MKT3351: Ch.
1 Quiz (Introduction to the World of Retailing)
Student Name: ______________Nudrath Alina Rahman_________________
Student id: 4043555
Answers are highlighted
Multiple Choices
1. A ________ is a business that sells products and/or services to consumers for their personal
or family use.
A) manufacturer
B) wholesaler
C) retailer
D) distributor
E) none of these
2. A(n) ________ is a set of firms that make and deliver a given set of goods and services to the
ultimate consumer.
A) supply chain
B) buying network
C) economic network
D) integrated wholesale network
E) extended enterprise
3. 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?
A) Providing an assortment of products
B) Reducing production costs with innovative designs
C) Breaking bulk
D) Holding inventory
E) Providing an assortment of services
4. Which of the following statements about retailers holding inventory is false?
A) This activity benefits customers with limited storage space, such as families living in small
apartments.
B) It allows customers to get the lowest price possible.
C) Holding inventory in a store helps serve customers' needs.
D) Retailers keep inventory so products are available when consumers want them.
E) Holding inventory reduces consumers' cost of storing products.
5. ________ means that a firm performs more than one set of activities in the channel, as occurs
when a retailer engages in wholesaling activities by operating its own distribution centers to
supply its stores.
A) Channel diversification
B) Horizontal development
C) Horizontal integration
D) Vertical expansion
E) Vertical integration
6. ________ arises when a retailer performs some distribution and manufacturing activities,
such as operating warehouses or designing private-label merchandise.
A) Exclusive dealing
B) Merchandising
C) Backward integration
D) Horizontal integration
E) Forward integration
7. ________ 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.
A) Forward integration
B) Corporate social responsibility
C) Integrity management
D) Customer engagement
E) Ethical behavior
8. Which of the following is the first step in the retail management decision process?
A) Developing the retail communication mix
B) Buying merchandise
C) Developing a retail marketing strategy
D) Understanding the world of retailing
E) Customer relationship management
9. The intensity of competition is greatest among retailers when
A) price dominates the retail mix.
B) their retail offerings are considered to be similar.
C) they resort to scrambled merchandising.
D) they focus on a narrow demographic trend.
E) they offer a limited range of products and services.
10. A retail mix refers to
A) a strategy for identifying primary competitors through market research.
B) the idea of selling similar merchandise using different types of retail outlets, such as drug
and department stores.
C) the concept of offering merchandise not typically associated with their type of store.
D) a set of decisions retailers make to satisfy customer needs and influence their purchase
decisions.
E) a retailer's decision to undertake wholesaling and manufacturing activities.
End-of-questions
