MCQs on RETAIL MANAGEMENT

UNIT 1

1. _______ is the end point of distribution channel.

(a) Customer (b) Seller (c) Retailer (d) Manufacturer

2. _______ helps company generate brand awareness when they first open.
(a) Management (b) Marketing (c) Presentation (d) Information

3. Sale of goods or commodities in small quantities directly to consumers is termed as ______.

(a) Selling (b) Marketing (c) Retailing (d) Distribution

4. Reinforcing your brand messages in marketing and backing them up with product and
service quality help generate _______.
(a) Customer loyalty (b) Profit (c) Goodwill (d) Customer satisfactions

5. The ______ has direct links with the manufacturer.

(a) Retailer (b) Customer (c) Private Labels (d) Wholesaler

6. India is expected to become the world’s ______ largest consumer economy.

(a) Second (b) Third (c) Fourth (d) Fifth

7. For ______ retailers a store’s physical layout is an important component in creating retail
experience that will attract customers.
(a) Public based (b) Private based (c) Non-store based (d) Store based

8. Despite the large population that exists in India, a serious shortage of experienced human
resources exists for ______.
(a) Marketing (b) Manufacturing (c) Retailing (d) Advertising

9. _______ will bring about multi-brand selling in the area of retailing.

(a) Franchising (b) Marketing (c) Consolidation (d) Multi-format retailing

10. The traditional format of low cost retailing is called ______ retailing.
(a) Unorganised (b) Organised (c) Convenience (d) Direct

11. The ______ ability helps in brand consistency and moves businesses closer to meeting and
exceeding customer expectations
(a) E-tailing (b) Multi-channel (c) Advertising (d) Organised retailing

12. ______ is the traditional format of retailing.

(a) Organised retail (b) Store retail (c) Direct selling (d) Unorganised retailing

13. ______ store is a large retail store offering wide variety of products under one roof
separated by different departments.
(a) Convenience (b) Departmental (c) Speciality (d) Super Market

14. Stores that offers standard merchandise sold at lower prices with lower margins and higher
volumes are ______ store.
(a) Discount store (b) Super market (c) Speciality (d) Convenience
15. ______ is a self service device that enables customer to perform activities and process
without the aid of store employee.
(a) E-tailing (b) Online shopping mall (c) Kiosks (d) Television shopping

16. Electronic retailing permits ______.

(a) Touch and feel factor
(b) Reduction in setup cost
(c) Point of sale terminal
(d) Visual merchandising

17. ______ retailing is a great enabler for re-modelling retail organisations around the customer,
reinforcing brand and driving sustainable, profitable growth.
(a) Multi- channel retailing
(b) E-tailing
(c) Unorganised retailing
(d) Organised retailing

18. Stores are having narrow product line deep variety viz. apparel store, book store etc.
(a) Super market (b) Departmental (c)Convenience (d) Speciality

19. The retail market is changing and becoming even more competitive and ______ due to
multi-channel retailing.
(a) Profitable (b) Dynamic (c) Complex (d) Profitable

20. ______ has become a key business driver in today’s business.

(a) Information Technology (b) Advertising (c) Franchising (d) Retailing

21. Electronic data interchange was developed in ______.

(a) 1960 (b) 1970 (c) 1980 (d) 1990

22. The material user recruits the ______ process by entering a material request and other
relevant information.
(a) Electronic data interchange
(b) Information technology
(c) E- commerce
(d) E-procurement

23. ______ is the use of electronic and digital equipment for monitoring retail stores in the form
of CCTV equipment
(a) Electronic surveillance (b) RFID (c) EDI (d) FDI

24. ______ is a proven technology for automated data collection needs of the business.
(a) Bar coding (b) EDI (c) RFID tags (d) ESL

25. ______ acts as a means of displaying and managing product pricing and information.
(a) Electronic Data Interchange (
(b) Radio Frequency Identification
(c) Bar-coding
(d) Electronic shelf labels
26. ______ is a form of foreign investment which comes in form of physical set up of plant in the
country where investors wishes to invest.
(a) FPI (b) FII (c) FDI (d) IIP

27. ______ is a right granted to an individual or group to market a company’s goods or services
with a certain territory or location.
(a) Franchise (b) Retail (c) Advertisement (d) Market management

28. ______ is a key enabler to improving customer satisfaction, operational efficiencies and by
extension profitability.
(a) E-retailing (b) IT (c) EDI (d) E-commerce

29. ______ refers to small electronic devices that consists of a small chip and an antenna.
(a) Bar coding (b) Electronic surveillance (c) RFID tags (d) RIFD tags

30. ______ is used in retail supply chain management.

