DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

MBA-II / SEM-III/ 2019 PATTERN / MARKETING MANAGEMENT

Subject: 305 – Sales & Distribution Management

MCQ / Question Bank

UNIT – I Overview of Sales Management

Sr. Question Ans.

No.
Avon, Amway, and Tupperware use which of the following forms of channel
distribution?
1 A. direct marketing channel A
B. indirect marketing channel
C. forward channel
D. fashion channel
From the economic system’s point of view, the role of marketing intermediaries
is to transform:
A. raw products into finished products.
2 B. consumer needs into producer needs. D
C. consumer needs and wants into product desires.
D. assortments of products made by producers into the assortments wanted by
consumers.
When the manufacturer establishes two or more channels catering to the same
market, then …………… occurs.
3 A. Vertical channel conflict C
B. Horizontal channel conflict
C. Multi channel conflict
D. None of the above
A distribution channel moves goods and services from producers to consumers.
It overcomes the major time, place, and ______________ gaps that separate
goods and services from those who would use them.
4 A. possession A
B. profit
C. image
D. psychological
Through their contacts, experience, specialization, and scale of operation,
______________ usually offer the firm more than it can achieve on its own.
5 A. manufacturers D
B. producers
C. direct marketers
D. intermediaries

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Makers of televisions, cameras, tires, furniture, and major appliances normally

use which of the following distribution channel forms?
6 A. direct marketing channel B
B. indirect marketing channel
C. horizontal channel
D. synthetic channel
Using manufacturer’s representatives or sales branches is usually a
characteristic of which of the following channel forms?
7 A. business marketing channels A
B. customer marketing channels
C. service marketing channels
D. direct marketing channels
Transporting and storing goods is part of which of the following marketing
channel functions?
8 A. negotiation B
B. physical distribution
C. contact
D. matching
Who sells to the customers?
A. Semi wholesalers
9 B. Wholesalers C
C. Retailer
D. Distributor
The benefits of marketing channels are………..
A. Cost saving
10 B. Time saving D
C. Financial support given
D. All of above
_______________ is a layer of intermediaries that performs some work in
bringing the product and its ownership closer to the buyer.
11 A. A direct marketing channel C
B. An indirect marketing channel
C. A channel level
D. A channel switching system
Which of the following statements about sales force management is true?
A. The sales force is the firm's most direct link to the customer
12 B. The statement, "The world will beat a path to your door if you build a better A
mousetrap," reflects how business operates today
C. As organizations implement the marketing concept, they soon realize how
important it is to be sales-oriented
D. Personal selling is usually less expensive than advertising
E. Sales management is no different from any other kind of management
With respect to a channel of distribution, the number of intermediary levels

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within the channel indicates the ____________ of a channel.

13 A. width C
B. depth
C. length
D. similarity
Independent firms at different channel levels integrate their programs on a
contractual basis to achieve systemic economies and increased market impact
are known as _____________
14 A. Corporate vertical marketing systems B
B. Contractual vertical marketing systems
C. Administered vertical
D. None of the above
Which of the following statements about the sales force in the 21st century is
true?
A. Sales managers will use a hands-off approach and let the professional
salesperson be his or her own boss
15 B. Transactional exchanges no longer occur C
C. Sales management must be smart and nimble and provide technology-
cantered solutions to support the sales effort
D. Salespeople make little use of the Internet because they realize the
importance of the personal touch
E. All of the above statements about the sales force in the 21st century are true
________________ is a marketing channel that has no intermediary levels.
A. direct marketing channel
16 B. indirect marketing channel A
C. forward channel
D. hybrid channel
When channel members assume responsibility for one or more of the marketing
flows over at least two separate levels of distribution manufacturing and
wholesaling, in fact, such systems are synonymous with both forward and
17 backward vertical integration is known as __________ A
A. Corporate vertical marketing systems
B. Contractual vertical marketing systems
C. Administered vertical marketing systems
D. None of the above
The difference between transactional selling and relationship selling is
A. In transaction, selling buyers must pay cash
18 B. In relationship selling, buyers and sellers must be related D
C. In transaction selling, sellers provide greater service
D. In relationship selling, sellers work to provide value to their customers
E. In transaction selling, the transaction is the beginning of a relationship
A ______________ is a set of interdependent organizations involved in the
process of making a product or service available for use of consumption by the

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19 consumer or business user. C

A. retailer
B. wholesaler
C. distribution channel
D. middleman
The work of setting up objectives for selling activities, determining and
scheduling the steps necessary to achieve these objectives is known as _______
20 A. Selling D
B. Sales policy
C. Sales programme
D. Sales planning
Karen is studying the potential for selling her company's products in China. As
part of her analysis, she is assessing the number, types and availability of
wholesalers and retailers. Karen is studying the country's
21 A. Natural conditions D
B. Technological feasibility
C. Social and cultural norms
D. Distribution structure
E. Legal and political constraints
Mr. Narayan, the new national sales manager is learning about the internal
organizational environment in her company. She will learn about all of the
following EXCEPT
22 A. Human resources D
B. Financial resources
C. Service capabilities
D. Social and cultural environment
E. Research and development activities
Which is not a strategic role of sales management?
A. Tracking
23 B. Reporting C
C. Delivery
D. Optimizes distribution
John, the sales manager for a building materials company, knows the customers
in one profitable sales territory, are particularly hostile to women sales reps.
John faces an ethical dilemma primarily in the area of:
24 A. Determining compensation and incentives E
B. Equal treatment in hiring and promotion
C. Respect for individuals in supervisory and training programs
D. Fairness in the design of sales territories
E. Fairness in the assignment of sales territories
A large marketing intermediary, but not as large as a sole selling agent in terms
of size, resources and territory of operation is known as………………..
A. Wholesaler
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25 B. Sole selling agent A

C. Direct marketing channel
D. Semi-wholesalers
Many firms use environmental scanning to assess their external environment.
Environmental scanning should be used to
A. Respond to current crises
26 B. Identify future threats and opportunities B
C. Determine personnel performance
D. Allocate financial resources
E. Assist with service delivery
Sarah and Steve are sales reps for a major pharmaceutical company in the same
geographic area. Sarah calls on private practice physicians, while Steve calls on
hospital groups. Their sales manager would likely have an ethical dilemma in the
area of:
27 A. Determining compensation and incentives A
B. Equal treatment in hiring and promotion
C. Respect for individuals in supervisory and training programs
D. Fairness in the design of sales territories
E. Fairness in the assignment of sales territories
What is the full form of CIS?
A. Channel information system
28 B. Channel induced system C
C. Channel information system
D. Channel incorporated system
Which of the following is an example of the external natural environment for a
manufacturer of metal lawn furniture?
A. A longer than usual distribution channel due to a rail strike
29 B. Consumer trend toward treating gardens like another room D
C. The popularity of metal lawn furniture that looks vintage rather than newly
bought
D.A flood at the manufacturer's main warehouse
E. Inflationary pricing by competitors
What is the full form of VMS?
A. Velocity moving system
30 B. Vertical marketing system B
C. Vertical moving system
D. Very moveable system

UNIT – II Organizing the Sales Force

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_____ involves identifying activities management feels the salespeople should

perform to produce the desired results.
1 A. SWOT analysis D
B. Environmental audit
C. Training analysis
D. Needs assessment
Which of the following is NOT an example of behavioural measures used to
evaluate salespeople?
2 A. assessment of salesperson's attitude and attention to customers D
B. product knowledge and selling and communication skills
C. appearance and professional demeanour
D. Accounts generated and profit achieved
Which are the most basic forms of the sales organization?
A. Line sales organization
3 B. Line and staff sales organization D
C. Functional sales organization
D. None of the above
Companies engage in sales training to:
A. increase absenteeism and turnover
4 B. increase selling costs D
C. decrease sales volume
D. Change or reinforce behaviour that makes salespeople more efficient
The formula N = S/P (1 + T) is for _________
A. Workload
5 B. Sales potential (or breakdown) B
C. Incremental
D. None of the above
The sales force can play a central role in achieving a marketing orientation
strategy, by
6 A. Maintaining infrequent contact with customer B
B. Collecting and disseminating market information
C. Focusing on cutting costs
D. Following the competition's lead
From management's point of view, what is the advantage of a straight salary
compensation plan?
A. With a straight salary plan, selling costs are kept in proportion to sales.
7 B. The straight salary plan is simple and economical to administer. B
C. With a straight salary plan, salespeople have the assurance of positive
feedback.
D. A straight salary plan links performance to leadership style.
The most critical impact to a sales organization affected by down-sizing is that:
A. The sales team is de-motivated

