MARKETING ASSIGNMENT

The OSU studies concluded that leaders exhibit two main types of behavior: structure behavior and consideration behavior.

	True
	False

2.5 points

Fiedler suggests when there is a mismatch between the type of situation in which leaders find themselves, and the leaders style of leadership:

		leaders should shift to situations for which they are best suited
		the situation should be changed
		immediate training is necessary no matter how long it may take
		any leadership style is appropriate
		the leaders should be flexible enough to adapt to the new situation

2.5 points

The OSU studies concluded that leaders exhibit two main styles of behavior:

		employee-centered behavior and job-centered behavior
		structure behavior and consideration behavior
		boss-centered behavior and subordinate-centered behavior
		consideration behavior and job-centered behavior
		structure behavior and employee-centered behavior

2.5 points

The life cycle theory of leadership maintains that:

		as a manager becomes more mature, he/she should become more participatory
		the organization should match the individual with a specific leadership situation
		a manager's leadership style should be independent of the follower's maturity levels
		the leader's abilities will peak when the leader is 45 years old, and decline thereafter
		a manager's leadership style will be effective only if it is appropriate for the maturity level of the followers

2.5 points

According to the characteristics of the emerging leader versus characteristics of the manager, which of the following would be associated with the leader?

		problem-solving
		independent
		consulting
		stabilizing
		authoritative

2.5 points

Under which of the following conditions would Fiedler say a considerate leader would be most effective?

		good leader-member relations, high task structure, and strong leader position power
		moderately poor leader-member relations, high task structure, and weak leader position power
		moderately poor leader-member relations, weak task structure and weak leader position power
		good leader-member relations, high task structure, and weak leader position power
		good leader-member relations, weak task structure, and weak leader position power

2.5 points

Which approach to leadership suggests successful leadership requires a unique combination of leaders, followers, and leadership situations?

		transformational leadership
		the trait approach
		the situational approach to leadership
		contingency approach
		the contemporary leader approach

2.5 points

According to the Vroom-Yetton-Jago Model, when a manager and subordinates meet as a group to discuss the situation, and the group makes the decision, it is the ________ decision style.

		CI
		AII
		CII
		GII

2.5 points

Which of the following is a situational leadership theory?

		the trait approach
		the Ohio State studies
		superleadership
		the Michigan Studies
		path-goal theory

2.5 points

According to the OSU studies, the behavior that reflects friendship, mutual trust, respect, and warmth in the relationship between leader and follower is:

		consideration behavior
		structure behavior
		job-centered behavior
		employee-centered behavior
		unstructured behavior

2.5 points

The only real difference between Maslow and Alderfer is that Maslow identified three levels of needs and Alderfer identified five.

	True
	False

2.5 points

Theory X is a set of essentially positive assumptions about human nature.

	True
	False

2.5 points

Process theories of motivation are explanations that emphasize people's internal characteristics.

	True
	False

2.5 points

According to McClelland's Acquired Needs Theory, an individual with which of the following need profiles would be comfortable in competitive situations and enjoy her decision-making role?

		high need for power
		low need for achievement
		high need for achievement
		low need for power
		low need for affiliation

2.5 points

Incorporating motivators into a job situation is:

		total quality management
		job rotation
		job enrichment
		job enlargement
		project management

2.5 points

All of the following are advantages of flextime EXCEPT:

		decreased absenteeism and turnover
		improved employee attitude and morale
		increased production
		ease of scheduling meetings and coordinating projects
		accommodation of working parents, and leisure-time activities of employees

2.5 points

A reward that consists of the elimination of an undesirable consequence of behavior is:

		positive reinforcement
		negative reinforcement
		termination
		punishment
		extinction

2.5 points

An individual's early experiences will determine which of McClelland's three needs are the most highly developed, and therefore dominate their personality.

	True
	False

2.5 points

The correct order of Maslow's Hierarchy of Needs is:

		physiological, social, esteem, security, self-actualization
		self-actualization, social, esteem, security, physiological
		social, physiological, self-actualization, esteem, security
		physiological, security, social, esteem, self-actualization
		security, physiological, social, esteem, self-actualization

2.5 points

Motivation theories that emphasize how individuals are motivated are:

		behavior modification theories
		job design theories
		content theories
		monetary incentive theories
		process theories

2.5 points

In general, managers can sharpen their communication skills by focusing solely on the content of the message.

	True
	False

2.5 points

Being critical of others can actually have a positive effect on listening.

	True
	False

2.5 points

The grapevine is the network of informal organizational communication.

	True
	False

2.5 points

Verbal communication is the sharing of information without using words to encode thoughts.

	True
	False

2.5 points

The process of guiding the activities of the organization in appropriate directions is called:

		communicating
		managing
		influencing
		leading
		motivating

2.5 points

In the influencing subsystem, which of the following factors is interrelated to leading?

		motivating
		encouraging creativity and innovation
		considering groups
		leading, motivating and considering groups are all interrelated
		none of the above are interrelated

2.5 points

In interpersonal communication, the destination's reaction to a message, is known as:

		feedback
		the communication process
		critique
		listening
		feedforward

2.5 points

In order to encourage upward formal communication, managers should:

		have formal discussions with employees every Friday afternoon
		eliminate existing grievance procedures
		establish a closed-door policy
		utilize suggestion systems
		accept and ignore attitudes

2.5 points

Employees frequently cite the company grapevine as being the most reliable and credible source of information about company events.

