MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS AND ANSWERS | WITH COMPLETE
SOLUTION
• Retailing - (ANSWER)the set of business activities that adds value to products and services sold to
consumer for their personal or family use.
Retailers - (ANSWER)businesses that sell products and/ or services to consumers for their personal or
family use. They are the final part of the supply chain
supply chain - (ANSWER)the set of firms that make and deliver goods and services to customers. Supply
chains contain manufacturer, wholesaler, retailer, and consumer.
What is the order of the supply chain? - (ANSWER)Manufacturer-Wholesaler-Retailer-Consumer
Integration - (ANSWER)when one firm controls more than one aspect of the supply chain
backward integration - (ANSWER)when a retailer performs distribution and manufacturing activities
(such as operating warehouses/designing private-label merchandise).
Forward Integration - (ANSWER)when a manufacturer undertakes retailing activities (Ralph Lauren
operating its own retail stores)
How do retailers create value? - (ANSWER)1. providing an assortment of products and services
2. breaking bulk
3. holding inventory
4. providing services
Corporate Social Responsibility - (ANSWER)an organization voluntarily engages in business practices that
meet or exceed the ethical and legal expectations of its stakeholders. Not only does this benefit society
but also decreases cost/ increases profits of the firm.
Base of the Pyramid (BoP) - (ANSWER)refers to the customers at the lowest end of the income
distribution. The sheer size of this consumer base makes them important.
,MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS AND ANSWERS | WITH COMPLETE
SOLUTION
competition - (ANSWER)occurs between firms as they attempt to court the most customers
Intratype Competition - (ANSWER)competition between the same type of retailer (department stores
against department stores)
Intertype Competition - (ANSWER)competition between retailers that sell similar merchandise using
different formats (discount stores and department stores)
Scrambled Merchandising - (ANSWER)What causes intertype competition. When retailers offer
merchandise not typically associated with their type of store (a clothing store in a drug store)
Retail Strategy - (ANSWER)A statement that indicates (1) the target market toward which a retailer plans
to commit its resources, (2) the nature of the retail offering that the retailer plans to use to satisfy the
needs of the target market, and (3) the bases upon which the retailer will attempt to build a sustainable
competitive advantage over competitors.
Retail Mix - (ANSWER)a set of decisions retailers make to satisfy customer needs and influence their
purchase decisions. Includes: type of merchandise sold, variety and assortment of merchandise, level of
customer service, pricing
Facts to know: - (ANSWER)oU.S. retail sales were a record high in 2017 at 5.7 trillion dollars with a
projected 4.5% increase in 2018
oSales do not include retail sales of automobile and maintenance repairs
oOne of the nation's largest industries in terms of employment
o10% of U.S. work force, 1 in 4 jobs are related to retail
oNearly 16 million jobs in the United States
Fastest Growing Retailers - (ANSWER)Primark (103%), Bass Pro (94%), Build.com (47%), Amazon.com
(45%), Wayfair (36%)
, MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS AND ANSWERS | WITH COMPLETE
SOLUTION
North American Industry Classification System (NAICS) code - (ANSWER)a six digit code with the first 2
determining the business sector and the last 4 the subsector. Retailers are mostly 44 and 45.
variety - (ANSWER)number of merchandise categories a retailer offers (breadth). Assortment is the
number of different items in a merchandise category (depth).
Stock-keeping units (SKU) - (ANSWER)the different items of merchandise carried by the retailer. The
same item with a different size or type are different SKU.
Supermarkets - (ANSWER)are large, self-service retail food stores the offer meat, produce, and groceries
with some nonfood items.
Conventional supermarkets and limited assortment supermarkets (extreme-value food retailers) -
(ANSWER)differ in the number of SKU's they carry; Conventional Supermarkets: 30,000 SKUs, Limited
Assortment Supermarkets (extreme-value food retailers): 1,500 SKUs
Largest Supermarkets: (US) - (ANSWER)Kroger, Safeway, Supervalu, Ahold USA, Publix
Largest Supermarkets: (worldwide) - (ANSWER)Walmart, Kroger, Carrefour (France)
Largest Limited Assortment Supermarkets (extreme-value food retailers): - (ANSWER)Save-A-Lot, ALDI
Power Perimeter - (ANSWER)The areas around the outside walls of conventional supermarkets. High-
traffic, profitable departments that pull shoppers through the store. (dairy, bakery, meat, florist,
produce, deli)
Fair trade - (ANSWER)purchasing from factories that pay workers a living wage
SOLUTION
• Retailing - (ANSWER)the set of business activities that adds value to products and services sold to
consumer for their personal or family use.
