66 Free Test Bank for Retailing Management 9th Edition
by Levy Multiple Choice Questions - Page 1
The U.S. retail industry:
1.

A. has the lowest concentration of large firms.

2.

B. has the greatest retail density in the world.

3.

C. mostly has small stores operating independently.

4.

D. depends on a single large wholesale industry.

5.

E. consists of a fragmented distribution system.

Why is it imperative that manufacturers like HP and Procter and
Gamble understand the operations of retailers?
1.

A. To sell directly on-line

2.



D. providing services.

Samson's is a large clothing retailer. The store offers over 1,000
brands and 50,000 different products. Which of the following valuecreating activities can be seen in the given example?


1.

A. Breaking bulk

2.

B. Scrambled merchandising

3.

C. Vertical integration

4.

D. Offering assortments

5.

E. Add-on selling

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 _____.

3.

C. scrambled merchandising

4.

D. backward integration

5.

E. providing assortments

A(n) _____ is a set of firms that make and deliver a given set of
goods and services to the ultimate consumer.
1.

A. supply chain

2.

B. buying network

3.

C. economic network


4.

D. integrated wholesale network

consumers can buy a product and pay for it later. Which of the
following value-creating activities is Jenson's undertaking in the
given example?
1.

A. Exclusive dealing

2.

B. Breaking bulk

3.

C. Holding inventory

4.

D. Offering assortments

5.

E. Providing services

A _____ is a business that sells products and/or services to
consumers for their personal or family use.
1.

A. manufacturer

2.


4.

D. Horizontal integration

5.

E. Forward integration

Which of the following businesses would NOT be considered a
retailer?
1.

A. A hot dog cart at the Highland Games

2.

B. Delta Airlines

3.

C. University bookstore

4.

D. Priceline.com

5.

E. Procter and Gamble


B. Exclusive dealing

3.

C. Backward integration

4.

D. Horizontal integration

5.

E. Forward integration

Which of the following statements about retailers holding inventory
is FALSE?
1.

A. This activity benefits customers with limited storage space, such as families
living in small apartments.

2.

B. It allows manufacturers to efficiently make and ship merchandise in larger
quantities.

3.
4.


the channel, as occurs when a retailer engages in wholesaling
activities by operating its own distribution centers to supply its
stores.
1.

A. Channel diversification

2.

B. Horizontal development


3.

C. Horizontal integration

4.

D. Vertical expansion

5.

E. Vertical integration

Which of the following is NOT TRUE of distribution systems of the
major international markets?
1.

A. The U.S. distribution system has the greatest retail density and the greatest
concentration of large retail firms.


B. Breaking bulk

3.

C. Providing assortments

4.

D. Holding inventory

5.

E. Exclusive dealing

The U.S. retail industry has:
1.

A. the greatest concentration of large firms.

2.

B. the lowest retail density in the world.

3.

C. mostly small stores which operate independently.


4.

Retailers function as wholesalers when:
1.

A. they hold inventory.

2.

B. they perform manufacturing activities.

3.

C. they practice scrambled merchandising.

4.

D. they sell to other businesses.

5.

E. there is an intratype competition.

Which of the following statements about the U.S. distribution
system is TRUE?
1.

A. The U.S. retail industry is mostly composed of many small and mediumsized firms.

2.

B. Many U.S. retailers are large enough to have their own warehouses.


D. is characterized by a high retail density.

_____ 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.
1.

A. Forward integration

2.

B. Corporate social responsibility

3.

C. Integrity management

4.

D. Customer engagement

5.

E. Ethical behavior

A retailer's role in a supply chain is to:
1.

A. act as the liaison between manufacturers and suppliers.


3.

C. providing assortments

4.

D. exclusive distribution

5.

E. providing services

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?
1.

A. Providing an assortment of products

2.

B. Reducing production costs with innovative designs

3.

C. Breaking bulk

4.



Tech Games, a retailer, purchases many of the video games DVDs,
Wii games, and game consoles on a large scale. It then offers the
products to customers in small quantities based on their
requirements. The value-creating function performed by Tech
Games in the given scenario is _____.
1.

A. providing assortments


2.

B. breaking bulk

3.

C. holding inventory

4.

D. providing services

5.

