Retail Management Multiple Choice Questions and Answers pdf for MBA, BBA, and other marketing Management distance and regular courses.
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Retail Management Multiple Choice Questions and Answers
1. Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. (True / False)
2. The word ‘retailing’ has come from the French word ‘Retailer’ which means to cut off a piece. (True / False)
3. Retailers perform specific activities such as anticipating customer wants, developing assortments of products, acquiring market information, and financing. (True / False)
4. The function performed by retailers or wholesalers in which they receive large quantities of merchandise and sell them in small quantities is called ___.
Ans. Bulk Breaking
5. ___ provide a limited variety and assortment of merchandise at a convenient location in a 2000–3000 sq. ft. store with speedy check-out facilities.
Ans. Convenience stores
6. Examples of supermarkets are Subhiksha, Reliance Fresh, Food world, Food bazaar, and Nilgiri’s. (True / False)
7. ___ comprises of several product lines, typically clothing, home furnishings, and household goods, with each line operated as a separate department managed by specialist buyers or merchandisers.
Ans. Departmental Stores
8. ___ are retailers that provide the online facility of buying and selling products and services via the internet.
9. Give any one example of a hypermarket in India.
Ans. Star India Bazaar
10. Retail industry is one of the largest industries in India, with an employment of around 8% and contributing to over 10% of the country’s GDP. (True / False)
11. Retailing also helps to create a place, time, and possession utilities. (True/ False)
12. Retailers participate in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for sale. (True / False)
13. ___ is the understanding of how consumers make decisions to use their resources such as time, money, and effort for buying, using, and disposing of goods and services.
Ans. Consumer behavior
14. An accurate understanding of consumer needs helps the retailer sell the product that is likely to be successful in the market. (True/False)
15. Retailers need to know the various influences that lead up to a purchase, not just the store where the purchase is made. (True/False)
16. The influence of culture on buying behavior varies from place to place and therefore marketers and retailers have to be very careful in analyzing the culture of different groups, regions, or even countries. (True/False)
17. Buying decision of each person will be influenced by his/her role and status in society. (True/False)
18. ___ step of decision making arises when the consumer becomes aware of his need for a particular product or service.
Ans. Problem recognition.
19. ___ involves listing alternatives that will solve the problem at hand and a determination of the characteristics of each.
Ans. Information search.
20. The ___ act involves the exchange of money or a promise to pay for a product or support in return of ownership of a specific good.
21. Customers engaged in habitual problem solving spend very little time searching for information and evaluating alternatives. (True/False)
22. Limited consumer decision-making takes place when a consumer uses each of the steps in the purchase process but does not spend a great deal of time on any of them. (True/False)
23. ___ occurs when the consumer buys out of habit and skips steps in the process.
Ans. Routine consumer decision-making.
24. ___ refers to basic directional decisions and consists of the important actions necessary to realize these directions in order to gain sustained competitive advantage.
25. According to management guru Michael Porter, “strategy means choosing a different set of tasks to deliver a unique mix of value”. (True / False)
26. In ___ strategy a firm believes that there exist ample opportunities by exploiting its current products and current markets.
Ans. Market penetration
27. Expansion through ___ strategy involves the development of new or improved products for its current markets.
Ans. Product development
28. ___ is comprised of the activities related to selling products directly to consumers through channels such as stores, malls, kiosks, vending machines, or other fixed locations.
Ans. Retail marketing
29. Finding the correct marketing mix is an important part of positioning the retail outlet to be distinguished from the competitors. (True / False)
30. The different products that the store offers are termed as merchandise mix. (True / False)
32. Location is typically the prime consideration in a customer’s store choice decision. (True / False)
33. A ___ is an environment that allows buyers and sellers to trade or exchange goods, services, and information.
34. ___ are the markets for products and services bought by individuals for their own or family use.
Ans. Consumer markets
35. ___ is defined as the process of splitting customers, or potential customers, in a market into different groups, or segments, within which the customers share a similar level of interest in the same or comparable sets of needs.
Ans. Market segmentation
36. Market segmentation allows in designing services that meet the potential market demand and needs. (True / False)
37. Retail location affects transportation costs and human resources costs. (True/False)
38. The retailer considers the number, size, and quality of competition before selecting a location. (True/False)
39. Type of goods to be sold is a major factor that helps while considering the location decision. (True/False) Ans. True.
40. Typically the rent in a mall location is lesser than other retail locations (True/False)
41. A shopping center or shopping arcade is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit. (True/False)
42. A ___ is a retail location that is situated on the major traffic artery, without any other competitive retailers nearby.
Ans. Freestanding or isolated store location.
43. The first step in arriving at a decision on retail location is ___.
Ans. To identify the markets attractive and suitable for a retailer.
44. In order to determine the market potential, it is necessary to check the compatibility of the retail store with the neighboring retail outlets in an area. (True/False)
45. Customer attrition is one of the ways to measure the success of the retail location. (True/False)
46. The three components of the merchandise mix are merchandise variety, merchandise assortment, and merchandise ___.
Ans. Merchandise support
47. Planning, controlling, coordinating, and directing are the ___ of a merchandising manager.
48. The factors that influence merchandising are organization structure, size of the organization, competition analysis, merchandising mix, and ___.
Ans. Target market
49. The four steps in the buying process are gathering product information, searching merchandise suppliers, negotiating with selected suppliers, and ___.
Ans. Placing the order
50. The three stages of merchandise planning are developing sales forecast, determining merchandise requirement, and ___.
Ans. Merchandise inventory planning
51. The components of merchandising management are merchandise planning, merchandise analysis, merchandise control ___, and merchandise handling.
Ans. Merchandise acquisition
52. The two types of buying systems are stapled merchandise buying systems and ___ merchandise buying systems.
Ans. Fashion merchandise buying systems
53. Buying systems influence sales volume, gross margins, markdowns, and ___.
Ans. Stock levels
54. The two commonly used methods to analyze merchandise performance are sell-through analysis and ___.
Ans. ABC analysis
55. Basic stock method, percentage variation method, stock to sales ratio method, and stock turnover rate are the four methods of ___.
Ans. Merchandise inventory planning
56. The levels of planning merchandise are creating merchandise budget and ___ plan.
Ans. Assortment Plan
57. An important task of store administration involves ensuring that all the required permissions and licenses to run a retail establishment are procured from the right authorities. (True/False)
58. Managing store operations require integration among various functions within the store. (True/False)
59. ___ is necessary in order to ensure that miscreants do not spoil the retail store assets.
Ans. Security of the premises.
60. The size of the retail store and the level of operations determine the size and level of security required. (True/False)
61. ___ is the process and methods used to keep track of the stock in a retail business.
Ans. Retail inventory management.
62. An integral part of managing retail inventory at the store level is to display merchandise correctly. (True/False)
63. The ___ must see to it that each individual is adequately trained to excel in their job and supervise the work that they do throughout their employment at the store.
Ans. Retail store manager.
64. Managing receipts involves defining the manner in which the retailer is going to receive payment for the sales. (True/False)
65. The main objective of retail space management is to increase productivity by effective utilization of space for merchandise display and customer movement. (True/False)
66. The basic principles of store design require that the image being created is in tune with the merchandise, the advertising, and the service offered by the store. (True/False)
67. ___ is also sometimes called a signboard.
Ans. Store marquee.
68. Store marquee helps the retailer in identifying the store and in attracting customers and it is an integral part of the building façade. (True/False)
69. ___ describes the physical elements in a store design that appeals to consumers and encourages them to buy.
70. ___ refers to the interior retail store arrangement of departments or groupings of merchandise
Ans. Store layout.
71. Mention the types of store layouts.
Ans. Grid layout, Diagonal layout, loop layout, and free form layout.
72. ___ is the presentation of a store and its merchandise in ways that will attract the attention of potential customers, prompt them to buy, and eventually increase the sales of the store.
Ans. Visual merchandising.
73. The tools used for visual merchandising should help in attracting these five senses – sight, smell, sound, touch, and taste. (True/False)
74. ___ is the place where a customer is about to buy the product.
Ans. Point of Purchase (POP).
75. The primary purposes of fixtures are ___.
Ans. To efficiently hold and display merchandise.
76. The increased growth of markets has led to an increased size of retailers and intensified competition. (True/False)
77. The contribution of retailing can be measured in terms of its proportion to the GDP, the total workforce it employs across the globe. (True/False)
78. The Indian Retail industry has over 12 million outlets, which is the largest number of retail outlets in the world. (True/False)
79. The boom in retailing in India has been mainly observed in the urban markets. (True/False)
80. Retailing methods in India are primarily in the form of ___.
Ans. Supermarkets, hypermarkets, and departmental stores.
81. Reliance, Tata group, Pantaloons, and Shoppers stop are some of the retail giants present in India. (True/False)
82. A single-level large store that usually occupies a floor space of more than 5000 square feet selling food and non-food goods is known as a ___.
83. A multi channel retailer sells merchandise.
c) Not applicable
d) None of the above
Ans. a) True
Explanation: A multi-channel retailer uses multiple channels (such as physical stores, online platforms, mobile apps, etc.) to sell merchandise to customers, providing various options for shopping.
84. Activities performed by retailers include:
a) Procurement of raw materials
b) Product Manufacturing
c) Inventory management
d) Advertising agency services
Ans. c) Inventory management
Explanation: Retailers manage inventory to ensure they have the right products in stock and at the proper levels to meet customer demand.
85. Functions of retailing management encompass:
a) Production planning
b) Financial auditing
c) Supply chain management
d) Store layout and design
Ans. d) Store layout and design
Explanation: Store layout and design is one of the functions of retailing management, as it focuses on creating an attractive and efficient shopping environment for customers.
Download multiple choice questions on online shopping and retail Mgm
FAQs on Retail Management and Online Shopping
Q1. What is a multi channel retailer, and what do they sell?
Answer: A multi channel retailer sells merchandise through various channels such as physical stores, online platforms, mobile apps, and more, offering customers diverse ways to make purchases.
Q2. What are some everyday activities performed by retailers?
Answer: Retailers engage in activities like inventory management, product sourcing, pricing, marketing, customer service, and creating appealing store displays.
Q3. What are the critical functions of retailing management?
Answer: Retailing management involves store operations, merchandising, sales management, customer relationship management, and strategic planning.
Q4. Why is retailing management critical?
Answer: Retailing management is crucial as it ensures effective operations, customer satisfaction, proper inventory control, and strategic decision-making for retail businesses.
Q5. Can you provide an introduction to retail management?
Answer: To achieve business objectives, retail management involves overseeing various aspects of retail operations, including sales, marketing, merchandising, and customer service.
Q6. Define a retailer and its role.
Answer: A retailer is a person or business entity that sells goods directly to consumers, typically in small quantities, often through a physical store or an online platform.
The retail management multiple choice questions and answers pdf is a valuable resource for anyone interested in expanding their knowledge of retail management principles. Whether you are a student studying for an exam or a professional looking to enhance your skills, this comprehensive guide covers all essential topics in the field.
By understanding the concepts presented in this pdf, you will be better equipped to make informed decisions and succeed in the fast-paced world of retail management. So why not take advantage of this resource today? Share it with your friends and colleagues on social media and help spread the knowledge!