Retailing Management 11th Edition (Levy, 2023) – Test Bank
TEST BANK
Retailing Management
Michael Levy, Barton A. Weitz, Dhruv Grewal Professor
11th Edition
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
Table of Contents
Chapter 1 Introduction to the World of Retailing
Chapter 2 Types of Retailers
Chapter 3 Digital Retailing
Chapter 4 Multichannel and Omnichannel Retailing
Chapter 5 Consumer Behavior
Chapter 6 Retail Market Strategy
Chapter 7 Financial Strategy
Chapter 8 Retail Locations
Chapter 9 Retail Site Location
Chapter 10 Information Systems and Supply Chain Management
Chapter 11 Customer Relationship Management
Chapter 12 Managing the Merchandise Planning Process
Chapter 13 Buying Merchandise
Chapter 14 Retail Pricing
Chapter 15 Retail Communication Mix
Chapter 16 Human Resources and Managing the Store
Chapter 17 Store Layout, Design, and Visual Merchandising
Chapter 18 Customer Service
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
(Test Bank Latest Edition 2023-24, Grade A+, 100% Verified)
(Answer at the end of each Chapter)
1) Retailers are a key component in a supply chain that links manufacturers to consumers.
⊚ true
⊚ false
2) If you have ordered food from a restaurant, gotten a haircut from a salon, or ordered clothing
from a catalog, you have done business with a retailer.
⊚ true
⊚ false
3) The retail sector plays a minimum role in the development of the U.S. economy and
developed economies around the world.
⊚ true
⊚ false
4) Corporate social responsibility entails a sense of purpose for a firm, more than just making a
profit by selling products and services.
⊚ true
⊚ false
5) The growth of retail analytics is one of the forces facilitating the growth of large retail firms.
⊚ true
⊚ false
6) More retail transactions take place online now than in stores.
⊚ true
⊚ false
Version 1 1
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
7) Retailers do not perform traditional business activities.
⊚ true
⊚ false
8) Retailing offers entrepreneurial opportunities.
⊚ true
⊚ false
9) The largest retail company in the world is headquartered in the United States of America.
⊚ true
⊚ false
10) Ethical principles can change over time.
⊚ true
⊚ false
11) Which is an example of a nonstore effort involving retailing?
A) a firm that sells electronic components to a computer manufacturer
B) an online store that sells office supplies to several businesses
C) a university bookstore that sells textbooks to students through its online bookstore
D) a grocery store that houses a florist shop within the store
E) a restaurant that offers delivery through a mobile app
12) Danby Music sells and services musical instruments to students participating in school bands.
The company has three store locations and also sells products on its website. Danby Music
can be classified as a
A) wholesaler.
B) retailer.
C) local supply chain.
D) manufacturer.
E) distributor.
Version 1 2
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
13) 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 the above
14) 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
15) A retailer’s role in a supply chain is to
A) act as the liaison between manufacturers and suppliers.
B) buy merchandise exclusively from the manufacturers.
C) negotiate with manufacturers to draw contracts for wholesalers.
D) add value to products and services sold to customers.
E) sell goods and services to wholesalers.
16) When retailers engage in activities like breaking bulk or holding inventory, they add______
to the supply chain.
A) inefficiency
B) value
C) costs
D) confusion
E) competition
Version 1 3
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
17) Marvin’s is a large clothing retailer. The store offers over 1,000 brands and 50,000 different
products. Which value-creating activity can best be seen in the given example?
A) breaking bulk
B) scrambled merchandising
C) vertical integration
D) offering assortments
E) add-on selling
18) Which value-creating activity has retailers offering products in quantities tailored to
customers’ consumption patterns?
A) providing assortments
B) breaking bulk
C) add-on selling
D) holding inventory
E) scrambled merchandising
19) Which value-creating activity performed by retailers helps in having products available when
consumers want them?
A) breaking bulk
B) holding inventory
C) providing assortments
D) providing services
E) assisting in the supply chain
20) The value-creating retail activity that is particularly important to consumers with small living
quarters who cannot store a large quantity of products is
A) providing assortments.
B) breaking bulk.
C) holding inventory.
D) providing services.
E) consumerization.
4
Version 1
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
21) Garden Fresh, a large food retailer, purchases vegetables from several different countries.
When the vegetables arrive in distribution centers across the United States, the quantities are
reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the
vegetables in quantities that depend on the consumption pattern of the customers. This act of
offering products in smaller quantities based on consumption patterns is known as
A) holding inventory.
B) breaking bulk.
C) forward integration.
D) intensive distribution.
E) consumerization.
22) ________ is the value-creating activity in which a retailer makes available a wide range of
products of different brands and prices at a single location.
A) Providing services
B) Breaking bulk
C) Providing assortments
D) Holding inventory
E) Exclusive dealing
23) Many retailers have and offer their own store credit card. This is an example of which value-
creating activity?
A) exclusive dealing
B) breaking bulk
C) holding inventory
D) offering assortments
E) providing services
24) Retailers that have a website with store locations, store hours, product information, product
reviews, promotion information, instant chats, etc. offer which type of value added activity?
A) breaking bulk
B) holding inventory
C) providing assortments
D) exclusive distribution
E) providing services
Version 1 5
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
25) Business Solutions, a retailer, purchases computers, monitors, and printers on a large scale. It
then offers the products to customers in single quantities. The value-creating function
performed by Business Solutions in the given scenario is
A) providing assortments.
B) breaking bulk.
C) holding inventory.
D) providing services.
E) creating a retail mix.
26) In retailing, value-creating activities undertaken by channel members
A) increase the benefits to consumers and decreases the cost of the product or service.
B) increases the cost of products and services sold to customers.
C) always decreases the quality of products and services sold to customers.
D) decreases the cost of products and services sold to customers.
E) has no bearing on the benefits or cost of the product or service.
27) ________ 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
28) Floral Expressions is a chain of flower shops offering a variety of flowers and ornamental
plants. It recently opened a distribution center to supply ornamental plants and cut flowers to
all its stores within a 300-mile radius. From the given scenario, it can be seen that Floral
Expressions is practicing
A) vertical integration.
B) channel expansion.
C) horizontal expansion.
D) horizontal integration.
E) channel diversification.
Version 1 6
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
29) Entice is a popular retail chain specializing in women’s lingerie and perfume. It designs and
sources its own private-label merchandise that is sold in the store. Therefore, Entice is
practicing
A) channel expansion.
B) scrambled merchandising.
C) backward integration.
D) horizontal integration.
E) product diversification.
30) Simon Brothers is a large retail chain in New Jersey. Apart from selling to customers, the
company sells bread and vegetables to a large number of restaurants in and around New
Jersey. Therefore, Simon Brothers is engaged in_____ when selling to restaurants.
A) wholesaling
B) retailing
C) merchandising
D) breaking bulk
E) channel expansion
31) A retailer that is vertically integrated
A) concentrates on selling only to businesses.
B) outsources all supply chain activities to independent firms.
C) has limited control on the activities of the supply chain.
D) performs more than one activity in the distribution channel.
E) concentrates only on operating its own retail stores.
32) ________ 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
Version 1 7
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
33) ________ occurs when a manufacturer undertakes retailing and wholesaling activities.
A) Merchandising
B) Exclusive dealing
C) Backward integration
D) Horizontal integration
E) Forward integration
34) A retail store manages its own warehouse. It also owns a manufacturing facility where it
produces private-label food products. Therefore, this retailer is practicing
A) scrambled merchandising.
B) backward integration.
C) cross-selling.
D) horizontal integration.
E) forward integration.
35) Retailers function as wholesalers when
A) they hold inventory.
B) they perform manufacturing activities.
C) they practice scrambled merchandising.
D) they sell to other businesses.
E) there is an intratype competition.
36) Milano is a company producing cosmetics. It supplies products to stores and beauty salons
and also manages its own retail outlets. Therefore, Milano is engaged in
A) forward integration.
B) scrambled merchandising.
C) backward integration.
D) horizontal integration.
E) cross-selling.
