Class- MCom (Semester IV) Specialisation- Business Management

Subject- RETAIL MANAGEMENT

MODULE 1: INTRODUCTION TO RETAIL MANAGEMENT

1. Retail is the end or final stage of any ________ activity.

a) Financial

b) Economic

c) Commercial

d) Marketing

2. The word retail come from the old French word ___________.

a) Retaillier

b) Retailliar

c) Re-seller

d) Retrailer

3. Retaillier means to cut off or ___________.

a) Sell in small quantities

b) Sell single units

c) Break the bulk

d) Break the package

4. The _______ may be defined as a dealer or trader who sells in small quantities.

a) Seller

b) Sales representative

c) Customer service executive

d) Retailer
5. Marketers see the process of retailing as a necessary part of their overall ________
strategy.

a) Distribution

b) Sales

c) Marketing

d) Logistics

6. Retailing is that ________ addition activity which adds services along with the sale of
goods/commodities.

a) Feature

b) Service

c) Value

d) Sales

7. According to ___________ “Retailing includes all the activities involved in selling

goods or services to the consumer for personal, non-business use”.

a) Edwin Flippo

b) Philip Kotler

c) McCarthy

d) John Williamsons

8. Any organisation selling to the _________ is doing retailing.

a) Wholesalers

b) Merchants

c) Clients

d) Final consumers

9. Retailing is considered as the ______ step in the distribution of merchandise, for

consumption for the end consumers.
 a) First

b) Final

c) Second

d) Intervening

10. __________ means the goods presented and sold in retail outlets.

a) Product Variety

b) Product Line

c) Product Range

d) Merchandise

11. Generally, people think of retailing only as the sale of products in store, but retailing
involves sale of __________.

a) Services

b) Accessories

c) Complimentary Goods

d) Supplementary Goods

12. ___________ is one of the largest sectors in the global economy.

a) Retailing

b) Information Technology

c) Automobile

d) Pharma

13. ___________ department is responsible for the procurement of the merchandise to be

sold in the stores by sourcing it from vendors or manufacturers.

a) Retailing

b) Merchandising

c) Supply Chain
 d) Procurement

14. _________ should possess the ability to lead and motivate employees as well as take
care of all the disciplines necessary to run a successful retail business.

a) Sales Manager

b) Retail Manager

c) Store Manager

d) Human Resource Manager

15. Retail is __________ business and calls for long working hours at both the front and
back end.

a) Sales-focused

b) Marketing-focused

c) Customer-focused

d) People Focused

16. ________ are considered as a part of store operations.

a) Sales

b) Marketing

c) Administration

d) Human Resource

17. ____________ is associated with creating the overall look of the store.

a) Store Layout

b) Visual Merchandising

c) Store Designing

d) Store Spacing

18. ________ means making the product available to the customer in the form that they
demand and is acceptable to them.
 a) Form Utility

b) Time Utility

c) Place Utility

d) Ownership/Possession Utility

19. _______ ensures that the product is available when the consumer wants it.

a) Form Utility

b) Time Utility

c) Place Utility

d) Ownership/Possession Utility

20. ______ make the products available to the customers conveniently, near their home or
work.

a) Form Utility

b) Time Utility

c) Place Utility

d) Ownership/Possession Utility

21. _________ is created when the consumers purchase a product and have the freedom to
use the product as it was intended or finding a new use for the product.

a) Form Utility

b) Time Utility

c) Place Utility

d) Ownership/Possession Utility

22. _______ retailing is a tangible retailing channel.

a) Store-based

b) Non-store based

c) Service
 d) Kiosks

23. Leased departments are also known as __________.

a) Rented shops

b) Shop in shops

c) Leased shops

d) Shops in departments

24. Super Markets have a selling area of __________.

a) 400 sq.m – 2,500 sq.m.

b) 1,00,000 – 3,00,000 square feet

c) 6,000 – 8,000 square feet

d) 10,000 – 12,000 square feet

25. Hyper Markets have a selling area of _______.

a) 400 sq.m – 2,500 sq.m.

b) 1,00,000 – 3,00,000 square feet

c) 6,000 – 8,000 square feet

d) 10,000 – 12,000 square feet

26. The word hypermarket is derived from the French word __________.

a) Hypermarche

b) Hypermake

c) Hyper

d) Hyphermarche

27. Theory of Natural Selection was given by ________.

a) Professor McNair

b) Hollander
 c) Charles Darwin

d) Philip Kotler

28. Theory of Wheel of Retailing was given by _________.

a) Professor McNair

b) Hollander

c) Charles Darwin

d) Philip Kotler

29. General-Specific-General Cycle or Accordion Theory was given by ______.

a) Professor McNair

b) Hollander

c) Charles Darwin

d) Philip Kotler

30. The macro retail environment consists of ________.

a) Economic & Legal

b) Technological

c) Competitive

d) All of these

31. In India, the FDI policy is governed by ____________.

a) Foreign Exchange Management Act (FEMA), 1999

b) Foreign Exchange Measurement Act (FEMA), 1999

 c) Foreign Exchange Regulation Act (FERA), 1999

d) Foreign Exchange Control Act (FECA), 1999

32. Marketers see the process of retailing as a necessary part of their overall ______
strategy.

a) Production

b) Distribution

c) Operation

d) Purchasing

33. McDonalds is an example of ____________ franchise.

a) Product

b) Manufacturing

c) Process

d) Business format

34. ________ retailers purchase manufacturers’ seconds, overruns or off seasons at a deep
discount.

a) Off-price

b) Factory Outlets

c) Catalogue Showroom

d) Consumer Cooperatives

35. A _______ is a large, self-service retail food store offering groceries, meat as well as
some non-food items, such as health and beauty products and general merchandise.

a) Hyper Market

b) Departmental Store

c) Super Market

d) Speciality Store
36. ________ stock items, ranging from groceries, hardware and sports equipment to
furniture and appliances to computers and electronics.

a) Hyper Market

b) Departmental Store

c) Super Market

d) Speciality Store

37. Sahakari Bhandar is a type of _________.

a) Off-price retailer

b) Factory Outlets

c) Departmental store

d) Consumer Co-operatives

38. Retailing includes all activities involved in selling goods or services for ______ use.

a) Corporate

b) Commercial

c) Non-commercial

d) Consumer

39. ______ franchise is where the franchisor gives the dealer the exclusive right to produce
and distribute the product in a particular area.

a) Product

b) Manufacturing

c) Process

d) Service

40. _________ are located near residential areas stocking basic necessities.

a) Departmental Store

b) Super Market
 c) Convenience Stores

d) Speciality Store

41. ______ have only one retail outlet.

a) Independent retailers

b) Chain Retailers

c) Store-based retailers

d) Non-store based retailers

MODULE 2: RETAIL MANAGEMENT STRATEGY

42. _______ in any industry is an important component of the overall marketing plan to
retain best customers and to attract new ones

a) Retailing

b) Promotions

c) Selling

d) Customer Relationship Management

43. Vendor Originated Sales Promotion includes________________.

a) In-store activities

b) Point of sale displays

c) Trade incentives

d) All of these

44. _________ has identified various elements that go into the composition of a value
chain.

a) Philip Kotler

b) Michael Porter
 c) Darwin

d) Hollander

45. ________ are activities associated with receiving, storing and discriminating inputs to
the product.

a) Logistics

b) Supply Chain

c) Outbound Logistics

d) Inbound Logistics

46. ________ is an approach where retailers present all the customers with identica l
marketing approach.

a) Mass marketing

b) Publicity

c) Niche marketing

d) Relationship marketing

47. The _______ is a theory about the change through time of retailing outlets.

a) Wheel of retailing

b) Theory of Retail Change

c) Retail Life Cycle

d) Retail Timeline

48. ________ are the activities associated with collecting, storing and physically
distributing the product to the buyers.

a) Logistics

b) Supply Chain

c) Outbound Logistics

d) Inbound Logistics
49. ___________ is when the retailer divides the heterogenous market and adopt a
differentiated approach for different sets of customers.

a) Customer Segmentation

b) Market Segmentation

c) Homogeneous Segmentation

d) Market Differentiation.

50. _________ is a strategy that aims at creating customers for life and enhance the sales
and market share of the organisation.

a) Mass marketing

b) Publicity

c) Niche marketing

d) Customer Relationship Mangement

51. The payments made by the manufacturer to store management and staff for reaching
particular targets is known as ___________.

a) Staff Incentives

b) Staff Commission

c) Staff Salaries

d) Staff Bonus

52. _______ were a particularly popular sales promotion device of the 1970s. They were
used by the cooperative stores to even out trade over a week.

a) Trading stamps

b) Mass displays

c) Green shield stamps

d) Free gifts

53. The first step in the strategic retail planning process is to define the ________.
 a) Business Mission

b) Business Vision

c) Business Goals

d) Business Objectives

54. Retail Value Chain consists of ________

a) Support Activities

b) Primary Activities

c) Margin

d) All of these

55. The concept of product life cycles was explained by _________.

a) Philip Kotler

b) Michael Porter

c) Darwin

d) Hollander

56. ________ means employees routinely come and go.

a) Employee attrition

b) Employee recruitment

c) Employee downsizing

d) Employee turnover

57. ________ means laying off large number of employees in order to achieve the right
sizing.

a) Employee attrition

b) Employee recruitment

c) Employee downsizing

d) Employee turnover
58. _________ is the behaviour that consumers display in searching for, purchasing, using,
evaluating and disposing of products and services that they expect to satisfy their needs.

a) Consumer perspective

b) Consumer behaviour

c) Consumer reaction

d) Consumer feedback

59. The first stage of the buying decision process is ___________.

a) Information Search

b) Evaluation of Alternatives

c) Setting Making Buying Decision

d) Need/Problem Recognition

60. The ________ behaviour is the satisfaction or dissatisfaction after the purchase.

a) Consumer

b) Customer

c) During purchase

d) Post Purchase

MODULE 3: RETAIL LOCATION, LAYOUT AND

MERCHANDISING

61. _________ are the products designed, produced and marketed by a vendor and sold to
many different retailers.

a) National brands

b) International brands

c) Private label brands

 d) Licensed brands

62. The orderly, logical and intelligent way of putting stock on the floor is known as ____.

a) Store Layout

b) Store Design

c) Merchandising

d) Visual merchandising

63. ___________ is the one developed by a national-brand vendor, often in conjunctio n

with a retailer and is sold exclusively by the retailer.

a) Generic brand

b) Copycat brand

c) Exclusive brand

d) National brand

64. The _______ is a roof-like structure that bears a signboard, projecting over the entrance
of the retail store.

a) Shop front

b) Store marquee

c) Promotional graphic

d) Theme graphic

65. _______ relates to the current advertising campaign.

a) Promotional graphics

b) Theme graphics

c) Campaign graphics

d) Advertising graphics

66. The ________ layout has parallel aisles with merchandise on shelves on both sides of
the aisles.
 a) Grid

b) Loop

c) Race track

d) Free form

67. A _______ area is a geographical area that generates majority of the customers for the
store.

a) Catchment

b) Trade

c) Locational

d) Commercial

68. _______ area is the term that encompasses the customers’ inhabited with a geographic
area of the shopping centres’ area of influence.

a) Catchment

b) Trade

c) Locational

d) Commercial

69. A _______ is the first step in determining the inventory needs of the product.

a) Identifying the requirement of merchandise

b) Model stock plan

c) Sales forecast

d) Merchandise control

70. The __________ consists of the details of all the merchandise that will be sold in each
product category.

a) Product range

b) Product width
 c) Product depth

d) Product assortment

71. The __________ plan gives the precise items and quantities that need to be purchased
for each merchandise line.

a) Model stock

b) Product assortment

c) Product range

d) Merchandising

72. _______ brands imitate the manufacturer’s brand in appearance and packaging,
generally are perceived as lower-quality, and are offered at lower prices.

a) Generic brand

b) Copycat brand

c) Exclusive brand

d) National brand

73. ____________ are special areas within a country that can be used for warehousing,
packaging, inspection, labelling, assembly, shipment of imports without being subject
to that country’s tariffs.

a) Free trade zone

b) Import trade zones

c) Export trade zones

d) Foreign trade zones

74. ____________ are used for storing and displaying merchandise.

a) Fixtures

b) Shop floor

c) Store floorings
 d) Grids

75. Location decision is ________ and is taken only once in the life of the store.

a) Money intensive

b) Promotional intensive

c) Capital intensive

d) Sales intensive

76. ______ are unplanned areas occupied by the retail stores.

a) Freestanding sites

b) City/town locations

c) Destination locations

d) Convenience locations

77. The _______ is the traditional downtown business area in a city or town.

a) Main street

b) Inner city

c) Central business district

d) City location

78. A _______ is a group of retail and other commercial establishments that are planned,
developed, owned and managed as a single property.

a) Shopping mall

b) Shopping centre

c) Trade centre

d) Commercial centre

79. _________ are enclosed, climate controlled, lighted shopping centres with retail stores
on one or both sides of an enclosed walkway.

a) Shopping malls
 b) Shopping centres

c) Trade centres

d) Commercial centres

80. ______ has become popular with national retail chain due to it being an high-pedestr ia n
area.

a) Merchandise kiosks

b) Store-within-store

c) Shop-in-shop

d) Airport retailing

81. The last step in choosing a retail location is ______.

a) Determining the type of location

b) Financial planning

c) Analysing alternate sites

d) Selecting general location

82. The last step in the merchandise planning process is _________.

a) Identifying the requirement of merchandise

b) Model stock plan

c) Sales forecast

d) Merchandise control

83. ________ have a high demand for a relatively short period of time.

a) Staple/basic merchandise

b) Seasonal merchandise

c) Fashion merchandise

d) Fad merchandise
84. _________ enjoy popularity for a limited period of time and generate high level of sales
for a short time.

a) Staple/basic merchandise

b) Seasonal merchandise

c) Fashion merchandise

d) Fad merchandise

85. A retailer’s _____ are its stores that can be marketed in a similar way to a branded good.

a) Products

b) Asset

c) Patents

d) Identity

86. Private-label brands are also called as _______.

a) Store brands

b) House brands

c) Own brands

d) All of these

87. The first step in the merchandise buying process is ________.

a) Negotiating with the sources of supply

b) Identifying the sources of supply

c) Analysing vendor performance

d) Evaluating the sources of supply

88. The last step in the merchandise buying process is ________.

a) Negotiating with the sources of supply

b) Identifying the sources of supply

c) Analysing vendor performance

 d) Evaluating the sources of supply

89. ____________ is a fundamental element of the interior design process that starts with
an in-depth analysis of how the space is to be used.

a) Space planning

b) Atmospherics and aesthetics

c) Circulation plan

d) Store layout

90. In _______ layout the merchandise is arranged in an asymmetrical manner.

a) Grid

b) Loop

c) Race track

d) Free form

MODULE 4: USE OF TECHNOLOGY AND CAREER OPTION

91. The ______ is the computer-to-computer exchange of business documents in a

standardized format.

a) Electronic Data Interchange

b) Database Management System

c) Both a & b

d) None of the above

92. __________ is an approach towards managing a retail business that takes advantage of
environmentally friendly processes.

a) E-Retailing

b) Natural Retailing

c) Green Retailing
 d) Non-Store Based Retailing

93. ____________ is a technology that allows an object or person to be identified at a

distance by means of radio waves.

a) Radio Frequency Identification

b) GPS

c) Live Tracking

d) Electronic Identification

94. Which of the following technologies are used in retailing __________.

a) Electronic Data Interchange

b) Database Management System

c) Radio Frequency Identification

d) All of the above

95. ______ helps in exchanging the information from retailers to supplier’s computers and
facilitate orders.

a) Electronic Data Interchange

b) Database Management System

c) Radio Frequency Identification

d) Data sharing

96. Radio Frequency Identification was invented by ________ in 1948

a) McNair

b) Hollander

c) Harry Stockman

d) Charles Darwin

97. Market for RFID picked up due to the entry of retail giant, ______.

a) Metro
 b) Wal-Mart

c) Costco

d) Kroger

98. The use of systems to organise, retrieve, search and manage data is termed as ___.

a) Electronic Data Interchange

b) Database Management System

c) Radio Frequency Identification

d) Data sharing

99. Data warehousing and data mining are elements of ________.

a) Electronic Data Interchange

b) Database Management System

c) Radio Frequency Identification

d) Data sharing

100. _______ can help extract information from a database that the user did not know
existed.

a) Data mining

b) Data warehousing

c) Data retrieval

d) Data hunting

101. ________ is the sale of goods and services through the internet.

a) E-commerce

b) E-retailing

c) E-tailing

d) E-sales

102. E-tailing is a subset of ______.

 a) Store-based retailing

b) Non-store-based retailing

c) E-retailing

d) E-commerce

103. _______ removes the need for expensive retail premises and customer-fac ing
staff.

a) Store-based retailing

b) Non-store-based retailing

c) E-tailing

d) E-commerce

104. The formats of electronic retailing are ____________.

a) Retailing through television

b) Retailing through internet

c) Both of these

d) None of these

105. The factors which leads the retailers to consider eco-friendly practices are
______.

a) Consumer awareness of eco-friendly goods and practices

b) Consumer readiness to spend more on green and organic products

c) None of these

d) Both of these

106. Retail is a _________ industry

a) People centric

b) Product centric

c) Promotion centric
 d) Service centric

107. Merchandising and buying are often termed as a combination of _________.

a) Art and Science

b) Art and Craft

c) Art and Geography

d) Art and statistics

108. __________ looks at ways of understanding the customers and their behaviour s.

a) Advertising

b) Marketing

c) Market research

d) Retailing

109. The position for store operations include __________.

a) Head of Store Operations

b) Regional Manager

c) District Manager

d) All of these

110. The _____________ retail career area includes all accounting and treasury
functions.

a) Finance

b) Procurement

c) Accounts

d) Treasury

111. ___________ is largely associated with creating he look of the store.

a) Store design

b) Store layout
 c) Visual merchandising

d) Store decor

112. __________ is the integrated management of the flow of materials and products,
services and information from raw material suppliers, through operations, to the fina l
customer and back again.

a) Supply Chain Management

b) Logistics Management

c) Both of these

d) None of these

113. _______ helps in transporting the goods and services between various channels
of a business.

a) Supply Chain Management

b) Logistics Management

c) Both of these

d) None of these

114. The prime area of responsibility withing the retail store lies with the _______.

a) Retail Head

b) Retail Owner

c) Store Manager

d) Regional Manager

115. Retail industry is _______ interactive in nature.

a) Customer

b) People

c) Market

d) Competitor
116. The _________ is responsible for maintaining the overall image of the store.

a) Retail Head

b) Retail Owner

c) Store Manager

d) Regional Manager

117. ________ is often known as procurement manager or buyer.

a) Retail Head

b) Retail Owner

c) Store Manager

d) Merchandising Manager

118. A retail professional who selects the goods sold in stores is _________.

a) Retail Head

b) Retail Owner

c) Store Manager

d) Merchandising Manager

119. Guiding and training the buyers as well as the staff as and when required is the
_______ function of a merchandising manager.

a) Directing

b) Controlling

c) Managing

d) Mentoring

120. The merchandise manager must have a __________ ability to work out budgets
and understand sales figures.

a) Budgeting

b) Mathematical
c) Accounting

d) Financing