Retail management

Which of the following best describes retailing?

• It is the strategy retailers and vendors use to get products into the stores.

• It is the merchandising component of the retail mix.

• It is the set of business activities that adds value to the products and services sold to consumers for their personal use.

• It is the process of offering products in smaller quantities for consumer consumption patterns.

• It is the ability to offer enough variety in a store to encourage one-stop shopping.

Benetton, a popular retail chain from Italy, manufactures many of the sweaters it sells in its retail outlets at a textile mill in North Carolina. Benetton is practicing:

• demographic marketing

• globalization

• product-related marketing

• vertical integration

• wholesaling

Which of the following does NOT describe how retailers increase the value consumers receive from their purchases?

• providing an assortment of products and services

• breaking bulk

• providing services

• holding inventory

• wholesaling

Why is providing assortments an advantageous business activity?

• It enables the company to create a more informational and entertaining environment which would promote more sales.

• It enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store.

• It enables the company to reinvest for the future of the business.

• it enables the customer to try more products.

• It enables the customer to stock up on the assortments because of bulk availability.

BagBorrowerSteal.com is an internet retailing website that sells jewelry, handbags, and other accessories. Customers can choose from over 10,000 brands, sizes, prices, and designs. Which value-creating activity is being performed by the retail website?

• breaking bulk

• holding inventory

• providing assortments

• financing

• providing services

The competition between retailers that sell similar merchandise using different formats, such as discount and department stores, is called:

• Intratype competition

• Indirect competition

• Intertype competition

• Backward integration

• Scrambled merchandising

DJ owns the Beach Shack, a small souvenir shop on a busy beach boardwalk which specializes in a variety of t-shirts, towels and beach toys. He has identified his customer as a person walking on the boardwalk–mostly vacationers who want something cheap, functional and fun. He located himself close to parking for easy access, unlike some of his competitors. DJ seems to have developed a strong:

• business concept

• business plan

• location strategy

• retail strategy

• selling strategy

_________ refers to the number of different items in a merchandise category.

• Inventory mixture

• Product width

• Product breadth

• Variety

• Assortment

How can conventional supermarkets differentiate their offerings?

• They can provide one-stop shopping services.

• They can generate private label merchandise.

• They can invest in a just-in-time inventory management.

• They can increase store loyalty among customers.

• They can eliminate perishables.

Convenience stores:

• have great merchandise depth

• are about the same size as the traditional supermarket

• earn most of their profit on sales of milk, eggs, and bread

• are in the introductory stage of the retail life cycle

• have a limited variety and assortment of merchandise