Question 1

A retailer's role in the distribution channel is to:
A) act as the liaison between manufacturers and wholesalers
B) buy merchandise exclusively from the manufacturers
C) sell to wholesalers
D) negotiate with consumers through a series of focus groups
E) satisfy the needs of the consumers

Accepted Answer

Retailers are the final link in the distribution channel, directly interacting with consumers to satisfy their needs by providing them with the desired products and services.

Question 2

Providing assortments is an advantageous business activity because it:
A) enables the customer to save money by being able to shop in one store
B) enables the company to create a more informational and entertaining environment which would promote more sales
C) enables the customer to choose from a wide selection of brands, designs, sizes, and prices all in one store
D) enables the customer to stock up on the assortments because of their availability
E) enables the company to reinvest savings

Accepted Answer

Providing assortments allows customers to choose from a wide selection of brands, designs, sizes, and prices, enhancing their shopping experience and potentially increasing sales.

Question 3

The largest sectors in terms of retail sales are:
A) Food, Beverage, and Automotive
B) Automotive and Building supplies
C) Pharmacies and Building supplies
D) Furniture and Pharmacies
E) General merchandise and Clothing

Accepted Answer

A

Question 4

72 percent of all retail businesses employ fewer than ________persons.
A) 50
B) 5
C) 25
D) 10
E) 100

Accepted Answer

The answer of 72 percent of all retail businesses employ...

Question 5

One of the functions retailers undertake to increase the customer's perception of value is providing services. Which of the following would be an example of that activity?
A) Increasing employee pilferage
B) Selling on the Internet as an additional channel
C) Performing a situation analysis
D) Ignoring the competition
E) None of the available answers are correct.

Accepted Answer

Selling on the Internet as an additional channel provides convenience and accessibility, enhancing the customer's perception of value by offering more ways to shop.

Question 6

Retailing is the nation's largest industry in terms of:
A) variety
B) community involvement
C) competition
D) promotions
E) employment

Accepted Answer

Retailing is the largest industry in terms of employment because it encompasses a wide range of jobs and employs a significant portion of the workforce.

Question 7

Retail managers must make complex decisions including all of the following except:
A) Mission statement
B) Training and motivating sales associates
C) Target markets
D) Retail locations
E) Merchandise and services offerings

Accepted Answer

The mission statement is typically established by higher-level executives or company founders, not retail managers. Retail managers focus more on operational decisions like training, target markets, locations, and merchandise.

Question 8

What is retailing?
A) It is the set of business activities that adds value to the products and services sold to consumers for their personal or family use
B) It is the process of offering products in smaller quantities for consumer consumption patterns
C) It is the merchandising component of the retail mix
D) It is the strategy retailers and vendors use to get products into the stores
E) It is the ability to offer enough variety in a store to encourage one-stop shopping

Accepted Answer

Retailing involves the set of business activities that add value to products and services sold to consumers for personal or family use.

Question 9

A credit union holds and maintains detailed records of the banking activities of its members. Each quarter, the credit union provides its members a printout of banking activities, information about low rate loans and pre-owned automobiles. By contacting its members on a regular basis, the credit union is engaging in the business function of:
A) holding inventory
B) providing services
C) financing
D) breaking bulk
E) providing assortments

Accepted Answer

The credit union is providing services by maintaining records and regularly updating members about their banking activities and available financial products.

Question 10

A retailer that is vertically integrated:
A) performs more than one function in the chain from manufacturing to sales to end user
B) does not have frequent communication between buyers and managers
C) concentrates on selling to businesses only
D) performs only the function to end user
E) has an excellent vertical relationship between corporate headquarters and stores

Accepted Answer

Vertical integration means that a company controls multiple stages of production or distribution within the same industry, such as manufacturing, wholesaling, and retailing.

Question 11

is when a firm performs more than one set of activities in the channel.
A) Horizontal integration
B) Channel diversification
C) Vertical integration
D) Vertical development
E) Distribution channel

Accepted Answer

Vertical integration is when a firm performs more than one set of activities in the channel, such as manufacturing and retailing.

Question 12

Which of the following businesses would be considered a retailer?
A) Air Canada
B) Your local hair salon
C) Canadian Tire
D) Tim Hortons
E) Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire

Accepted Answer

The answer of Which of the following businesses would be...

Question 13

Which of the following is most likely to be considered a retailer?
A) A university
B) The Better Business Bureau
C) The Red Cross
D) A radio talk show
E) All of the choices.

