70 test bank for retail management a strategic approach 10th edition

70 Test Bank for Retail Management A Strategic
Approach 10th Edition
by Berman Mutiple Choice Questions - Page 1
Which statement concerning retailing is correct?
1.

a.Retailing activities cannot be performed by wholesalers.

2.

b.It is the last stage in the distribution process.

3.

c.All retail activities are store-based.

4.

d.A lawyer purchasing stationery for use in his/her office is an example of
retailing.

Which statement concerning customer service is correct?
1.

a.Customer service only concerns a retailer’s intangible activities.

2.

b.Different people almost always judge a retailer’s customer service in a
similar manner.

3.

c.People’s assessment of customer service depends on perceptions—not
necessarily reality.

4.

d.Customer service only concerns a retailer’s tangible activities.

Which statement concerning the scope of retailing is correct?
1.
2.

a.Retailing is limited to transactions involving tangible goods.
b.Purchases of goods made by retail organizations for further resale are part
of retailing.

3.

c.Retailing is limited to store-based transactions.

4.

d.Wholesalers cannot conduct retail transactions.

Which of the following illustrates a retail transaction?
1.

a.an auto manufacturer purchasing brochures to be distributed by its dealers

2.

b.a supermarket purchasing a freezer case for meat


3.

c.the U.S. government purchasing military aircraft

4.

d.a consumer buying coffee in a vending machine

Channel relations are generally smoothest in which form of
distribution?
1.

a.selective distribution

2.

b.intensive distribution

3.

c.exclusive distribution

4.

d.dual distribution

In 2004, the three largest retailing companies (based on annual
sales) in order of size (from the largest firm) were _____.
1.

a.Sears, Kmart, and Federated Department Stores

2.

b.Sears, Wal-Mart, and J.C. Penney

3.

c.Wal-Mart, Sears Roebuck, and Kroger

4.

d.Wal-Mart, Home Depot, and Kroger

All of the elements in a retail offering that encourage or inhibit
consumers during their contact with a given retailer make up the
_____.
1.

a.total retail experience

2.

b.retailing concept

3.

c.marketing concept applied to retailing

4.

d.customer service philosophy

Suggestion selling, point-of-purchase displays, and attractive store
layouts are used by retailers to _____.
1.

a.reduce selling costs

2.

b.increase customer service


3.

c.increase impulse sales

4.

d.reduce channel conflict

An electronics retailer accomplishes a consumer’s one-stop needs
through _____.
1.

a.the sorting process

2.

b.a deep channel of distribution

3.

c.a wide channel of distribution

4.

d.exclusive distribution

Which one of the following is not a crucial element in Target’s
overall retail strategy?
1.

a.growth-oriented objectives

2.

b.a focus on its discount store niche

3.

c.sale of goods at the lowest competitive price

4.

d.strong customer service for its retail category

An approach to the study of retailing that stresses activities such as
buying, pricing, and personnel practices is a _____ approach.
1.

a.strategic

2.

b.functional

3.

c.institutional

4.

d.retail audit

A manufacturer seeking to maximize its sales should utilize _____
distribution.
1.

a.dual

2.

b.intensive

3.

c.selective


4.

d.exclusive

Which form of distribution balances channel cooperation with an
increased opportunity for product sales?
1.

a.exclusive distribution

2.

b.selective distribution

3.

c.intensive distribution

4.

d.dual distribution

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

1.

a.15

2.

b.22

3.

c.30

4.

d.50

Which of the following distribution functions are generally not
provided by retailers for their manufacturer/wholesaler suppliers?
1.

a.contact with the final customer

2.

b.inventory storage prior to sale

3.

c.pre-paying for merchandise in advance of its being sold to final consumers

4.

d.delivery and installation of goods to final consumers

In 2004, the ten largest U.S. retailers earned average after-tax
profits amounting to about _____ percent of sales.
1.

a.1.1

2.

b.2.5

3.

c.3.3

4.

d.5.7


In exclusive distribution, suppliers _____.
1.

a.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

2.

b.sell to as many retailers as possible

3.

c.sell to a moderate number of retailers

4.

d.utilize multiple channels of distribution to reduce channel conflict

While some manufacturers specialize by producing one product,
consumers generally favor retailers with extensive selections from
many manufacturers. These divergent viewpoints can be reconciled
through _____.
1.

a.the sorting process.

2.

b.selective distribution

3.

c.intensive distribution.

4.

d.exclusive distribution

The retailing concept is comprised of _____.
1.

a.price orientation, social responsibility, and competitive defensibility

2.

b.niche strategy, cost leadership, and market segmentation

3.

c.customer orientation, coordinated effort, value-driven, and goal orientation

4.

d.short-run objectives, long-term strategy, implementable actions, and
channel control

A manufacturer’s long-term sales potential is most limited in _____.
1.

a.selective distribution

2.

b.cooperative wholesaling

3.

c.intensive distribution

4.

d.exclusive distribution


The sorting process refers to _____.
1.

a.physical distribution assortment by perishability

2.

b.a retailer’s pricing goods by quality and size

3.

c.government grading standards for produce

4.

d.a retailer’s collecting an assortment of goods and services from many
vendors

The first stage in development of a retail strategy should be to
determine the retailer’s _____.
1.

a.most appropriate target market

2.

b.short-run objectives

3.

c.long-run objectives

4.

d.type of business and orientation of the firm

Which of the following is not an element in the retailing concept?
1.

a.customer orientation

2.

b.high levels of customer service

3.

c.coordinated effort

4.

d.value-driven

A retail strategy can be best defined as _____.
1.
2.

a.the selection and appeal to a specific retail target market
b.short-run activities conducted by a retailer to meet or exceed its retail
objectives

3.

c.the overall plan guiding a retail firm

4.

d.a plan to reduce retail costs

Which of the following illustrates channel conflict between a
manufacturer and its retailer customers?


1.

a.a discounter’s selling a manufacturer’s product below levels at full-service
retailers

2.

b.a cooperative advertising program in which retailers are encouraged to use
selected advertising materials

3.

c.a manufacturer assisting retailers with inventory financing for its products

4.

d.a manufacturer developing a toll-free hot line for customer support

The identifiable, but sometimes intangible, activities undertaken by
a retailer in conjunction with the basic goods and services it sells
comprise the retailer’s _____.
1.

a.level of commitment to the retail concept

2.

b.peripheral services

3.

c.customer satisfaction level

4.

d.customer service

According to the Department of Commerce, annual U.S. retail store
sales exceed _____.

1.

a.$200 billion

2.

b.$1 trillion

3.

c.$2 trillion

4.

d.$4 trillion

In relationship retailing, a retailer _____.
1.

a.seeks to maximize a customer’s short-term satisfaction

2.

b.prefers to attract new customers over retaining existing customers

3.

c.seeks to attract larger customers over smaller accounts

4.

d.plans to establish and maintain long-term bonds with its customers

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


1.

a.exclusive distribution

2.

b.intensive distribution

3.

c.selective distribution

4.

d.vertical integration

A strategic approach to the study of retailing stresses _____.
1.

a.lowering retail costs

2.

b.the types of retailing and their development

3.

c.planning for and adapting to a complex, changing environment

4.

d.merger, acquisition, and downsizing opportunities

A retailer’s selling to consumers via store, catalog, and the Web
illustrates _____.
1.

a.selective distribution

2.

b.impulse purchasing

3.

c.intensive distribution

4.

d.multi-channel retailing

The total retail experience is best defined as _____.
1.

2.

a.a retail operating philosophy that stresses long-term relationships between a
retailer and its customers
b.value-generating elements in the retail transaction

3.

c.all the elements in a retail offering that encourage or inhibit consumers
during their contact with a retailer

4.

d.those retail strategies that contribute to total satisfaction among all retail
stakeholders

Which of these is not a characteristic that distinguishes retailing
from other types of business?
1.

a.Store location is more important for retailers than for wholesalers.


2.

3.
4.

b.The average size of a sales transaction for retailers is less than for

manufacturers.
c.Retail sales are more cyclical than organizational sales.
d.While final consumers make many impulse purchases, organizational
consumers are more systematic in their purchasing activity.

All of the businesses and people involved in the physical movement
and transfer of ownership of goods and services from producer to
consumer constitute _____.
1.

a.a channel of distribution

2.

b.wholesaling

3.

c.retail management

4.

d.the sorting process

A functional approach to the study of retailing stresses _____.
1.

a.retail planning

2.

b.the activities that retailers perform

3.

c.adaptation of strategy to match the retail environment

4.

d.opportunities and constraints in decision making

How many million people are employed by traditional retailers in the
United States?
1.

a. 7

2.

b.15

3.

c.25

4.

d.30

A retailer does generally not stock a broad selection of brands in

which form of distribution?
1.

a.exclusive distribution


2.

b.intensive distribution

3.

c.selective distribution

4.

d.operational distribution

70 Free Test Bank for Retail Management A Strategic
Approach 10th Edition by Berman Mutiple Choice
Questions - Page 2
An example of the contrasting viewpoints of retailers and
manufacturers is a manufacturer _____.
1.

a.sponsoring a cooperative advertising program

2.

b.attempting to increase national brand display space

3.

c.sponsoring training programs for retail sales personnel

4.

d.sponsoring point-of-sale materials

Manufacturers can generate increased power in a channel of
distribution through _____.
1.

a.developing brand loyalty through extensive advertising

2.

b.selling exclusively to major national retail chains

3.

c.allowing retailers to set final retail selling prices

4.

d.allocating promotional allowances to retailers based upon their overall sales
volume

Which is a major limitation of exclusive distribution?
1.

a.poor relations among channel members

2.

b.limited sales potential

3.

c.high price competition

4.

d.low levels of customer service

Retail price competition is generally highest in _____ distribution.


1.

a.dual

2.

b.exclusive

3.

c.intensive

4.

d.selective

Which statement concerning strategic planning is correct?
1.

a.Strategic planning should be conducted once a year.

2.

b.Strategic plans should emphasize pricing.

3.

c.Strategic plans should be adhered to despite their success/failure.

4.

d.Strategic planning is a continuous process throughout the year.

The potential for channel conflict (due to the high power of a retailer
relative to a manufacturer) is greatest in which form of distribution?
1.

a.dual distribution

2.

b.selective distribution

3.

c.exclusive distribution

4.

d.intensive distribution

If retailers did not perform the sorting process, _____.
1.

a.final consumers would have to visit multiple manufacturers to purchase their
needs

2.

b.final consumers would be more powerful in the channel of distribution

3.

c.distribution channels would be more likely to be vertically integrated

4.

d.manufacturers would have improved cash flow

An example of a retailer’s regularly reviewing operations is the
_____.
1.

a.appeal to a prime consumer market

2.

b.use of a one-price policy


3.

c.development of realistic sales and profit goals

4.

d.ongoing analysis of sales and costs by product category

Channel cooperation, communication, and control is greatest when
_____.
1.

a.selective distribution is used

2.

b.intensive distribution is used

3.

c.manufacturers operate their own retailing facilities

4.

d.exclusive distribution is used

A unique characteristic of retailing is _____.
1.

a.the high effect of the business cycle on sales

2.

b.high foreign competition

3.

c.low average sales

4.

d.saturation of retail facilities

A retailer views the sales of merchandise through store, catalog,
and Web-based operations as complementary to one another. This
approach illustrates _____.
1.

a.channel cooperation

2.

b.multi-channel retailing

3.

c.intensive distribution

4.

d.selective distribution

Because impulse sales are so important to retailers, there is a need
to _____.
1.

a.control expenses

2.

b.analyze consumer demographics

3.

c.study store image


4.

d.utilize point-of-purchase materials

A college bookstore that purchases goods from over 200 vendors

demonstrates _____.
1.

a.economies of scale

2.

b.a channel of distribution

3.

c.the sorting process

4.

d.vertical integration

Which of the following best illustrates a value-driven retail strategy?
1.

a.a retailer’s setting goals and using its strategy to attain them

2.

b.a retailer’s reducing prices to the lowest possible level

3.

4.

c.a retailer’s having prices appropriate for the level of products and customer
service
d.a retailer’s integrating all plans and activities to maximize efficiency

Neither channel cooperation nor sales potential is maximized in
_____ distribution.
1.

a.vertical

2.

b.intensive

3.

c.exclusive

4.

d.selective

5.

(c; Challenging; p. 10)

6.

Q#SRetail price competition is generally highest in _____ distribution.

A computer dealer determines customer satisfaction of recent
computer buyers on the basis of questionnaires mailed to recent
customers. These questionnaires cover all aspects of the
transaction from the first encounter with a salesperson to initial
quality of the computer to satisfaction with any servicing the
computer might require. The survey involves _____.


1.

a.coordinated effort

2.

b.the total retail experience

3.

c.long-run planning

4.

d.relationship retailing

The success of a manufacturer and its retailer customers is most
directly interconnected in which form of distribution?
1.

a.exclusive distribution

2.

b.intensive distribution

3.

c.selective distribution

4.

d.dual distribution

The sorting process helps final consumers through _____.
1.

a.providing credit terms on purchases

2.

b.enabling one-stop shopping

3.

c.providing important product-based information

4.

d.enabling consumers to purchase goods through direct marketing

The total retail experience, customer service, and relationship

retailing directly focus on which aspect of the retailing concept?
1.

a.long-run planning

2.

b.customer orientation

3.

c.goal orientation

4.

d.coordinated effort

The sorting process implies that a retailer typically purchases
_____.
1.

a.from domestic suppliers

2.

b.directly from a manufacturer


3.

c.from multiple manufacturers

4.

d.from a single manufacturer

Planning and adapting to a complex, changing environment is the
major focus of a(n) _____ approach to the study of retailing.
1.

a.historical

2.

b.strategic

3.

c.institutional

4.

d.functional

One-stop shopping by consumers is enhanced by _____.
1.

a.the sorting process

2.

b.store-based inventory systems

3.

c.regionalization of department stores

4.

d.consumer credit

Strategic planning in retailing _____.
1.
2.

a.can be practiced by both small and large retailers
b.requires computer-based marketing research and accounting systems to be
successfully implemented

3.

c.should focus on short-run profits

4.

d.requires a high risk-taking philosophy to succeed

Retailer power in a distribution channel can be increased through
_____.
1.

a.decentralized purchasing

2.

b.the purchase of goods from multiple vendors

3.

c.franchising

4.

d.the development of large chains


The use of independent channel members in a channel of
distribution allows manufacturers to _____.
1.

a.improve channel communication and control

2.

b.increase the average order size to retailers

3.

4.

c.receive payment based on when goods are shipped to retailers, not when
goods are sold to final consumers
d.maximize profitability through vertical integration

The arrangement of goods within a supermarket or department
store is systematically studied to maximize _____.
1.

a.manufacturer cooperation

2.

b.impulse sales

3.

c.payments by manufacturers

4.

d.self-service merchandising

Which retail philosophy directly focuses on maintaining long-term
bonds with past customers?
1.

a.relationship retailing

2.

b.coordinated effort

3.

c.employee empowerment

4.

d.a strategic approach to retailing

Payment for shelf space by manufacturers to supermarkets
illustrates _____.
1.

a.the role of manufacturers’ representatives

2.

b.channel power by a retailer

3.

c.channel cooperation by retailers

4.

d.competition in the marketplace


The sorting process enables manufacturers to _____.

1.

a.increase their power in the channel of distribution

2.

b.specialize in one item or product line

3.

c.fulfill government grading requirements

4.

d.limit product distribution to the most profitable geographic areas

A characteristic of a retail strategy is its _____.
1.

a.focus on past operations and success

2.

b.attention to short-run success

3.

c.attention to personnel availability and training.

4.

d.systematic assessment of the environment to ascertain opportunities and
constraints

Which is not a strategy for a retailer to increase its average sale?
1.

a.placing impulse goods in high-traffic locations

2.

b.opening additional hours

3.

c.increasing impulse sales

4.

d.suggestion selling

A manufacturer seeking maximum retailer cooperation should utilize
which form of distribution?
1.

a.exclusive distribution

2.

b.intensive distribution

3.

c.selective distribution

4.

d.dual distribution

The greatest advantage to a manufacturer’s use of exclusive
distribution is _____.
1.

a.retailer concentration on key items


2.

b.smooth channel relations

3.

c.a high level of retail price competition

4.

d.maximization of long-run sales potential