Question 1

Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?

Accepted Answer

A)  Intertype competition 
B)  Indirect competition 
C)  Intratype competition 
D)  Scrambled merchandising 
E)  Intrinsic competition

Question 2

Happy Kids clothing store started a program where customers could bring in gently used clothing for donation to a local shelter for women and children. This is an example of which principle of conscious marketing?

Accepted Answer

A)  Recognition of the retailing firm's greater purpose 
B)  The presence of conscious leadership 
C)  Consideration of stakeholders' independence 
D)  Distinguishing right from wrong 
E)  Incentivizing employees to provide good service

Question 3

Essentials, a retail store, manages its own warehouse. It also owns a manufacturing facility where it produces private-label food products. Therefore, Essentials is practicing

Accepted Answer

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

Question 4

How does scrambled merchandising impact retail competition?

Accepted Answer

The answer of How does scrambled merchandising impact retail competition?...

Question 5

Which of the following does not describe the distribution systems of the major international markets?

Accepted Answer

A)  The U.S. distribution system has the greatest retail density and the greatest concentration of large retail firms. 
B)  The Indian distribution system is characterized by small stores operated by relatively small firms and a large independent wholesale industry. 
C)  In China, there is great disparity between the distribution systems in different parts of the country. 
D)  Northern European retailing is similar to efficient distribution systems in the U.S. 
E)  Restrictions on retail locations, store size, and ownership are minimal in northern Europe and India.

Question 6

When developing the ________ for his salon, Theo decided to obtain a long-term competitive advantage over other salons by offering longer hours, better prices, a well-trained staff, and hair coloring for half-price every Wednesday to attract customers.

Accepted Answer

A)  selling concept 
B)  business cycle 
C)  retail strategy 
D)  focal point orientation 
E)  marketing concept

Question 7

A ________ is a business that sells products and/or services to consumers for their personal or family use.

Accepted Answer

A)  manufacturer 
B)  wholesaler 
C)  retailer 
D)  distributor 
E)  none of these

Question 8

Tech Games, a retailer, purchases of the video games and game consoles on a large scale. It then offers the products to customers in single quantities. The value-creating function performed by Tech Games in the given scenario is

Accepted Answer

A)  providing assortments. 
B)  breaking bulk. 
C)  holding inventory. 
D)  providing services. 
E)  creating a retail mix.

Question 9

Ethical principles can change over time.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a key strategic decision made by a retailer?

Accepted Answer

A)  Managing merchandise inventories 
B)  Defining the target market 
C)  Managing the store 
D)  Creating the retail communication mix 
E)  Implementing visual merchandising

Question 11

________ describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Accepted Answer

A)  Forward integration 
B)  Corporate social responsibility 
C)  Integrity management 
D)  Customer engagement 
E)  Ethical behavior

Question 12

When a firm's leaders adopt a conscious marketing approach

Accepted Answer

A)  the resulting corporate culture stays in accordance with the leaders' ideals. 
B)  the firm engages in activities that provide a short-term financial benefit. 
C)  the resulting corporate culture emphasizes making a profit. 
D)  a group of employees is selected to focus on corporate social responsibility. 
E)  the majority of stakeholders are not affected.

Question 13

What are the major value-creating activities performed by retailers?

Accepted Answer

The answer of What are the major value-creating activities performed...

Question 14

Which of the following value-creating activities has retailers offering products in quantities tailored to customers' consumption patterns?

Accepted Answer

A)  Providing assortments 
B)  Breaking bulk 
C)  Add-on selling 
D)  Holding inventory 
E)  Scrambled merchandising

Question 15

A ________ refers to the market toward which a retailer will direct its efforts.

Accepted Answer

A)  channel member 
B)  market segment 
C)  target market 
D)  mass market 
E)  warm market

Question 16

________ are the most concentrated sector of the retail industry in the U.S.

Accepted Answer

A)  Fitness centers 
B)  Drugstore chains 
C)  Apparel stores 
D)  Home improvement centers 
E)  Food and beverage services

Question 17

More retail transactions take place online now than in stores.

Accepted Answer

A) True 
 B)False

Question 18

________ is the world's fastest-growing retail market.

Accepted Answer

A)  China 
B)  the United States 
C)  India 
D)  Russia 
E)  Brazil

Question 19

Grocers, a large food retailer, purchases fruits from several different tropical countries. When the fruits arrive in distribution centers across the United States, the quantities are reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the fruits in quantities that depend on the consumption pattern of the customers. This act of offering products in smaller quantities based on consumption patterns is known as

Accepted Answer

A)  holding inventory. 
B)  breaking bulk. 
C)  forward integration. 
D)  intensive distribution. 
E)  consumerization.

Question 20

Retailing offers entrepreneurial opportunities.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to the World of Retailing

Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?

Happy Kids clothing store started a program where customers could bring in gently used clothing for donation to a local shelter for women and children. This is an example of which principle of conscious marketing?

Essentials, a retail store, manages its own warehouse. It also owns a manufacturing facility where it produces private-label food products. Therefore, Essentials is practicing

How does scrambled merchandising impact retail competition?

Which of the following does not describe the distribution systems of the major international markets?

When developing the ________ for his salon, Theo decided to obtain a long-term competitive advantage over other salons by offering longer hours, better prices, a well-trained staff, and hair coloring for half-price every Wednesday to attract customers.

A ________ is a business that sells products and/or services to consumers for their personal or family use.

Tech Games, a retailer, purchases of the video games and game consoles on a large scale. It then offers the products to customers in single quantities. The value-creating function performed by Tech Games in the given scenario is

Ethical principles can change over time.

Which of the following is a key strategic decision made by a retailer?

________ describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

When a firm's leaders adopt a conscious marketing approach

What are the major value-creating activities performed by retailers?

Which of the following value-creating activities has retailers offering products in quantities tailored to customers' consumption patterns?

A ________ refers to the market toward which a retailer will direct its efforts.

________ are the most concentrated sector of the retail industry in the U.S.

More retail transactions take place online now than in stores.

________ is the world's fastest-growing retail market.

Retailing offers entrepreneurial opportunities.