Retail Management Midterm Chapters 1-6 Exam
Questions And Answers #8
Retailing - correct answer the set of business activities that add value to the products
and services sold to consumers for their personal or family use
Retailer - correct answer business that sells products or services, or both, to consumers
for their personal or family use
Satisfying customer needs - correct answer have the right merchandise, at the right
price, in the right quantities, and at the right time when the consumer wants it
Distribution channel - correct answer a set of firms that facilitate the movement of
products from the point of production to the point of sale to the ultimate consumer
Vertical integration - correct answer a firm performs more than one set of activities in
the channel
Backward integration - correct answer arises when a retailer performs some distribution
and manufacturing activities
Forward integration - correct answer occurs when a manufacturer undertakes retailing
activities
Retailer functions - correct answer providing assortments, breaking bulk, holding
inventory, and providing service & services
Breaking bulk - correct answer a function performed by retailers or wholesalers in which
they receive large quantities of merchandise
Corporate social responsibility (csr) - correct answer 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
Csr engagement - correct answer 1. Companies engage only in csr activities required
by law
2. Companies go engage in csr activities that provide a short-term financial benefit to
the company
3. Companies operate responsibly because they believe this is the "right thing" to do
4. Companies engage in socially and environmentally responsible actions because they
believe these activities must be done for the "well-being" of everyone
Retail council of canada (rcc) - correct answer an industry-funded, not-for-profit
association that provides support for merchants, vendors, and suppliers so that they are
,able to meet the challenges of offering goods and services to consumers in a
competitive marketplace
Retail management decision process - correct answer 1. Understand the world of
retailing
2. Develop a retail strategy
3. Implement the retail strategy
4. Ethics and legal considerations
Intratype competition - correct answer competition between retailers of the same type
(e.g. Safeway vs. Save-on foods)
Variety - correct answer the number of different merchandise categories within a store
or department
Scrambled merhandising - correct answer offering of merchandise not typically
associated with the store type, such as clothing in a drugstore
Intertype competition - correct answer competition between retailers that sell similar
merchandise using different formats, such as discount and department stores
Retail strategy - correct answer indicates how the firm plans to focus its resources to
accomplish its objectives
Identifies: the target market(s) toward which the retailer will direct its efforts; the nature
of the merchandise and/or services the retailer will offer to satisfy needs of the target
market; and how the retailer will build a long-term advantage over competitors
Strategic decision areas - correct answer retail market strategy, financial objectives,
location strategy, organizational design & human resources management strategies,
retail information & supply chain management systems, and customer relationship
management
Customer relationship management (crm) - correct answer a business philosophy and
set of strategies, programs, and systems that focus on identifying and building loyalty
with a firm's most-valued customers
Retail mix - correct answer decision variables retailers use to satisfy customer needs
and influence their purchase decisions
Product - correct answer types of merchandise/services offered (e.g., intensity,
assortment)
Place - correct answer length of channels, hybrid channel approaches, types of
distribution channels (e.g., movement, flow of goods, distribution channels)
, Physical - correct answer theme of the store, emotional attachment customer derives
from the store, layout, design measure of what it is like to shop in the store (e.g.,
atmosphere, climate)
Price - correct answer value perception (e.g., quality, value, price)
People - correct answer product knowledge and policies; getting customers in and out
efficiently (e.g., knowledge, service)
Promotion - correct answer public relations, sales promotion, advertising, direct
marketing, personal selling (e.g., promotional communication mix)
Process - correct answer ensure consistent behaviours and performance; includes
internal and external processes (e.g., standards, protocols, variability)
Ethics - correct answer the principles governing the behaviour of individuals and
companies to establish appropriate behaviour and indicate what is right and wrong
Publicity test - correct answer would i want to see this action that i'm about to take
described on the front page of the local newspaper or in a national magazine?
How would i feel about having done this if everyone were to find out all about it,
including the people i love and care about the most?
Moral mentor test - correct answer what would the person i admire the most do in this
situation?
Admired observer test - correct answer would i want the person i admire most to see me
doing this?
Would i be proud of this action in the presence of a person whose life and character i
really admire?
What would make the person i admire most proud of me in this situation?
Transparency test - correct answer could i give a clear explanation for the action i'm
contemplating, including an honest and transparent account of all my motives, that
would satisfy a fair and dispassionate moral judge?
Person in the mirror test - correct answer will i be able to look at myself in the mirror and
respect the person i see there?
Golden rule test - correct answer would i like to be on the receiving end of this action
and all its potential consequences?
Am i treating others the way i'd want to be treated?
