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Retail Marketing -1

Total questions: 28

Worksheet time: 28mins

Name
Class
Date
1.

Retailing is defined as :

a)

any exchange of cash and/or credit for goods or services between channel members

b)

a fairly stable and unchanging industry that has a major impact on society

c)

the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer

d)

the sale of any good or service by the producer to a channel member

e)

the activities and steps needed to transfer goods and/or services between channel members

2.

One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. This shift in power is derived from :

a)

the ability of consumers to purchase from retailers in other countries as a result of the Internet

b)

the inability of Internet retailers to compete with more traditional bricks-and-mortar retailers

c)

the loss of control of pricing information by retailers due to the information dissemination capabilities of the Internet

d)

the lack of competition in e-tailing

e)

the decreased power of consumers when transacting and negotiating with retailers

3.

Discretionary Income can be defined as :

a)

Take-home pay

b)

money left over after paying taxes and buying necessities

c)

Take-home pay after adjustments for inflation

d)

Take-home pay indexed to a base year

4.

________is marked by many retailers, all selling very similar products with ease of entry for both buyers and sellers.

a)

Oligopolistic competition

b)

Level competition

c)

Fair competition

d)

Pure competition

e)

Pure profit competition

5.

Which of the following external forces does not have a major influence on the supply chain :

a)

Technological environment

b)

Employee morale

c)

Legal environment

d)

Consumers

e)

Behavior of Competition

6.

A supply chain structure where a manufacturer sells its goods directly to the final consumer or end user is termed a(n):

a)

direct channel

b)

indirect channel

c)

localized channel.

d)

un-diverted channel.

e)

limited channel

7.

Which of the following is NOT a primary area of accountability for a Store Manager?

a)

Research and long-term planning of the merchandise that will be sold in the store.

b)

Selling and service standards to ensure customers are satisfied.

c)

Ensuring that customers receive the right products at the right time and that they are displayed appropriately.

d)

Training employees to prepare them with product knowledge, selling and service skills.

e)

Making sure the sales floor is recovered, damaged goods are returned, and safety and loss prevention standards are in place.

8.

A large box in which products for sale are kept on the shop floor?

a)

Bricks and mortar store

b)

Catchment

c)

Aisle

d)

Bin/Display Bin

e)

In-store display

9.

Endcaps in retailing refers to :

a)

Racks placed near the checkout to encourage impulse buying

b)

Display of products placed at the end of an aisle in a store

c)

Extra items offered to the customer when purchasing promoted products

d)

Promotional fixtures of displays that seek to generate traffic, highlight individual items, and encourage impulse buying

10.

(a)   is the average number of times each person who is reached is exposed to an advertisement during a given time period.

11.

Optimal Merchandise mix is made up of three factors - Depth, Breadth and (a)   .

12.

Average number of stock-keeping units within each brand of the merchandise line is referred as

a)

Depth

b)

Consignment

c)

Breadth

d)

BOM

13.

_________ is the dividing of a heterogeneous consumer population into smaller, more homogeneous groups based on their characteristics.

a)

Target marketing

b)

Market segmentation

c)

Operations management

d)

Customer Satisfaction

e)

Customer Services

14.

Market share is a popular measure of which kind of objective?

a)

Market performance

b)

Financial performance

c)

Competitiveness

d)

Societal service

15.

Financial performance objectives can be broken into two categories:

a)

marketing objectives and operating objectives

b)

administrative objectives and financial strategy objectives

c)

human performance objectives and information objectives

d)

profitability objectives and productivity objectives

e)

seasonal objectives and general operating objectives

16.

A retailer buys a product for Rs 30 and sells it for Rs 50. What is the markup percentage, if the markup is based on cost.

a)

33%

b)

40%

c)

67%

d)

80%

17.

Reductions in the price of an item that are taken in order to stimulate sales are termed :

a)

maintained price cuts

b)

promotional price cuts

c)

shortages

d)

markdowns

e)

initial price cuts

18.

Markdown percentage is calculated by:

a)

dividing the amount of the reduction by the original selling price

b)

dividing the amount of the reduction by the original cost

c)

dividing the amount of the reduction by the price after the markdown

d)

dividing the amount of the reduction by difference between the cost and the original selling price

e)

dividing the amount of the reduction by the net sales

19.

In order to expand its trading area, a retailer should _________ its merchandise.

a)

lower the prices of

b)

reduce the promotional activities associated with

c)

increase the prices and promotion of

d)

reduce its services and increase promotion

20.

Skimming strategy will work best for a retailer when-

a)

competition is high because it "skins right above the retailer's costs

b)

revenues are equal to expenses

c)

the retailer has a temporary monopoly with its product line

d)

the retailer has excess capacity in its building

e)

demand is less than supply

21.

What Type of Retail Store Layout is this?

a)

Grid

b)

Free Flowing

c)

Spine

d)

Loop

22.

Choose the Correct answer : A Planogram

a)

Illustrate how and where a retailer’s merchandise should be displayed on the shelf

b)

Is a strategic retail planning module

c)

A software used for merchandise planning

d)

None of the above

23.

Merchandise that cannot be accounted for due to theft, loss, or damage is also called

a)

Shoplifting

b)

Shrinkage

c)

Employee Fraud

d)

Inventory turnover

24.

A Computerized system used for store site selection that combines physical geography with cultural geography is also called:

a)

Trading Area

b)

Topographic mapping

c)

Geographic Information System

d)

Retail Management System

25.

One of the characteristics of Oligopolistic competition is:

a)

relatively many sellers

b)

only one market leader who conquers the industry

c)

Many small firms that follow the lead of a few large firms

d)

Any action by the one or two firms is noticed and reacted by others

26.

Which method of Merchandising Planning uses this formula:

Beginning Of Month (BOM) stock = Average stock for season X ½[1 + (Planned sales for the month/Average monthly sales)]

a)

Basic Stock Method (BSM)

b)

Percentage Variation Method (PVM)

c)

Weeks’ supply method

(WSM)

d)

Stock-to-sales method

(SSM)

27.

Non-paid-for communications of information about the company or product, generally in some media form is called:

a)

Publicity

b)

Advertising

c)

Sales Promotion

d)

Search Engine Marketing

28.

Horizontal cooperative advertising is defined as:

a)

Spreading the costs of current and future advertising campaigns over several channels

b)

The manufacturer subsidizes some of the retailer’s advertising

c)

A relatively low-cost, integrated marketing-communications mix

d)

Two or more retailers band together to share the cost of advertising in the form of a joint promotion of an event or sale that would benefit both parties