Retail Management Exam Questions with Correct Answers Already Passed Latest 2025
1. What are the critical environmental factors in the world of retailing? - Answers The
macroenvironment: The impacts of this: including technological, social, and ethical/legal/political
factors.
The microenvironment: Focus specifically on its competitors and customers. Retailers must respond to
broad demographic and lifestyle trends in our society.
1. When you have understood the micro- / macro environment it is time to formulating and
implementing a retail strategy. What should it include? - Answers 1. The target market, or markets
toward which retailer will direct its efforts.
2. The nature of the merchandise and services the retailer will offer to satisfy needs of the target
market.
3. How the retailer will develop unique assets that enable it to achieve long term advantage over its
competitors.
1. Which are "only the tip of the iceberg"? Explain what this means. - Answers Sale associate, retail
employees and cashiers collecting.
Behind the stores, websites and cashiers are an army of managers, responsible for making sure that
products and services are available when, how and were.
1. What does it mean with B-to-C? And what do they need to understand? - Answers Brand managers in
B-to-C (business-to-consumer) companies need to understand how retailers operate and make money,
so that they can encourage retailers to offer and promote their products.
1. What is the meaning of "identify retailing activities"? - Answers Retailing is the set of business
activities that adds value to products and services sold to consumers for their personal or family use.
Retailing also involves the sale of services like a haircut or home-delivered pizza.
1. What is a "nonstore retailer"? - Answers No physical store.
E.g. When you order a T-shirt on your phone or buying cosmetics from an Avon salesperson. (Blocket,
tradera)
1. What role has a retailer in a supply chain? - Answers Retailers are a key component in a supply chain
that links manufacturers to consumers.
, Retailers add more value to the products than the manufacturers or wholesalers.
1. Explain what The value-creating activities? - Answers The value-creatin activities undertaken by
retailers include:
1. Providing an assortment of products and services.
2. Breaking bulk
3. Holding inventory
4. Providing services.
1. Explain "Breaking bulk". - Answers In order to reduce transport costs, wholesalers and manufacturers
do not often pack with cartons to the products. This benefits both the manufacturer and the customers.
It allows manufacturers to efficiently make and ship merchandise in large quantities at one time and
that lets the consumer to purchase merchandise in smaller, more useful quantities.
1. Explain "Holding inventory" and what it means for the consumers. - Answers It is a major "value-
providing activity". Its a system so that the products will be available when the consumer wants it.
It means that the consumer can keep a smaller inventory of products at home, since they know that the
store has it if needed.
1. Explain what "providing services" means. - Answers It is meant that services are offered to facilitate
the purchase.
E.g. offer credit, staff in the store that can help the consumer or a chat on a website.
1. End the sentence: Some large retailers, like Costco, functions as... - Answers .. both retailers and
wholesalers. Because they sell their products to both individuals and to workplaces such as restaurants.
1. What means with "Vertical integration"? - Answers It means that the firm performs more than one
activity. That occurs when a retailer engages in wholesaling activities by operating its own distribution
center to supply its store.
1. When does "Backward integration" arise? - Answers It arises when a retailer performs some
wholesaling and manufacturing activities, such as operating warehouses.
1. When does "Forward integration" occurs? - Answers It occurs when a manufacturer undertakes
retailing and wholesaling activities, such as apple operating its own retail stores.
1. What is "Retail density"? - Answers Retail stores per person.
1. What are the critical environmental factors in the world of retailing? - Answers The
macroenvironment: The impacts of this: including technological, social, and ethical/legal/political
factors.
The microenvironment: Focus specifically on its competitors and customers. Retailers must respond to
broad demographic and lifestyle trends in our society.
1. When you have understood the micro- / macro environment it is time to formulating and
implementing a retail strategy. What should it include? - Answers 1. The target market, or markets
toward which retailer will direct its efforts.
2. The nature of the merchandise and services the retailer will offer to satisfy needs of the target
market.
3. How the retailer will develop unique assets that enable it to achieve long term advantage over its
competitors.
1. Which are "only the tip of the iceberg"? Explain what this means. - Answers Sale associate, retail
employees and cashiers collecting.
Behind the stores, websites and cashiers are an army of managers, responsible for making sure that
products and services are available when, how and were.
1. What does it mean with B-to-C? And what do they need to understand? - Answers Brand managers in
B-to-C (business-to-consumer) companies need to understand how retailers operate and make money,
so that they can encourage retailers to offer and promote their products.
1. What is the meaning of "identify retailing activities"? - Answers Retailing is the set of business
activities that adds value to products and services sold to consumers for their personal or family use.
Retailing also involves the sale of services like a haircut or home-delivered pizza.
1. What is a "nonstore retailer"? - Answers No physical store.
E.g. When you order a T-shirt on your phone or buying cosmetics from an Avon salesperson. (Blocket,
tradera)
1. What role has a retailer in a supply chain? - Answers Retailers are a key component in a supply chain
that links manufacturers to consumers.
, Retailers add more value to the products than the manufacturers or wholesalers.
1. Explain what The value-creating activities? - Answers The value-creatin activities undertaken by
retailers include:
1. Providing an assortment of products and services.
2. Breaking bulk
3. Holding inventory
4. Providing services.
1. Explain "Breaking bulk". - Answers In order to reduce transport costs, wholesalers and manufacturers
do not often pack with cartons to the products. This benefits both the manufacturer and the customers.
It allows manufacturers to efficiently make and ship merchandise in large quantities at one time and
that lets the consumer to purchase merchandise in smaller, more useful quantities.
1. Explain "Holding inventory" and what it means for the consumers. - Answers It is a major "value-
providing activity". Its a system so that the products will be available when the consumer wants it.
It means that the consumer can keep a smaller inventory of products at home, since they know that the
store has it if needed.
1. Explain what "providing services" means. - Answers It is meant that services are offered to facilitate
the purchase.
E.g. offer credit, staff in the store that can help the consumer or a chat on a website.
1. End the sentence: Some large retailers, like Costco, functions as... - Answers .. both retailers and
wholesalers. Because they sell their products to both individuals and to workplaces such as restaurants.
1. What means with "Vertical integration"? - Answers It means that the firm performs more than one
activity. That occurs when a retailer engages in wholesaling activities by operating its own distribution
center to supply its store.
1. When does "Backward integration" arise? - Answers It arises when a retailer performs some
wholesaling and manufacturing activities, such as operating warehouses.
1. When does "Forward integration" occurs? - Answers It occurs when a manufacturer undertakes
retailing and wholesaling activities, such as apple operating its own retail stores.
1. What is "Retail density"? - Answers Retail stores per person.
