TEST BANK Retailing Management 11th Edition By Michael Levy
Chapter 1: Introduction to the World of Retailing
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
7) Retailers do not perform traditional business activities.
⊚ true
⊚ false
1
,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.
2
,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
3
, 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
Chapter 1: Introduction to the World of Retailing
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
7) Retailers do not perform traditional business activities.
⊚ true
⊚ false
1
,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.
2
,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
3
, 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
