Question 1

A retail mix refers to

Accepted Answer

A)  a strategy for identifying primary competitors through market research. 
B)  the idea of selling similar merchandise using different types of retail outlets, such as drug and department stores. 
C)  the concept of offering merchandise not typically associated with their type of store. 
D)  a set of decisions retailers make to satisfy customer needs and influence their purchase decisions. 
E)  a retailer's decision to undertake wholesaling and manufacturing activities.

Question 2

A ________ identifies the target market, the merchandise and services that will be offered, and how the company will achieve long-term advantage over its competitors.

Accepted Answer

A)  retail strategy 
B)  corporate strategy 
C)  retail mix 
D)  supply chain 
E)  product mix

Question 3

The Chinese retail industry

Accepted Answer

A)  has a combination of large stores and large firms resulting in an efficient distribution system. 
B)  is characterized by many small and medium-sized firms. 
C)  has the most number of large retailers operating their own warehouses. 
D)  is characterized by a high retail density. 
E)  has extensive restrictions on retail locations, store size, and ownership.

Question 4

Which of the following is True of retailing activities in the bottom of the pyramid (BoP) market?

Accepted Answer

A)  Retrofitting business models used in the more developed markets has proven successful. 
B)  Most people in BoP markets live in rural areas with limited access to mass media. 
C)  The ideas used in BoP retail marketing are similar to conventional retailing strategies. 
D)  High local demand results in low prices for consumer goods. 
E)  Firms are not motivated to enter the BoP market.

Question 5

Retailers provide important functions that increase the value of the products and services they sell to consumers. Which of the following is not a value-creating activity performed by a retailer?

Accepted Answer

A)  Providing an assortment of products 
B)  Reducing production costs with innovative designs 
C)  Breaking bulk 
D)  Holding inventory 
E)  Providing an assortment of services

Question 6

Which of the following is True of the career opportunities offered by the retailing industry?

Accepted Answer

A)  Retailers employ people with exclusive expertise in supply chain management. 
B)  Retail managers are often given considerable responsibility early in their careers. 
C)  Retailing offers limited opportunities for entrepreneurs. 
D)  Retail management is not a very lucrative career path. 
E)  People with a marketing background have limited opportunities in the retail industry.

Question 7

A major value-providing activity performed by retailers is ________, so that products will be available when consumers want them.

Accepted Answer

A)  breaking bulk 
B)  holding inventory 
C)  scrambled merchandising 
D)  backward integration 
E)  providing assortments

Question 8

Explain the importance of breaking bulk.

Accepted Answer

The answer of Explain the importance of breaking bulk....

Question 9

Prime Industries Inc. is a large company producing a wide range of chemicals. It decides to focus on making its products more environmentally friendly. This is an example of

Accepted Answer

A)  vertical integration. 
B)  providing assortments. 
C)  wholesaling. 
D)  conscious marketing. 
E)  a supply chain.

Question 10

Which of the following statements is True of ethical principles?

Accepted Answer

A)  Ethical principles can change over time. 
B)  Ethics remain the same irrespective of the country or industry. 
C)  Most people have common views on ethical and unethical practices. 
D)  The personal code of ethics does not play a role in business decisions. 
E)  Ethical principles are often easy to determine.

Question 11

Karen's is a popular clothing store in Boston. The store recently started selling designer watches. Thus, Karen's is practicing

Accepted Answer

A)  channel expansion. 
B)  intertype competition. 
C)  product diversification. 
D)  scrambled merchandising. 
E)  vertical differentiation.

Question 12

The value-creating retail activity that is particularly important to consumers with small living quarters who cannot store a large quantity of products is

Accepted Answer

A)  providing assortments. 
B)  breaking bulk. 
C)  holding inventory. 
D)  providing services. 
E)  consumerization.

Question 13

The U.S. retail industry

Accepted Answer

A)  has the lowest concentration of large firms. 
B)  has the greatest retail density in the world. 
C)  mostly has small stores operating independently. 
D)  depends on a single large wholesale industry. 
E)  consists of a fragmented distribution system.

Question 14

Companies are totally convinced about the importance of corporate social responsibility (CSR) during the initial stages of CSR integration.

Accepted Answer

A) True 
 B)False

Question 15

Students often view retailing as part of marketing because

Accepted Answer

A)  retailing does not involve traditional business activities. 
B)  retailing involves the management of distribution systems. 
C)  retailing requires only people with expertise in marketing. 
D)  activities in retailing are confined to advertising and promotion. 
E)  retailers are not part of the supply chain.

Question 16

The largest retail company in the world is headquartered in the United States of America.

Accepted Answer

A) True 
 B)False

Question 17

A retailer's primary competitors are other retailers that

Accepted Answer

A)  are more vertically integrated. 
B)  use the same type of store format. 
C)  have the same target market. 
D)  sell online. 
E)  scramble merchandise.

Question 18

Florals is a popular retail chain specializing in women's lingerie and perfume. It designs and sources its own private-label merchandise that is sold in the store. Therefore, Florals is practicing

Accepted Answer

A)  channel expansion. 
B)  scrambled merchandising. 
C)  backward integration. 
D)  horizontal integration. 
E)  product diversification.

Question 19

Scrambled merchandising increases

Accepted Answer

A)  vertical integration. 
B)  intertype competition. 
C)  concentric diversification. 
D)  horizontal integration. 
E)  intratype competition.

Question 20

Fresh n Fragrant is a chain of flower shops offering a variety of flowers and ornamental plants. It recently opened a distribution center to supply ornamental plants and cut flowers to all its stores within a 300-mile radius. From the given scenario, it can be seen that Fresh n Fragrant is practicing

Accepted Answer

A)  vertical integration. 
B)  channel expansion. 
C)  horizontal expansion. 
D)  horizontal integration. 
E)  channel diversification.

Exam 1: Introduction to the World of Retailing