	True
	False

2.5 points

________ is an interpersonal communication system in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are different.

		Unsuccessful Communication
		Noise
		Macrobarriers to Communication
		Successful Communication

2.5 points

Which stage of team development is characterized by a focus on solving organizational problems and meeting assigned challenges?

		performing
		forming
		norming
		adjourning
		storming

2.5 points

The acceptance stage is the first stage of formal group development and is where members often mistrust one another initially.

	True
	False

2.5 points

Once the interest or concern that caused an interest group to form has been eliminated, the group tends to disband.

	True
	False

2.5 points

Not all groups in organizations are teams, but all teams are groups.

	True
	False

2.5 points

Once the problem that brought the problem-solving team together has been addressed, the team is disbanded.

	True
	False

2.5 points

A formal group is a group that:

		is formed by the affiliation of the group members
		is psychologically aware of each other
		is normally unstructured and undefined
		is formed by the common interests of group members
		was formed by management to perform organizational tasks

2.5 points

Most executives think committees are a waste of time.

	True
	False

2.5 points

A group qualifies as a team only if its members focus on helping one another to accomplish organizational objectives.

	True
	False

2.5 points

Groupthink is the mode of thinking group members engage in when the desire for agreement and the "we-feeling" is so dominant it overrides realistic alternative problem solutions.

	True
	False

2.5 points

A group is three or more people who interact with one another, are psychologically aware of one another, and perceive themselves to be a group.

	True
	False

exam 3.docx

Question 1

2.5 points

Job analysis is a process of obtaining all pertinent job facts, and produces job descriptions and job specifications.

	True
	False

2.5 points

One of the advantages of promotion from within is that it encourages employees to work harder in hopes of being promoted.

	True
	False

2.5 points

One of the advantages of luring an individual away from a competitor and hiring that individual is that the competitor will be weakened somewhat by the loss of the individual

	True
	False

2.5 points

The purpose of training is to:

		increase the productivity of employees by influencing their behavior
		serve as a recruitment tool
		serve as a basis for promotion
		increase the compensation of individuals
		educate future managers

2.5 points

Vocational interest tests attempt to measure an individual's interest in performing various kinds of jobs.

	True
	False

2.5 points

The most widely used external source of human resources is:

		the readership of certain publications
		current employees
		competitors
		employment agencies
		educational institutions

2.5 points

________ is the process of outlining who will follow whom in various organizational positions.

		Performance inventory development
		Succession planning
		Developing a management manpower replacement chart
		Performance appraising

2.5 points

The process of developing qualities in human resources that will enable them to be more productive is:

		recruitment
		testing
		training
		performance appraisal
		selection

2.5 points

Coaching involves moving an individual from job to job to enable the person to gain an understanding of the organization as a whole.

	True
	False

2.5 points

The four-step training process sequence is correctly described as:

		designing, determining, evaluating, and administering
		determining, designing, evaluating, and administering
		determining, designing, administering, and evaluating
		designing, determining, managing, and administering
		determining, evaluating, designing, and administering

2.5 points

The system or network of interpersonal relationships that exists within an organization is its:

		responsibility structure
		formal structure
		informal structure
		communication structure
		authority structure

2.5 points

Classical organizing theory comprises the cumulative insights of early management writers on how organizational resources can best be used to enhance goal attainment.

	True
	False

2.5 points

Division of labor is the assignment of various portions of a particular task among a number of organization members.

	True
	False

2.5 points

The formal structure of an organization is represented primarily by:

		the organization chart
		its overall management system
		its bureaucracy
		Graicunas' formula
		its organizing subsystem

2.5 points

Traditionally, an organization chart:

		is like a square
		shows the customer at the top of the chart
		is a depiction of the organization's informal structure
		is a pyramid form
		is shaped like a circle

2.5 points

________ is the degree to which workers' activities are difficult and involved.

		Geographic continuity
		Similarity of functions
		Coordination
		Complexity of functions

2.5 points

________ is defined as the relationship among organizational resources as outlined by management.

		Vertical dimensioning
		Formal structure
		Informal structure
		Horizontal dimensioning

2.5 points

Bureaucracy can be characterized as a management system with detailed procedures, rules, and a clearly outlined organizational hierarchy with impersonal relationships among organization members.

	True
	False

2.5 points

Which of the following factors would be a factor that would tend to increase the span of management?

		Work of subordinates need much coordination
		Subordinates are physically distant
		Subordinates have complex tasks
		Subordinates have similar functions

2.5 points

Which of the following is NOT a main step in the organizing process?

		establish major tasks
		reflect on plans and objectives
		evaluating plans for completeness
		allocate resources and directives for subtasks
		divide major tasks into subtasks

2.5 points

The best rationale for modifying an existing organization is to increase:

		profit
		revenues
		organizational effectiveness
		customer service
		employee morale

2.5 points

A change agent is an individual outside the organization who tries to modify an existing organizational situation.

	True
	False

2.5 points

According to the model developed by Hellriegel and Slocum, a company is certain to fail if it has low stability and low adaptability.

