69 Free Test Bank for Retail Management A Strategic
Approach 11th Edition
by Berman Mutiple Choice Questions - Page 1
Competition among retailers selling the same goods and services is
highest in which form of distribution?
1.

A) intensive distribution

2.

B) exclusive distribution

3.

C) selective distribution

4.

D) vertical integration

Which of the following activities does not fit within the scope of
retailing?
1.

A) medical services to families

2.

B) direct-to-home sales



A) one-stop shopping


2.

B) the retail concept

3.

C) retail transactional efficiency

4.

D) the sorting process

Point-of-purchase displays and the placement of goods in visible,
high-traffic store locations are important in retailing because of the
need to ________.
1.

A) sell services to a broad target market

2.

B) generate impulse sales

3.

C) minimize the need for warehouse space

B) Sears Roebuck

3.

C) Wal-Mart

4.

D) Marks & Spencer

About how many people are employed by traditional retailers in the
United States?
1.

A) 11 million

2.

B) 16 million


3.

C) 25 million

4.

D) 34 million

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


D) buying large orders at one time

Data on U.S. retail employment understates actual employment
because it does not include ________.
1.

A) store or department managers

2.

B) part-time personnel

3.

C) seasonal employees and unreported workers in family businesses

4.

D) teenagers under 18 who are full-time students

The retailing concept is comprised of ________.
1.

A) objectives, implementable actions, feedback, and strategy adjustment

2.

B) short- and long-term objectives, organization mission, and the development
of a competitive defensible strategy

1.

A) its low pricing strategy

2.

B) its development and use of a retail strategic plan

3.

C) its excellent physical distribution systems

4.

D) its outstanding customer service

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

A) store atmosphere

2.

B) the retail concept

3.

C) the total retail experience


B) providing one-stop shopping convenience

3.

C) operating long hours

4.

D) providing delivery services

In exclusive distribution, suppliers enter into agreements with
________.
1.

A) multiple retailers that designate the latter as the only companies in
specified geographic areas that are allowed to carry certain brands and/or
product lines

2.

B) one or a few retailers that designate the latter as the only ones in specified
geographic areas to carry certain brands or product lines

3.

C) any retailer with ample credit that designates the latter to be allowed to
carry certain brands and/or product lines

4.

B) selective distribution


3.

C) dual distribution

4.

D) exclusive distribution

Which statement concerning retailing is correct?
1.

A) Retailing activities must involve a store.

2.

B) Retailing activities do not have to include a retailer.

3.

C) Retailing activities cannot be performed by a wholesaler.

4.

D) Retailing activities involve goods, not services.

The first stage in development of a retail strategy should be to
________.

4.

D) shopping center contract provisions' limiting the range of goods to be sold

Channel relations tend to be the smoothest in ________
distribution.
1.

A) exclusive

2.

B) selective

3.

C) intensive

4.

D) wide


In 2007, the 10 largest U.S. retailers had average after-tax profits of
about ________ percent of sales.
1.

A) 0.5

2.

Which of the following is generally not considered a party in a
typical channel of distribution?
1.

A) retailer

2.

B) final consumer

3.

C) wholesaler

4.

D) advertising agency

Manufacturers can increase their power in a distribution channel
through ________.
1.

A) operating their own retail facilities

2.

B) developing dealer brands

3.


2.

B) the sorting process

3.

C) multi-channel retailing

4.

D) the importance of impulse retailing

A retail strategy is ________.
1.

A) the overall plan guiding a retail firm

2.

B) the choice and satisfaction of a target market

3.

C) an integrated effort by a retailer

4.

D) a goal-directed effort by a retailer

In 2007, the four largest retailing companies (in order of size from


3.

C) relationship retailing

4.

D) a value orientation

An example of the contrasting viewpoints of retailers and
manufacturers is a ________.
1.

A) manufacturer-sponsored cooperative advertising program

2.

B) manufacturer attempting to increase national brand display space

3.

