Question 1

Which of the following statements is correct?

Accepted Answer

A)  Operating costs per sales dollar are usually lower for larger retailers than they are for small retailers. 
B)  Larger retail firms generally have higher operating costs per sales dollar. 
C)  Retailers cannot be classified by number of stores. 
D)  Retailers are rarely classified by sales volume. 
E)  The operating performance of retailers has no relationship to retailers' size.

Question 2

Which of the following statements about NAICS codes is false?

Accepted Answer

A)  Three-digit NAICS codes are very useful to the retail analyst. 
B)  In almost all instances, the NAICS code reflects the type of merchandise the retailer sells. 
C)  Four-digit NAICS codes provide much more information on the structure of retail competition than three-digit NAICS codes. 
D)  The U.S. Bureau of Census classifies all retailers using three-digit NAICS codes. 
E)  The major portion of a retailer's competition comes from other retailers in its NAICS category.

Question 3

Some national chains give each store manager the necessary flexibility to adjust merchandise to local demands; this is called using the "optional stock list" approach.

Accepted Answer

A) True 
 B)False

Question 4

A low-margin,low-turnover retailer will generally not be able to generate sufficient profits to remain competitive and survive.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the phenomenon of scrambled merchandising and the effect it is having on tangible merchandising as well as services.

Accepted Answer

The answer of Discuss the phenomenon of scrambled merchandising and...

Question 6

Four-digit NAICS codes provide are easier to work with than three-digit NAICS codes.

Accepted Answer

A) True 
 B)False

Question 7

Retailing is defined as the final activities and steps involved in the sale of merchandise (but not services)to the final consumer.

Accepted Answer

A) True 
 B)False

Question 8

One of the most dramatic changes e-tailing is creating is a shift in power between retailers and consumers.This shift in power is primarily derived from dissemination of pricing information through the Internet to consumers.

Accepted Answer

A) True 
 B)False

Question 9

A channel captain:

Accepted Answer

A)  is a retailer that carries a large amount of merchandise in the marketing channel at good prices. 
B)  helps the customer gets needed information in the store and then orders it online for a lower price and to avoid paying state sales tax. 
C)  is the institution in the marketing channel that is able to plan for and get other channel institutions to engage in activities they might not otherwise engage in. 
D)  provides information on the structure of retail competition. 
E)  is a retailer that develops its own brand name and contracts with a manufacturer to produce the product with the retailer's brand.

Question 10

JCPenney opened the nation's first discount department store in 1866.

Accepted Answer

A) True 
 B)False

Question 11

Change is truly the driving force behind retailing.

Accepted Answer

A) True 
 B)False

Question 12

Private-label branding may be store branding where a known designer develops a line exclusively for the retailer.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of a retail transaction?

Accepted Answer

A)  A firm pays a printer for printing business cards. 
B)  A supermarket purchases eggs from a local farmer for resale. 
C)  A student purchases a magazine subscription from a door-to-door salesperson. 
D)  A manager of a college bookstore purchases extra copies of your Retailing text from the publisher. 
E)  A department store purchases cosmetics from a manufacturer for sale in its stores.

Question 14

Rapidly growing chain stores usually find it necessary to transfer store managers for the following reason:

Accepted Answer

A)  to allow managers to live in the geographic location of their choice. 
B)  to open new stores in new geographic locations. 
C)  to make it possible for new managers to work in established business locations. 
D)  to gain additional retail experience. 
E)  to adhere to the principle of geographic mobility.

Question 15

Which of the following is NOT one of the ways by which retailers are categorized?

Accepted Answer

A)  Location 
B)  Market share 
C)  Number of outlets 
D)  Size 
E)  Margin vs. turnover

Question 16

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?

Accepted Answer

A)  Prioritizing 
B)  Leadership 
C)  Creativity 
D)  Laziness 
E)  Enthusiasm

Question 17

A successful retail manager will use the:

Accepted Answer

A)  analytical method only. 
B)  creative method only. 
C)  strategic method only. 
D)  analytical and creative methods. 
E)  analytical, creative, and strategic methods.

Question 18

In the text,when the authors refer to chain stores they are normally referring to operations having _____ or more units.

Accepted Answer

A)  2 
B)  7 
C)  10 
D)  20 
E)  25

Question 19

Given the ever-changing needs of the retail environment,retail managers who possess _____ are highly sought after as these managers have the ability to quickly alter plans to accommodate changes in trends,styles and attitudes.

Accepted Answer

A)  flexibility 
B)  leadership 
C)  initiative 
D)  enthusiasm 
E)  creativity

Question 20

Walmart became the world's largest retailer by:

Accepted Answer

A)  offering better value in price and quality. 
B)  cutting unnecessary costs. 
C)  concentrating only on profits. 
D)  selling products at low prices. 
E)  becoming more service oriented.

Exam 1: Perspectives on Retailing

Which of the following statements is correct?

Which of the following statements about NAICS codes is false?

Some national chains give each store manager the necessary flexibility to adjust merchandise to local demands; this is called using the "optional stock list" approach.

A low-margin,low-turnover retailer will generally not be able to generate sufficient profits to remain competitive and survive.

Discuss the phenomenon of scrambled merchandising and the effect it is having on tangible merchandising as well as services.

Four-digit NAICS codes provide are easier to work with than three-digit NAICS codes.

Retailing is defined as the final activities and steps involved in the sale of merchandise (but not services)to the final consumer.

One of the most dramatic changes e-tailing is creating is a shift in power between retailers and consumers.This shift in power is primarily derived from dissemination of pricing information through the Internet to consumers.

A channel captain:

JCPenney opened the nation's first discount department store in 1866.

Change is truly the driving force behind retailing.

Private-label branding may be store branding where a known designer develops a line exclusively for the retailer.

Which of the following is an example of a retail transaction?

Rapidly growing chain stores usually find it necessary to transfer store managers for the following reason:

Which of the following is NOT one of the ways by which retailers are categorized?

A successful retail manager will use the:

In the text,when the authors refer to chain stores they are normally referring to operations having _____ or more units.

Given the ever-changing needs of the retail environment,retail managers who possess _____ are highly sought after as these managers have the ability to quickly alter plans to accommodate changes in trends,styles and attitudes.

Walmart became the world's largest retailer by: