RETAIL MANAGEMENT EXAM 1
QUESTIONS & VERIFIED CORRECT
ANSWERS NEWEST VERSION
Retailing - Correct Answer ✔✔ set of business activities that adds value to products and
services sold to customers for their personal or family use.
Retailer - Correct Answer ✔✔ "Business that sells products and/or services to
consumers for their personal or family use."
Supply Chain - Correct Answer ✔✔ "a set of firms that make and deliver goods and
services to consumers"
The Retailer's Role in the Supply Chain - Correct Answer ✔✔ -Retailers link
manufacturers to consumers.
-add value and are more efficient at adding this value than manufacturers or
wholesalers
Retailers Create Value by... - Correct Answer ✔✔ -Providing Assortments
-Breaking Bulk
-Holding Inventory
-Provide services (make it easier for consumers to buy and use products)
Breaking Bulk - Correct Answer ✔✔ a function performed by retailers or wholesalers in
which they receive large quantities of merchandise and sell them in smaller quantities.
Holding Inventory - Correct Answer ✔✔ Having products available in store when
consumers want them.
Wholesalers - Correct Answer ✔✔ buy and sell merchandise in large quantities from
manufactures and then resell the merchandise (usually in smaller quantities) to retailers.
Most Supply Chains feature what type of Integration - Correct Answer ✔✔ Vertical
Integration
types of supply chain integration - Correct Answer ✔✔ -Vertical Integration
-Backward Integration
-Forward Integration
Vertical Integration - Correct Answer ✔✔ a firm performs more than one set of activities
in the channel. (Retailer engages in wholesaling activities by operating its own
distribution centers to supply its stores.)
, Backwards Integration - Correct Answer ✔✔ a retailer performs some wholesaling and
manufacturing activities (operating warehouses or designing private-label merchandise)
Forward Integration - Correct Answer ✔✔ a manufacturer undertakes retailing and
wholesaling activities (such as apple operating its own retail stores)
Retailers Role in Developing Economies - Correct Answer ✔✔ - When consumers
spend more money buying goods and services from retailers, a country's economy
flourishes. (merchandise flies off shelves > Retailers order more merchandise >
Manufacturers hire more employees, place order for raw materials, and make more
products)
-retail sector plays key role in developed economies, not only b/c consumers demand is
an indication of a vibrant financial system, but also b/c retailers are large employers.
Corporate Social Responsibility (CSR) - Correct Answer ✔✔ an organization voluntarily
engaging in business practices that meet or exceed the ethical and legal expectation s
of its stakeholders - its employees, customers, community, and society in general.
Base of the Pyramid/ Bottom of the Pyramid (BoP) - Correct Answer ✔✔ consumers in
low income consumer segment but have a potential spending power of $5 trillion+.
-engagement at the BoP markets requires innovative approaches for doing business.
More than (blank) % of all retail sales are made in stores (usually store less than a 15-
minute drive from a consumer's home or work place. - Correct Answer ✔✔ 90
Retailing and Information Systems - Correct Answer ✔✔ many retailers use the data
they have one their customers to...
-identify their best customers and target customized promos to them,
-place products close to each other when they find that many customers are buying the
same products at the same time,
-tailor the adornment of products in each store to better match the needs of the store's
local market.
Example: when a store found that dads will buy Beer and Diapers together after work.
Intratype comeptition - Correct Answer ✔✔ competition between the same type of
retailers.
scrambled merchandising - Correct Answer ✔✔ when retailers offer merchandise not
typically associated with their type of store.
intertype competition - Correct Answer ✔✔ competition among retailers that sell similar
merchandise using different types of retail outlets.
Retail Strategy - Correct Answer ✔✔ identifies...
1. the target market, or markets toward which the retailer will direct its offers,
QUESTIONS & VERIFIED CORRECT
ANSWERS NEWEST VERSION
Retailing - Correct Answer ✔✔ set of business activities that adds value to products and
services sold to customers for their personal or family use.
Retailer - Correct Answer ✔✔ "Business that sells products and/or services to
consumers for their personal or family use."
Supply Chain - Correct Answer ✔✔ "a set of firms that make and deliver goods and
services to consumers"
The Retailer's Role in the Supply Chain - Correct Answer ✔✔ -Retailers link
manufacturers to consumers.
-add value and are more efficient at adding this value than manufacturers or
wholesalers
Retailers Create Value by... - Correct Answer ✔✔ -Providing Assortments
-Breaking Bulk
-Holding Inventory
-Provide services (make it easier for consumers to buy and use products)
Breaking Bulk - Correct Answer ✔✔ a function performed by retailers or wholesalers in
which they receive large quantities of merchandise and sell them in smaller quantities.
Holding Inventory - Correct Answer ✔✔ Having products available in store when
consumers want them.
Wholesalers - Correct Answer ✔✔ buy and sell merchandise in large quantities from
manufactures and then resell the merchandise (usually in smaller quantities) to retailers.
Most Supply Chains feature what type of Integration - Correct Answer ✔✔ Vertical
Integration
types of supply chain integration - Correct Answer ✔✔ -Vertical Integration
-Backward Integration
-Forward Integration
Vertical Integration - Correct Answer ✔✔ a firm performs more than one set of activities
in the channel. (Retailer engages in wholesaling activities by operating its own
distribution centers to supply its stores.)
, Backwards Integration - Correct Answer ✔✔ a retailer performs some wholesaling and
manufacturing activities (operating warehouses or designing private-label merchandise)
Forward Integration - Correct Answer ✔✔ a manufacturer undertakes retailing and
wholesaling activities (such as apple operating its own retail stores)
Retailers Role in Developing Economies - Correct Answer ✔✔ - When consumers
spend more money buying goods and services from retailers, a country's economy
flourishes. (merchandise flies off shelves > Retailers order more merchandise >
Manufacturers hire more employees, place order for raw materials, and make more
products)
-retail sector plays key role in developed economies, not only b/c consumers demand is
an indication of a vibrant financial system, but also b/c retailers are large employers.
Corporate Social Responsibility (CSR) - Correct Answer ✔✔ an organization voluntarily
engaging in business practices that meet or exceed the ethical and legal expectation s
of its stakeholders - its employees, customers, community, and society in general.
Base of the Pyramid/ Bottom of the Pyramid (BoP) - Correct Answer ✔✔ consumers in
low income consumer segment but have a potential spending power of $5 trillion+.
-engagement at the BoP markets requires innovative approaches for doing business.
More than (blank) % of all retail sales are made in stores (usually store less than a 15-
minute drive from a consumer's home or work place. - Correct Answer ✔✔ 90
Retailing and Information Systems - Correct Answer ✔✔ many retailers use the data
they have one their customers to...
-identify their best customers and target customized promos to them,
-place products close to each other when they find that many customers are buying the
same products at the same time,
-tailor the adornment of products in each store to better match the needs of the store's
local market.
Example: when a store found that dads will buy Beer and Diapers together after work.
Intratype comeptition - Correct Answer ✔✔ competition between the same type of
retailers.
scrambled merchandising - Correct Answer ✔✔ when retailers offer merchandise not
typically associated with their type of store.
intertype competition - Correct Answer ✔✔ competition among retailers that sell similar
merchandise using different types of retail outlets.
Retail Strategy - Correct Answer ✔✔ identifies...
1. the target market, or markets toward which the retailer will direct its offers,