Version 1 8
TEST BANK
Retailing Management
Michael Levy, Barton A. Weitz, Dhruv Grewal Professor
11th Edition
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
Table of Contents
Chapter 1 Introduction to the World of Retailing
Chapter 2 Types of Retailers
Chapter 3 Digital Retailing
Chapter 4 Multichannel and Omnichannel Retailing
Chapter 5 Consumer Behavior
Chapter 6 Retail Market Strategy
Chapter 7 Financial Strategy
Chapter 8 Retail Locations
Chapter 9 Retail Site Location
Chapter 10 Information Systems and Supply Chain Management
Chapter 11 Customer Relationship Management
Chapter 12 Managing the Merchandise Planning Process
Chapter 13 Buying Merchandise
Chapter 14 Retail Pricing
Chapter 15 Retail Communication Mix
Chapter 16 Human Resources and Managing the Store
Chapter 17 Store Layout, Design, and Visual Merchandising
Chapter 18 Customer Service
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
(Test Bank Latest Edition 2023-24, Grade A+, 100% Verified)
(Answer at the end of each Chapter)
1) Retailers are a key component in a supply chain that links manufacturers to consumers.
⊚ true
⊚ false
2) If you have ordered food from a restaurant, gotten a haircut from a salon, or ordered clothing
from a catalog, you have done business with a retailer.
⊚ true
⊚ false
3) The retail sector plays a minimum role in the development of the U.S. economy and
developed economies around the world.
⊚ true
⊚ false
4) Corporate social responsibility entails a sense of purpose for a firm, more than just making a
profit by selling products and services.
⊚ true
⊚ false
5) The growth of retail analytics is one of the forces facilitating the growth of large retail firms.
⊚ true
⊚ false
6) More retail transactions take place online now than in stores.
⊚ true
⊚ false
Version 1 1
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
7) Retailers do not perform traditional business activities.
⊚ true
⊚ false
8) Retailing offers entrepreneurial opportunities.
⊚ true
⊚ false
9) The largest retail company in the world is headquartered in the United States of America.
⊚ true
⊚ false
10) Ethical principles can change over time.
⊚ true
⊚ false
11) Which is an example of a nonstore effort involving retailing?
A) a firm that sells electronic components to a computer manufacturer
B) an online store that sells office supplies to several businesses
C) a university bookstore that sells textbooks to students through its online bookstore
D) a grocery store that houses a florist shop within the store
E) a restaurant that offers delivery through a mobile app
12) Danby Music sells and services musical instruments to students participating in school bands.
The company has three store locations and also sells products on its website. Danby Music
can be classified as a
A) wholesaler.
B) retailer.
C) local supply chain.
D) manufacturer.
E) distributor.
Version 1 2
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
13) 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 the above
14) 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
15) A retailer’s role in a supply chain is to
A) act as the liaison between manufacturers and suppliers.
B) buy merchandise exclusively from the manufacturers.
C) negotiate with manufacturers to draw contracts for wholesalers.
D) add value to products and services sold to customers.
E) sell goods and services to wholesalers.
16) When retailers engage in activities like breaking bulk or holding inventory, they add______
to the supply chain.
A) inefficiency
B) value
C) costs
D) confusion
E) competition
Version 1 3
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
17) Marvin’s is a large clothing retailer. The store offers over 1,000 brands and 50,000 different
products. Which value-creating activity can best be seen in the given example?
A) breaking bulk
B) scrambled merchandising
C) vertical integration
D) offering assortments
E) add-on selling
18) Which value-creating activity has retailers offering products in quantities tailored to
customers’ consumption patterns?
A) providing assortments
B) breaking bulk
C) add-on selling
D) holding inventory
E) scrambled merchandising
19) Which value-creating activity performed by retailers helps in having products available when
consumers want them?
A) breaking bulk
B) holding inventory
C) providing assortments
D) providing services
E) assisting in the supply chain
20) The value-creating retail activity that is particularly important to consumers with small living
quarters who cannot store a large quantity of products is
A) providing assortments.
B) breaking bulk.
C) holding inventory.
D) providing services.
