,Retailing Management, 10e (Levy)
Chapter 1 Introduction to the World of Retailing
1) Retailers are a key component in a supply chain that links manufacturers to consumers.
Answer: TRUE
Explanation: Retailers are a key component in a supply chain that links manufacturers to
consumers.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-01 Identify retailing activities.
Bloom's: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
2) Hotels, hair salons, and auto repair businesses are considered retailers.
Answer: TRUE
Explanation: Often, people think of retailing only as the sale of products in stores, but retailing
also involves the sale of services such as overnight lodging in a hotel, a doctor's exam, a haircut,
or a home-delivered pizza.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-01 Identify retailing activities.
Bloom's: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
3) The retail sector plays a key role in developed economies.
Answer: TRUE
Explanation: The retail sector plays a key role in developed economies, not only because
consumer demand is an indication of a vibrant financial system, but also because retailers are
large employers.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-02 Realize the importance of retailing in the U.S. and world economies.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,4) Companies are totally convinced about the importance of corporate social responsibility
(CSR) during the initial stages of CSR integration.
Answer: FALSE
Explanation: Companies in the first stage engage only in CSR activities required by law. In this
stage, companies are not actually convinced of the importance of CSR actions.
Difficulty: 1 Easy
Topic: Ethical Considerations in Advertising, Promotion, and IMC Campaigns
Learning Objective: 01-02 Realize the importance of retailing in the U.S. and world economies.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
5) The development of information systems is one of the forces facilitating the growth of large
retail firms.
Answer: TRUE
Explanation: The development of information systems is one of the forces facilitating the
growth of large retail firms—the shift from an industry dominated by small, local retailers to
large multinational chains.
Difficulty: 2 Medium
Topic: The Changing Retail Industry
Learning Objective: 01-03 Analyze the changing retail industry.
Bloom's: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
6) More retail transactions take place online now than in stores.
Answer: FALSE
Explanation: More than 90 percent of all retail sales are made in stores. Online transactions are
growing at a fast pace; however, they still only occupy a small percentage of overall retail
transactions.
Difficulty: 2 Medium
Topic: The Changing Retail Industry
Learning Objective: 01-03 Analyze the changing retail industry.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 7) Retailers do not perform traditional business activities.
Answer: FALSE
Explanation: Retailers are businesses and, like manufacturers, undertake all the traditional
business activities.
Difficulty: 2 Medium
Topic: Characteristics of Retailers
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Understand
AACSB: Analytic
Accessibility: Keyboard Navigation
8) Retailing offers entrepreneurial opportunities.
Answer: TRUE
Explanation: Retailing also provides opportunities for people who wish to start their own
business. Some of the world's most successful people are retailing entrepreneurs.
Difficulty: 1 Easy
Topic: Retailing as a Career
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) The largest retail company in the world is headquartered in the United States of America.
Answer: TRUE
Explanation: Walmart is the largest retailer in the world and is headquartered in Bentonville,
Arkansas.
Difficulty: 1 Easy
Topic: Characteristics of Retailers
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Knowledge
AACSB: Ethics
Accessibility: Keyboard Navigation
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 1 Introduction to the World of Retailing
1) Retailers are a key component in a supply chain that links manufacturers to consumers.
Answer: TRUE
Explanation: Retailers are a key component in a supply chain that links manufacturers to
consumers.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-01 Identify retailing activities.
Bloom's: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
2) Hotels, hair salons, and auto repair businesses are considered retailers.
Answer: TRUE
Explanation: Often, people think of retailing only as the sale of products in stores, but retailing
also involves the sale of services such as overnight lodging in a hotel, a doctor's exam, a haircut,
or a home-delivered pizza.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-01 Identify retailing activities.
Bloom's: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
3) The retail sector plays a key role in developed economies.
Answer: TRUE
Explanation: The retail sector plays a key role in developed economies, not only because
consumer demand is an indication of a vibrant financial system, but also because retailers are
large employers.
Difficulty: 1 Easy
Topic: What is Retailing?
Learning Objective: 01-02 Realize the importance of retailing in the U.S. and world economies.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,4) Companies are totally convinced about the importance of corporate social responsibility
(CSR) during the initial stages of CSR integration.
Answer: FALSE
Explanation: Companies in the first stage engage only in CSR activities required by law. In this
stage, companies are not actually convinced of the importance of CSR actions.
Difficulty: 1 Easy
Topic: Ethical Considerations in Advertising, Promotion, and IMC Campaigns
Learning Objective: 01-02 Realize the importance of retailing in the U.S. and world economies.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
5) The development of information systems is one of the forces facilitating the growth of large
retail firms.
Answer: TRUE
Explanation: The development of information systems is one of the forces facilitating the
growth of large retail firms—the shift from an industry dominated by small, local retailers to
large multinational chains.
Difficulty: 2 Medium
Topic: The Changing Retail Industry
Learning Objective: 01-03 Analyze the changing retail industry.
Bloom's: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
6) More retail transactions take place online now than in stores.
Answer: FALSE
Explanation: More than 90 percent of all retail sales are made in stores. Online transactions are
growing at a fast pace; however, they still only occupy a small percentage of overall retail
transactions.
Difficulty: 2 Medium
Topic: The Changing Retail Industry
Learning Objective: 01-03 Analyze the changing retail industry.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 7) Retailers do not perform traditional business activities.
Answer: FALSE
Explanation: Retailers are businesses and, like manufacturers, undertake all the traditional
business activities.
Difficulty: 2 Medium
Topic: Characteristics of Retailers
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Understand
AACSB: Analytic
Accessibility: Keyboard Navigation
8) Retailing offers entrepreneurial opportunities.
Answer: TRUE
Explanation: Retailing also provides opportunities for people who wish to start their own
business. Some of the world's most successful people are retailing entrepreneurs.
Difficulty: 1 Easy
Topic: Retailing as a Career
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) The largest retail company in the world is headquartered in the United States of America.
Answer: TRUE
Explanation: Walmart is the largest retailer in the world and is headquartered in Bentonville,
Arkansas.
Difficulty: 1 Easy
Topic: Characteristics of Retailers
Learning Objective: 01-04 Recognize the opportunities for you in retailing.
Bloom's: Knowledge
AACSB: Ethics
Accessibility: Keyboard Navigation
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
