Question 1

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

Accepted Answer

A vertically integrated retailer is one that performs more than one function in the chain from manufacturing to sales to end user. This means that they have control over multiple stages in the supply chain, such as manufacturing, distribution, and retail sales. This allows for greater efficiency and cost control, as well as the ability to offer unique products that are not available from other retailers.

Question 2

Which of the following would be considered a retailer?
A) A radio talk show
B) A university
C) The Better Business Bureau
D) The Red Cross
E) All of these

Accepted Answer

Although it could be argued that they all can accept money in some way or offer a service in some way, a university is most likely to be engaged in accepting money and then providing a service to the ultimate customer for personal use.

Question 3

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) Holding inventory
B) Vertical integration
C) Breaking bulk
D) Distribution
E) Providing services

Accepted Answer

The grocers are breaking bulk by reducing the number of bananas in containers to appropriate amounts for store delivery.

Question 4

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

Accepted Answer

Retailing is the largest industry in terms of employment, with millions of people working in various positions across the retail sector. While community involvement, competition, promotions, and variety are all important aspects of retailing, none of them directly make it the largest industry in terms of overall size.

Question 5

Which of the following businesses would be considered a retailer?
A) Your local hair salon
B) Air Canada
C) Tim Hortons
D) Canadian Tire
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 6

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 merchandising component of the retail mix
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

Accepted Answer

Retailing involves all the activities that take place between the manufacturer or service provider and the final consumer for personal or family use. These activities include buying, pricing, promoting, and merchandising the product to fulfill the needs and wants of the target market.

Question 7

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

Accepted Answer

Ontario, Quebec, Alberta, and British Columbia are the provinces with the highest retail sales in Canada, in that order.

Question 8

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

Accepted Answer

While a mission statement is important for guiding the overall direction of the retail business, it is not necessarily a complex decision that a retail manager must make. Target markets, retail locations, merchandise and service offerings, and training and motivating sales associates all involve significant strategic planning and decision-making in order to ensure the success of the business.

Question 9

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

Accepted Answer

Vertical integration is when a firm performs more than one set of activities in the channel, such as owning a manufacturing facility and a retail store. This allows for greater control over the supply chain and can lead to increased efficiency and cost savings.

Question 10

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) negotiate with consumers through a series of focus groups
D) satisfy the needs of the consumers
E) sell to wholesalers

Accepted Answer

A retailer's primary goal is to satisfy the needs of consumers by providing them with the products they want and need. Retailers serve as the final step in the distribution channel and are responsible for selling goods to consumers either in physical stores or online.

Question 11

Why is it advantageous for retailers to be vertically integrated?
A) Retailers can develop unique merchandise sold only in their stores
B) Retailers can expand their services easily to the Internet because they can direct orders to the manufacturer
C) Retailers have realized that to stay competitive, they must become vertically integrated
D) Customers prefer retailers who are vertically integrated
E) 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.

Accepted Answer

Vertical integration allows retailers to control the production process, enabling them to develop unique merchandise that can be sold exclusively in their stores, providing a competitive advantage.

Question 12

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) breaking bulk
B) holding inventory
C) providing assortments
D) providing services
E) financing

Accepted Answer

Maintaining records and informing members are services.

Question 13

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)globalization
C)product-related marketing
D)vertical integration
E)wholesaling

Accepted Answer

Because the retail chain owns its own manufacturing facility, it is an example of vertical integration.

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

Accepted Answer

The florist is performing more than one channel function.

Question 15

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) Clean washrooms
B) Payment by debit cards
C) Trained salespeople to answer questions
D) Well-lit parking lots
E) Clean washrooms, payment by debit cards, trained salespeople, and well-lit parking lots are all appropriate examples.

Accepted Answer

All of these functions are provided by the retailer to make it easier for a customer to buy and use products.

Question 16

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

Accepted Answer

Holding inventory does not decrease visual merchandising expenditure, in fact, it may increase it as the retailer may have to create displays and promotions to move the inventory.

Question 17

Providing assortments is an advantageous business activity because it:
A) enables the company to create a more informational and entertaining environment which would promote more sales
B) enables the company to reinvest savings
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 save money by being able to shop in one store
E) enables the customer to stock up on the assortments because of their availability

Accepted Answer

Providing assortments allows the customer to have a wider range of products to choose from in terms of brands, designs, sizes, and prices. This leads to convenience for the customer and could potentially lead to more sales for the company.

Question 18

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

Accepted Answer

Food, Beverage, and Automotive are among the largest sectors in terms of retail sales due to their essential nature and high consumer demand.

Question 19

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) Ignoring the competition
B) Increasing employee pilferage
C) Performing a situation analysis
D) Selling on the Internet as an additional channel
E) None of the available answers are correct.

Accepted Answer

Selling on the Internet as an additional channel is an example of providing services to increase the customer's perception of value. This allows customers to conveniently shop online and have access to a wider range of products, which ultimately increases their satisfaction with the retailer. Choices A, B, and C are not related to providing services to increase customer perception of value.

Question 20

Consumers shop through multiple channels that include all of the following except:
A) Tablets
B) Computers
C) Web-enabled kiosks
D) Retail stores
E) Federal Express

Accepted Answer

Federal Express is a shipping and delivery service, not a shopping channel.

Quiz 1: Introduction to the World of Retailing

A retailer that is vertically integrated:

Which of the following would be considered a retailer?

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

Which of the following businesses would be considered a retailer?

What is retailing?

Provinces with the highest retail sales in order are:

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

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

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

Why is it advantageous for retailers to be vertically integrated?

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:

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:

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?

Providing assortments is an advantageous business activity because it:

The largest sectors in terms of retail sales are:

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?

Consumers shop through multiple channels that include all of the following except: