MAR3231 (UF) EXAM 1 | 2026 UPDATE | QUESTIONS
AND ANSWERS | WITH COMPLETE SOLUTION
• Retailing Answer - the set of business activities that adds value to products
and services sold to consumer for their personal or family use.
Retailers Answer - businesses that sell products and/ or services to consumers
for their personal or family use. They are the final part of the supply chain
supply chain Answer - the set of firms that make and deliver goods and
services to customers. Supply chains contain manufacturer, wholesaler, retailer,
and consumer.
What is the order of the supply chain? Answer - Manufacturer-Wholesaler-
Retailer-Consumer
Integration Answer - when one firm controls more than one aspect of the
supply chain
backward integration Answer - when a retailer performs distribution and
manufacturing activities (such as operating warehouses/designing private-label
merchandise).
Forward Integration Answer - when a manufacturer undertakes retailing
activities (Ralph Lauren operating its own retail stores)
,How do retailers create value? Answer - 1. providing an assortment of
products and services
2. breaking bulk
3. holding inventory
4. providing services
Corporate Social Responsibility Answer - an organization voluntarily engages in
business practices that meet or exceed the ethical and legal expectations of its
stakeholders. Not only does this benefit society but also decreases cost/
increases profits of the firm.
Base of the Pyramid (BoP) Answer - refers to the customers at the lowest end
of the income distribution. The sheer size of this consumer base makes them
important.
competition Answer - occurs between firms as they attempt to court the most
customers
Intratype Competition Answer - competition between the same type of retailer
(department stores against department stores)
Intertype Competition Answer - competition between retailers that sell similar
merchandise using different formats (discount stores and department stores)
Scrambled Merchandising Answer - What causes intertype competition. When
retailers offer merchandise not typically associated with their type of store (a
clothing store in a drug store)
Retail Strategy 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 competitors.
Retail Mix Answer - a set of decisions retailers make to satisfy customer needs
and influence their purchase decisions. Includes: type of merchandise sold,
variety and assortment of merchandise, level of customer service, pricing
Facts to know: Answer - oU.S. retail sales were a record high in 2017 at 5.7
trillion dollars with a projected 4.5% increase in 2018
oSales do not include retail sales of automobile and maintenance repairs
oOne of the nation's largest industries in terms of employment
o10% of U.S. work force, 1 in 4 jobs are related to retail
oNearly 16 million jobs in the United States
Fastest Growing Retailers Answer - Primark (103%), Bass Pro (94%), Build.com
(47%), Amazon.com (45%), Wayfair (36%)
North American Industry Classification System (NAICS) code Answer - a six digit
code with the first 2 determining the business sector and the last 4 the
subsector. Retailers are mostly 44 and 45.
variety Answer - number of merchandise categories a retailer offers (breadth).
Assortment is the number of different items in a merchandise category (depth).
Stock-keeping units (SKU) Answer - the different items of merchandise carried
by the retailer. The same item with a different size or type are different SKU.
Supermarkets Answer - are large, self-service retail food stores the offer meat,
produce, and groceries with some nonfood items.
AND ANSWERS | WITH COMPLETE SOLUTION
• Retailing Answer - the set of business activities that adds value to products
and services sold to consumer for their personal or family use.
Retailers Answer - businesses that sell products and/ or services to consumers
for their personal or family use. They are the final part of the supply chain
supply chain Answer - the set of firms that make and deliver goods and
services to customers. Supply chains contain manufacturer, wholesaler, retailer,
and consumer.
What is the order of the supply chain? Answer - Manufacturer-Wholesaler-
Retailer-Consumer
Integration Answer - when one firm controls more than one aspect of the
supply chain
backward integration Answer - when a retailer performs distribution and
manufacturing activities (such as operating warehouses/designing private-label
merchandise).
Forward Integration Answer - when a manufacturer undertakes retailing
activities (Ralph Lauren operating its own retail stores)
,How do retailers create value? Answer - 1. providing an assortment of
products and services
2. breaking bulk
3. holding inventory
4. providing services
Corporate Social Responsibility Answer - an organization voluntarily engages in
business practices that meet or exceed the ethical and legal expectations of its
stakeholders. Not only does this benefit society but also decreases cost/
increases profits of the firm.
Base of the Pyramid (BoP) Answer - refers to the customers at the lowest end
of the income distribution. The sheer size of this consumer base makes them
important.
competition Answer - occurs between firms as they attempt to court the most
customers
Intratype Competition Answer - competition between the same type of retailer
(department stores against department stores)
Intertype Competition Answer - competition between retailers that sell similar
merchandise using different formats (discount stores and department stores)
Scrambled Merchandising Answer - What causes intertype competition. When
retailers offer merchandise not typically associated with their type of store (a
clothing store in a drug store)
Retail Strategy 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 competitors.
Retail Mix Answer - a set of decisions retailers make to satisfy customer needs
and influence their purchase decisions. Includes: type of merchandise sold,
variety and assortment of merchandise, level of customer service, pricing
Facts to know: Answer - oU.S. retail sales were a record high in 2017 at 5.7
trillion dollars with a projected 4.5% increase in 2018
oSales do not include retail sales of automobile and maintenance repairs
oOne of the nation's largest industries in terms of employment
o10% of U.S. work force, 1 in 4 jobs are related to retail
oNearly 16 million jobs in the United States
Fastest Growing Retailers Answer - Primark (103%), Bass Pro (94%), Build.com
(47%), Amazon.com (45%), Wayfair (36%)
North American Industry Classification System (NAICS) code Answer - a six digit
code with the first 2 determining the business sector and the last 4 the
subsector. Retailers are mostly 44 and 45.
variety Answer - number of merchandise categories a retailer offers (breadth).
Assortment is the number of different items in a merchandise category (depth).
Stock-keeping units (SKU) Answer - the different items of merchandise carried
by the retailer. The same item with a different size or type are different SKU.
Supermarkets Answer - are large, self-service retail food stores the offer meat,
produce, and groceries with some nonfood items.
