DECA Retail Merchandising Practice Exam

What is the primary purpose of breaking bulk in retailing?

1. To increase prices for consumers

2. To provide consumers with smaller quantities of products

3. To promote bulk buying among consumers

4. To streamline the supply chain process

The correct answer is: To provide consumers with smaller quantities of products

Breaking bulk in retailing refers to the practice of taking large quantities of products from suppliers and dividing them into smaller, more manageable units for sale to consumers. The primary purpose of this practice is indeed to provide consumers with smaller quantities of products tailored to their needs. Many consumers may not be able to purchase or may not want to buy items in bulk due to storage limitations or desire for variety. By offering products in smaller quantities, retailers cater to the preferences of individual consumers, making it easier for them to purchase only what they need. While promoting bulk buying and streamlining the supply chain are relevant concepts in retail, they are secondary to the primary goal of accommodating consumer demand for smaller product quantities. Additionally, increasing prices for consumers contradicts the core intention of breaking bulk, which is to make products accessible and convenient at consumer-friendly price points.