Accepted Answer

The answer of Which of the following is most likely...

Question 14

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) service marketing
C) channel expansion
D) horizontal expansion
E) vertical retailing

Accepted Answer

Vertical integration occurs when a company expands its operations into different stages of production within the same industry, such as a florist chain opening a plant nursery to supply its own outlets.

Question 15

What is the primary advantage for retailers to be vertically integrated?
A) Retailers have realized that to stay competitive, they must become vertically integrated
B) Retailers can develop unique merchandise sold only in their stores; retailers can expand their services easily to the Internet because they can direct orders to the manufacturer; retailers have realized that to stay competitive, they must become vertically integrated; and customers preferring retailers that are vertically integrated are all advantages.
C) Customers prefer retailers who are vertically integrated
D) Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer
E) Retailers can develop unique merchandise sold only in their stores

Accepted Answer

Vertical integration allows retailers to develop and sell unique merchandise exclusive to their stores, differentiating them from competitors and potentially increasing customer loyalty.

Question 16

One of the functions retailers undertake to increase the customer's perception of value is providing services. Which of the following would be an example of that activity?
A) Well-lit parking lots
B) Trained salespeople to answer questions
C) Payment by debit cards
D) Clean washrooms
E) Clean washrooms, payment by debit cards, trained salespeople, and well-lit parking lots are all appropriate examples.

Accepted Answer

All of the options are examples of services that retailers can provide to increase the customer's perception of value.

Question 17

Grocers purchase bananas from several different tropical countries. When bananas arrive in the distribution centres across Canada, containers are reduced to amounts that are appropriate for store delivery. Once delivered to the stores, associates open the cartons and arrange the bananas for the consumer to select. Grocers are performing what
Function?
A) Breaking bulk
B) Distribution
C) Vertical integration
D) Providing services
E) Holding inventory

Accepted Answer

Breaking bulk refers to the process of dividing larger quantities of goods into smaller, more manageable amounts for sale to consumers, which is what grocers do when they reduce container amounts for store delivery.

Question 18

Which of the following statements about retailers holding inventory is false?
A) By holding inventory, retailers can decrease the visual merchandising expenditure
B) Retailers keep inventory so that products are available when consumers want them
C) Holding inventory in a store helps serve the customer's needs
D) By having inventory held in the store, consumers can hold less merchandise at home
E) Holding inventory reduces consumer's cost of storing products

Accepted Answer

Holding inventory does not directly decrease visual merchandising expenditure; it primarily ensures product availability and convenience for customers.

Question 19

Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it sells in its retail outlet at its own factory in Canada. Prior Snowboards is practicing:
A) demographic marketing
B) wholesaling
C) product-related marketing
D) vertical integration
E) globalization

Accepted Answer

Vertical integration occurs when a company controls multiple stages of production or distribution within the same industry, such as manufacturing and retailing its own products.

Question 20

Provinces with the highest retail sales in order are:
A) Ontario, Quebec, Alberta, and British Columbia
B) Ontario, Alberta, Quebec, and British Columbia
C) Quebec, British Columbia, Prairies, Ontario, and Atlantic Canada
D) Ontario, British Columbia, Quebec, and Alberta
E) Alberta, Atlantic Canada, Ontario, British Columbia, and Quebec

Accepted Answer

Ontario, Quebec, Alberta, and British Columbia are the provinces with the highest retail sales in Canada, in that order, due to their large populations and economic activity.

Quiz 1: Introduction to the World of Retailing

A retailer's role in the distribution channel is to:

Providing assortments is an advantageous business activity because it:

The largest sectors in terms of retail sales are:

72 percent of all retail businesses employ fewer than ________persons.

One of the functions retailers undertake to increase the customer's perception of value is providing services. Which of the following would be an example of that activity?

Retailing is the nation's largest industry in terms of:

Retail managers must make complex decisions including all of the following except:

What is retailing?

A retailer that is vertically integrated:

is when a firm performs more than one set of activities in the channel.

Which of the following businesses would be considered a retailer?

Which of the following is most likely to be considered a retailer?

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:

What is the primary advantage for retailers to be vertically integrated?

One of the functions retailers undertake to increase the customer's perception of value is providing services. Which of the following would be an example of that activity?

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

Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it sells in its retail outlet at its own factory in Canada. Prior Snowboards is practicing:

Provinces with the highest retail sales in order are: