inventory reserve 
D)  Perpetual inventory 
E)  Inventory turnover

Question 18

Which of the following is an example of a non-traditional location that retailers are selecting:

Accepted Answer

A)  travel stop plazas along interstate highways. 
B)  multi retail store shopping centers. 
C)  suburban shopping malls. 
D)  outlet malls. 
E)  local corner stores. 
A)  travel stop plazas along interstate highways. 
B)  multi retail store shopping centers. 
C)  suburban shopping malls. 
D)  outlet malls. 
E)  local corner stores.

Question 19

The creative method of retailing focuses on facts to make decisions systematically.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would NOT be considered a "category killer?"

Accepted Answer

A)  Office Depot 
B)  PetSmart 
C)  Toys "R" Us 
D)  Target 
E)  Best Buy 
A)  Office Depot 
B)  PetSmart 
C)  Toys "R" Us 
D)  Target 
E)  Best Buy

Which of the following is NOT an operating expense?

What are the five most popular methods of classifying retailers?

Career progression in retailing is typically slow.

Same-store sales compare an individual store's sales to its sales for the same day of the week (e.g.,Friday)to that day in the previous two weeks.

An environmental orientation will allow retailers to:

Inventory turnover refers to the number of times per year,on average,that a retailer sells its inventory.

Retail managers must be skillful at managing changes that occur in their markets.

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

Convenience stores often employ a scrambled merchandising technique.

The Internet has completely destroyed bricks-and-mortar retailers.

Which of the following statements about private label brands is false?

_____ occurs when the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax.

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need,thus killing the competition,is known as a(n):

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:

Department stores are closing their downtown locations,which often were their largest stores,because the downtown areas of many cities have become "ghost towns."

The NAICS codes are an effective means of categorizing retailers as they reflect all types of retail activity.

_____ refers to the number of times per year,on average,that a retailer sells its inventory.

Which of the following is an example of a non-traditional location that retailers are selecting:

The creative method of retailing focuses on facts to make decisions systematically.

Which of the following would NOT be considered a "category killer?"

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 1: Perspectives on Retailing

Which of the following is NOT an operating expense?

What are the five most popular methods of classifying retailers?

Career progression in retailing is typically slow.

Same-store sales compare an individual store's sales to its sales for the same day of the week (e.g.,Friday)to that day in the previous two weeks.

An environmental orientation will allow retailers to:

Inventory turnover refers to the number of times per year,on average,that a retailer sells its inventory.

Retail managers must be skillful at managing changes that occur in their markets.

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

Convenience stores often employ a scrambled merchandising technique.

The Internet has completely destroyed bricks-and-mortar retailers.

Which of the following statements about private label brands is false?

_____ occurs when the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax.

A retailer that carries such a large quantity of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing what they need,thus killing the competition,is known as a(n):

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:

Department stores are closing their downtown locations,which often were their largest stores,because the downtown areas of many cities have become "ghost towns."

The NAICS codes are an effective means of categorizing retailers as they reflect all types of retail activity.

_____ refers to the number of times per year,on average,that a retailer sells its inventory.

Which of the following is an example of a non-traditional location that retailers are selecting:

The creative method of retailing focuses on facts to make decisions systematically.

Which of the following would NOT be considered a "category killer?"

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters