Retail Management: A Strategic Approach, 13e BermanEvansChatterjee

Retail Management: A Strategic Approach, 13e (Berman/Evans/Chatterjee)

Chapter 1 An Introduction to Retailing 1) Which of the following activities does not fit within the scope of retailing?

• medical services to families
• direct-to-home sales
• vending purchases by factory workers
• sales to wholesalers

Answer: D

Difficulty: Challenging

Skill: Terminology/Concept

2) Which statement concerning retailing is correct?

• Retailing activities must involve a store.
• Retailing activities do not have to include a retailer.
• Retailing activities cannot be performed by a wholesaler.
• Retailing activities involve goods, not services.

Answer: B

Difficulty: Challenging

Skill: Terminology/Concept

3) According to the Department of Commerce, annual U.S. retail store sales are about ________.

• $200 billion
• $1.5 trillion
• $3.5 trillion
• $5.0 trillion

Answer: D

Difficulty: Moderate

Skill: Terminology/Concept

4) About how many people are employed by traditional retailers in the United States?

• 11 million
• 15 million
• 25 million
• 34 million

Answer: B

Difficulty: Moderate

Skill: Terminology/Concept

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5) Data on U.S. retail employment understates actual employment because it does not include

________.

• store or department managers
• part-time personnel
• seasonal employees and unreported workers in family businesses or partnerships
• teenagers under 18 who are full-time students

Answer: C

Difficulty: Moderate

Skill: Terminology/Concept

6) The largest company in the world based on sales is ________.

• ExxonMobil
• Sears Roebuck
• Marks & Spencer
• Walmart

Answer: C

Difficulty: Moderate

Skill: Terminology/Concept

7) In 2015, the four largest retailing companies (in order of size from largest to fourth largest on the basis of sales) were ________.

• Walmart, Sears, Safeway, and J.C. Penney
• Walmart, Kroger, Costco, and Home Depot
• Walmart, Kmart, Kroger, and Federated Department Stores
• Walmart, Woolworth, Kroger, and Kmart

Answer: B

Difficulty: Moderate

Skill: Terminology/Concept

8) On the average, ________ percent of every sales dollar goes to department stores as payment for the activities they perform.

• 12
• 18
• 36
• 50

Answer: C

Difficulty: Moderate

Skill: Terminology/Concept

9) In 2015, the pre-tax profits for department stores averaged about ________ percent of sales.

A) 0.5

B) 1.0

C) 2.1

D) 3.5

Answer: C

Difficulty: Moderate

Skill: Terminology/Concept

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10) The channel of distribution consists of ________.

• the movement of goods and services from manufacturer to consumer-user
• all of the businesses and people involved in the physical movement and transfer of ownership

of goods and services from producer to consumer

• all independent intermediaries involved with the transfer of title of goods and services
• all middlemen involved with the physical movement of goods and services

Answer: B

Difficulty: Moderate

Skill: Terminology/Concept

11) Which of the following is generally not considered a party in a typical channel of distribution?

• retailer
• final consumer
• wholesaler
• advertising agency

Answer: D

Difficulty: Moderate

Skill: Terminology/Concept

12) A retailer sells to multiple retail formats and multiple points of contact. This illustrates

________.

• vertical integration
• the sorting process
• omnichannel retailing
• the importance of impulse retailing

Answer: C

Difficulty: Moderate

Skill: Terminology/Concept

13) A retailer collects an assortment of goods and services from various sources, buys in large quantities, and sells in small amounts to final consumers. This is referred to as ________.

• one-stop shopping
• the retail concept
• retail transactional efficiency
• the sorting process

Answer: D

Difficulty: Moderate

Skill: Terminology/Concept

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14) The sorting process helps final consumers through ________.

• allowing store credit
• providing one-stop shopping convenience
• operating long hours
• providing delivery services

Answer: B

Difficulty: Challenging

Skill: Terminology/Concept

15) The sorting process helps manufacturers by ________.

• paying on the basis of when goods are shipped, not sold
• offering an assortment of goods that are collected from a large number of suppliers
• enabling one-stop shopping
• buying large orders at one time

Answer: D

Difficulty: Challenging

Skill: Terminology/Concept

16) Manufacturers can increase their power in a distribution channel through ________.

• operating their own retail facilities
• developing dealer brands
• expanding into foreign markets
• use of intensive distribution

Answer: A

Difficulty: Challenging

Skill: Terminology/Concept

17) Retailers have increased their power in the channel of distribution due to ________.

• the growing number of regional and national chains
• the growth of franchising as an alternative to independent ownership
• the increased market share of national brands
• shopping center contract provisions' limiting the range of goods to be sold

Answer: A

Difficulty: Challenging

Skill: Terminology/Concept

18) Channel relations tend to be the smoothest in ________ distribution.

• exclusive
• selective
• intensive
• wide

Answer: A

Difficulty: Moderate

Skill: Terminology/Concept

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