(a) Data mining (b) EDI (c) Database management (d) IT

UNIT 2

31. ______ is a systematic gathering, recording and analysing of data about marketing problems
to facilitate decision making.
(a) Marketing research
(b) Market research
(c) Marketing information
(d) Market management

32. ______ research provides the correct and latest information for arriving at sound marketing
decision.
(a) Market (b) Product (c) Marketing (d) Behaviour

33. The ______ are objectively and accurately gathered, recorded and analysed.
(a) Product (b) Data (c) Information (d) Customer needs

34. ______ psychology is the study of human responses to product and service related
information and experience.
(a) Buyer (b) Consumer (c) Manufacture (d) Retailer

35. ______ characteristics impact how consumers shop and what goods they purchase.
(a) Cultural (b) Social (c) Political (d) Environmental

36. ______ helps in concept identification and exploration .

(a) Market research
(b) Marketing research
(c) Product research
(d) Behavioural research

37. A ______ customer will do mouth publicity and will attract many more towards the product.
(a) Unsatisfied (b) Satisfied (c) Frustrated (d) Delighted
38. ______ approaches the organisation for product or services with certain expectation.
(a) Customer (b) Consumer (c) Manufacture (d) Retailer

39. ______ is business strategies that integrate people, process and technology to optimise the
relation of an organisation with all types of customer.
(a) Campaign (b) CRM (c) Frequent Shopper Program (d) Market management

40. ______ can be referred to all the activities involved in marketing and distribution of good
and services.
(a) Marketing (b) Retailing (c) Manufacturing (d) Producing

41. ______ are part of an overall customer relationship management program.

(a) Frequent program (b) Customer Service (c) Communication (d) Loyalty program

42. ______ management automates and integrates the planning, execution, assessment, and
refinement of possibly of tens to hundreds of highly segmented campaigns that run
monthly, weekly, daily or intermittently.
(a) Campaign (b) Master data (c) Customer analytics (d) Customer Relationship

43. ______ is a tactically driven approach based on customer behaviour.

(a) Customer Relationship Management
(b) Customer Retention management
(c) Customer retention approach
(d) Customer management

44. Customer relationship management is a comprehensive set of _______ and technologies for
managing the relationship with potential currencies customer across the business functions.
(a) Information (b) Service (c) Process (d) Management

45. ______ provides the way to gather lead contact information, house it, use it for
communication purposes and run report on the data researchers have collected.
(a) Point of sales (b) Customer analytics (c) Campaign (d) CRM

46. ______ have provided a low cost alternative to using contact centres for certain kinds of
customer support interactions.
(a) Customer community (b) CRM (c) Customer analytics (d) Customer service

47. A good _____ program can increase the profits of the retailer.
(a) Customer retention (b) Campaign management (c) CRM (d) Frequent shopper

48. The _____ is the market segment toward which the retailer plans to focus its resources and
retail mix.
(a) Strategy (b) Retail format (c) Target market (d) Competition

49. _______ is the design and implementation of a retail mix to create an image of the retailer in
customers mind relative to its competitors.
(a) Positioning (b) Retail format (c) Customer services (d) Loyalty programs
50. A market ______ opportunity involves directing investments towards existing customers
using the present retailing format.
(a) Market segmentation
(b) Market expansion
(c) Diversification
(d) Market penetration

51. A ______ opportunity employs the existing retailing format in new market segments.
(a) Market segmentation
(b) Market expansion
(c) Market generation
(d) Diversification

52. A _______ has many retailers competing with each other less than one roof.
(a) Mall (b) Free standing (c) Downtown area (d) Home based

53. ______ are retail outlets that are owned and operated by consumers for their mutual
benefits.
(a) Retail cooperatives
(b) Self service retailing
(c) Customer cooperatives
(d) Self selection retailing

54. _______ offers standard merchandise sold at lower prices with lower margins and higher
volumes.
(a) Discount store (b) Convenience store (c) Supermarket (d) Speciality store

55. Two or more outlets have common ownership and control, centralised buying and
merchandising operations and similar lines of merchandise are considered _______.
(a) Direct marketing
(b) Franchise organisation
(c) Supermarket
(d) Corporate chain

56. The ______ element breaks down how jobs are grouped together to create departments.
(a) Formalisation (b) Departmentalisation (c) Specialisation (d) Chain of command

57. ______ stores are an inexpensive option but in such a business, growth may be restricted.
(a) Mall (b) Free standing location (c) Downtown area (d) Home based

58. ______ is payment for services rendered to an organisation by an employee.

(a) Incentives (b) Rewards (c) Compensation (d) Performance appraisal

59. ______ suggests how many employees each manager can handle within an organisation.
(a) Span of control (b) Departmentalisation (c) Formalisation (d) Centralisation

60. ______ ensures that each employee has a set of specific duties they are expected to perform
based on their work experience, education and skills.
(a) Departmentalisation (b) Work specialisation (c) Formalisation (d) Centralisation
 UNIT 3

61. _______ helps in sensible presentation of the products available for sale to entice the
customers and make them brand loyalist.
(a) Marketing (b) Advertising (c). Franchising (d) Merchandising

62. _______ to target margins and product mix-accurate management of these can make the
difference between a profit and loss.
(a) Merchandise planning (b). Advertising (c) Company strategy (d) Marketing strategy

63. The primary objective of merchandise planning is ______ improvement.

(a) Sales (b) Customer Relationship (c) Profit (d) Market

64. The first step in merchandise planning is _______.

(a) Determining merchandise requirement
(b) Developing sales forecasting
(c) Assortment planning
(d) Merchandise control

65. Every retail organisation has a ______ which is an indicator of the manner in which product
classification is done.
(a) Merchandise planning
(b) Merchandise assortment
(c) Merchandise hierarchy
(d) Merchandise requirement

66. ______ factors such as development of e-commerce, development of information,

development of internet have brought changes .
(a) Political (b) Organisational (c) Legal (d) Technological

67. _____ is the process of collecting and evaluating data on all aspects of each retail
merchandise category, including sales, costs, shrinkage, profits and turnover.
(a) Merchandise purchase
(b) Merchandise control
(c) Merchandise planning
(d) Organisational buying behaviour

68. ______ is a supplier who forms an alliance with the retailer to enable the latter to develop
consumer insights, satisfy consumers and improve performance and profit across the
category.
(a) Category captain (b) Merchandiser (c) Supplier (d) Manufacturer

69. Authority, Interest and status are the ______ factors affecting the buying decision.
(a) Social (b) Organisational (c) Interpersonal (d) Personal

70. ______ includes the level of demand, economic condition, competition, change in
technology, trade cycle, etc.
(a) Political and legal (b) Organisational (c) Technological (d) Economic
71. ______ act as a margin generator, increasing sales volume by positioning the labels as
providing higher value to consumers.
(a) Franchise (b)Private labels (c) Retailer (d)Merchandiser

72. ______ products enjoy popularity and generate lots of sakes in a short span of time and
later go out of fashion.
(a) Fad (b) Category killers (c) Variety (d) Assortment

73. Advertising agency Young and Rubicam (Y&R) developed a model of brand equity called
______.
(a) NAV (b) VAV (c) CRM (d) BAV

74. The purpose of the business is to maximise profits and therefore, ______ of the products
would have to be done carefully to ensure that the same can be achieved.
(a) Pricing (b) Marketing (c) Formation (d) Advertisement

75. _______ pricing strategy demands continuity of retail prices below the MRP mentioned in
the goods.
(a) Discount (b) Predatory (c) Markdown (d) EDLP

76. ______ pricing is used when prices are set to a certain level where the consumer perceives
the price to the fair.
(a) Vendor (b) Psychological (c) Mark up (d) Prestige

77. ______ allows an organisation to use their resources more efficiently by allowing them to
send publicity material to a named person within there target segment.
(a) Advertising (b) Public Relations (c) Direct mail (d) Personal selling

78. The practice of offering two or more different products or services and one price is called
______.
(a) Markdown (b) Price bundling (c) Multiple unit pricing (d) Rebates

79. A policy of pricing a good or service at different levels for different customers or sakes
events at different times is termed as ______.
(a) Variable pricing (b) Vendor pricing (c) Single unit pricing (d) Prestige pricing

80. ______ pricing is the pricing technique of setting a relatively low initial entry price, a price
that is lower than the eventual market price
(a) Skimming (b) Prestige (c) Markdown (d) Penetration

81. Selling a product service one to one is called _______.

(a) Direct mail (b) Personal selling (c) Interpersonal selling (d) Online selling

82. _______ strategy is where in price of the product is decided as per the different types of
segments in the market.
(a) Segment (b) Psychological (c) Allowance (d) Zone pricing

83. The shipping cost from the factory or warehouse is paid by the _______.
(a) Manufacturer (b) Wholesaler (c) Purchaser (d) Owner
84. ______ involves developing positive relationships with the organisation media public.
(a) CRM (b) Public Relationship (c) Promotions (d) Advertising

UNIT 4

85. ______ is concerned with ensuring that all the activities involved in the storekeeping and
stock control are carried out effectively and economically by those employed in the store.
(a) Store management (b) Store manager (c) Owner (d) Market management

86. A good ______ represents value and a positive store image.

(a) Store features (b) Store layout (c) Store design (d) Product

87. A store ______ is usually divided into two sections: selling area and sales support area.
(a) Layout (b) Interior (c) Exterior (d) Aesthetics

88. ______ layout is the layout in which fixtures and merchandise are grouped into free-flowing
patterns on the sales floor.
(a) Grid (b) Free flow (c) Spine (d) Loop

89. The layout in which counters and fixtures are placed in long rows or runs, usually at right
angles, throughout the store is ______ layout.
(a) Grid (b) Free flow (c) Loop (d) Spine

90. ______ of merchandise refers to various brands in one product line which a retailer carries.
(a) Depth (b) Breadth (c) Space (d) Variety

91. ______ signs indicate store policies and other charitable events.
(a) Location (b) Informational (c) Institutional (d) Promotional

92. ______ planning is an ambiguous description of several facets of retail operation.

(a) Depth (b) Breadth (c) Space (d) Variety

93. ______ refers to the goods or merchandise kept on the premises of a store available for sale
or distribution.
(a) Space (b) Stock (c) Standard (d) System

94. ______ store is located without any competitor store around it.
(a) Part of business district
(b) Freestanding
(c) Shopping centre
(d) Hypermarket

95. ______ is the number of different merchandise categories a retailer offers.

(a) Depth (b) Breadth (c) Space (d) Variety
96. ______ merchandising is the art of presentation, which places the merchandise in focus and
in perception too.
(a) Visual (b) Space (c) Layout (d) Design

97. With an ______ display, the customer is encouraged to feel, look at, and tries on product.
(a) Open (b) Closed (c) Case (d) Ensemble

98. In ______ display, a complete product bundle is presented rather than showing merchandise
in separate categories.
(a) Open (b) Closed (c) Case (d) Ensemble

99. ______ refers to selection of retail shops occupying space in a mall.

(a) Positioning (b) Zoning (c) Facility management (d) Marketing

100. ________ reflects the philosophy of business and the aim to determine the purpose
of the company.
(a) Business ethics
(b) Business management
(c) Business morals
(d) Business prospects

101. ______ enables the retailers to stock the products at the right place and the right
time to attract the customers and prompt them to buy.
(a) Visual merchandise (b) Marketing (c) Planogram (d) Theme setting

102. The ______ is in charge of the employees of the store and he himself may report to
a district or Area manager or the store owner.
(a) Store manager (b) Retail manager (c) Merchandiser (d) Logistics manager

103. A ______ display exhibits heavier, bulkier items than the rocks rocks hold.
(a) Open (b) Closed (c) Case (d) Ensemble

104. ______ refers to the design on an environment through visual communication,

lights, colour, scent, etc.
(a) Theme setting display
(b) Visual merchandising
(c) Atmospheric display
(d) Planogram

105. ______ is at the entry level post of retail business.

(a) Retail manager
(b) Store manager
(c) Visual merchandiser
(d) Customer sales associate
106. Retail business need to obtain, ______ registration form from the state sales tax
department.
(a) VAT (b) PDT (c) Labour form (d) VTA

107. A _____ display depicts a product offering in a thematic manner and sets a specific
mood.
(a) Visual merchandising
(b) Theme setting
(c) Planogram
(d) Rack display

108. Visual merchandising and store design plays important role in _______.
(a) Store advertising
(b) Marketing
(c) Store layout
(d) Store interiors

109. _______ enables fast cashiering and an efficient customer checkout while effectively
capturing customer data and storing information for integration.
(a) Manager back end operations
(b) Warehouse manager
(c) Customer sales associate
(d) Visual merchandiser

110. _______ is the presentation of products in order to sell them.

(a) Theme setting (b) Display (c) Marketing (d) Presentation

111. A good ______ should have good knowledge about the product, the shop,
customers etc.
(a) Store Manager (b) Retail manager (c) Sales person (d) Owner

112. The person who selects and buys the good for the retail shop os called ______.
(a) Retailer (b) Retail manager (c) Retail buyer (d) Warehouse manager