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8 B. The company must recalculate sales budgets D

C. The sales workload must be redistributed
D. Customers may change suppliers due to severed relationship with
salesperson
The three major tasks involved in the implementation stage of the sales
management process are:
A. Sales force recruitment and selection, Salesforce training, and Salesforce
9 motivation and compensation. A
B. Developing account management policies, implementing the account
management policies, correcting the account management policies.
C. Setting sales objectives, organizing the Salesforce, and developing account
management policies.
D. Organizing the sales force, quantitative assessment, and follow-up.
The three major tasks involved in the implementation stage of the sales
management process are:
A. Salesforce recruitment and selection, Salesforce training, and Salesforce
10 motivation and compensation. A
B. Developing account management policies, implementing the account
management policies, correcting the account management policies.
C. Setting sales objectives, organizing the Salesforce, and developing account
management policies.
D. Organizing the sales force, quantitative assessment, and follow-up.
An effective sales plan objective should be:
A. Precise, measurable, and time specific.
11 B. General, measurable, and flexible. A
C. Profitable, subjective, and measurable.
D. Precise, profitable, and flexible.
If a company chooses to employ its own sales force, the three organizational
structures it may use are:
12 A. Dollar volume, geography, and customer. B
B. Geography, customer, and product.
C. Geography, market size, and product.
D. Market size, product, and customer.
Long-term compensation plans:
A. Include bonuses and contests
13 B. Should be evaluated and modified quarterly C
C. Should be well thought out, so that few changes will be needed from year to
year
D. Must be developed so that short-term compensation plans will not be
necessary
…………… is teaching how to do the jobs.
A. Sales personnel
14 B. Sales target C

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C. Sales force training

D. Induction
Which of the following is NOT one of the major factors affecting how
compensation is structured for a sales force?
15 A. wage level in relation to salespeople in other organizations in the industry D
B. salesperson's individual wage
C. wage structure for the sales force
D. Number of new customers in each sales territory
Which of the following elements is NOT used for determining the size of a sales
force in the workload method?
16 A. Number of salespeople. D
B. Number of customers.
C. Length of an average call.
D. Number of years in sales experience
The most frequently used type of compensation plan is a:
A. Straight salary compensation plan.
17 B. Straight commission compensation plan. C
C. Combination compensation plan.
D. Weighted compensation plan.
In medium and large firms, one would find the ________ types of organization
A. Line sales organization
18 B. Line and staff sales organization B
C. Functional sales organization
D. None of the above
The first step in determining how a firm's sales force compensation program will
be structured is to determine the:
19 A. Wage level relative to salespeople in other organizations in the industry A
B. Salesperson's individual wage
C. Wage structure for the sales force
D. Number of new customers in each sales territory
When commission is combined with a base salary it is known as __________
A. Commission based compensation plans
20 B. Straight salary compensation plan A
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
The workload method is used to:
A. Quantify the point at which the sale can be closed.
21 B. Calculate commission compensation payment. D
C. Determine how much training a salesperson needs.
D. Determine the size of a sales force.
There are three interrelated elements of rewards for salespeople. One of the
elements is nonfinancial compensation and includes:
A. Recognition dinners, certificates of achievement, and features in sales
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22 newsletters A
B. Larger accounts and sales territories
C. Personal development opportunities, merit salary increases, and promotions
D. Promotions, certificates of achievement, and larger sales territories
Research relating sales people’s personal characteristics to sales aptitude and
job performance suggests there is no single set of traits and abilities that sales
managers can use as criteria for deciding what kind of recruits to hire is known
23 as ____________ A
A. Job analysis
B. Physical examination
C. Projective tests
D. Training
All of the following would be major sales force management decision steps
EXCEPT:
24 A. Designing sales force strategy and structure. C
B. Supervising salespeople.
C. Global management and marketing structures.
D. Recruiting and selecting salespeople.
In which organizational structure, all sales personnel receive direction from, and
are accountable to different executives, on different aspects of their work?
25 A. Line sales organization C
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Which of the following WOULD NOT be a method of establishing sales force
structure?
26 A. Territorial sales force structure. B
B. Lifestyle sales force structure.
C. Product sales force structure.
D. Customer sales force structure.
In which type of compensation plan there is no incentives?
A. Commission based compensation plans
27 B. Straight salary compensation plan B
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
A company's compensation plan should reflect its overall marketing strategy. For
example, if the strategy is to grow rapidly and gain market share, the
28 compensation plan might include: C
A. Encouragement for team selling.
B. Rewards for account management.
C. A larger commission component coupled with a new-account bonus to
encourage high sales performance.
D. Incentives to manage the product mix.
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Tests of intelligence tests are known as _________