C) manufacturer sponsoring training programs for retail sales personnel

4.

D) manufacturer sponsoring point-of-purchase materials

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

4.

D) selective

The use of customer loyalty programs by a hotel chain that grants
rewards, such as room upgrades and free rooms to loyal
customers, is an important part of ________.
1.

A) the total retail experience

2.

B) relationship retailing

3.

C) customer service

4.

D) the retailing concept

Which retail strategy focuses on existing customers?
1.

A) the retail concept

2.



2.

B) exclusive

3.

C) intensive


4.

D) selective

Channel cooperation and control is greatest when ________.
1.

A) intensive distribution is utilized

2.

B) selective distribution is utilized

3.

C) exclusive distribution is utilized

4.

D) manufacturers own and operate their own retailing facilities


4.

D) retail planning

Strategic planning in retailing ________.
1.
2.

A) can be practiced by both small and large retailers
B) requires a comprehensive computer-based marketing information system
to be properly implemented

3.

C) should focus on short-run opportunities

4.

D) requires the use of planning specialists with MBA degrees to succeed

A retailer is able to appeal to different target markets, as well as
reach consumers in multiple places, through engaging in
________.


1.

A) Web sales


The selection of an appropriate target market by a retailer relates to
which element of the retailing concept?
1.

A) goal orientation

2.

B) customer orientation

3.

C) coordinated effort

4.

D) value orientation

Convenience goods are generally marketed using ________
distribution.
1.

A) dual

2.

B) exclusive

3.


1.

A) the retailing concept

2.

B) the total retail experience

3.

C) relationship retailing

4.

D) customer service

Which of the following is not an important characteristic of
relationship retailing?
1.

A) the continuous monitoring of customer satisfaction

2.

B) the development and maintenance of a data base on all customers

3.

C) the seeking of long-term bonds with existing customers



2.

B) Strategic planning should be conducted on an annual basis.

3.

4.

C) Strategic plans should emphasize attracting customers via price-oriented
promotions.
D) Strategic planning is a continuous process.

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

A) attention to personnel availability and training

2.

B) attention to short-run success

3.

4.

C) systematic assessment of the environment to ascertain opportunities and
threats
D) focus on past operations and success



4.

D) dictate final selling prices to retailers

Loss leaders, weekly promotions, an excellent location, and special
events (such as cooking classes) are more common in retailing
than in wholesaling because ________.
1.

A) profit margins in retailing are higher than in wholesaling


2.

B) retailing is the final stage in the channel of distribution

3.

C) most retail customers must be drawn to a store location

4.

D) the average sale in retailing is smaller than in wholesaling

The training of personnel to sell related merchandise (such as
batteries, a case, and extra film with a camera) represents an
attempt to maximize ________.
1.



4.

D) goal orientation

The greatest advantage to a manufacturer's use of exclusive
distribution is ________.
1.

A) a high level of retail price competition

2.

B) close channel cooperation

3.

C) maximizing long-run sales potential

4.

D) convenience of location to customers

Which statement concerning retailing is not correct?


1.

A) Retailing involves both goods and services.


competitors, includes installation and balancing in its quoted price,
and specializes in well-known tire brands. This illustrates which
element of the retailing concept?
1.

A) value-driven

2.

B) customer service

3.

C) competitive intelligence

4.

D) goal orientation

Consumers are able to shop in a "one-stop shopping environment"
due to the ________.
1.

A) increased size of stores

2.

B) development of franchising

3.

1.

A) the development of a coordinated strategy

2.

B) a firm's competitive advantages

3.

C) specific objectives such as market share or return on sales

4.

D) the satisfaction of a firm's target market

Retail price competition is generally lowest in ________
distribution.
1.

A) dual

2.

B) exclusive

3.

C) intensive



2.

B) base all of its decisions on retail research

3.

C) be aware of opportunities and constraints in decision making

4.

D) plan for and adapt to a complex, changing retail environment