MKTG 461 EXAM 1 QUESTION &
ANSWERS 2025
retailing - CORRECT ANSWER ✅set of business activities that adds
value to the products and services sold to consumers for their personal
or family use
functions performed by retailers - CORRECT ANSWER ✅providing
assortments;
breaking bulk;
holding inventory;
providing services
vertical integration - CORRECT ANSWER ✅firm performs more than
one set of activities in the channel; ex. retailer invests in wholesaling or
manufacturing
intratype competition - CORRECT ANSWER ✅competition between the
same type of retailers; ex. Dillard's vs Belk
intertype competition - CORRECT ANSWER ✅competition between
retailers that sell similar merchandise using different formats ex.
Dillard's vs Walmart
United States retailing/distribution - CORRECT ANSWER ✅low
population density; low cost real estate for large stores; large retail
markets; large enough to operate their own warehouses - no need for
,MKTG 461 EXAM 1 QUESTION &
ANSWERS 2025
wholesaling; efficient distribution system due to large stores/firms; $4.3
trillion in sales in 2011; over 8% of GDP retailing; employs over 14
million in 2011; one of the largest sectors for job growth
China retailing/distribution - CORRECT ANSWER ✅work to reduce
unemployment by protecting small businesses; high population density;
large retail markets; low concentration of sales from large retailers;
modest store size; weak supply chain infrastructure
India retailing/distribution - CORRECT ANSWER ✅work to reduce
unemployment by protecting small businesses; high population density;
large retail markets; lowest concentration of sales made by large
retailers; weakest supply chain infrastructure; extensive restrictions
Europe retailing/distribution - CORRECT ANSWER ✅work to protect
small retailers; high population density; distribution and retail chains
operate in a single country (no economies of scale to be achieved; trade
barriers still exist)
scrambled merchandising - CORRECT ANSWER ✅offering merchandise
not typically associated with the store type; ex. clothing in a drugstore
corporate social responsibility (CSR) - CORRECT ANSWER ✅voluntary
actions taken by a company to address the ethical, social and
, MKTG 461 EXAM 1 QUESTION &
ANSWERS 2025
environmental impacts of its business operations, in addition to the
concerns of its stakeholders
retail mix - CORRECT ANSWER ✅set of decisions retailers make to
satisfy customer needs and influence their purchase decisions;
type of merchandise and/or services offered;
variety and assortment of merchandise offered;
level of customer service;
price of merchandise
variety - CORRECT ANSWER ✅breadth;
large number of merchandise categories;
ex. Walmart's wide variety of products; shoes and hamburger meat
assortment - CORRECT ANSWER ✅depth;
large number of items in a category;
large number of SKUs;
ex. Foot Locker has wide assortment of shoes
SKU - CORRECT ANSWER ✅stock keeping unit;
smallest unit available for keeping inventory control;
typically means size, color, style
ANSWERS 2025
retailing - CORRECT ANSWER ✅set of business activities that adds
value to the products and services sold to consumers for their personal
or family use
functions performed by retailers - CORRECT ANSWER ✅providing
assortments;
breaking bulk;
holding inventory;
providing services
vertical integration - CORRECT ANSWER ✅firm performs more than
one set of activities in the channel; ex. retailer invests in wholesaling or
manufacturing
intratype competition - CORRECT ANSWER ✅competition between the
same type of retailers; ex. Dillard's vs Belk
intertype competition - CORRECT ANSWER ✅competition between
retailers that sell similar merchandise using different formats ex.
Dillard's vs Walmart
United States retailing/distribution - CORRECT ANSWER ✅low
population density; low cost real estate for large stores; large retail
markets; large enough to operate their own warehouses - no need for
,MKTG 461 EXAM 1 QUESTION &
ANSWERS 2025
wholesaling; efficient distribution system due to large stores/firms; $4.3
trillion in sales in 2011; over 8% of GDP retailing; employs over 14
million in 2011; one of the largest sectors for job growth
China retailing/distribution - CORRECT ANSWER ✅work to reduce
unemployment by protecting small businesses; high population density;
large retail markets; low concentration of sales from large retailers;
modest store size; weak supply chain infrastructure
India retailing/distribution - CORRECT ANSWER ✅work to reduce
unemployment by protecting small businesses; high population density;
large retail markets; lowest concentration of sales made by large
retailers; weakest supply chain infrastructure; extensive restrictions
Europe retailing/distribution - CORRECT ANSWER ✅work to protect
small retailers; high population density; distribution and retail chains
operate in a single country (no economies of scale to be achieved; trade
barriers still exist)
scrambled merchandising - CORRECT ANSWER ✅offering merchandise
not typically associated with the store type; ex. clothing in a drugstore
corporate social responsibility (CSR) - CORRECT ANSWER ✅voluntary
actions taken by a company to address the ethical, social and
, MKTG 461 EXAM 1 QUESTION &
ANSWERS 2025
environmental impacts of its business operations, in addition to the
concerns of its stakeholders
retail mix - CORRECT ANSWER ✅set of decisions retailers make to
satisfy customer needs and influence their purchase decisions;
type of merchandise and/or services offered;
variety and assortment of merchandise offered;
level of customer service;
price of merchandise
variety - CORRECT ANSWER ✅breadth;
large number of merchandise categories;
ex. Walmart's wide variety of products; shoes and hamburger meat
assortment - CORRECT ANSWER ✅depth;
large number of items in a category;
large number of SKUs;
ex. Foot Locker has wide assortment of shoes
SKU - CORRECT ANSWER ✅stock keeping unit;
smallest unit available for keeping inventory control;
typically means size, color, style