	True
	False

2.5 points

Stress is seldom significantly reduced until the stressor has been coped with or withdrawn from the environment.

	True
	False

2.5 points

The study of organizational change is extremely important because all managers at all levels are faced with the task of keeping their organizations stable and resisting change.

	True
	False

2.5 points

In addition to change, some degree of stability is a prerequisite for long-term organization success.

	True
	False

2.5 points

The most extensive degree of virtuality is a:

		virtual team
		virtual corporation
		virtual office
		virtual training center
		all are equally extensive degrees of virtuality

2.5 points

Stabilizing an organization is part of the process of modifying an existing organization to increase organizational effectiveness.

	True
	False

2.5 points

Stress is the bodily strain that an individual experiences as a result of coping with some environmental factor.

	True
	False

2.5 points

Employee resistance to change exists because:

		individuals fear some type of personal loss
		everyone else resists the change
		employees prefer lower prestige
		it is easier for the employee to resist the change than comply
		the old ways are better

2.5 points

Which of the following is most likely if an organization is decentralized?

		there is a narrow span of management
		there is little accountability
		there is a minimal amount of delegation
		there is a high degree of delegation
		there is a lack of authority held by middle managers

2.5 points

The three main types of authority that can exist within an organization are:

		line, functional, and formal
		line, staff, and functional
		formal, informal, and functional
		staff, informal, and formal
		line, staff, and formal

2.5 points

The most basic method of dividing job activities is the functional similarity method.

	True
	False

2.5 points

Centralization refers to the situation in which a minimal number of job activities and a minimal amount of authority are delegated to subordinates.

	True
	False

2.5 points

When two or more employees are uncertain as to who is responsible for a task, only one outcome is possible.

	True
	False

2.5 points

The obligation to perform assigned activities is termed:

		responsibility
		a job description
		answerability
		authority
		accountability

2.5 points

The key manager dimension that is concerned with managers who ensure that any gaps between their areas and those of other managers are securely filled is:

		behavior with upper management
		behavior with people outside the organization
		behavior with subordinates
		personal attitudes and values
		behavior with other groups

2.5 points

Even though a manager may delegate a task to another employee, the manager still remains responsible for the completion of the task.

	True
	False

2.5 points

Organizational members should be obligated to perform only those activities that lead to goal attainment.

	True
	False

2.5 points

A very small organization increases the opportunity for delegation.

	True
	False

exam 4.docx

Question 1

2 points

Which retail institution is often part retailer and part wholesaler?

		off-price retail chain
		factory outlet
		flea market
		membership club

2 points

The use of boutiques by department stores to highlight designer clothing most closely resembles the strategy of a _____.

		specialty store
		retail catalog showroom
		variety store
		full-line discount store

2 points

A food-oriented retailer in which general merchandise accounts for 25 percent to 40 percent of total store sales is a _____.

		superstore
		combination store
		box store
		warehouse store

2 points

Low merchandise continuity and opportunistic buying characterize _____.

		retail catalog showrooms and combination stores
		superstores and combination stores
		variety stores and membership clubs
		off-price chains and membership clubs

2 points

Which retail institutions fit the scrambled merchandising concept?

		warehouse store and conventional supermarket
		warehouse store and box (limited-line) store
		convenience store and conventional supermarket
		combination store and superstore

2 points

Which statement concerning scrambled merchandising is correct?

		Supermarkets have not engaged in scrambled merchandising.
		Retailers typically trade up as part of scrambled merchandising.
		Scrambled merchandising is contagious.
		Scrambled merchandising typically occurs at the innovation stage of the retail life cycle.

2 points

A retailer tries to appeal to consumers' one-stop shopping needs through _____.

		the retail life cycle
		vertical marketing systems
		the wheel of retailing
		scrambled merchandising

2 points

Manufacturers may prefer to sell their closeouts, canceled orders, and out-of-season merchandise to factory outlets rather than off-price chains because _____.

		off-price chains can generate high profit margins
		off-price chains have too much power
		factory outlets generate low short-term cash flow
		greater control results in less disturbance to traditional channels

2 points

A factory outlet represents an example of a(n) _____.

		independent vertical marketing system
		partially integrated vertical marketing system
		fully integrated vertical marketing system
		distorted vertical marketing system

2 points

Other retailers' canceled orders, manufacturers' irregulars and overruns, and end-of-season items form the core of merchandise at which retail institution?

		off-price chain
		box (limited-line) store
		full-line discount store
		factory outlet

2 points

Which institution can be classified as either a wholesaler or retailer?

		off-price chain
		factory outlet
		membership club
		department store

2 points

The competitive advantage of a category killer is based on _____.

		width of assortment
		depth of assortment
		low prices
		convenience of location

2 points

Which retail institution is organized into specific divisions for purposes of buying, promotion, customer service, and control?

		department store
		variety store
		full-line discount store
		retail catalog showroom

2 points

A form of research in which present behavior or the results of past behavior are viewed and recorded is _____.

		a survey
		experimentation
		observation
		simulation

2 points

Which of the following is not a survey?

		observation
		mail questionnaires
		telephone questionnaires
		person-to-person interviewing

2 points

Information previously gathered for other purposes than the problem or issue under study is _____.

