Marketting Exam

The ideal decision-making orientation emphasizes the realization of the organization's potential as well as that of the decision-maker.

	True
	False

2.5 points

Judgment, intuition, and creativity would most likely be classified as:

		a modern decision-making technique appropriate for nonprogrammed decisions
		a modern decision-making technique appropriate for programmed decisions
		a traditional decision-making technique appropriate for programmed decisions
		a traditional decision-making technique appropriate for nonprogrammed decisions
		either C or D

2.5 points

A group decision process in which negative feedback on any suggested alternative is forbidden until all members have presented alternatives is called brainstorming.

	True
	False

2.5 points

The group decision-making process that involves the circulation of questionnaires among group members is known as:

		groupthink
		brainstorming
		the Devil's Advocate technique
		the Nominal Group technique
		the Delphi technique

2.5 points

Heuristic problem-solving techniques are examples of a modern technique that can be applied to a nonprogrammed decision.

	True
	False

2.5 points

________ refers to the fact that managers are constrained in terms of time, computational power, and knowledge when making decisions.

		Heuristic
		Intuition
		Bounded rationality
		Satisficing

2.5 points

A group decision-making process which forbids negative feedback on any suggested alternative by any group member until all members have presented alternatives is known as:

		the Delphi technique
		brainstorming
		the Devil's Advocate technique
		groupthink
		the Nominal Group technique

2.5 points

When decisions are reached using probability theory, the alternative normally chosen is the one with:

		the highest risk
		the lowest cost/benefit ratio
		the highest expected value
		the lowest expected value
		the lowest risk

2.5 points

The broader the scope of the decision, the higher the level of management responsible for it.

	True
	False

2.5 points

One of the disadvantages of group decision-making is that they cost the organization more than individual decisions.

	True
	False

2.5 points

Which of the following is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task?

		procedure
		budget
		rule
		policy
		guideline

2.5 points

A plan has a greater probability of failing if managers at different levels in the organization are not properly engaged in or contributing to planning activities.

	True
	False

2.5 points

On average, sales forecast are off by approximately ________.

		10%
		40%
		20%
		30%

2.5 points

A relatively formal sales forecasting method that gathers, evaluates, and summarizes expert opinions as the basis for the forecast is the:

		the Delphi technique
		the time series analysis method
		the salesforce estimation method
		jury of executive opinion method

2.5 points

A rule is a standing plan that designates specific required action.

	True
	False

2.5 points

During the maturity phase of the product life cycle, the product has been in the marketplace for some time, it is becoming more accepted, and product sales continue to climb.

	True
	False

2.5 points

The portion of the total management system at which a plan is aimed is called the ________ of the plan.

		time dimension
		longevity
		level
		scope
		repetitiveness

2.5 points

Which of the following products may never reach the decline stage of the product life cycle?

		newspapers
		washing machines
		radios
		treadmills
		scissors

2.5 points

The process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following timetables for completing the job is:

		controlling
		scheduling
		charting
		organizing
		planning

2.5 points

A standing plan that designates specific required action, indicates what organizational members should or should not do, and allows no room for interpretation is a:

		budget
		guideline
		procedure
		policy
		rule

2.5 points

Which of the following is probably the least important skill for strategy implementation?

		organizing skill
		allocating skill
		interacting skill
		analytical skill
		monitoring skill

2.5 points

A broad and general plan developed to reach long-term organizational objectives is:

		an operational plan
		a tactic
		a scenario
		an organizational goal
		strategy

2.5 points

The last step in the strategic management process is:

		establishing organizational objectives
		strategy control
		strategy formulation
		environmental analysis
		strategy implementation

2.5 points

According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.

	True
	False

2.5 points

Motivations, status symbols, and attitudes are all important aspects of the international component of the organization's operating environment.

	True
	False

2.5 points

________ is a strategy adopted by management to increasing the amount of business that an SBU is currently generating.

		Divestiture
		Growth
		Differentiation
		Retrenchment

2.5 points

Demographics are the statistical characteristics of a population.

	True
	False

2.5 points

The ________ component is the part of the general environment related to government affairs.

		Economic
		Technological
		Political
		Social

2.5 points

The fourth step in the strategy management process is:

		strategy formulation
		strategic feedback
		environmental analysis
		strategy implementation
		strategic control

2.5 points

Which business strategy would generally apply to cash cows?

		focus
		stability
		retrenchment
		growth
		divestiture

2.5 points

The fundamental purpose of planning is:

		protection and affirmation
		organizing work processes
		coordination and elimination of risk
		helping the organization reach its objectives
		identifying organizational objectives

2.5 points

Olive's company wants to provide the highest quality customer service in the jewelry industry. This statement is an example of:

		an operational objective
		an organizational purpose
		an operational plan
		an organizational objective
		a subsystem

2.5 points

Planners need not have significant practical experience within the organization if they have good human relations skills.

	True
	False

2.5 points

The high failure rate of new businesses seems primarily a consequence of inadequate planning.

	True
	False

2.5 points

Managers should establish objectives for employees that are in easy reach.

	True
	False

2.5 points

Short-term objectives are targets to be achieved within five to seven years.

	True
	False

2.5 points

Which of the following is NOT a guideline for establishing quality objectives?

		pinpoint expected results
		set objectives only in relation to other organizational objectives
		set objectives as subjectively as possible
		relate objectives to specific actions whenever necessary
		let the people responsible for attaining the objectives have a voice in setting them

2.5 points

What an organization exists to do, given a particular group of customers and customer needs, is an organizational objective.

	True
	False

2.5 points

Organizational coordination and efficiency are dependent on effective planning.

	True
	False

2.5 points

The targets toward which an open management system is directed are:

		operational plans
		organizational purposes
		individual objectives
		organizational objectives
		actions

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POM 2.docx

Question 1

2.5 points

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

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RM 1.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

Which of these laws do not enable suppliers to offer unjustified discounts to large retailers?

		Robinson-Patman Act
		Miller-Tydings Act
		Sherman Act
		Clayton Act

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RM 2.docx

Question 1

2 points

A massed advertising effort is most appropriate for retailers _____.

		that stress personal selling
		requiring high reach
		with low advertising budgets
		with peak sales periods

2 points

The basic distinction between advertising and publicity is that _____.

		publicity only deals with print media
		in publicity, the media are not paid
		publicity is nonpersonal
		publicity is regulated by the Robinson-Patman Act

2 points

The major difference between a contest and a sweepstakes is _____.

		that contests are aimed at repeat purchases
		that contests are tied to patronage
		the extent to which skill is involved in winning
		the sponsorship

2 points

A newspaper's cost per thousand equals $20; however, only three-quarters of its readers are in a retailer's target market. The retailer's real cost per thousand is _____.

		$15.00
		$25.00
		$22.00
		$26.67

2 points

The creation of regional editions, editorial association, and use of color have increased retailer use of _____.

		direct mail
		telephone directories
		magazines
		outdoor or billboard advertising

2 points

Which compensation system is most appropriate for a pure order-taking position?

		compensation cafeteria
		straight-commission plan
		PMs
		straight-salary plan

2 points

An advertisement in a local newspaper featuring a special price on ladies swimwear illustrates a(n) _____ ad.

		pioneer
		reminder
		competitive
		institutional

2 points

Which element in the retail promotion mix most often has the greatest focus on the short-run?

		public relations
		sales promotion
		advertising
		personal selling

2 points

A characteristic of direct mail is _____.

		a long lead time
		a targeted audience
		low flexibility
		good editorial content

2 points

A major advantage of advertising is that _____.

		costs per viewer, reader, or listener are low
		media costs are free
		advertising has higher credibility than public relations
		immediate feedback is provided

2 points

A major advantage of publicity is _____.

		ease in planning
		no costs for total publicity effort
		high believability
		control over message placement

2 points

The form of promotion that can be distinguished by media payment, a nonpersonal presentation, out-of-store mass media, and an identified sponsor is _____.

		personal selling
		sales promotion
		advertising
		public relations

2 points

What type of retail audit can be conducted as exploratory research in evaluating a retailer's response to problems and opportunities?

		nondisguised audit
		vertical audit
		disguised audit
		horizontal audit

2 points

Which statement about a retailing effectiveness checklist is not correct?

