Retailing Management, 7th Canadian
Edition, Levy, Weitz, Grewal, (Test
Bank)
EXAM
1) The largest sectors in terms of retail sales are:
Answer: C) Food, Beverage, and Automotive
Rationale: In Canada, the largest retail sales sectors are
food/beverage stores and automotive dealers due to
recurring necessity purchases.
2) Retail managers must make complex decisions including all
of the following EXCEPT:
Answer: D) Mission statement
Rationale: Mission statements are typically set at the
corporate level, not daily retail management decisions.
3) What is retailing?
Answer: A) It is the set of business activities that adds value
to products/services sold to consumers for personal/family
use
Rationale: This is the standard definition of retailing—adding
value through convenience, assortment, and service.
4) Which of the following businesses would be considered a
retailer?
, Answer: E) All (hair salon, Air Canada, Tim Hortons, Canadian
Tire)
Rationale: Any business that sells goods/services to final
consumers for personal use is a retailer.
5) Prior Snowboards manufactures many snowboards it sells
in its own retail outlet. This is:
Answer: D) Vertical integration
Rationale: Vertical integration occurs when a firm owns
multiple stages of production and distribution.
6) Grocers purchase bananas in large containers, then reduce
to store-appropriate amounts. This is:
Answer: C) Breaking bulk
Rationale: Breaking bulk means buying in large quantities
and selling in smaller units for consumers.
7) Which is NOT an example of how retailers enhance
customer value through services?
Answer: E) Deep assortment of products
Rationale: Deep assortment is a merchandise strategy, not a
service; services include washrooms, parking, trained staff,
etc.
8) Offering merchandise not typically associated with the
store type is called:
Answer: D) Scrambled merchandising
Rationale: Example: a gas station selling groceries.
, 9) A retailer that offers a deep assortment of a narrow variety
of merchandise is a:
Answer: Specialty store
Rationale: Specialty stores focus on one category with many
SKUs (e.g., Tiffany & Co., Sephora).
10) Which type of retailer typically offers a wide variety of
merchandise at low prices with low customer service?
Answer: Discount store
Rationale: Examples: Walmart, Target (low service, wide
assortment, low prices).
11) A supermarket is best described as:
Answer: A self-service food store with limited general
merchandise
Rationale: Supermarkets focus on groceries but may carry
some non-food items.
12) Which of the following is an example of a service retailer?
Answer: A hotel
Rationale: Service retailers sell intangible products (lodging,
haircuts, banking).
13) The retailing concept is based on which four principles?
Answer: Customer orientation, coordinated effort, value-
driven, goal orientation
Rationale: These are the four pillars of the retailing concept
from the textbook.
Edition, Levy, Weitz, Grewal, (Test
Bank)
EXAM
1) The largest sectors in terms of retail sales are:
Answer: C) Food, Beverage, and Automotive
Rationale: In Canada, the largest retail sales sectors are
food/beverage stores and automotive dealers due to
recurring necessity purchases.
2) Retail managers must make complex decisions including all
of the following EXCEPT:
Answer: D) Mission statement
Rationale: Mission statements are typically set at the
corporate level, not daily retail management decisions.
3) What is retailing?
Answer: A) It is the set of business activities that adds value
to products/services sold to consumers for personal/family
use
Rationale: This is the standard definition of retailing—adding
value through convenience, assortment, and service.
4) Which of the following businesses would be considered a
retailer?
, Answer: E) All (hair salon, Air Canada, Tim Hortons, Canadian
Tire)
Rationale: Any business that sells goods/services to final
consumers for personal use is a retailer.
5) Prior Snowboards manufactures many snowboards it sells
in its own retail outlet. This is:
Answer: D) Vertical integration
Rationale: Vertical integration occurs when a firm owns
multiple stages of production and distribution.
6) Grocers purchase bananas in large containers, then reduce
to store-appropriate amounts. This is:
Answer: C) Breaking bulk
Rationale: Breaking bulk means buying in large quantities
and selling in smaller units for consumers.
7) Which is NOT an example of how retailers enhance
customer value through services?
Answer: E) Deep assortment of products
Rationale: Deep assortment is a merchandise strategy, not a
service; services include washrooms, parking, trained staff,
etc.
8) Offering merchandise not typically associated with the
store type is called:
Answer: D) Scrambled merchandising
Rationale: Example: a gas station selling groceries.
, 9) A retailer that offers a deep assortment of a narrow variety
of merchandise is a:
Answer: Specialty store
Rationale: Specialty stores focus on one category with many
SKUs (e.g., Tiffany & Co., Sephora).
10) Which type of retailer typically offers a wide variety of
merchandise at low prices with low customer service?
Answer: Discount store
Rationale: Examples: Walmart, Target (low service, wide
assortment, low prices).
11) A supermarket is best described as:
Answer: A self-service food store with limited general
merchandise
Rationale: Supermarkets focus on groceries but may carry
some non-food items.
12) Which of the following is an example of a service retailer?
Answer: A hotel
Rationale: Service retailers sell intangible products (lodging,
haircuts, banking).
13) The retailing concept is based on which four principles?
Answer: Customer orientation, coordinated effort, value-
driven, goal orientation
Rationale: These are the four pillars of the retailing concept
from the textbook.