E. creating a retail mix

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 _____.


3.

C. concentric diversification.

4.

D. horizontal integration.

5.

E. intratype competition.

Which of the following is true of the career opportunities offered by
the retailing industry?
1.

A. Retailers employ people with exclusive expertise in supply chain
management.

2.

B. Retail managers are often given considerable responsibility early in their
careers.


3.

C. Retailing offers limited opportunities for entrepreneurs.



Which of the following is the first step in the retail management
decision process?
1.

A. Developing the retail communication mix

2.

B. Buying merchandise

3.

C. Developing a retail marketing strategy

4.

D. Understanding the world of retailing

5.

E. Customer relationship management

A company in the first stage of incorporating corporate social
responsibility (CSR) into its strategies:
1.

A. only engages in CSR activities that are required of it by law.

2.

4.

D. High local demand results in low prices for consumer goods.

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?
1.

A. Intertype competition

2.

B. Indirect competition

3.

C. Intratype competition

4.

D. Scrambled merchandising

5.

E. Intrinsic competition

Which of the following is NOT an element in the retail mix?
1.


C. product diversification


4.

D. channel conflict

5.

E. vertical differentiation

A retailer's primary competitors are other retailers that:
1.

A. are more vertically integrated.

2.

B. use the same type of store format.

3.

C. have the same target market.

4.

D. sell online.

The intensity of competition is greatest among retailers when:
1.


C. intratype competition

4.

D. scrambled merchandising

5.

E. intrinsic competition

A _____ refers to the market toward which a retailer will direct its
efforts.
1.

A. channel member

2.

B. market segment


3.

C. target market

4.

D. mass market


A. A supermarket and a fresh flower stand

2.

B. A coffee shop and a fast food restaurant

3.

C. A supercenter and a pharmacy

4.

D. An American Eagle store and a Macy's store

5.

E. A Target store and a Walmart store

A company in the final stage of integrating corporate social
responsibility into its strategies:
1.

A. only engages in CSR activities that are required of them by law.

2.

B. engages in CSR activities that provide a short-term financial benefit.

3.


_____ are the principles governing the behavior of individuals and
companies that establish appropriate behavior and indicate what is
right and wrong.
1.

A. Ethics

2.

B. Acts

3.

C. Training guidelines

4.

D. Company traditions

5.

E. Legislations

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.
1.

A. retail strategy


C. product diversification

4.

D. scrambled merchandising

5.

E. vertical differentiation

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 a perm for halfprice every Wednesday to attract customers.
1.

A. selling concept

2.

B. business cycle

3.

C. retail strategy

4.

D. focal point orientation

5.

A. competition.

2.

B. target market.

3.

C. merchandise mix.

4.

D. retail mix.


5.

E. price points.

Which of the following is a key strategic decision made by a
retailer?
1.

A. Managing merchandise inventories

2.

B. Defining the target market

3.

facility in its premises. It believes that releasing water containing
chemical waste into the river would harm the entire population of
the city. Thus, it is in the _____ stage of incorporating corporate
social responsibility.
1.

A. initial

2.

B. second

3.

C. tertiary

4.

D. final

5.

E. acquisition


_____ form a part of the microenvironment that influences retail
management decisions.
1.

A. Competitors

of store.

4.

D. a set of decisions retailers make to satisfy customer needs and influence
their purchase decisions.

5.

E. a retailer's decision to undertake wholesaling and manufacturing activities.

A retail mix is developed to:
1.

A. promote scrambled merchandising.

2.

B. implement a retail strategy.

3.

C. understand the retail market.

4.

D. implement vertical integration.

5.



2.

B. intratype competition.

3.

C. product diversification.

4.

D. channel diversification.

5.

E. vertical differentiation.

Retailers use customer transaction data to:
1.

A. identify their best customers.

2.

B. match the needs of a store's local market.

3.

C. create customized promotions.


frozen meals through delis. Which form of competition is seen
between these two firms?
1.

A. Intertype competition

2.

B. Indirect competition

3.

C. Intratype competition

4.

D. Scrambled merchandising

5.

E. Intrinsic competition

Which of the following statements is true of ethical principles?
1.

A. Ethical principles can change over time.

2.

B. Ethics remain the same irrespective of the country or industry.