Introduction to the World of Retailing
Multiple Choice Questions
1. (p. 6) What is retailing?
A. It is the merchandising component of the retail mix.
B. It is the set of business activities that adds value to the products and services sold to consumers for their personal use. C. It is the strategy retailers and vendors use to get products into the stores. D. It is the process of offering products in smaller quantities for consumer consumption patterns. E. It is the ability to offer enough variety in a store to encourage one-stop shopping.
2. (p. 6) Which of the following businesses would be considered a retailer? A. a hot dog cart at the Highland Games
B. Delta Airlines
C. University bookstore
E. all of the above
Retailers are businesses that sell goods and/or services.
3. (p. 6) Why is it imperative that manufacturers like Apple Computer and Proctor and Gamble understand how retailers operate? A. Manufacturers will be able to sell directly on-line.
B. Manufacturers will understand how to get their products on the shelves and sold to the customer. C. Manufacturers can better sell merchandise without retailers. D. Retailers can expect fewer buyouts to occur.
E. Manufacturers can limit multi-channel integration
4. (p. 6) A ______________ is a business that sells products and/or services to consumers for their personal or family use. A. manufacturer
5. (p. 6) The decisions that retail manger make include:
A. Selecting their target markets
B. Selecting retail locations
C. Negotiating with suppliers
D. Training and motivating sales associates
E. All of the above
6. (p. 7) A(n) ______________ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer. A. supply chain
B. buying network
C. trade association
D. integrated wholesale network
7. (p. 7) A retailer's role in a supply chain is to:
A. act as the liaison between manufacturers and wholesalers
B. buy merchandise exclusively from the manufacturers
C. negotiate with manufacturers to eliminate a wholesaler
D. satisfy the needs of the consumers
E. sell to wholesalers
8. (p. 7) ______________ is when a firm performs more than one set of activities in a channel. A. Channel diversification
B. Horizontal development
C. Horizontal integration
D. Vertical development
E. Vertical integration
9. (p. 7) If a chain of florist shops opened a plant nursery to provide gift plants and cut flowers to all of its outlets within a 300-mile radius, the chain would be practicing A. vertical integration.
B. channel expansion.
C. horizontal expansion.
D. opportunity incrementing.
E. service marketing.
The florist is performing more than one channel function.
10. (p. 7) Victoria's Secret, a popular retail chain in women's lingerie and perfume, design the merchandise they sell, and then contract with manufacturers to produce it exclusively for them. Victoria's Secret is practicing: A. globalization
B. product-related marketing
C. vertical integration
D. horizontal integration
E. product diversification
Because the retail chain designs and contracts its manufacturing firm, it is an example of vertical integration.
11. (p. 7) Why is it advantageous for retailers to be vertically integrated? A. It is advantageous because retailers can develop unique merchandise sold only in their stores. B. Retailers can expand their services easily to the Internet because...