Ethan Allen's practice of sharing revenues from online sales with traditional store operators is an example of the company hedging against uncertainty in its channel design.
Indicate whether the statement is true or false
Question 2A functional discount is a reduction in price given to retailers to compensate them for their promotional expenses.
Indicate whether the statement is true or false
Question 3Which element of the store's environment is concerned with the store's exterior design, ambience, and lighting.
a. Merchandising
b. Productivity
c. Store design
d. Store planning
e. Visual communications
Question 4Managers are usually evaluated on financial leverage since return on assets is beyond their control.
Indicate whether the statement is true or false
Question 5The Celler-Kefauver Antimerger Act:
a. prohibits unfair and deceptive acts and practices regardless of whether competition is injured.
b. establishes protection for trademarks.
c. defines price discrimination as unlawful (subject to certain defenses) and provides the FTC with the right to establish limits on quantity discounts.
d. amends Section 7 of the Clayton Act by broadening the power to prevent corporate acquisitions where the acquisition may have a substantially adverse effect on competition.
e. requires large companies to notify the government of their intent to merge.
Question 6Goal divergence and responsibility disputes are primary sources of channel conflict.
Indicate whether the statement is true or false
Question 7A quantity discount based on the total amount purchased over a given period of time is called a cumulative-quantity discount.
Indicate whether the statement is true or false
Question 8_____ and _____ are the two primary objectives of the store environment.
a. Effective sales management; creating a distinctive ambience
b. Creative merchandise presentation; effective store traffic control
c. Maximizing impulse purchase opportunities; effective shelf space allocation
d. Creating the desired store image; increasing space productivity
e. Maintaining a pleasant selling environment; effective merchandise control