		primary data
		syndicated data
		secondary data
		a marketing research system

2 points

Experiments generally utilize _____.

		a semantic differential
		mechanical observation
		multidimensional scaling
		a controlled environment

2 points

Ongoing studies are made available to many clients for a fee by _____.

		commercial research houses
		the U.S. government (federal)
		channel members
		the Business Periodicals Index

2 points

The use of a control group is a common aspect of which data collection technique?

		a survey
		an experiment
		observation
		simulation

2 points

Which type of consumer behavior topic can be best studied using observation?

		the store image of a new discounter
		perceived risk related to sneaker purchasing behavior
		consumer cognitive dissonance subsequent to the purchase of a new home
		the average time spent in a convenience store

2 points

The information needs of retail managers are collected, organized, and stored on a continuous basis in _____.

		observation
		retail research
		an experiment
		a retail information system

2 points

Participation by incorrect respondents is a major problem in which survey?

		telephone survey
		personal survey
		mail survey
		observation

2 points

A retailer seeks to determine the quality of sales personnel presentations. An appropriate primary data collection technique is _____.

		observation
		a mail survey
		an experiment
		simulation

2 points

A common major disadvantage of secondary data is the _____.

		unsuitable units of measurement
		long time period required to collect data
		high cost for data collection
		known source and control over data collection

2 points

A retailer needs to determine its customers' attitudes in conjunction with a legal court case. The retailer should utilize _____.

		a nonprobability sample
		observation
		a probability sample
		an experiment

2 points

Which of the following is not a role of the Web from the vantage point of the retailer?

		to furnish customer service in the form of E-mail and "hot links"
		to replace mail, phone, and fax communications
		to reach geographically dispersed consumers, including foreign consumers
		to provide information to consumers

2 points

A major disadvantage to the use of a blind mailing is the _____.

		high mailing-list cost
		low response rate
		high paper costs per unit
		inability to purchase an appropriate list

2 points

A customer data base can more easily be developed and maintained in all forms of direct marketing than in other forms of retailing because _____.

		goods are shipped to a customer's home or office
		consumer concern for privacy is high
		consumer responses to promotions are typically high
		high direct marketing clutter exists

2 points

While a retailer maintains a Web site, customers at the site would be unable to know if an item listed is still available. What type of site does the retailer have?

		stage 1: brochure Web site
		stage 2: commerce Web site
		stage 4: the "webified" store
		stage 5: site integrated with manufacturer systems

2 points

Which of the following are characteristics of direct marketing?

		exposure to a good or service through a nonpersonal medium and ordering via mail, phone, fax, or computer
		exposure to a good or service through a nonpersonal medium and ordering via personal interaction
		exposure to a good or service through a personal medium and ordering via mail, phone, fax, or computer
		exposure to a good or service through a personal medium and ordering via personal interaction

2 points

Which of the following is an example of direct marketing?

		a final consumer being exposed to a good or service through a Web-based ad
		a final consumer being exposed to a good or service through a door-to-door salesperson
		a final consumer being exposed to a good or service through a referral by a neighbor
		a final consumer being exposed to a good or service through a referral by a department store's salesperson

2 points

Direct marketers are most affected by which federal legislation?

		Robinson-Patman Act
		30-day rule
		Green River ordinances
		blue laws

2 points

From a consumer's perspective, a video kiosk most closely resembles a(n) _____.

		vending machine
		point-of-sale system
		Web browser
		ATM

2 points

Which statement concerning global direct marketing is not correct?

		There is a decreasing acceptance of nonstore retailing outside the United States.
		Outside the United States, annual direct sales are in the hundreds of billions of dollars.
		Eddie Bauer and Lands' End are among the firms with a significant international presence.
		There are direct marketing trade associations in such diverse countries as Australia, China, Brazil, and Russia.

2 points

Vending machine transactions are not considered part of direct marketing because _____.

		vending machines are located in offices, restaurants, and factories
		consumers are solicited via in-person selling efforts
		the transaction is not via mail, phone, fax, or computer
		the average transaction is too low

2 points

Which of the following is not a major benefit to direct marketing for a retailer?

		Startup costs can be very low.
		Customers are given a convenient method of shopping.
		A very large geographic area can be inexpensively covered.
		Products can be examined prior to purchase.

2 points

The fastest-growing form of direct marketing is _____.

		direct selling
		vending machines
		airport retailing
		Web-based retailing

2 points

The system to process a direct marketing order is referred to as _____.

		outsourcing
		logistics
		inventory management
		order fulfillment

2 points

Local advertising is ineffective in reaching _____.

		baby boomers
		Generation X consumers
		outshoppers
		bachelors

2 points

Which retail institution is most likely to appeal to a concentrated market segment?

		department store
		specialty store
		conventional supermarket
		superstore

Question 41

2 points

Consumer researchers that argue that a consumer's shopping behavior is difficult to categorize due to situational factors (such as immediacy of need) or degree of involvement favor use of which lifestyle factor?

		gender roles
		poverty of time
		component lifestyles
		consumer sophistication and confidence

Question 42

2 points

Which of the following is an element of perceived risk?

		physical risk
		reference group risk
		purchase risk
		lifestyle risk

Question 43

2 points

The average annual U.S. household after-tax income is about _____.

