Question 1

The offering of merchandise not typically associated with the store type is called

Accepted Answer

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

Question 2

Shades n Hues is a company producing cosmetics. It supplies products to stores and beauty salons and also manages its own retail outlets. Therefore, Shades n Hues is engaged in

Accepted Answer

A)   forward integration.
B)   scrambled merchandising.
C)   backward integration.
D)   horizontal integration.
E)   cross-selling.

Question 3

Which of the following statements about the U.S. distribution system is True?

Accepted Answer

A)   The U.S. retail industry is mostly composed of many small and medium-sized firms.
B)   Many U.S. retailers are large enough to have their own warehouses.
C)   The retail density in the U.S. is lower than that found in Europe.
D)   A large independent wholesale industry supplies goods to all retailers.
E)   The U.S. retail industry has a fragmented distribution system.

Question 4

As the owner of Knights, a store specializing in men's suits, Isabella can use a retail strategy to identify all of the following except

Accepted Answer

A)   the advertising campaign developed to sell last season's merchandise.
B)   the store's target market.
C)   how the store will build a competitive advantage over other similar retailers.
D)   what services the store will offer its customers.
E)   what types of suits the store will stock. A

Question 5

Retailers are a key component in a supply chain that links manufacturers to consumers.

Accepted Answer

A) True 
 B)False

Question 6

Many retailers have and offer their own store credit card. This is an example of which of the following value-creating activities?

Accepted Answer

A)   Exclusive dealing
B)   Breaking bulk
C)   Holding inventory
D)   Offering assortments
E)   Providing services E

Question 7

________ form a part of the microenvironment that influences retail management decisions.

Accepted Answer

A)   Competitors
B)   Technologies
C)   Politics
D)   Legal aspects
E)   Ethics

Question 8

________ is the value-creating activity in which a retailer makes available a wide range of products of different brands and prices at a single location.

Accepted Answer

A)   Providing services
B)   Breaking bulk
C)   Providing assortments
D)   Holding inventory
E)   Exclusive dealing

Question 9

Which of the following is not an element in the retail mix?

Accepted Answer

A)   Competitive response
B)   Merchandise pricing
C)   Location
D)   Customer service
E)   Advertising and promotion

Question 10

________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Accepted Answer

A)   Exclusive dealing
B)   Merchandising
C)   Backward integration
D)   Horizontal integration
E)   Forward integration

Question 11

All of the following businesses would be considered retailers except

Accepted Answer

A)   a hot dog cart at the Highland Games.
B)   Delta Airlines.
C)   a university bookstore.
D)   Priceline.com.
E)   Procter & Gamble.

Question 12

The development of information systems is one of the forces facilitating the growth of large retail firms.

Accepted Answer

A) True 
 B)False

Question 13

Retailers use customer transaction data to do all of the following except

Accepted Answer

A)   identify their best customers.
B)   match the needs of a store's local market.
C)   create customized promotions.
D)   tailor product assortments.
E)   identify political party preferences.

Question 14

Which of the following is the first step in the retail management decision process?

Accepted Answer

A)   Developing the retail communication mix
B)   Buying merchandise
C)   Developing a retail marketing strategy
D)   Understanding the world of retailing
E)   Customer relationship management

Question 15

Dailies is a large retail chain in New Jersey. Apart from selling to customers, Dailies supplies bread and vegetables to a large number of restaurants in and around New Jersey. Therefore, Dailies is engaged in ________ when selling to restaurants.

Accepted Answer

A)   wholesaling
B)   retailing
C)   merchandising
D)   breaking bulk
E)   channel expansion A

Question 16

The competition between the same type of retailers is called

Accepted Answer

A)   intertype competition.
B)   indirect competition.
C)   intratype competition.
D)   scrambled merchandising.
E)   intrinsic competition.

Question 17

The intensity of competition is greatest among retailers when

Accepted Answer

A)   price dominates the retail mix.
B)   their retail offerings are considered to be similar.
C)   they resort to scrambled merchandising.
D)   they focus on a narrow demographic trend.
E)   they offer a limited range of products and services.

Question 18

________ means that a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores.

Accepted Answer

A)   Channel diversification
B)   Horizontal development
C)   Horizontal integration
D)   Vertical expansion
E)   Vertical integration

Question 19

Retailers function as wholesalers when

Accepted Answer

A)   they hold inventory.
B)   they perform manufacturing activities.
C)   they practice scrambled merchandising.
D)   they sell to other businesses.
E)   there is an intratype competition.

Question 20

Which of the following statements about retailers holding inventory is False?

Accepted Answer

A)   This activity benefits customers with limited storage space, such as families living in small apartments.
B)   It allows customers to get the lowest price possible.
C)   Holding inventory in a store helps serve customers' needs.
D)   Retailers keep inventory so products are available when consumers want them.
E)   Holding inventory reduces consumers' cost of storing products.

Exam 1: Introduction to the World of Retailing

The offering of merchandise not typically associated with the store type is called

Correct AnswerverifiedShow Answer

Shades n Hues is a company producing cosmetics. It supplies products to stores and beauty salons and also manages its own retail outlets. Therefore, Shades n Hues is engaged in

Correct AnswerverifiedShow Answer

Which of the following statements about the U.S. distribution system is True?

Correct AnswerverifiedShow Answer

As the owner of Knights, a store specializing in men's suits, Isabella can use a retail strategy to identify all of the following except

Correct AnswerverifiedA

Retailers are a key component in a supply chain that links manufacturers to consumers.

Correct AnswerverifiedShow Answer

Many retailers have and offer their own store credit card. This is an example of which of the following value-creating activities?

Correct AnswerverifiedE

________ form a part of the microenvironment that influences retail management decisions.

Correct AnswerverifiedShow Answer

________ is the value-creating activity in which a retailer makes available a wide range of products of different brands and prices at a single location.

Correct AnswerverifiedShow Answer

Which of the following is not an element in the retail mix?

Correct AnswerverifiedShow Answer

________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Correct AnswerverifiedShow Answer

All of the following businesses would be considered retailers except

Correct AnswerverifiedShow Answer

The development of information systems is one of the forces facilitating the growth of large retail firms.

Correct AnswerverifiedShow Answer

Retailers use customer transaction data to do all of the following except

Correct AnswerverifiedShow Answer

Which of the following is the first step in the retail management decision process?

Correct AnswerverifiedShow Answer

Dailies is a large retail chain in New Jersey. Apart from selling to customers, Dailies supplies bread and vegetables to a large number of restaurants in and around New Jersey. Therefore, Dailies is engaged in ________ when selling to restaurants.

Correct AnswerverifiedA

The competition between the same type of retailers is called

Correct AnswerverifiedShow Answer

The intensity of competition is greatest among retailers when

Correct AnswerverifiedShow Answer

________ means that a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores.

Correct AnswerverifiedShow Answer

Retailers function as wholesalers when

Correct AnswerverifiedShow Answer

Which of the following statements about retailers holding inventory is False?

Correct AnswerverifiedShow Answer

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