MODULE 1 MCQs

1. The concept of retail ecology refers to the study of:

a. prevailing competition in the retail sector
b. retail spaces and shoppers interaction with specific environments
c. trends and best practices
d. legal environment and sources of finance

2. The word “retail” has been derived from which word?

a. Latin
b. French
c. Greek
d. Persian

3. Who is the last link in the chain connecting the producer and customer?
a. wholesaler
b. agent
c. retailer
d. storekeeper

4. Internet marketing and telemarketing are the recent trends in ……….. business
a. retail
b. wholesale
c. conventional
d. manufacturing

6. Which of the following is one of the key drivers of Indian e‐commerce market?
a. Higher cost of operating department and discount stores
b. Enhanced Internet security and encrypted payment process
c. Increased broadband subscribers and growth of smartphone users
d. Lifestyle changes

7. In the distribution channel ………….has the direct touch with consumers.

a. producer
b. wholesaler
c. agent
d. retailers

8. MRP stands for.

a. minimum retail price
b. maximum retail price
c. minimum rate of profit
d. d .maximum rate of profit

9. No middle men is involved in –

a. wholesale trade
b. retail trade

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 c. direct marketing
d. indirect marketing

10. Which of the following statement about retail marketing is true?

a. sells products to other businesses
b. sells products to a company that resells
c. them
d. sells products to final consumers
e. sells products for one's own use

11. Which of the following is the primary cause of growing significance of retail business in
India over the recent years?
a. Consumers’ need for greater variety of products and freedom of choice
b. Increased imports from other emerging markets
c. Rapid growth of the service sector
d. Cheaper cost of production

12. The theory of retailing that explains retail evolution with an institutional life cycle
concept is
a. retail life cycle theory
b. retail accordion theory
c. central place theory
d. wheel of retailing theory

13. Which of the following is the most crucial aspect for a successful logistics system of e-
retailers?
a. Faster delivery
b. Lower per unit delivery cost
c. Supply chain management
d. Pin‐code based delivery

14. Which of the following is considered as a major challenge in airport retailing?

a. Replenishment
b. Conversion rate
c. Providing duty‐free products
d. Customer perception

15. Which of the following is a characteristic of manufacturer–retailer form of franchising?

a. Sharing of ownership
b. Specific packages
c. Parent–Subsidiary relationship
d. Exclusive stocking of brand

16. Which of the following is the most important strategic factor to be considered by a
prospective lessee in a shop‐in‐shop format?
a. Quantum of customer traffic to the existing store
b. Character of customer traffic flow and the target market of the planned shop

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 c. Operational flexibility offered to lessees
d. Location of the existing store

17. In India, the shift towards planned‐out leisure shopping by customers is likely to be the
determining factor for the success of
a. retail chains
b. supermarkets
c. speciality stores
d. hypermarkets

18. Which of the following is the most encouraging development in health and wellness
segment of retail in India?
a. Captive retailing
b. Consultancy services
c. Round‐the clock retail pharmacies
d. Free medical insurance

19. Which of the following highlights the maturity of the retailing sector?
a. Increase in demand for convenience products
b. Wider penetration of retail network in rural areas
c. Redesigning of retail mix by traditional retailers
d. Focus on experiential aspects of shopping

20. Which of the following segments is likely to offer the biggest opportunity for growth in
the organized retail business in India?
a. Clothing and textile
b. Mobile and telecom
c. Consumer electronics
d. Food and grocery

21. Which of the following is a major constraint in the growth of large retail formats in
metros?
a. Lack of space and high rentals
b. Customer shift towards online shopping
c. Government regulations
d. Customer preference to nearby stores or marts due to traffic congestion

22. Big Bazaar‟s tagline „Sabse sasta sabsa achaa‟ emphasizes this store dimension
a. post‐transaction satisfaction
b. suitability of merchandise
c. value for price
d. congeniality

23. Which of the following refers to a purchase decision that does not involve any conscious
planning?
a. Programmed behaviour
b. Limited decision‐making

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 c. Impulse buying
d. Repeat purchase

24. Multiple shops are also known as –

a. self service stores
b. chain stores
c. shopping by post
d. departmental stores

25. There are no shop assistants in a

a. super bazaar
b. departmental store
c. multiple shop
d. second shop

26. Shopping malls, super markets and hypermarkets come under which type of
marketing?
a. wholesale
b. retail
c. direct marketing
d. agent service

27. A multi channel retailer sells merchandise

a. over telephone
b. through retail stores
c. over internet
d. over more than one channel

28. E-retailing refers to

a. sales of electronic items
b. catalog shopping
c. computerized store
d. retailing and shopping through internet

29. Mail order retailing is the same as:

a. Direct selling
b. In Home retailing
c. E-tailing
d. Catalog retailing

30. All of the following are types of non store retailing, except
a. Catalog retailing
b. Vending Machines
c. Chain store
d. Direct Mail

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31. Independent retailers who use a central buying organization and joint promotional
efforts are called a
a. merchandising conglomerate
b. corporate chain store
c. retailer cooperative
d. voluntary chain

32. A retail firm owned by its customers in which members contribute money to open their
own store, vote on its policies, elect a group to manage it, and receive dividends is called a
a. corporate chain store.
b. merchandising conglomerate
c. voluntary chain
d. consumer cooperative

33. Giant retailers called _____ concentrate on one product category such as toys or home
improvement
a. Category killers
b. Variety stores
c. supercentres
d. box stores

34. Retailers such as Benetton, The Body Shop, and Marks and Spencer carry mostly own
brand merchandise. These are called _____ brands
a. creative label
b. private label
c. house
d. retail label

35. Retail industry in India is facing challenges in gaining right mix of talent. Which of the
following development is a positive indication with respect to skill requirements of retail
industry?

a. Regular and long-distance courses on retail management

b. High number of business management graduates
c. Availability of internal talent
d. More focus on job design by retail industry

36. Which of the following is the common form of decision-making in large retail chains?

a. Main store control

b. Decentralized merchandising decisions
c. Separate store organization
d. Equal store organization
37. Which of the following best describes the human resource management function in small
retail organizations?

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 a. Handled by an exclusive human resource manager
b. Handled by a senior manager
c. Some HR function is performed by all supervisors and managers
d. Team Leaders are responsible for the HR aspect of their teams

38. What does RFID stand for?

a. Radio Frequency Issue Date
b. Radio Frequency Identification
c. Rear Field Identification
d. Real Far Identification

39. What does EDI stand for?

a. Electronic Data Interchange

b. Electronic Document Interchange
c. Electric Document Interchange
d. Engineering Data Interchange

40. With respect to consumer behaviour, one's friends and relatives could be considered
a/an:

a. impersonal influence.
b. reference group influence.
c. perceptual influence.
d. institutional influences.

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 MODULE 2 MCQs
1. A cluster of stores usually located on a major intersection of the city is a

a. secondary business district

b. neighbourhood business district
c. central business district
d. regional business district

2. Which of the following best describes the visibility factor for a retail store?

a. Importance is limited to initial visits

b. Helps attract new residents in the locality and customers beyond trade area
c. Varies in importance with location
d. Does not have any impact on sales

3. Which of the following is a criticism of various models of land value theory?

a. The more central the location, the more desirable will be the plot, which will attract
higher price.
b. The bid rent demand from retailers may fall as distance increases.
c. Retailers do not face any legal or social constraints and their ability to pay rent
determines a systematic retail pattern.
d. Free market concept in property does not exist and non-economic forces have an
impact on individuals who are not necessarily fully informed

4. Which of the following best describes the basic assumptions of the central place theory?

a. Location of the store is the differentiating factor characterized by single-purpose

shopping trips
b. Location of the store is the differentiating factor characterized by multi-product shopping
trips
c. Price, quality, location, and image are equally critical factors
d. Location of the store and rent-paying ability

5. The oldest and most heavily trafficked city area is called

a. regional shopping center
b. prime location
c. urban district
d. Central business district

6. Which of the following best describes open-to-buy?

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 a. It refers to the quantity of merchandise a store should receive into inventory during
a month to keep inventories in line with sales plan.
b. It refers to the flexibility of retailer in acquiring new merchandise.
c. It refers to the quantity of merchandise a retailer should set aside to meet sudden rise in
demand.
d. It refers to the willingness of the retailer to take advantage of special offers.

7. Which of the following provides guidelines on size, colour, brand, and composition of the
stock?

a. Inventory planning
b. Merchandise specialization
c. Merchandise analysis
d. Model stock planning

8. The Sarafa Bazaar in Indore is famous for jewellery from morning to late evening and
food street in the night. This is an example of

a. merchandise specialization
b. situation effect
c. merchandise customization
d. merchandise mix

9. Which of the following is the purpose of installing anti-push out technology by retailers?

a. Tracking customer usage of goods

b. Preventing store break-ins
c. Tracking employee movement inside the store
d. Preventing shopping carts from leaving the retail store area

10. Which of the following is a major constraint in the use of technology by retail stores in
India?

a. Lack of skilled technical personnel

b. Customer concerns on use of technology
c. High costs
d. Incompatible store formats

11. A surprise audit at ABC Retail by the management revealed that weight of some of the
food products is less than that mentioned on the packages, which appear to be tampered.
Which of the following is likely in this case?

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 a. Evaporation
b. Pilferage
c. Shoplifting
d. Faulty weighing machine

12. Which of the following is an advantage of prototype stores?

a. Creativity
b. Easier adaptation to local needs
c. Bulk purchase of fixtures
d. Flexible operational procedures

13. Large malls have several levels of underground parking. Which of the following is
crucial to ensure regular visits by customers in case of large malls?

a. Elevator or escalator facility from the parking area

b. Spacious parking
c. Advertisements in the parking lot
d. Free parking

14. Which of the following are determinants of lighting in a retail store?

a. Storage image and positioning

b. Product offered
c. Product offered, store image, and positioning
d. Format of retail store

15. Which of the following would aid the customers most in locating their required
merchandise in a large department store?

a. Brochures and offer pamphlets

b. Signage at prominent places with information regarding product availability at
different levels
c. Displays of different branded items available in the store
d. Customer service desk

16. Customers are likely to expect comfortable space and less interference while selecting a
product in a

a. traditional grocery store

b. medical store
c. modern retail outlet in a shopping centre

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 d. large mall

17. Which of the following is an advantage of racetrack layouts in retail stores?

a. Encourages impulse purchases

b. Needs less investment
c. Requires simple design
d. Ensures frequent visits

18. L&K Fashion plans to open a new specialty retail store in a metro city. Which of the
following would you recommend to L&K Fashion regarding visual merchandising as a
retail store consultant?

a. Incorporate visual merchandising at the store entrance alone

b. Incorporate visual merchandising while designing the floor plan
c. Use visual merchandising as an additional attraction at a later stage
d. Use of visual merchandising as an avoidable expense

19. Which of the following is the major cause for increased focus on display and attractive
interiors by eating joints in India?

a. Reduction in prices of fixtures used for display

b. Change in customer tastes and preferences
c. Increased competition and entry of international players in fast food retailing
d. Lack of variety in menu offered by eating joints

20. Which of the following is used to emphasize specific merchandise, add excitement, and
attract attention to the merchandise

a. Window signs and banners

b. Sales tags
c. Ambient lighting
d. Track lighting

21. Which of the following are the measures of success of a retail unit?

a. Sales and profitability

b. Time spent by customers in the retail outlet
c. Sales

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 d. Number of footfalls

22. Which of the following is an aspect of effective merchandise wall plan?

a. Placing heterogeneous products together to encourage impulse buys

b. Using displays to fill void and bare species
c. Placing slow-moving items close to the front for more customer views
d. Placing new items at a lower level

23. Which of the following is the correct description of colour schemes?

a. A neutral colour can be combined with colour from any of the groups
b. A neutral colour can be only combined with another neutral colour
c. Colours from various groups can be combined together
d. Colours of same intensity blend harmoniously

24. ……………………refers to the interior retail store arrangement of departments or groupings of

merchandise.

a. Visual Merchandising
b. Atmospherics
c. Store Layout
d. Display

25. Which type of store layout facilitates planned shopping behavior?

a. Free form layout

b. Grid layout
c. Racetrack layout
d. Storeyed layout

26. …………………….. is the presentation of a store and its merchandise in attractive and appealing
manner that will attract the attention of potential customers and boost sales activity.

a. Atmospherics
b. Visual Merchandising
c. Layout
d. Assortment

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27. A ………………………….. has been found very useful in organizing a coordinated display as it
provides a schematic drawing of fixtures that illustrate product placement.

a. Planogram
b. Gondola
c. Display rack
d. Dump bin

28. A …………………………… is a freestanding fixture used by retailers to display merchandise.

a. Dump Bin
b. Gondola
c. Track light
d. Planogram

29. A ……………………………….. is merchandise displayed by being dumped or heaped in a pile,

usually in a bin or on a table.

a. Slatted wall
b. Gondola
c. Dump Display
d. Mannequin

30. A ……………………. is a dummy model of a human form used to display clothes in a store or
store window.

a. Grid wall
b. Mannequin
c. Black push velvet countertop
d. Fixture

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 MODULE 3 MCQs
1. Which of the following is a major disadvantage of an umbrella branding strategy?
(a) Clubbing of different products, which if operated separately may generate more value
(b) Negative image of one product may influence the customer perception of other
products of the brand
(c) Challenge of gaining wide acceptance
(d) Common inventory policy

2. Which of the following is the most likely determining factor for success of private
labels?
(a) Price differentiation
(b) Quality differentiation and perceived quality
(c) Shelf placement
(d) Packaging style

3. Which of the following is indicative hottest trend in retailing?

(a) Emergence of new premium private labels
(b) Competitive pricing strategy
(c) Multi-channel marketing
(d) Increasing mergers and acquisitions

4. A retailer is likely to seek price guarantee when

(a) the store starts operating in a new location
(b) substitutes of a product are easily available
(c) suppliers or products are new
(d) the stock turnover is high

5. Which of the following refers to establishing prices of merchandise to drive

competition away from the marketplace?
(a) Predatory pricing
(b) Horizontal price fixing
(c) Vertical price fixing
(d) Cartel pricing

6. Which of the following is characterized with higher operating costs and lower
inventory?
(a) At-the-market orientation
(b) Upscale orientation
(c) Discount orientation
(d) Penetration pricing

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 7. Which of the following is crucial for success of price skimming strategy?
(a) Inelastic demand curve
(b) Elastic demand curve
(c) High number of competitors
(d) Highly competitive environment

8. Modern Trends, a retail clothing store is contemplating reduction in prices of its

offerings to tackle competition. After an analysis, the store felt that demand for
Den-M jeans is unlikely to change on price reduction. Which of the following can be
inferred regarding Den-M jeans?
(a) Price-elastic product
(b) Availability of substitutes in the market
(c) Price-inelastic product
(d) Branded product

9. Food Street, a fast food restaurant reduced prices of its new offering Burger-cum
pizza after the first month to induce customers to try the product. Which of the
following can be inferred on the markdown used by the restaurant?
(a) Operational markdown
(b) Correctional markdown
(c) Promotional markdown
(d) Temporary markdown

10. A retailer be able to use pre-emptive pricing

(a) in a restricted market
(b) where retailer enjoys market privilege
(c) when it is easier for new retailers to enter the market
(d) where substitutes are not available

11. Which of the following is a disadvantage of penetration pricing?

(a) Low stock turnover
(b) Discourages entry of new competitors
(c) Higher prices
(d) Creates long-term low price expectation

12. Anil is a salesperson of HomeNeeds, a retail chain dealing in FMCG goods. While
Anil was convincing in the product presentation to one of the prospective clients, he
was not inclined to listen and was avoiding queries. Which of the following forms of
objection is this barrier likely to create?

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 (e) Stalling
(f) Misunderstanding
(g) Arrogance
(h) Scepticism

13. Which of the following is usually a major advantage of sales promotion?

(e) Long-term impact
(f) Attracting customer traffic and maintaining loyalty
(g) Low advertising costs
(h) No adverse reactions

14. Promotions on high-margin goods is usually intended to

(e) increase the number of transactions
(f) enhance goodwill
(g) generate impulse buys
(h) increase the size of the average sale

15. Which of the following refers to the advertisements placed in radio, newspapers, or
outdoor sites?
(e) Spot buys
(f) National buys
(g) Local buys
(h) Special buys

16. Fortune Retail intends to promote its stores on a media vehicle that provides full
control, high selectivity, and interactive opportunities. Which of the following option
meets the chain’s criteria?
(e) Brochures
(f) Magazines
(g) Internet
(h) Newsletters

17. Gen X, a speciality retail clothing chain chose a targeted audience or event to
promote the clothing range as well as gain publicity. Which of the following is the
likely medium chosen by the company?
(e) Sponsorship
(f) Advertorial
(g) Infomercials
(h) Newspapers

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 18. The sales effectiveness of advertising is measured by
(d) attitude change test
(e) historical or experimental approach
(f) readability studies
(g) response tests

19. Book fairs are organized every year in different cities wherein various publishers
purchase the required stalls to promote their products. This is an example of
(a) vertical cooperative advertising
(b) corporate advertising
(c) informative advertising
(d) horizontal cooperative advertising

20. GMROI is
(a) Gross Margin Return On Investment
(b) Gross Margin Retail Of Inventory
(c) Gross Margin Return On Inventory
(d) Gross Margin Retail On Investment

21. The financial ratio that is useful for planning and measuring/evaluating
merchandise performance is a return on investment measure called
(a) ROI
(b) GROI
(c) GMROI
(d) ROA

22. The smallest unit for making inventory control decisions is called
(a) SKU
(b) Category
(c) Assortment
(d) Classification

23. Brand loyalty, brand assets, brand awareness, brand association and perception are
all elements of………….
(a) Retail organization
(b) Retail marketing
(c) Retail brand equity
(d) Retail formats

24. Which type of private label brands generate significant process-related savings
compared to the traditional retailer?
(a) Generics

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 (b) Copy cats
(c) Premium store brands
(d) Value innovators

25. ………………… is a popular media vehicle used in the retail sector which is
inserted into other publications such as newspapers and magazines.
(a) Billboard
(b) Leaflet
(c) Poster
(d) Banner

26. ……………….. is any variety of short-term incentives to encourage trial or

purchase of a product or service.
(a) Advertising
(b) Sales promotion
(c) Public relations
(d) Direct marketing

27. …………………is a reduction on the normal selling price and is used when a
particular line of goods is not moving, in order to make them attractive to
customers.
(a) Discount
(b) Markdown
(c) Margin
(d) Mark-up

28. Which pricing strategy entails continuity of retail prices below the MRP mentioned
on a daily basis promising consumers a low price without the need to wait for sale?
(a) High low pricing
(b) Mark-up pricing
(c) EDLP
(d) Discount pricing

29. EDLP stands for

(a) Everyday Level Pricing
(b) Everyday Low Pricing
(c) Everyday Low Product
(d) Everyday Last Pricing

30. Shoplifting means

(a) Lifting the shop
(b) Shifting the shop
(c) Shrinkage in the shop
(d) None of the above

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