		$10,000
		$15,000
		$30,000
		$45,000

Question 44

2 points

The element of perceived risk that relates to the effect of a purchase on one's self-esteem is _____ risk.

		psychological
		social
		physical
		performance

Question 45

2 points

A cue or drive meant to motivate or arouse a person to act is a _____.

		commercial cue
		social cue
		want
		stimulus

Question 46

2 points

Further purchase and re-evaluation are components of which stage in the consumer decision process?

		information search
		evaluation of alternatives
		purchase act
		post-purchase behavior

Question 47

2 points

The opposite of in-home shopping, on a convenience dimension, is _____.

		routine decision making
		outshopping
		store loyalty
		mapping

Question 48

2 points

Which stimulus provides retailers with the greatest degree of control?

		problem awareness
		social cue
		physical drive
		commercial cue

Question 49

2 points

A major advantage of the use of social versus commercial cues to consumers is based upon _____.

		the use of lifestyle demographic factors
		degree of cognitive dissonance
		believability
		post-purchase behavior

Question 50

2 points

Which of the following is not considered as a stimulus?

		a physical drive
		a motive
		a commercial cue
		a social cue

exam 5.docx

Question 1

2 points

Small retailers can obtain volume discounts and buying power similar to chain organizations through _____.

		cooperative buying
		resident buying offices
		an inside buying organization
		a centralized buying organization

2 points

Which retail assortment strategy is used by a specialty store?

		narrow and shallow
		narrow and deep
		wide and shallow
		wide and deep

2 points

A vertical fashion trend occurs when a fashion is _____.

		passed from the lower to the upper social classes
		accepted by the general public while retaining its basic form
		accepted by one market segment only
		accepted by an upscale market segment, but undergoes basic changes before it is sold to the general public

2 points

A retailer requires a merchandise management organization in which sales personnel are closely supervised. An appropriate organization focuses on _____.

		merchandising
		separate buying and selling functions and staff
		a centralized buying organization
		a decentralized buying organization

2 points

The major difference between vertical and horizontal fashion trends is based on _____.

		the initial group which accepts the trend
		whether the product changes form
		the initial group which accepts the trend and whether the product changes form
		the degree of fashion innovativeness

2 points

A common difficulty in the handling of many substitute goods or services is that _____.

		inventory turnover may increase
		one-stop shopping may not be promoted
		scrambled merchandising is achieved
		overall sales may not increase

2 points

In which product life-cycle stage do product sales reach their maximum?

		growth
		introduction
		maturity
		decline

2 points

A chain retailer can maximize its buying power advantages through use of a(n) _____.

		informal buying organization
		resident buying office
		decentralized buying organization
		centralized buying organization

2 points

Which of the following productivity measures would not be part of category management?

		sales per capita
		sales per linear foot of shelf space
		direct product profitability
		return on inventory investment

2 points

What type of products generate high sales levels for a short time period?

		fashion merchandise
		assortment merchandise
		seasonal merchandise
		fad merchandise

2 points

The selling of both major appliances and extended warranties for them by an appliance dealer illustrates _____.

		trading up
		selling complementary goods
		scrambled merchandising
		selling substitute goods

2 points

A major advantage of a merchandising philosophy is the _____.

		specialization of functions
		superior management of selling staff
		higher morale for in-store personnel
		integrated buying and selling effort

2 points

A retailer can purchase a private-label bread for $.59 a loaf. The bread sells for $.89. Total direct retailing costs for the bread (warehouse costs, direct labor, and spoilage) equal $.10 per loaf. In addition, $.05 per loaf is charged for administrative overhead. What is the direct product profitability per loaf?

		$.20
		$.30
		$.45
		The answer cannot be determined from the information provided.

2 points

A retailer's ending retail book value of inventory is $130,677. A physical inventory (at retail) equals $133,237. The retailer _____.

		has a stock overage of $2,560
		has a short shortage of $2,560
		switched from FIFO to LIFO
		switched from LIFO to FIFO

2 points

Which statement concerning reduction planning is not correct?

		Changes in pilferage control will affect reduction planning.
		Reductions can include markdowns, employee discounts, and stock shortages.
		Reduction planning is crucial in the cost method of retail accounting.
		Merchandise carryover from one period to another affects the magnitude of reductions.

2 points

A furniture retailer has a beginning-of-year inventory (at cost) of $400,000; ending inventory (at cost) is $270,000. Yearly purchases are $700,000 and transportation charges equal $5,700. The retailer's merchandise available for sale during the year is _____.

		$570,000
		$575,700
		$735,700
		$1,105,700

2 points

Information from merchandise tags or product labels is recorded directly into in-store computer terminals for immediate data processing in a _____ system.

		point-of-sale
		visual inspection
		manual perpetual inventory
		stock-counting

2 points

A retailer has anticipated yearly expenses of $300,000, a net profit objective of $72,000, planned reductions of $24,000, and planned net sales of $1,000,000. What is its required initial markup percentage?