10 retail trends - correct answer 1. Empowered, discriminating consumers
2. Ubiquitous connectivity
3. Buying local, going green
Questions And Answers #8
Retailing - correct answer the set of business activities that add value to the products
and services sold to consumers for their personal or family use
Retailer - correct answer business that sells products or services, or both, to consumers
for their personal or family use
Satisfying customer needs - correct answer have the right merchandise, at the right
price, in the right quantities, and at the right time when the consumer wants it
Distribution channel - correct answer a set of firms that facilitate the movement of
products from the point of production to the point of sale to the ultimate consumer
Vertical integration - correct answer a firm performs more than one set of activities in
the channel
Backward integration - correct answer arises when a retailer performs some distribution
and manufacturing activities
Forward integration - correct answer occurs when a manufacturer undertakes retailing
activities
Retailer functions - correct answer providing assortments, breaking bulk, holding
inventory, and providing service & services
Breaking bulk - correct answer a function performed by retailers or wholesalers in which
they receive large quantities of merchandise
Corporate social responsibility (csr) - correct answer 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
Csr engagement - correct answer 1. Companies engage only in csr activities required
by law
2. Companies go engage in csr activities that provide a short-term financial benefit to
the company
3. Companies operate responsibly because they believe this is the "right thing" to do
4. Companies engage in socially and environmentally responsible actions because they
believe these activities must be done for the "well-being" of everyone
Retail council of canada (rcc) - correct answer an industry-funded, not-for-profit
association that provides support for merchants, vendors, and suppliers so that they are
,able to meet the challenges of offering goods and services to consumers in a
competitive marketplace
Retail management decision process - correct answer 1. Understand the world of
retailing
2. Develop a retail strategy
3. Implement the retail strategy
4. Ethics and legal considerations
Intratype competition - correct answer competition between retailers of the same type
(e.g. Safeway vs. Save-on foods)
Variety - correct answer the number of different merchandise categories within a store
or department
Scrambled merhandising - correct answer offering of merchandise not typically
associated with the store type, such as clothing in a drugstore
Intertype competition - correct answer competition between retailers that sell similar
merchandise using different formats, such as discount and department stores
Retail strategy - correct answer indicates how the firm plans to focus its resources to
accomplish its objectives
Identifies: the target market(s) toward which the retailer will direct its efforts; the nature
of the merchandise and/or services the retailer will offer to satisfy needs of the target
market; and how the retailer will build a long-term advantage over competitors
Strategic decision areas - correct answer retail market strategy, financial objectives,
location strategy, organizational design & human resources management strategies,
retail information & supply chain management systems, and customer relationship
management
Customer relationship management (crm) - correct answer a business philosophy and
set of strategies, programs, and systems that focus on identifying and building loyalty
with a firm's most-valued customers
Retail mix - correct answer decision variables retailers use to satisfy customer needs
and influence their purchase decisions
Product - correct answer types of merchandise/services offered (e.g., intensity,
assortment)
Place - correct answer length of channels, hybrid channel approaches, types of
distribution channels (e.g., movement, flow of goods, distribution channels)
, Physical - correct answer theme of the store, emotional attachment customer derives
from the store, layout, design measure of what it is like to shop in the store (e.g.,
atmosphere, climate)
Price - correct answer value perception (e.g., quality, value, price)
People - correct answer product knowledge and policies; getting customers in and out
efficiently (e.g., knowledge, service)
Promotion - correct answer public relations, sales promotion, advertising, direct
marketing, personal selling (e.g., promotional communication mix)
Process - correct answer ensure consistent behaviours and performance; includes
internal and external processes (e.g., standards, protocols, variability)
Ethics - correct answer the principles governing the behaviour of individuals and
companies to establish appropriate behaviour and indicate what is right and wrong
Publicity test - correct answer would i want to see this action that i'm about to take
described on the front page of the local newspaper or in a national magazine?
How would i feel about having done this if everyone were to find out all about it,
including the people i love and care about the most?
Moral mentor test - correct answer what would the person i admire the most do in this
situation?
Admired observer test - correct answer would i want the person i admire most to see me
doing this?
Would i be proud of this action in the presence of a person whose life and character i
really admire?
What would make the person i admire most proud of me in this situation?
Transparency test - correct answer could i give a clear explanation for the action i'm
contemplating, including an honest and transparent account of all my motives, that
would satisfy a fair and dispassionate moral judge?
Person in the mirror test - correct answer will i be able to look at myself in the mirror and
respect the person i see there?
Golden rule test - correct answer would i like to be on the receiving end of this action
and all its potential consequences?
Am i treating others the way i'd want to be treated?
10 retail trends - correct answer 1. Empowered, discriminating consumers
2. Ubiquitous connectivity
3. Buying local, going green