A. Projective tests
29 B. Tests of habitual characteristics C
C. Tests of ability
D. Achievement tests
There are three interrelated elements of rewards for salespeople. One of the
elements is direct financial rewards and includes:
30 A. Salary, commission, and career advancement C
B. Merit salary increases, commission, and better territory
C. Merit salary increases, bonuses, and commissions
D. Larger sales territories, bonuses, insurance, and a certificate of achievement

UNIT – III Sales Planning & Control

Forecasting is defined as a systematic attempt to probe the future by inference

from known facts by _________
1 A. Henry Fayol B
B. Allen
C. Philip Kotler
D. Anderson
Which one of the following is NOT the short term objective of Sales forecasting?
A. To achieve regular supply of raw-materials
2 B. To determine a suitable production policy C
C. To plan plant capacity
D. To achieve best utilisation of machine
To provide labour is _____________
A. A long-term objective of sales forecasting
3 B. Not an objective of sales forecasting A
C. A short-term objective of sales forecasting
D. None of the above
__________________ seeks to determine separate sales targets for all the sales
territories with a help in establishing the control over the activities of sales
executives or Field sales officers of theses territories and in providing various
4 incentives to the sales representatives C
A. Sales Budgeting
B. Sales Quotas
C. Sales Forecasting
D. Sales Target
________________ affects production and distribution costs, ultimately
affecting pricing policy of the company
5 A. Sales Forecasting A
B. Sales Target
C. Sales Quotas

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D. Sales Budgeting
______________ helps in discovering new marketing opportunities
A. Sales Budgeting
6 B. Sales Target D
C. Sales Quotas
D. Sales Forecasting
It provides the base for marketing planning
A. Sales control
7 B. Sales Forecasting B
C. Sales audit
D. Sales Budgeting
It reveals the weak areas where more control and intensive attention is required
A. Sales plan
8 B. Sales budget C
C. Sales forecast
D. Sales quota
It helps marketing managers to guard against marketing risks and enables them
to face the challenges posed by new situations in a better way
9 A. Sales forecasting A
B. Sales budgeting
C. Sales quotas
D. Sales targets
Which one of the following factors should be considered while preparing a sales
forecast?
10 A. Conditions within industry D
B. Conditions within the company
C. Changed market situations
D. All of the above
Population and population growth reflects ________________, which is to be
considered while preparing a sales forecast
11 A. Conditions within the company C
B. Conditions within the industry
C. General business conditions
D. Changed market situation
Demand level of the products, future growth prospects, competition, expected
market share etc. have direct impact on sales forecasting and all these fall
under___________
12 A. Conditions within the company B
B. Conditions within the industry
C. General business conditions
D. Changed market situation
Which of the following is NOT true for forecasting?
A. Forecasts are rarely perfect
13 B. The underlying casual system will remain same in the future D

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C. Forecasts for group of items is accurate than individual item

D. Short range forecasts are less accurate than long range forecasts
Which of the following is NOT a forecasting technique?
A. Judgemental
14 B. Time series C
C. Time horizon
D. Associative
Political stability and various government policies reflects ______________,
which is to be considered while preparing a sales forecast
15 A. General business conditions A
B. Changed market situation
C. Factors affecting exports
D. Conditions within the industry
In which of the following forecasting technique, subjective inputs obtained from
various sources are analysed?
16 A. Judgemental forecast A
B. Time series forecast
C. Associative model
D. All of the above
In which of the following forecasting technique, data obtained from past
experience is analysed?
17 A. Judgemental forecast B
B. Time series forecast
C. Associative model
D. All of the above
The factors like shift in customer’s choice & tastes, substitute products reducing
the demand levels which influences the sales forecast reflects _______________
18 A. Changed market situation A
B. General business conditions
C. Conditions within the industry
D. Conditions within the company
Introduction of new product may go haywire and such decisions are seldom
accurate while doing sales forecasting. This is because of which of the following
19 limitation of sales forecasting? B
A. Lack of data regarding history
B. Changes in consumer’s needs, tastes, fashion etc.
C. Psychological factors
D. Anticipatory growth statement
Delphi method is used for
A. Associative model
20 B. Time series forecast C
C. Judgemental forecast
D. All of the above
Economic conditions & level of national income reflects ______________, which

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is to be considered while preparing a sales forecast

21 A. Changed market situation C
B. Factors affecting exports
C. General business conditions
D. Conditions within the industry
Short term regular variations related to the calendar or time of day is known as
A. Trend
22 B. Seasonality B
C. Cycles
D. Random variations
Changes in pricing policy, sales promotion schemes and advertising decisions
affecting the sales forecast reflects which of the following factors?
23 A. Changed market situation D
B. Conditions within the company
C. General business conditions
D. Conditions within the company
What is the formula of least square method to determine the relationships in a
regression model in sales forecasting? (Where, Y = dependent variable i.e. sales;
X = independent variable; a = average value of Y; b = average increment of sales
24 change) B
A. Y = a – bX
B. Y = a + bX
C. Y = 2a – bX
D. Y = 2a + bX
Which of the following is NOT a function of sales budgeting?
A. Motivating
25 B. Planning C
C. Decision making
D. Controlling
The term budgetary period relates to
A. The period for which the budget is prepared
26 B. The subdivisions of the main budget A
C. The period in which the budget is finalised
D. A specific period for which the budget has been prepared
A budget is accepted by managers when they
A. Relates it to their own personal objectives
27 B. Receive the budget in writing A
C. Agree to it verbally
D. Are consulted by top management
A budget is not
A. A part of the strategic management process
28 B. A plan D
C. A qualitative statement
D. A forecast

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A forecast is not
A. Based on expert opinion
29 B. A budget B
C. A prediction of future events
D. Based on extrapolation of past data
Which of the following is NOT one of the main purposes of a budget?
A. Planning and control
30 B. To optimise the use of scarce resources C
C. To enable a flexibility of approach to company policies
D. The alignment of individual and corporate goals

UNIT – IV Distribution Management

The marketing channels play an important role for the company by getting
details about its
1 A. Existing customers D
B. Existing competitors
C. Prospective customers
D. All of the above
A phenomenon that would allow hundreds of thousands of producers to be
connected directly with millions of consumers without the help of middlemen is
2 called as B
A. Intermediation
B. Disintermediation
C. Reintermediation
D. None of the above
Marketing channel strategy offer an edge that cannot be quickly or easily copied
by competitors is known as __________
3 A. Product distribution D
B. Pricing efficiency
C. Promotional advantage
D. Sustainable competitive advantage
A phenomenon of occurrence of new type of middlemen such as amazon and
other digital platforms connecting producers to consumers is called as
4 A. Intermediation C
B. Disintermediation
C. Reintermediation
D. None of the above
Distributors now play a role of _____________ for the consumers acting as
buying agents and choosing what products consumer sees
5 A. Watchman C
B. Facilitator
C. Gatekeeper

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D. None of the above

In marketing intermediaries, the way of distribution in which the product is
stocked in many possible outlets is classified as
6 A. Inclusive distribution D
B. Exclusive dealing
C. Selective distribution
D. Intensive distribution
The kind of channel management which involves one or more than one
independent wholesalers, producers and retailers is classified as
7 A. Vertical marketing system C
B. Static distribution channel
C. Conventional distribution channel
D. Horizontal marketing system
Which of the following is one of the formats of marketing channel?
A. Producer driven
8 B. Seller driven D
C. Service driven
D. All of the above
Multi-channels or hybrid channels are popular in business today where firms use
___________ or more marketing channels to reach consumer segments
9 A. Five D
B. Three
C. Four
D. two
A value network or chain is a system of __________ and __________ that a firm
creates to source, create and deliver its offering
10 A. Wholesalers and retailers B
B. Partnerships and alliances
C. Distributors and retailers
D. Partnerships and shipping companies
20 century supply chains were linear and push models whereas 21 st century
th

supply networks are _______________ models

11 A. Circular and self renewing A
B. Circular and self managing
C. Push and pull
D. Linear and innovative
The consumer is often part of the supply network as a co-creator or prosumer. A
prosumer is a composite of __________ and ____________
12 A. Supplier and customer D
B. Customer and promoter
C. Consumer and planner
D. Production and consumer
Each channel has unique strengths and weaknesses. Channel alternatives differ
in three ways: types of intermediaries, the numbers and the ______ & _____ of

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each
13 A. Patterns and plans C
B. Preparedness and planning
C. Terms and responsibilities
D. Existing and emerging demand
There are three strategies in relation to number of intermediaries namely
exclusive, selective and intensive. Exclusive means ____________
14 A. Lots of intermediaries B
B. Severely limiting the number of intermediaries
C. Five intermediaries
D. Four intermediaries
Channel power is the ability to alter channel members behaviour so that they
take actions they would not have taken otherwise. Which of the following is
15 NOT a power that can be used to elicit cooperation C
A. Expert power
B. Referent power
C. Management power
D. Reward power
What type of intermediary would purchase cricket bats from one producer,
gloves & guards from another and balls from still another and then sell an
assortment to sporting goods stores
16 A. Agent D
B. Producer
C. Retailer
D. wholesaler
ABC Distributors buys electrical equipment and supplies from XYZ electric and
sells them to local electrical contractors. ABC distributor is an example of a(n)
17 A. Intermediary A
B. Retailer
C. Producer
D. Agent
Which of the following services would be distributed by a producer to agent to
consumer?
18 A. Health care C
B. IT Returns filing
C. Travel planning
D. Vehicle repair
Which of the following intermediaries never actually owns the products it
promotes and sells?
19 A. Agents A
B. Retailers
C. Industrial users
D. wholesalers
Producers are able to match their production to the needs of consumers or

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industrial users because intermediaries

20 A. develop an assortment of goods A
B. enable producers to promote goods
C. increase distribution costs
D. extend credit services consumers
Intermediaries buy large quantities of goods from producers and sell smaller
quantities to other intermediaries or to consumers. The result is that
21 intermediaries ________ their per unit cost for goods D
A. Stabilize
B. Control
C. Increase
D. reduce
What distribution channel is used for high priced industrial goods when the
producer does not have its own Salesforce?
22 A. Producer to agent to user A
B. Producer to industrial distributor to user
C. Producer to industrial user
D. Producer to agent to industrial distributor to user
Wal-Mart, Domino’s Pizza, Meru car rental service are examples of
A. Agents
23 B. Industrial distributors C
C. Retailers
D. Wholesalers
What is the most common channel of distribution for large industrial goods?
A. Producer to retailer to consumer
24 B. Producer to wholesaler to retailer to consumer D
C. Producer to agent to industrial distributor to user
D. Producer to industrial user
That makes goods available to consumers where they are wanted and needed is
A. Extending credit
25 B. Transporting and storing B
C. Servicing sales
D. Providing management services
Life-Cycle buys mountain bikes from the Hero Mountain Bike company and sells
them to bike shops. Life-Cycle is an example of a(n)
26 A. Agent D
B. Retailer
C. Agent
D. wholesaler
Which of the following is an example of industrial user?
A. A parent buying a picture frame for his office
27 B. A hairstylist buying new scissors to perform haircuts B
C. A family buying a new home computer
D. A teacher buying a book to read on vacation

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An advantage for producers in using the producer to wholesaler to retailer to

consumer distribution channel is that
28 A. Wholesalers do not take titles to the goods C
B. It enables them to control channel activities
C. Wholesalers usually buy in large quantities
D. It enables them to reach large retailers directly
Where does a channel distribution begin?
A. With the industrial user
29 B. With the ultimate consumer C
C. With the producer
D. With the intermediary
Which of the following retailers would be most likely to be part of the producer
to retailer to consumer channel?
30 A. Small boutique B
B. Large retail chain
C. Speciality shops
D. Locally owned pharmacy
Which of the following is a benefit of channels of distribution
A. We can more easily obtain products from all over the world
31 B. Producers must spend more money A
C. Retailers must spend more money
D. We spend more time looking for products we want
Which indirect channel of distribution is used to reach large retailers when the
producer does not want responsibility for the selling activities?
32 A. Producer to retailer to consumer D
B. Producer to wholesaler to retailer to consumer
C. Producer to consumer
D. Producer to agent to retailer to consumer
The use of intermediaries enables producers to make larger profits because
intermediaries
33 A. Help to reduce the per unit costs of goods D
B. Enables producers to use direct distribution
C. Increase the number of retailer-to-producer contacts
D. May sell more than the producer could sell on its own
Which of the following is a direct channel of distribution for consumer goods
and services
34 A. Producer to industrial user C
B. Producer to retailer to consumer
C. Producer to ultimate consumer
D. Producer to distributor to consumer
There are __________ main industrial or B2B channels
A. Four
35 B. Seven A
C. Six

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 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

D. Five

UNIT – V Wholesaling, Retailing & Logistics Management

It includes the activities involved in selling, renting consumer products and

services to the consumer for his personal or home consumption
1 A. Wholesaling B
B. Retailing
C. Franchising
D. None of the above
A retailer can add value to products through _____________
A. The personnel they hire who help identify & solve customer problem
2 B. The store’s location, near other stores or in main market to facilitate D
comparison shopping
C. The services they offer such as, credit, delivery, extended store hours
D. All of the above
Which of the following is NOT a service and price oriented type of retailer?
A. Limited service retailer
3 B. Full service retailer C
C. Consumer co-operatives
D. Self-service retailers
Merchandise width refers to the _____________________
A. Number of non-competing product line
4 B. Number of competing product line A
C. Number of competing & non-competing product line
D. None of the above
The number of brands, models, styles carried for each product category is
known as _______________________
5 A. Product width C
B. Product breadth
C. Product depth
D. Product line
Narrow product line with deep assortment is the characteristic of
________________ type of retailer
6 A. Supermarket B
B. Speciality store
C. Department store
D. Convenience store
Wholesaler sponsored group of independent retailers are
A. Corporate chain
7 B. Voluntary chain B
C. Retailer co-ops
D. Consumer co-ops

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 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

Big Bazaar is an example of

A. Supermarket
8 B. Hypermarket D
C. Discount store
D. Department store
The type of retailer where standard merchandise is sold at lower prices for low
margins are known as
9 A. Franchise organization C
B. Supermarket
C. Discount stores
D. Department store
The terms Point-of-sale (POS) or Point-of-purchase (POP) are most often
referred to
10 A. A retailer A
B. A wholesaler
C. A distributor
D. A manufacturer
Government sponsored supermarkets focuses more on _______________ as
compared to the private retailers
11 A. Cheaper products A
B. Good ambience for pleasurable shopping experience
C. Providing value for money to the customers
D. