RETAIL MANAGEMENT QUESTIONS &
ACCURATE ANSWERS PASSED
RATED 100% CORRECT
What is retailing? - Correct Answer ✔✔ > is a set of business activities that add value to
the products and services sold to consumers for their personal or family use
What is a retailer? - Correct Answer ✔✔ > is a business that sells products or services,
or both, to consumers for their personal or family use
What is a distribution channel? - Correct Answer ✔✔ > Is a set of firms that facilitate the
movement of products from the point of production to the point of sale to the ultimate
customer
What is an example of Backward Integration? - Correct Answer ✔✔ > When a retailer
performs some distribution or manufacturing activities, such as operating warehouses or
designing private-label merchandise
What is an example of Forward Integration? - Correct Answer ✔✔ > Is when a
manufacturer undertakes retailing activities, such as Roots operating it's own retail store
What is Vertical Integration? - Correct Answer ✔✔ > Is when a firm performs more than
one set of activities in the channel, such as investments by retailers in whole-saling or
manufacturing
What is Breaking Bulk? - Correct Answer ✔✔ > A function performed by retailers or
whole-salers in which they receive large quantities of merchandise
What is Corporate Social Responsibility? - Correct Answer ✔✔ > The voluntary actions
taken by a company to address the ethical, social, and environmental impacts of its
business operations and the concerns of its stake holders
What is scrambled merchandising? - Correct Answer ✔✔ > Is the offering of
merchandise not typically associated with the store type, such as clothing in a drugstore
What is intertype competition? - Correct Answer ✔✔ > is competition between retailers
that sell similar merchandise using different formats such as discount and department
stores
What is retail strategy? - Correct Answer ✔✔ > A statement that indicates (1) the target
market toward which a retailer plans to commit its resources, (2) the nature of the retail
, offering that the retailer plans to use to satisfy the needs of the target market, and (3)
the bases upon which the retailer will attempt to build a sustainable competitive
advantage over retailer
What is Customer Relations Management (CRM) ? - Correct Answer ✔✔ > Is a
business philosophy and set of strategies, programs, and systems that focuses on
identifying and building loyalty with a retailer's most-valued customers
What is Ethics? - Correct Answer ✔✔ > A system or code of conduct based on
universal moral duties and obligations that indicate how one should behave
What is the North American Classification System (NAICS) ? - Correct Answer ✔✔ > Is
the classification of retail firms into a hierarchical set of six-digit codes based on the
types of products and services they produce and sell
Variety - Correct Answer ✔✔ > The number of different merchandise categories within a
store or a department
Depth of Merchandise - Correct Answer ✔✔ > The dumber of SKU's within a
merchandise category; also called an assortment and depth of stock
SKU (stock keeping unit) - Correct Answer ✔✔ > The smallest unit available for keeping
inventory control. In soft goods merchandise, a SKU usually means size, colour, and
style
Discount Store - Correct Answer ✔✔ > A general merchandise retailer that offers a wide
variety of merchandise, limited service, and low prices; also called mass merchandiser
and full-line discount store
Specialty Store - Correct Answer ✔✔ > Store concentrating on a limited number of
complementary merchandise categories and providing a high level of service in an area
typically under 8,000 square feet
What is a category specialist? - Correct Answer ✔✔ > A discount retailer that offers a
narrow but deep assortment of merchandise in a category and thus dominates the
category from customers' perspective. Also called category killer
Department Store - Correct Answer ✔✔ > A retailer that carries a wide variety and deep
assortment, offers considerable customer services, and is organized into separate
departments for displaying merchandise
Leased Department - Correct Answer ✔✔ > An area in a retail store leased or rented to
an independent company. The Leaseholder is typically responsible for all retail mix
decisions involved in operating the department and pays the store a percentage of its
sales as rent
ACCURATE ANSWERS PASSED
RATED 100% CORRECT
What is retailing? - Correct Answer ✔✔ > is a set of business activities that add value to
the products and services sold to consumers for their personal or family use
What is a retailer? - Correct Answer ✔✔ > is a business that sells products or services,
or both, to consumers for their personal or family use
What is a distribution channel? - Correct Answer ✔✔ > Is a set of firms that facilitate the
movement of products from the point of production to the point of sale to the ultimate
customer
What is an example of Backward Integration? - Correct Answer ✔✔ > When a retailer
performs some distribution or manufacturing activities, such as operating warehouses or
designing private-label merchandise
What is an example of Forward Integration? - Correct Answer ✔✔ > Is when a
manufacturer undertakes retailing activities, such as Roots operating it's own retail store
What is Vertical Integration? - Correct Answer ✔✔ > Is when a firm performs more than
one set of activities in the channel, such as investments by retailers in whole-saling or
manufacturing
What is Breaking Bulk? - Correct Answer ✔✔ > A function performed by retailers or
whole-salers in which they receive large quantities of merchandise
What is Corporate Social Responsibility? - Correct Answer ✔✔ > The voluntary actions
taken by a company to address the ethical, social, and environmental impacts of its
business operations and the concerns of its stake holders
What is scrambled merchandising? - Correct Answer ✔✔ > Is the offering of
merchandise not typically associated with the store type, such as clothing in a drugstore
What is intertype competition? - Correct Answer ✔✔ > is competition between retailers
that sell similar merchandise using different formats such as discount and department
stores
What is retail strategy? - Correct Answer ✔✔ > A statement that indicates (1) the target
market toward which a retailer plans to commit its resources, (2) the nature of the retail
, offering that the retailer plans to use to satisfy the needs of the target market, and (3)
the bases upon which the retailer will attempt to build a sustainable competitive
advantage over retailer
What is Customer Relations Management (CRM) ? - Correct Answer ✔✔ > Is a
business philosophy and set of strategies, programs, and systems that focuses on
identifying and building loyalty with a retailer's most-valued customers
What is Ethics? - Correct Answer ✔✔ > A system or code of conduct based on
universal moral duties and obligations that indicate how one should behave
What is the North American Classification System (NAICS) ? - Correct Answer ✔✔ > Is
the classification of retail firms into a hierarchical set of six-digit codes based on the
types of products and services they produce and sell
Variety - Correct Answer ✔✔ > The number of different merchandise categories within a
store or a department
Depth of Merchandise - Correct Answer ✔✔ > The dumber of SKU's within a
merchandise category; also called an assortment and depth of stock
SKU (stock keeping unit) - Correct Answer ✔✔ > The smallest unit available for keeping
inventory control. In soft goods merchandise, a SKU usually means size, colour, and
style
Discount Store - Correct Answer ✔✔ > A general merchandise retailer that offers a wide
variety of merchandise, limited service, and low prices; also called mass merchandiser
and full-line discount store
Specialty Store - Correct Answer ✔✔ > Store concentrating on a limited number of
complementary merchandise categories and providing a high level of service in an area
typically under 8,000 square feet
What is a category specialist? - Correct Answer ✔✔ > A discount retailer that offers a
narrow but deep assortment of merchandise in a category and thus dominates the
category from customers' perspective. Also called category killer
Department Store - Correct Answer ✔✔ > A retailer that carries a wide variety and deep
assortment, offers considerable customer services, and is organized into separate
departments for displaying merchandise
Leased Department - Correct Answer ✔✔ > An area in a retail store leased or rented to
an independent company. The Leaseholder is typically responsible for all retail mix
decisions involved in operating the department and pays the store a percentage of its
sales as rent