		The retailing effectiveness checklist enables the retailer to compute a total score based on summing individual scores for each category.
		The retailing effectiveness checklist is a type of retail audit.
		The retailing effectiveness checklist enables retailers to rate performance in each area.
		The retailing effectiveness checklist is equally suited for small and large retailers.

2 points

Which statement concerning the sales opportunity grid is not correct?

		The sales opportunity grid includes such factors as sales, gross profit, and net profit.
		The sales opportunity grid assumes that all products have the same markup.
		The sales opportunity grid uses data on costs from direct product profitability.
		The sales opportunity grid measures a product's performance over multiple time periods.

2 points

Outside auditors _____.

		have a complete understanding of departmental operations
		have prime responsibility to another job position
		have limited independence
		require time lags while gaining familiarity

2 points

A vertical retail audit _____.

		is one in which a retailer's employees are not aware that the audit is taking place
		involves an analysis of the overall performance of the retailer
		is also called a "retail strategy audit"
		involves an in-depth analysis of a retailer's performance in one area of its strategy mix or operations

2 points

Which audit technique should be used to determine the accuracy of a retail buyer's sales forecasts?

		nondisguised
		systematic
		disguised
		horizontal

2 points

Which of SERVQUAL's attributes relates to whether the service was performed correctly the first time?

		responsiveness
		reliability
		assurance
		tangibles

2 points

A retailer wants an audit to be as objective as possible. The retailer recognizes that there is significant rivalry and competition within the firm. The retailer should use a(n) _____ to conduct the audit.

		outside auditor
		company department manager
		team auditor
		company specialist

2 points

A firm's comparing its performance to competitors based on the components of the strategic profit model illustrates _____.

		SERVQUAL
		benchmarking
		opportunity cost analysis
		gap analysis

2 points

A horizontal audit is often conducted prior to a vertical audit, since the horizontal audit _____.

		often reveals areas that need further study
		is less costly
		is more likely to be conducted by a company specialist
		is more likely to be nondisguised

2 points

Which audit is especially suitable for monitoring sales presentations of retail salespersons?

		systematic
		horizontal
		disguised
		nondisguised

2 points

A retailer is concerned with how to better compete with a newly-opened membership club located 3 miles from its main store. What type of audit should be conducted?

		horizontal audit
		vertical audit
		disguised audit
		undisguised audit

2 points

Merchandise is left in its original packing cartons in a(n) _____ display.

		assortment
		rack
		cut case
		dump bin

2 points

A store which groups female clothing into juniors', misses', and ladies' has classified those departments by _____ product groupings.

		storability
		purchase motivation
		functional
		market segment

2 points

A high degree of online consumers enter the checkout counter and exit without purchasing goods. This can be due to _____.

		concern over high shipping and handling costs
		the difficulty in completing the order format
		fear of credit card security
		all of these

2 points

A camera shop develops kits for amateurs that include a camera, lens, film, case, and a separate electronic flash. The kit is sold at a discounted price from the price of the separate components. This concept is an example of _____.

		a model stock approach
		scrambled merchandising
		solutions selling
		experiential merchandising

2 points

Under the model stock approach, the retailer determines space needs by _____.

		calculating the amount of floor space necessary to carry and display a proper assortment of merchandise
		assigning space on the basis of sales or profits per foot
		dividing merchandise into impulse and specific intent categories
		assigning goods into complementary and substitute categories

2 points

A display window can be best categorized as _____ space.