Retailers - (ANSWER)businesses that sell products and/ or services to consumers for their personal or
family use. They are the final part of the supply chain
supply chain - (ANSWER)the set of firms that make and deliver goods and services to customers. Supply
chains contain manufacturer, wholesaler, retailer, and consumer.
What is the order of the supply chain? - (ANSWER)Manufacturer-Wholesaler-Retailer-Consumer
Integration - (ANSWER)when one firm controls more than one aspect of the supply chain
backward integration - (ANSWER)when a retailer performs distribution and manufacturing activities
(such as operating warehouses/designing private-label merchandise).
Forward Integration - (ANSWER)when a manufacturer undertakes retailing activities (Ralph Lauren
operating its own retail stores)
How do retailers create value? - (ANSWER)1. providing an assortment of products and services
2. breaking bulk
3. holding inventory
4. providing services
Corporate Social Responsibility - (ANSWER)an organization voluntarily engages in business practices that
meet or exceed the ethical and legal expectations of its stakeholders. Not only does this benefit society
but also decreases cost/ increases profits of the firm.
Base of the Pyramid (BoP) - (ANSWER)refers to the customers at the lowest end of the income
distribution. The sheer size of this consumer base makes them important.
,MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS AND ANSWERS | WITH COMPLETE
SOLUTION
competition - (ANSWER)occurs between firms as they attempt to court the most customers
Intratype Competition - (ANSWER)competition between the same type of retailer (department stores
against department stores)
Intertype Competition - (ANSWER)competition between retailers that sell similar merchandise using
different formats (discount stores and department stores)
Scrambled Merchandising - (ANSWER)What causes intertype competition. When retailers offer
merchandise not typically associated with their type of store (a clothing store in a drug store)
Retail Strategy - (ANSWER)A statement that indicates (1) the target market toward which a retailer plans
to commit its resources, (2) the nature of the retail offering that the retailer plans to use to satisfy the
needs of the target market, and (3) the bases upon which the retailer will attempt to build a sustainable
competitive advantage over competitors.
Retail Mix - (ANSWER)a set of decisions retailers make to satisfy customer needs and influence their
purchase decisions. Includes: type of merchandise sold, variety and assortment of merchandise, level of
customer service, pricing
Facts to know: - (ANSWER)oU.S. retail sales were a record high in 2017 at 5.7 trillion dollars with a
projected 4.5% increase in 2018
oSales do not include retail sales of automobile and maintenance repairs
oOne of the nation's largest industries in terms of employment
o10% of U.S. work force, 1 in 4 jobs are related to retail
oNearly 16 million jobs in the United States
Fastest Growing Retailers - (ANSWER)Primark (103%), Bass Pro (94%), Build.com (47%), Amazon.com
(45%), Wayfair (36%)
, MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS AND ANSWERS | WITH COMPLETE
SOLUTION
North American Industry Classification System (NAICS) code - (ANSWER)a six digit code with the first 2
determining the business sector and the last 4 the subsector. Retailers are mostly 44 and 45.
variety - (ANSWER)number of merchandise categories a retailer offers (breadth). Assortment is the
number of different items in a merchandise category (depth).
Stock-keeping units (SKU) - (ANSWER)the different items of merchandise carried by the retailer. The
same item with a different size or type are different SKU.
Supermarkets - (ANSWER)are large, self-service retail food stores the offer meat, produce, and groceries
with some nonfood items.
Conventional supermarkets and limited assortment supermarkets (extreme-value food retailers) -
(ANSWER)differ in the number of SKU's they carry; Conventional Supermarkets: 30,000 SKUs, Limited
Assortment Supermarkets (extreme-value food retailers): 1,500 SKUs
Largest Supermarkets: (US) - (ANSWER)Kroger, Safeway, Supervalu, Ahold USA, Publix
Largest Supermarkets: (worldwide) - (ANSWER)Walmart, Kroger, Carrefour (France)
Largest Limited Assortment Supermarkets (extreme-value food retailers): - (ANSWER)Save-A-Lot, ALDI
Power Perimeter - (ANSWER)The areas around the outside walls of conventional supermarkets. High-
traffic, profitable departments that pull shoppers through the store. (dairy, bakery, meat, florist,
produce, deli)
Fair trade - (ANSWER)purchasing from factories that pay workers a living wage
