Full file at http://testbankcafe.eu/Test-Bank-for-Retail-Management-A-
Strategic-Approach-12th-Edition-Berman
1
CHAPTER 1
AN INTRODUCTION TO RETAILING
Multiple Choice – Terminology/Concept
1. Which statement concerning retailing is correct?
a. Retailing activities cannot be performed by wholesalers.
b. It is the last stage in the distribution process.
c. All retail activities are store-based.
d. A lawyer purchasing stationery for use in his/her office is an example of retailing.
(b; Challenging; p. 3)
2. According to the Department of Commerce, annual U.S. retail store sales are nearly _____.
a. $500 billion
b. $1 trillion
c. $3 trillion
d. $5 trillion
(d; Moderate; p. 4)
3. How many million people are employed by traditional retailers in the United States?
a. 7
b. 15
c. 25
d. 30
(c; Moderate; p. 5)
4. On average, what percent of every sales dollar goes to department store retailers as compensation
for the activities they perform?
a. 25
b. 33
c. 45
d. 50
(b; Moderate; p. 6)
5. In 2010, the three largest retailing companies (based on annual sales) in order of size (from the
largest firm) were _____.
a. Sears, Kroger, and Wal-Mart
b. Sears, Wal-Mart, and Costco
c. Wal-Mart, Home Depot, and Kroger
d. Wal-Mart, Kroger, and Target
(d; Moderate; p. 6)
6. In 2010, the ten largest U.S. retailers earned average after-tax profits amounting to about _____
percent of sales.
a. 1.1
b. 2.5
c. 3.5
d. 5.7
(c; Moderate; p. 6)
Full file at http://testbankcafe.eu/Test-Bank-for-Retail-Management-A-
Strategic-Approach-12th-Edition-Berman
2
Multiple Choice – Terminology/Concept
7. All of the businesses and people involved in the physical movement and transfer of ownership of
goods and services from producer to consumer constitute _____.
a. a channel of distribution
b. wholesaling
c. retail management
d. the sorting process
(a; Moderate; p. 6)
8. An electronics retailer accomplishes a consumer’s one-stop needs through _____.
a. the sorting process
b. a deep channel of distribution
c. a wide channel of distribution
d. exclusive distribution
(a; Challenging; p. 7)
9. The sorting process refers to _____.
a. physical distribution assortment by perishability
b. a retailer’s pricing goods by quality and size
c. government grading standards for produce
d. a retailer’s collecting an assortment of goods and services from many vendors
(d; Challenging; p. 7)
10. While some manufacturers specialize by producing one product, consumers generally favor
retailers with extensive selections from many manufacturers. These divergent viewpoints can be
reconciled through _____.
a. the sorting process.
b. selective distribution
c. intensive distribution
d. exclusive distribution
(a; Challenging; p. 7)
11. Which of the following distribution functions are generally not provided by retailers for their
manufacturer/wholesaler suppliers?
a. contact with the final customer
b. inventory storage prior to sale
c. pre-paying for merchandise in advance of its being sold to final consumers
d. delivery and installation of goods to final consumers
(d; Challenging; p. 7)
12. A retailer’s selling to consumers via store, catalog, and the Web illustrates _____.
a. selective distribution
b. impulse purchasing
c. intensive distribution
d. multi-channel retailing
(d; Moderate; p. 7)
Full file at http://testbankcafe.eu/Test-Bank-for-Retail-Management-A-
Strategic-Approach-12th-Edition-Berman
3
Multiple Choice – Terminology/Concept
13. Which of the following illustrates channel conflict between a manufacturer and its retailer
customers?
a. a discounter’s selling a manufacturer’s product below the price levels at full-service retailers
b. a cooperative advertising program in which retailers are encouraged to use selected
advertising materials
c. a manufacturer assisting retailers with inventory financing for its products
d. a manufacturer developing a toll-free hot line for customer support
(a; Challenging; p. 8)
14. Channel relations are generally smoothest in which form of distribution?
a. selective distribution
b. intensive distribution
c. exclusive distribution
d. dual distribution
(c; Moderate; p. 8)
15. In exclusive distribution, suppliers _____.
a. enter into agreements with one or a few retailers that designate the latter as the only
companies in specified geographic areas to carry certain brands and/or product lines
b. sell to as many retailers as possible
c. sell to a moderate number of retailers
d. utilize multiple channels of distribution to reduce channel conflict
(a; Moderate; p. 8)
16. A retailer does generally not stock a broad selection of brands in which form of distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. operational distribution
(a; Moderate; p. 8)
17. A manufacturer’s long-term sales potential is most limited in _____.
a. selective distribution
b. cooperative wholesaling
c. intensive distribution
d. exclusive distribution
(d; Challenging; p. 8)
18. Channel relations tend to be most volatile in which form of distribution?
a. exclusive distribution
b. intensive distribution
c. selective distribution
d. vertical integration
(b; Moderate; p. 8)
19. A manufacturer seeking to maximize its sales should utilize _____ distribution.
a. dual
b. intensive
c. selective
d. exclusive
(b; Moderate; p. 8)
Full file at http://testbankcafe.eu/Test-Bank-for-Retail-Management-A-
Strategic-Approach-12th-Edition-Berman
Multiple Choice – Terminology/Concept
20. Which form of distribution balances channel cooperation with an increased opportunity for
product sales?
a. exclusive distribution
b. selective distribution
c. intensive distribution
d. dual distribution
(b; Moderate; p. 8)
21. Which of these is not a characteristic that distinguishes retailing from other types of business?
a. Store location is more important for retailers than for wholesalers.
b. The average size of a sales transaction for retailers is less than for manufacturers.
c. Retail sales are more cyclical than organizational sales.
d. While final consumers make many impulse purchases, organizational consumers are more
systematic in their purchasing activity.
(c; Moderate; pp. 8-10)
22. Suggestion selling, point-of-purchase displays, and attractive store layouts are used by retailers to
_____.
a. reduce selling costs
b. increase customer service
c. increase impulse sales
d. reduce channel conflict
(c; Challenging; p. 9)
