Question 1

Early in JCPenney's history,store managers determined the type of merchandise sold,the price of the merchandise,the promotion of the merchandise and the management of the store employees.This describes an organizational structure that is _______________.

Accepted Answer

A decentralized organizational structure allows individual managers or departments to make decisions about their operations, such as merchandise selection, pricing, and promotions, as described in the scenario.

Question 2

Retailers that are building LEED-certified stores would be considered in what stage in their strategy?

Accepted Answer

The answer of Retailers that are building LEED-certified stores would...

Question 3

Approximately what percent of working people are employed in the retail industry?

Accepted Answer

The answer of Approximately what percent of working people are...

Question 4

Ingvar Kamprad,the founder of the Swedish-based home furnishing retail chain,IKEA,discovered in his youth that he could make a profit by buying in bulk and selling the items individually at a low price.This concept is one of the activities retailers do:

Accepted Answer

Buying in bulk and selling at a low price is a way to create value for customers by offering them affordable products while still making a profit.

Question 5

Distinguish between intratype competition and intertype competition.Give an example of each.

Accepted Answer

The answer of Distinguish between intratype competition and intertype competition.Give...

Question 6

What is the retailer's role in a supply chain?

Accepted Answer

The answer of What is the retailer's role in a...

Question 7

A retailer that asks their customers to bring their own shopping bags or charges 5¢ per bag,but does not engage in any other corporate social responsibilities unless required by law,would be considered in what stage in their strategy?

Accepted Answer

The retailer is engaging in some level of environmental responsibility by encouraging customers to bring their own bags or charging for bags, which indicates they are in the second stage of their strategy. However, they are not going above and beyond what is legally required, which suggests they are not in the tertiary or fourth stages. The acquisition stage is not applicable in this scenario.

Question 8

List the four functions performed by retailers.

Accepted Answer

The answer of List the four functions performed by retailers....

Question 9

With manufacturers legally able to sell direct from the factories,why should retailers exist?

Accepted Answer

The answer of With manufacturers legally able to sell direct...

Question 10

Why would a Walgreens add novelty gifts,fresh bread,pre-wrapped sandwiches and milk to its product mix?

Accepted Answer

The answer of Why would a Walgreens add novelty gifts,fresh...

Question 11

What percent does the total gross domestic product come from retailing?

Accepted Answer

The answer of What percent does the total gross domestic...

Question 12

One of the value-providing activities that retailers perform is _____________ where products will be available when consumers want them.

Accepted Answer

Holding inventory refers to retailers keeping products in stock, allowing consumers to purchase them when they want them. This value-providing activity ensures that consumers are able to obtain the products they desire, when they desire them, rather than having to wait for extended periods or being unable to find what they want. Breaking bulk refers to dividing large quantities of products into smaller units that are more manageable for consumption or sale. Production runs relate to the manufacturing of products. Possession stock refers to the physical stock of a product that a retailer carries. Acquisition space is not a term commonly used in the retail industry.

Question 13

What is the world's largest corporation?

Accepted Answer

Walmart is currently the world's largest corporation by revenue, with a total revenue of $525 billion in 2020. Nike, Coca-cola, Apple Inc., and Macy's all have significantly lower revenues compared to Walmart.

Question 14

Initially,Anita Roddick,the founder of The Body Shop,recycled bottles to save money when the company was in its infancy.What stage would this be considered in terms of Corporate Social Responsibility in their strategy?

Accepted Answer

The answer of Initially,Anita Roddick,the founder of The Body Shop,recycled...

Question 15

The ______________ identifies the target market,the merchandise and services that will be offered,and how the company will be competitive long-term.

Accepted Answer

A retail strategy outlines the plan for the business's operations and goals, including identifying the target market, merchandise and services, and long-term competitiveness strategies. Corporate sustainability, retail mix, supply chain, and retail integration are all important aspects of a retail strategy, but they are not the primary identifier of the target market or long-term competitiveness.

Question 16

_________ are the principles governing the behavior of individuals and companies.

Accepted Answer

Ethics refer to the moral principles that guide the behavior of individuals and companies. They are important in ensuring that businesses operate in a responsible manner, taking into account the impact of their actions on society and the environment. Ethical behavior can help build trust and credibility with stakeholders, and can protect a company's reputation.

Question 17

Belinda is a swimwear buyer for a major department store.She will allow vendors to purchase her lunch at the local coffee shop when they visit.One October,she dined with a new vendor to discuss a progressive line of men's swimwear that is popular in resorts throughout the Caribbean.Belinda's goal was to assess the assortments for her company in order to see if the product was a good fit for the company brand.During lunch,the vendor invited Belinda for an all-expense paid weekend trip to Jamaica to see the popularity of the merchandise.His goal was to enable her to make a more educated decision when buying the product.Belinda hesitated to accept because of:

Accepted Answer

Belinda's hesitation to accept the vendor's invitation shows her awareness of the potential ethical issues that could arise from accepting gifts or trips from vendors. As a professional, she has a responsibility to remain impartial and make buying decisions based on the best interests of her company and its customers rather than her personal interests.

Question 18

A company that is in the second stage of corporate social responsibility:

Accepted Answer

In the second stage of corporate social responsibility, companies engage in CSR activities primarily for short-term financial benefits, often focusing on activities that can enhance their reputation or reduce costs.

Question 19

A retailer's primary competitors are other retailers that __________.

Accepted Answer

The answer of A retailer's primary competitors are other retailers...

Question 20

The retail activity that is particularly important to consumers with small living quarters is who only buy what they need at the time they need it:

Accepted Answer

Holding inventory is crucial for consumers with small living quarters as it allows them to purchase items only when needed, reducing the need for storage space at home.

Quiz 1: Introduction to the World of Retailing