Question 1

Which of the following is NOT a non-traditional source of food?&#10;A) On-line retailers&#10;B) Supermarkets&#10;C) Wholesale clubs&#10;D) Drug stores

Accepted Answer

Supermarkets are considered a traditional source of food as they have been around for a long time and are a common place for people to buy food. On the other hand, on-line retailers, wholesale clubs, and drug stores are considered non-traditional sources of food as they are not the typical places people would go to buy their groceries.

Question 2

As online shopping continues to grow, ____________ goods are an important survival tool for grocery stores.&#10;A) Nonperishable&#10;B) Other&#10;C) Perishable&#10;D) All of the above

Accepted Answer

Perishable goods are crucial for grocery stores in the context of growing online shopping because they drive frequent store visits, given their short shelf life, and are harder to effectively sell online due to the need for quick delivery and proper handling.

Question 3

Meat and fish retail volume (in pounds) is declining across the board in the US and western Europe but slightly increasing in revenue for fish, beef, chicken and lamb due to __________________.&#10;A) Value-added processing&#10;B) Price increases&#10;C) A shift in on-line consumption&#10;D) A and B&#10;E) All of the above

Accepted Answer

The decline in meat and fish retail volume could be attributed to a shift towards plant-based diets or a growing concern about the environmental impact of meat production. However, the slight increase in revenue for fish, beef, chicken, and lamb is due to value-added processing and price increases. Value-added processing involves adding value to the meat by offering pre-packaged, pre-cut or seasoned options, which allows retailers to charge a premium price. Price increases are the result of supply chain disruptions and higher production costs. Therefore, the best choice is D (A and B).

Question 4

While Amazon-owned Whole Foods is a major force along with other established natural food markets, conventional supermarkets, warehouse clubs and superstores now represent the largest outlet for organic food sales.

Accepted Answer

This statement is true.

Question 5

Which of the following grocery products have the highest margins?&#10;A) Dry goods such as cereals, snack foods, and bulk items&#10;B) Fresh foods such as bakery items, produce, and deli items&#10;C) Frozen foods such as dinners, pizza, and meats&#10;D) Canned Foods

Accepted Answer

Fresh foods generally have higher profit margins compared to canned and frozen foods, as they have a shorter shelf life and require more frequent restocking, leading to higher prices. Dry goods may also have decent margins, but they face more competition and are often discounted by retailers.

Question 6

A store's layout is extremely important because it influences ______________.&#10;A) In-store traffic&#10;B) Consumer behavior&#10;C) Efficiency&#10;D) Overall mood&#10;E) All of the above

Accepted Answer

A store's layout can influence all of the above factors. The way items are displayed and organized can impact in-store traffic and consumer behavior, while a well-designed layout can also improve efficiency and create a certain mood or atmosphere for shoppers.

Question 7

_____________ is the decision of when and how much to reorder and goes hand in hand with forecasting.&#10;A) Assortment&#10;B) Allocation&#10;C) Replenishment&#10;D) Consumption

Accepted Answer

Replenishment is the decision of when and how much to reorder based on the forecasts of expected demand. This decision is critical in maintaining optimal inventory levels and avoiding stockouts. Assortment and allocation refer to other aspects of inventory management, while consumption refers to the actual usage of inventory by customers.

Question 8

Risk pooling seeks to _________ demand variability by aggregating demand across locations based on the assumption that ______ demand from one customer will offset low demand from another.&#10;A) Increase, high&#10;B) Reduce, low&#10;C) Increase, low&#10;D) Reduce, high

Accepted Answer

Risk pooling aims to reduce demand variability by aggregating demand across locations, assuming that high demand from one customer will offset low demand from another.

Question 9

With the rise of the middle class in developing countries, markets are shifting from fragmented, local outlets - such as village markets acting as wholesalers and retailers - to larger, centralized wholesale markets supplying retail operations.

Accepted Answer

The statement is true. With the rise of the middle class in developing countries, markets are shifting from fragmented, local outlets to larger, centralized wholesale markets supplying retail operations.

Question 10

____________ offer unconditional liberalism and no protection for the existing food system players.&#10;A) Latin American countries&#10;B) African countries&#10;C) India&#10;D) A and B&#10;E) All of the above

Accepted Answer

Latin American and African countries often offer more liberal market access with fewer protections for existing food system players, compared to countries like India which tend to have more protective measures for their domestic agricultural sectors.

Deck 8: Food Retailing & Wholesaling