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| 1 | |
Which of the following best describes retailing? |
| | A) | It is the strategy retailers and vendors use to get products into the stores. |
| | B) | It is the merchandising component of the retail mix. |
| | C) | It is the set of business activities that adds value to the products and services sold to consumers for their personal use. |
| | 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. |
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| 2 | |
Benetton, a popular retail chain from Italy, manufactures many of the sweaters it sells in its retail outlets at a textile mill in North Carolina. Benetton is practicing: |
| | A) | demographic marketing |
| | B) | globalization |
| | C) | product-related marketing |
| | D) | vertical integration |
| | E) | wholesaling |
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| 3 | |
Which of the following does NOT describe how retailers increase the value consumers receive from their purchases? |
| | A) | providing an assortment of products and services |
| | B) | breaking bulk |
| | C) | providing services |
| | D) | holding inventory |
| | E) | wholesaling |
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| 4 | |
Why is providing assortments an advantageous business activity? |
| | A) | It enables the company to create a more informational and entertaining environment which would promote more sales. |
| | B) | It enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store. |
| | C) | It enables the company to reinvest for the future of the business. |
| | D) | It enables the customer to try more products. |
| | E) | It enables the customer to stock up on the assortments because of bulk availability. |
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| 5 | |
Which of the following does NOT describe breaking bulk? |
| | A) | It hurts manufacturers' profits. |
| | B) | It is important to manufacturers because it provides cost efficiencies for manufacturers. |
| | C) | It is important to consumers because it gives consumers the chance to purchase merchandise in the smaller, more manageable quantities they prefer. |
| | D) | It is one of value-creating functions provided by a retailer. |
| | E) | It provides cost efficiencies for manufacturers that can package and ship merchandise in larger, rather than smaller, quantities. |
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| 6 | |
New types of retailers appear each year. What value-creating function does BagBorroworSteal.com offer that provides jewelry and handbag rental services? |
| | A) | breaking bulk |
| | B) | holding inventory |
| | C) | providing assortments |
| | D) | financing |
| | E) | providing services |
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| 7 | |
The competition between retailers that sell similar merchandise using different formats, such as discount and department stores, is called: |
| | A) | Intratype competition |
| | B) | Indirect competition |
| | C) | Intertype competition |
| | D) | Backward integration |
| | E) | Scrambled merchandising |
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| 8 | |
Which of the following would be an example of intratype competitors? |
| | A) | Wal-Mart and CVS |
| | B) | Sears and Abercrombie and Fitch |
| | C) | Albertsons and Victoria's Secret |
| | D) | Circuit City and Best Buy |
| | E) | Walgreens and Amazon.com |
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| 9 | |
DJ owns the Beach Shack, a small souvenir shop on a busy beach boardwalk which specializes in a variety of t-shirts, towels and beach toys. He has identified his customer as a person walking on the boardwalk–mostly vacationers who want something cheap, functional and fun. He located himself close to parking for easy access, unlike some of his competitors. DJ seems to have developed a strong: |
| | A) | business concept |
| | B) | business plan |
| | C) | location strategy |
| | D) | retail strategy |
| | E) | selling strategy |
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| 10 | |
Which of the following is NOT a part of the retail mix for a furniture store? |
| | A) | competitive response |
| | B) | furniture assortments |
| | C) | the location of the store |
| | D) | store credit card |
| | E) | television commercials |
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