TEST BANK
RETAILING MANAGEMENT
7TH EDITION, CANADIAN EDITION
CHAPTER NO. 01: INTRODUCTION TO THE WORLD OF RETAILING
1) The largest sectors in terms of retail sales are:
A) General merchandise and Clothing
B) Pharmacies and Building supplies
C) Food, Beverage, and Automotive
D) Furniture and Pharmacies
E) Automotive and Building supplies
ANSWER: C
2) Retail managers must make complex decisions including all of the following EXCEPT:
A) Target markets
B) Retail locations
C) Merchandise and services offerings
D) Mission statement
E) Training and motivating sales associates
ANSWER: D
3) What is retailing?
A) It is the set of business activities that adds value to the products and services sold to
consumers for their personal or family use
B) It is the merchandising component of the retail mix
C) It is the strategy retailers and vendors use to get products into the stores
D) It is the process of offering products in smaller quantities for consumer consumption patterns
E) It is the ability to offer enough variety in a store to encourage one-stop shopping
ANSWER: A
,4) Which of the following businesses would be considered a retailer?
A) Your local hair salon
B) Air Canada
C) Tim Hortons
D) Canadian Tire
E) Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire
ANSWER: E
5) Which of the following is most likely to be considered a retailer?
A) A cyber-security firm
B) A university
C) A marketing agency
D) A long-haul freight transportation logistics provider
E) A commercial realtor
ANSWER: B
6) A retailer's role in the distribution channel is to:
A) act as the liaison between manufacturers and wholesalers
B) buy merchandise exclusively from the manufacturers
C) negotiate with consumers through a series of focus groups
D) satisfy the needs of the consumers
E) sell to wholesalers
ANSWER: D
7) What best describes firms that perform more than one set of activities in the distribution channel?
A) Channel diversification
B) Distribution channel
C) Horizontal integration
D) Vertical development
E) Vertical integration
ANSWER: E
,8) Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it sells in its retail
outlet at its own factory in Canada. Prior Snowboards is practising:
A) demographic marketing.
B) globalization.
C) product-related marketing.
D) vertical integration.
E) wholesaling.
ANSWER: D
9) If a chain of flower shops opened a plant nursery to provide gift plants and cut flowers to all of its
outlets within a 300-mile radius, the chain would be practicing:
A) vertical integration
B) channel expansion
C) horizontal expansion
D) vertical retailing
E) service marketing
ANSWER: A
10) What is the primary competitive advantage for retailers to be vertically integrated?
A) Retailers can develop unique merchandise sold only in their stores.
B) Retailers can expand their services easily to the Internet.
C) Retailers have realized that to stay competitive, they must become vertically integrated.
D) Customers prefer retailers who are vertically integrated.
E) Retailers can develop unique pricing strategies.
ANSWER: A
11) A retailer that is vertically integrated:
A) concentrates on selling to businesses only
B) does not have frequent communication between buyers and managers
C) has an excellent vertical relationship between corporate headquarters and stores
D) performs more than one function in the chain from manufacturing to sales to end user
E) performs only the function to end user
ANSWER: D
, 12) Which of the following statements about retailers holding inventory is false?
A) By having inventory held in the store, consumers can hold less merchandise at home
B) By holding inventory, retailers can decrease the visual merchandising expenditure
C) Holding inventory in a store helps serve the customer's needs
D) Retailers keep inventory so that products are available when consumers want them
E) Holding inventory reduces consumer's cost of storing products
ANSWER: B
13) Grocers purchase bananas from several different tropical countries. When bananas arrive in the
distribution centres across Canada, containers are reduced to amounts that are appropriate for store
delivery. Once delivered to the stores, associates open the cartons and arrange the bananas for the
consumer to select. Grocers are performing what function?
A) Holding inventory
B) Vertical integration
C) Breaking bulk
D) Distribution
E) Providing services
ANSWER: C
14) Providing assortments is an advantageous business activity because it:
A) enables the company to create a more informational and entertaining environment which would
promote more sales
B) enables the company to reinvest savings
C) enables the customer to choose from a wide selection of brands, designs, sizes, and prices all
in one store
D) enables the customer to save money by being able to shop in one store
E) enables the customer to stock up on the assortments because of their availability
ANSWER: C
15) Which of the following is NOT an example of how retailers provide services aimed to enhance the
customer's perception of value?
