Market Research
Which is NOT a use for market research?
1) Identifying what services customers want
2) Deciding what merchandise to sell
3) Determining tax deductions
4) Forecasting sales
3) Determining tax deductions
True or false: In retailing, "product" and "merchandise" are used interchangeably.
1) True
2) False
1) True
What types of businesses generally prefer freestanding locations?
1) Small mom-and-pop retailers
2) Nail salons
3) Big-box retailers such as Home Depot
3) Big-box retailers such as Home Depot
In a retail business, what number do you get by subtracting an item's cost from its price?
1) Overhead
2) Discount
3) Profit
4) Margin
4) Margin
Which of the following is an example of sales promotion?
1) A flyer filled with coupons for discounts on select merchandise
2) A press release announcing a new store opening
3) A radio ad thanking customers for their continued support
1) A flyer filled with coupons for discounts on select merchandise
What are the two main sources of data?
1) Computer/real world
2) Government/private sector
3) Primary/secondary
3) Primary/secondary
What is an advantage of selling consumable items?
1) They do not need refrigeration
2) They typically have a large profit margin
3) They are long-lasting
4) They tend to generate repeat business
4) They tend to generate repeat business
What is a "complementary" business?
1) A retailer that helps customers look good
2) A business plan that focuses on customer service
3) A retailer that sells related, but not identical, merchandise as one's own store
3) A retailer that sells related, but not identical, merchandise as one's own store
What is a "markdown"?
1) A price reduction in order to boost the number of sales
2) Another name for taking inventory
3) A special tax-exempt item
4) The sticker on the package stating the price
1) A price reduction in order to boost the number of sales
What is meant by "promotional mix"?
1) A set of key words that all successful ad campaigns should use
2) A staggered schedule of TV ads that air at different times of day
3) The combination of the types of promotion a business uses
3) The combination of the types of promotion a business uses
True or false: Secondary data is often gathered before primary data.
1) True
2) False
1) True
Which best describes "consultative selling"?
1) Using the latest research to redesign a floor plan
2) Offering only one kind of each product
3) Working with a customer to determine his or her needs
3) Working with a customer to determine his or her needs
Of fixed-rate, percentage, and triple net leases, which makes financial planning easiest for a business owner?
1) Fixed-rate
2) Percentage
3) Triple net
1) Fixed-rate
When supply goes down and/or consumer demand goes up, what usually happens to the price?
1) It drops
2) Nothing
3) It rises
3) It rises
How are promotional budgets normally determined?
1) By using a percentage of a business's net sales
2) By using an estimate of expected future sales
3) By budgeting just a little bit more than the competition
1) By using a percentage of a business's net sales
Which question is an example of quantitative market research?
1) How did you hear of our product?
2) Why did you buy this product?
3) How many times did you purchase this product in the past six months?
3) How many times did you purchase this product in the past six months?
Which is an example of how a small store might best compete with a large, big-box chain?
1) By offering in-store workshops
2) By selling at a loss
3) By moving into a location across the street
1) By offering in-store workshops
In a triple net lease, who pays for property maintenance?
1) The landlord
2) The tenant
3) A third-party contractor
2) The tenant
To a retail business owner, what is "cost"?
1) The environmental damage caused by the store
2) The amount paid to suppliers for merchandise
3) The selling price
2) The amount paid to suppliers for merchandise
Advertising a low-priced product in order to lure customers into buying a high-priced product is called what?
1) A shell game
2) Promotional mix
3) Bait and switch
4) Phishing
3) Bait and switch
Which is NOT a source of secondary data?
1) A business's own Facebook survey
2) Past sales records
3) Trade associations
4) Federal government
1) A business's own Facebook survey
Which of the following items is NOT perishable?
1) Eggs
2) Meat
3) Batteries
4) Paper towels
4) Paper towels
Which is typically perceived as one of the main advantages of a big-box retailer?
1) Personalized customer service
2) Low prices
3) Convenient downtown locations
2) Low prices
What are "loss leaders" designed to do?
1) Drive competitors out of business
2) Reduce a store's tax burden
3) Keep advertising budgets under control
4) Attract more customers to come into the store
4) Attract more customers to come into the store
Newspapers, magazines, and direct mail are all examples of what?
1) Broadcast media
2) Alternative media
3) National institutions
4) Print media
4) Print media