		personnel
		customer
		selling
		merchandise

2 points

Experiential merchandising, solutions selling, and retailer co-branding are tactics used by retailers to _____.

		enhance customer satisfaction
		reduce cognitive dissonance
		persuade shoppers to spend more time shopping
		increase scrambled merchandising opportunities

2 points

Which of these is an example of solutions selling by a supermarket?

		placing a weekly menu in a newspaper insert and then stocking all of the required ingredients in a single location in the store
		selling seasonal merchandise such as outdoor grills at low prices
		having in-store sampling of its private brands
		opening longer hours during pre-holiday time periods

2 points

A small appliance retailer has in-store cooking demonstrations, offers free samples, and lets consumers try out selected new appliances in an environment that resembles a small kitchen. This retailer _____.

		employs functional product groupings
		has a theme-setting display
		practices experiential merchandising
		utilizes the model stock approach

2 points

A store's offerings can be classified into product groupings on the basis of function, purchase motivation, storability, and _____.

		market segment
		profitability
		store location
		customer service level

2 points

Franchisors and chains that desire a uniform image should consider _____.

		prefabricated structures
		prototype stores
		recessed storefronts
		modular structures

2 points

The use of prototype stores, detailed operating procedures, and the inspection of store units by chain retailers and franchisors is used to _____.

		develop and maintain a consistent image
		reduce operating costs
		reduce construction costs
		reduce construction time and start-up costs

2 points

A retailer can minimize display costs by using _____ displays.

		theme-setting
		ensemble
		cut case
		assortment

2 points

Unit pricing legislation is necessary because of _____.

		computerization and the UPC
		item price removal
		the existence of many different-sized packages
		price advertising

2 points

Minimum-price laws are intended to protect small retailers from _____.

		price discrimination
		the Robinson-Patman Act
		predatory pricing by larger firms
		item pricing removal

2 points

Horizontal price fixing involves an agreement _____.

		among manufacturers, among wholesalers, or among retailers to set certain prices
		to charge larger retail firms lower prices
		by retailers to charge manufacturer suggested list prices
		by retailers not to sell merchandise below cost

Question 41

2 points

When the price elasticity of demand is unitary and prices go up, total _____.

		revenues stay the same
		revenues increase
		revenues decline
		profits increase

Question 42

2 points

An example of a staggered markdown policy is a(n) _____.

		automatic markdown plan
		price adjustment policy
		late markdown policy
		early markdown policy

Question 43

2 points

Which act prevents large retailers from using their bargaining power to receive price concessions not warranted by their sizable orders?

		Miller-Tydings Act
		Cellar-Kefauver Act
		Federal Trade Commission Act
		Robinson-Patman Act

Question 44

2 points

In which pricing technique does a retailer advertise and sell key items in the product assortment at less than their usual profit margins?

		odd pricing
		price lining
		bait-and-switch advertising
		leader pricing

Question 45

2 points

A movie theater finds that when it reduces its prices, its total revenues drop significantly. Its price elasticity of demand is _____.

		unitary
		inelastic
		positive
		elastic

Question 46

2 points

A major advantage to the use of an everyday low pricing (EDLP) strategy to a retailer is its _____.

		reduction of advertising and relabeling costs
		generation of customer traffic that accompanies special sales events
		ability to receive increased allowances from major suppliers
		providing of special sales events to consumers to generate traffic

Question 47

2 points

Administered pricing utilizes nonprice competition components such as _____.

		price guarantees and price lining
		quantity and seasonal discounts
		bargaining and buyer power
		selection and location

Question 48

2 points

Big retailers attempt to destroy competition by selling goods and services at extremely low prices in _____.

		price discrimination
		predatory pricing
		bait-and-switch advertising
		selling against the brand

Question 49

2 points

The use of a variable markup policy on a systematic basis is referred to as _____.

		direct product profitability
		administered pricing
		pricing at the market
		unit pricing

Question 50

2 points