A) Clean washrooms
B) Payment by debit cards
C) Trained salespeople to answer questions
D) Well-lit parking lots
E) Deep assortment of products
ANSWER: E
RETAILING MANAGEMENT
7TH EDITION, CANADIAN EDITION
CHAPTER NO. 01: INTRODUCTION TO THE WORLD OF RETAILING
1) The largest sectors in terms of retail sales are:
A) General merchandise and Clothing
B) Pharmacies and Building supplies
C) Food, Beverage, and Automotive
D) Furniture and Pharmacies
E) Automotive and Building supplies
ANSWER: C
2) Retail managers must make complex decisions including all of the following EXCEPT:
A) Target markets
B) Retail locations
C) Merchandise and services offerings
D) Mission statement
E) Training and motivating sales associates
ANSWER: D
3) What is retailing?
A) It is the set of business activities that adds value to the products and services sold to
consumers for their personal or family use
B) It is the merchandising component of the retail mix
C) It is the strategy retailers and vendors use to get products into the stores
D) It is the process of offering products in smaller quantities for consumer consumption patterns
E) It is the ability to offer enough variety in a store to encourage one-stop shopping
ANSWER: A
,4) Which of the following businesses would be considered a retailer?
A) Your local hair salon
B) Air Canada
C) Tim Hortons
D) Canadian Tire
E) Your local hair salon, Air Canada, Tim Hortons, and Canadian Tire
ANSWER: E
5) Which of the following is most likely to be considered a retailer?
A) A cyber-security firm
B) A university
C) A marketing agency
D) A long-haul freight transportation logistics provider
E) A commercial realtor
ANSWER: B
6) A retailer's role in the distribution channel is to:
A) act as the liaison between manufacturers and wholesalers
B) buy merchandise exclusively from the manufacturers
C) negotiate with consumers through a series of focus groups
D) satisfy the needs of the consumers
E) sell to wholesalers
ANSWER: D
7) What best describes firms that perform more than one set of activities in the distribution channel?
A) Channel diversification
B) Distribution channel
C) Horizontal integration
D) Vertical development
E) Vertical integration
ANSWER: E
,8) Prior Snowboards located in Whistler, B.C. manufactures many of the snowboards it sells in its retail
outlet at its own factory in Canada. Prior Snowboards is practising:
A) demographic marketing.
B) globalization.
C) product-related marketing.
D) vertical integration.
E) wholesaling.
ANSWER: D
9) If a chain of flower shops opened a plant nursery to provide gift plants and cut flowers to all of its
outlets within a 300-mile radius, the chain would be practicing:
A) vertical integration
B) channel expansion
C) horizontal expansion
D) vertical retailing
E) service marketing
ANSWER: A
10) What is the primary competitive advantage for retailers to be vertically integrated?
A) Retailers can develop unique merchandise sold only in their stores.
B) Retailers can expand their services easily to the Internet.
C) Retailers have realized that to stay competitive, they must become vertically integrated.
D) Customers prefer retailers who are vertically integrated.
E) Retailers can develop unique pricing strategies.
ANSWER: A
11) A retailer that is vertically integrated:
A) concentrates on selling to businesses only
B) does not have frequent communication between buyers and managers
C) has an excellent vertical relationship between corporate headquarters and stores
D) performs more than one function in the chain from manufacturing to sales to end user
E) performs only the function to end user
ANSWER: D
, 12) Which of the following statements about retailers holding inventory is false?
A) By having inventory held in the store, consumers can hold less merchandise at home
B) By holding inventory, retailers can decrease the visual merchandising expenditure
C) Holding inventory in a store helps serve the customer's needs
D) Retailers keep inventory so that products are available when consumers want them
E) Holding inventory reduces consumer's cost of storing products
ANSWER: B
13) Grocers purchase bananas from several different tropical countries. When bananas arrive in the
distribution centres across Canada, containers are reduced to amounts that are appropriate for store
delivery. Once delivered to the stores, associates open the cartons and arrange the bananas for the
consumer to select. Grocers are performing what function?
A) Holding inventory
B) Vertical integration
C) Breaking bulk
D) Distribution
E) Providing services
ANSWER: C
14) Providing assortments is an advantageous business activity because it:
A) enables the company to create a more informational and entertaining environment which would
promote more sales
B) enables the company to reinvest savings
C) enables the customer to choose from a wide selection of brands, designs, sizes, and prices all
in one store
D) enables the customer to save money by being able to shop in one store
E) enables the customer to stock up on the assortments because of their availability
ANSWER: C
15) Which of the following is NOT an example of how retailers provide services aimed to enhance the
customer's perception of value?
A) Clean washrooms
B) Payment by debit cards
C) Trained salespeople to answer questions
D) Well-lit parking lots
E) Deep assortment of products
ANSWER: E