		30.0
		37.2
		38.7
		39.6

2 points

Order lead time is defined as _____.

		average sales per day
		extra inventory kept on hand to protect against stockouts
		the stock level at which an order must be placed
		the time period from when an order is placed until goods are ready for sale

2 points

Keeping a perpetual inventory unit control system has been most facilitated by _____.

		store planograms
		rationalized retailing
		barcoding and point-of-sale systems
		manual systems that record merchandise transfers

2 points

A firm's ending retail book value of inventory is $30,000. A physical inventory (at retail) shows a value of $24,250. If the retailer's cost complement is .8, what is the ending inventory value at cost?

		$19,400
		$24,000
		$27,250
		$30,000

2 points

A major advantage to the retail method of accounting is the _____.

		ease of bookkeeping
		accuracy of the cost complement figure
		ability to prepare a profit-and-loss statement on the basis of book inventory figures
		freedom from even having to take a physical inventory

2 points

The difference between planned purchases and purchase commitments already made by a buyer for a given time period is _____.

		the cost complement
		the required initial markup percentage
		reduction planning
		the open-to-buy

2 points

A retail firm has net annual sales of $6,000,000. Its average monthly inventory at hand (at retail) was $1,500,000. Its annual rate of stock turnover is _____.

		0.25
		3.0
		3.5
		4.0

2 points

If a cost complement is 0.8, that means _____.

		the firm has a gross margin of 80 percent
		80 cents of each retail sales dollar covers the merchandise cost
		stock shortages are 20 percent of sales
		the firm is profitable

2 points

Centralized decision making is generally associated with _____.

		micromerchandising
		risk-maximization retailing
		rationalized retailing
		category management

2 points

A retailer selling products that are potentially dangerous due to misuse or manufacturer defects should get _____ insurance.

		property damage
		public liability
		product liability
		workers' compensation

2 points

Rationalized retailing and prototype stores are most likely to be used by _____.

		chains and franchises
		off-price chains
		warehouse stores
		factory outlets

2 points

Store security relates to both _____.

		insurance and personal security
		personal security and merchandise security
		crisis management and pilferage control
		safety management and crisis management

2 points

What type of insurance protects retailers from claims due to customers falling due to a wet floor or loose carpeting?

		directors' liability
		workers' compensation
		public liability
		product liability

2 points

Retailers seek to improve their productivity by having an outside party undertake one or more of its operating functions. This illustrates _____.

		crisis management
		self-scanning
		contingency planning
		outsourcing

2 points

Which aspect of retail computerization has had the greatest impact on retailing?

		videoconferencing
		debit card systems
		the computerized checkout
		self-service

2 points

Through _____, an employee can be easily shifted from stockperson to cashier as the need arises.

		cross-training
		risk-minimization retailing
		rationalized retailing
		job standardization

2 points

Rationalized retailing is often used in conjunction with _____.

		micromerchandising
		prototype stores
		a top-down space management approach
		a bottom-up space management approach

2 points

Which of the following energy management strategies is most likely to have a negative impact on a retailer's atmosphere?

		centrally managing lighting levels by each department by time of day to better reflect outside lighting conditions
		replacing an older central air-conditioning system with a new efficient unit that requires 150 tons less capacity
		installing high efficiency fluorescent bulbs in place of incandescent light bulbs
		raising the temperature thermostat from 72 degrees in the summer to 74 degrees

2 points

An advantage of the use of a wireless scanner in conjunction with a radio frequency identification tag (RFID) over a Universal Product Code (UPC) is its _____.

		ability to scan a package without lifting it
		tie-in to speech recognition
		lower hardware costs
		lower software costs

2 points

The opposite of extreme employee specialization is _____.

		job standardization
		self-service merchandising
		automation
		cross-training

2 points

The most appropriate financial performance standard of a department store retail buyer is _____.

		customer satisfaction
		total unit sales
		total dollar gross profit in department
		total dollar sales

2 points

In order for quick response (QR) inventory planning to be effective, _____.

		inventory ordering costs need to be low
		inventory holding costs need to be low
		electronic data interchange must not be functioning
		shipping costs must be reduced

2 points

Which of the following is not a merchandise source?

		outside, new supplier
		resident buying office
		outside, regularly used supplier
		company-owned

Question 41

2 points

Opportunistic buying is most commonly utilized by _____.

		full-line discount houses
		off-price retailers
		supermarkets
		specialty stores

Question 42

2 points

The processing of returns and damaged goods is part of _____.

		third-party logistics planning
		quick response inventory planning
		slotting fees
		reverse logistics

Question 43

2 points

A retailer can eliminate use of its own warehouses through _____.

		ordering goods in large quantities
		use of direct store distribution
		use of electronic data interchange with key vendors
		supply chain management initiatives with key suppliers

Question 44

2 points

Efficient consumer response (ECR) is an example of _____.

		electronic data interchange
		floor-ready merchandise
		third-party logistics
		collaborative planning, forecasting, and replenishment

Question 45

2 points

The logistics aspect of a value delivery chain is _____.

		quick response inventory management
		supply chain management
		third-party logistics management
		electronic data interchange

Question 46

2 points

A retailer found that a small percent of goods represented a large proportion of the store's total shrinkage. Which of the following strategies would be most effective?

		use of in-store guards
		electronic article surveillance on the affected goods
		use of employee background checks
		use of mystery shoppers to watch for shoplifting

Question 47

2 points

A logistics system can be best defined as the _____.

		reduction of inventory in a system through more rapid reordering of goods in lower quantities
		use of a paperless, computer-to-computer relationship between retailers and their vendors
		total process of planning, implementing, and coordinating the physical movement of merchandise from a manufacturer (wholesaler) to a customer in the most timely and cost-efficient manner possible
		acquisition and maintenance of a proper merchandise assortment while ordering, shipping, handling, and other related costs are kept in check

Question 48

2 points

Which source of merchandise utilizes vertical integration by a retailer?

		company-owned
		outside, regularly used supplier
		outside, new supplier
		cooperative buying arrangement

Question 49

2 points

A retailer reduces the amount of inventory it keeps on hand by ordering more frequently and in lower quantity through _____.

		quick response inventory planning
		top-down inventory planning
		bottom-up inventory planning
		UPC-based computerized ordering systems

Question 50

2 points

The use of shopping bots is associated with _____.

		want books (want slips)
		third-party logistics
		comparison shopping
		merchandise marts

exam.docx

Question 1

2 points

Which statement concerning a value delivery system is not correct?

		Each channel member is dependent on each other.
		A value delivery system is as strong as its weakest link.
		Value delivery systems are relatively simple to develop and administer.
		Nonstore retailing requires a different delivery system than store-based retailing.

2 points

A value delivery system is based on _____.

		outsourcing
		cost minimization
		a high degree of cooperation among all channel members
		one channel member conducting all activities

2 points

A retailer can reinforce its competitive advantage by providing _____ services.

		augmented customer
		basic
		ancillary customer
		expected customer

2 points

The four consumer rights as stated by President Kennedy about 45 years ago are _____.

		value, choice, safety, and to be heard
		safety, information, choice, and to be heard
		low prices, competition, return policy, and credit
		information, choice, safety, and credit

2 points

From the customer's perspective, value is based on _____.

		perceptions
		quality alone
		retailer benefits alone
		price alone

2 points

A retailer offers an option credit account to its customers; interest is charged at 15 percent per year. If a consumer buys $400 in merchandise on January 1 and receives the bill January 15, how much must the consumer remit to pay the account in full?

		$400
		$403
		$406
		$409

2 points

Ease of entry is simplest for which service retailer type?

		nongoods retailer
		rental-goods retailer
		retailer with extensive licensing requirements
		leased goods retailer

2 points

A fundamental concept of the value chain is the _____.

		interrelationship among manufacturer, wholesaler, and retailer
		independence of all channel members
		notion that value is interpreted similarly by all final consumers
		notion that value is affected by price alone

2 points

The major difference between a typical credit account and a debit-only transfer system is that in the debit-only transfer system, _____.

		interest is assessed from the billing date
		the purchase price is immediately deducted from the consumer's bank account
		no interest is charged if payment is made at the billing date
		the consumer is billed monthly on the basis of the outstanding balance

2 points

Service quality can be standardized and made more efficient by _____.

		greater dependence on the owner
		automation
		franchising
		advertising

2 points

The minimum value chain elements a given customer segment expects from a given type of retailer is referred as a(n) _____ retail strategy.

		potential
		realized
		expected
		augmented

2 points

Physical products are not involved in which type of service?

		repair services
		nongoods services
		rented-goods services
		owned-goods services

2 points

Which service quality attribute deals with such factors as accuracy in billing and correct record keeping?

		access
		reliability
		tangibles
		communication

2 points

An advantage of a leased department form of organization to a leasee is _____.

		an enlarged market due to providing one-stop customer shopping
		management assistance
		protection from FTC regulations
		financial support provided by the leasor

2 points

Fair practice laws are designed to prevent a franchisor from _____.

		enforcing a tying agreement
		terminating, canceling, or failing to renew a franchise without sufficient cause
		incorrectly reporting franchise profits and investments
		selling additional franchises in a protected territory

2 points

Avon and Sherwin-Williams utilize _____.

		an independent vertical marketing system
		a partially integrated vertical marketing system
		a fully integrated vertical marketing system
		franchising

2 points

Independent retailers are characterized by _____.

		a partnership form of organization
		a franchise form of distribution
		vertical integration
		ownership of only one retail unit

2 points

A major potential problem associated with franchising for the franchisor is that _____.

		money is obtained when goods are delivered, rather than when they are sold
		franchisees as owners have less incentive to work hard than employees
		it is difficult to set up and enforce franchise qualifications
		poorly performing franchises can undermine both consumer and investor confidence

2 points

While chains account for about 25 to 30 percent of all retail establishments, they account for what percent of total retail sales?

		30
		40
		65
		80

2 points

Franchisors can exclude franchisees from or limit their involvement in the strategic planning process through _____.

		franchisor training
		franchisor troubleshooting
		limiting purchases to the franchisor or approved vendors
		quantity purchases

2 points

An example of a product/trademark franchise is a(n) _____ franchise.

		McDonald's fast-food
		Wendy's fast-food
		Super 8 hotel
		Chevrolet auto dealership

2 points

Which of the following is not a structural arrangement involving retail franchisees?

		manufacturer-retailer
		vertical marketing system
		service sponsor-retailer
		wholesaler-retailer

2 points

Which of the following has the greatest flexibility in developing and implementing a retail strategy?

		independent retailer
		franchisee
		chain store manager
		leased department operator

2 points

A benefit of franchising to a franchisor is _____.

		the ability to develop a national presence with less franchisor investment than ownership
		lack of uniformity
		total channel control
		intrafranchise competition

2 points

A manufacturer with low company resources that seeks intensive distribution should utilize which vertical marketing system?

		a retail cooperative
		partially integrated marketing system
		independent vertical marketing system
		fully integrated marketing system

2 points

Channel relations are generally smoothest in which form of distribution?

		selective distribution
		intensive distribution
		exclusive distribution
		dual distribution

2 points

All of the elements in a retail offering that encourage or inhibit consumers during their contact with a given retailer make up the _____.

		total retail experience
		retailing concept
		marketing concept applied to retailing
		customer service philosophy

2 points

In exclusive distribution, suppliers _____.

		enter into agreements with one or a few retailers that designate the latter as the only companies in specified geographic areas to carry certain brands and/or product lines
		sell to as many retailers as possible
		sell to a moderate number of retailers
		utilize multiple channels of distribution to reduce channel conflict

2 points

An example of a retailer's regularly reviewing operations is the _____.

		appeal to a prime consumer market
		use of a one-price policy
		development of realistic sales and profit goals
		ongoing analysis of sales and costs by product category

2 points

A unique characteristic of retailing is _____.

		the high effect of the business cycle on sales
		high foreign competition
		low average sales
		saturation of retail facilities

2 points

An approach to the study of retailing that stresses activities such as buying, pricing, and personnel practices is a _____ approach.

		strategic
		functional
		institutional
		retail audit

2 points

Channel relations tend to be most volatile in which form of distribution?

		exclusive distribution
		intensive distribution
		selective distribution
		vertical integration

2 points

On average, what percent of every sales dollar goes to department store retailers as compensation for the activities they perform?

		15
		22
		30
		50

2 points

The greatest advantage to a manufacturer's use of exclusive distribution is _____.

		retailer concentration on key items
		smooth channel relations
		a high level of retail price competition
		maximization of long-run sales potential

2 points

Payment for shelf space by manufacturers to supermarkets illustrates _____.

		the role of manufacturers' representatives
		channel power by a retailer
		channel cooperation by retailers
		competition in the marketplace

2 points

The retailing concept is comprised of _____.

		price orientation, social responsibility, and competitive defensibility
		niche strategy, cost leadership, and market segmentation
		customer orientation, coordinated effort, value-driven, and goal orientation
		short-run objectives, long-term strategy, implementable actions, and channel control

2 points

A characteristic of a retail strategy is its _____.

		focus on past operations and success
		attention to short-run success
		attention to personnel availability and training.
		systematic assessment of the environment to ascertain opportunities and constraints

2 points

The identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells comprise the retailer's _____.

		level of commitment to the retail concept
		peripheral services
		customer satisfaction level
		customer service

2 points

A retailer aims efforts at two or more distinct consumer groups, with different retailing approaches for each group, in _____.

		differentiated marketing
		mass marketing
		target marketing
		undifferentiated marketing

2 points

Which of the following is not an example of feedback?

		consumer complaints about inconsistent delivery times
		government fines for excessive out-of-stock conditions on sale merchandise
		the lack of a management succession plan for an independent retailer
		high employee turnover among newly-recruited sales personnel

Question 41

2 points

An integral component of any differentiated marketing strategy is _____.

		a unique set of product/service offerings to each customer group
		an overall company-based integrated strategy
		coordination of retailing strategy across units
		geographic differentiation to meet customer needs

Question 42

2 points

The division of authority and responsibility in a major retail organization by product categories and geographic areas illustrates a(n) _____.

		centralized structure
		decentralized structure
		professional manager system
		owner-manager system

Question 43

2 points

A discount department store aims its retailing strategy at a large homogeneous (similar) group of consumers. A wide assortment of goods is offered at popular prices. The retailer utilizes which target market strategy?

		mass marketing
		market segment
		multiple segmentation
		store positioning

Question 44

2 points

Operations standards are most rigid and the choice of suppliers is most restricted in which ownership and management alternative?

		franchise
		buying an existing business
		starting a new business
		partnership

Question 45

2 points

Which of the following is revolutionizing merchandise handling and inventory control?

		competition
		computerized checkouts
		legal restrictions
		seasonality

Question 46

2 points

Signals of performance such as employee satisfaction questionnaires, sales reports, and inventory records are examples of _____.

		retail audits
		feedback
		tactics
		retail demographic data

Question 47

2 points

A major disadvantage of the partnership form of ownership and management is that it _____.

		is subject to double taxation
		faces more government rules than other ownership forms
		binds all partners to actions made by any individual partner acting on behalf of the firm
		may separate ownership from management

Question 48

2 points

The Robinson-Patman Act _____.

		reduced the economic power of large retail chains
		removed the fair trade laws in all states
		limited mergers between large firms
		reduced monopolies and restraints of trade

Question 49

2 points

A systematic procedure for analyzing the performance of a retailer is _____.

		tactical performance evaluation
		a retail audit
		feedback
		strategy evaluation

Question 50

2 points