E) consumerization.
4
Version 1
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
21) Garden Fresh, a large food retailer, purchases vegetables from several different countries.
When the vegetables arrive in distribution centers across the United States, the quantities are
reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the
vegetables in quantities that depend on the consumption pattern of the customers. This act of
offering products in smaller quantities based on consumption patterns is known as
A) holding inventory.
B) breaking bulk.
C) forward integration.
D) intensive distribution.
E) consumerization.
22) ________ is the value-creating activity in which a retailer makes available a wide range of
products of different brands and prices at a single location.
A) Providing services
B) Breaking bulk
C) Providing assortments
D) Holding inventory
E) Exclusive dealing
23) Many retailers have and offer their own store credit card. This is an example of which value-
creating activity?
A) exclusive dealing
B) breaking bulk
C) holding inventory
D) offering assortments
E) providing services
24) Retailers that have a website with store locations, store hours, product information, product
reviews, promotion information, instant chats, etc. offer which type of value added activity?
A) breaking bulk
B) holding inventory
C) providing assortments
D) exclusive distribution
E) providing services
Version 1 5
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
25) Business Solutions, a retailer, purchases computers, monitors, and printers on a large scale. It
then offers the products to customers in single quantities. The value-creating function
performed by Business Solutions in the given scenario is
A) providing assortments.
B) breaking bulk.
C) holding inventory.
D) providing services.
E) creating a retail mix.
26) In retailing, value-creating activities undertaken by channel members
A) increase the benefits to consumers and decreases the cost of the product or service.
B) increases the cost of products and services sold to customers.
C) always decreases the quality of products and services sold to customers.
D) decreases the cost of products and services sold to customers.
E) has no bearing on the benefits or cost of the product or service.
27) ________ 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
28) Floral Expressions is a chain of flower shops offering a variety of flowers and ornamental
plants. It recently opened a distribution center to supply ornamental plants and cut flowers to
all its stores within a 300-mile radius. From the given scenario, it can be seen that Floral
Expressions is practicing
A) vertical integration.
B) channel expansion.
C) horizontal expansion.
D) horizontal integration.
E) channel diversification.
Version 1 6
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
29) Entice is a popular retail chain specializing in women’s lingerie and perfume. It designs and
sources its own private-label merchandise that is sold in the store. Therefore, Entice is
practicing
A) channel expansion.
B) scrambled merchandising.
C) backward integration.
D) horizontal integration.
E) product diversification.
30) Simon Brothers is a large retail chain in New Jersey. Apart from selling to customers, the
company sells bread and vegetables to a large number of restaurants in and around New
Jersey. Therefore, Simon Brothers is engaged in_____ when selling to restaurants.
A) wholesaling
B) retailing
C) merchandising
D) breaking bulk
E) channel expansion
31) A retailer that is vertically integrated
A) concentrates on selling only to businesses.
B) outsources all supply chain activities to independent firms.
C) has limited control on the activities of the supply chain.
D) performs more than one activity in the distribution channel.
E) concentrates only on operating its own retail stores.
32) ________ 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
Version 1 7
, Retailing Management 11th Edition (Levy, 2023) – Test Bank
33) ________ occurs when a manufacturer undertakes retailing and wholesaling activities.
A) Merchandising
B) Exclusive dealing
C) Backward integration
D) Horizontal integration
E) Forward integration
34) A retail store manages its own warehouse. It also owns a manufacturing facility where it
produces private-label food products. Therefore, this retailer is practicing
A) scrambled merchandising.
B) backward integration.
C) cross-selling.
D) horizontal integration.
E) forward integration.
35) Retailers function as wholesalers when
A) they hold inventory.
B) they perform manufacturing activities.
C) they practice scrambled merchandising.
D) they sell to other businesses.
E) there is an intratype competition.
36) Milano is a company producing cosmetics. It supplies products to stores and beauty salons
and also manages its own retail outlets. Therefore, Milano is engaged in
A) forward integration.
B) scrambled merchandising.
C) backward integration.
D) horizontal integration.
E) cross-selling.
Version 1 8
