Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-02 A retailer's role in a distribution channel
9. If a chain of flower shops opened a plant nursery to provide gift plants and cut flowers to all of its outlets within a 300-mile radius, the chain would be practicing:
A. vertical integration
B. channel expansion
C. horizontal expansion
D. vertical retailing
E. service marketing
The florist is performing more than one channel function.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-02 A retailer's role in a distribution channel
10. What is the primary competitive advantage for retailers to be vertically integrated?
A. Retailers can develop unique merchandise sold only in their stores.
B. Retailers can expand their services easily to the Internet.
C. Retailers have realized that to stay competitive, they must become vertically integrated.
D. Customers prefer retailers who are vertically integrated.
E. Retailers can develop unique pricing strategies.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Hard
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-02 A retailer's role in a distribution channel
11. A retailer that is vertically integrated:
A. concentrates on selling to businesses only
B. does not have frequent communication between buyers and managers
C. has an excellent vertical relationship between corporate headquarters and stores
D. performs more than one function in the chain from manufacturing to sales to end user
E. performs only the function to end user
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-02 A retailer's role in a distribution channel
12. Which of the following statements about retailers holding inventory is false?
A. By having inventory held in the store, consumers can hold less merchandise at home
B. By holding inventory, retailers can decrease the visual merchandising expenditure
C. Holding inventory in a store helps serve the customer's needs
D. Retailers keep inventory so that products are available when consumers want them
E. Holding inventory reduces consumer's cost of storing products
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-03 Functions performed by retailers
13. Grocers purchase bananas from several different tropical countries. When bananas arrive in the distribution centres across Canada, containers are reduced to amounts that are appropriate for store delivery. Once delivered to the stores, associates open the cartons and arrange the bananas for the consumer to select. Grocers are performing what function?
A. Holding inventory
B. Vertical integration
C. Breaking bulk
D. Distribution
E. Providing services
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-02 Understand the role retailers play in the distribution channel and the functions they perform.
Topic: 01-03 Functions performed by retailers
14. Providing assortments is an advantageous business activity because it:
A. enables the company to create a more informational and entertaining environment which would promote more sales
B. enables the company to reinvest savings
C. enables the customer to choose from a wide selection of brands, designs, sizes, and prices all in one store
D. enables the customer to save money by being able to shop in one store
E. enables the customer to stock up on the assortments because of their availability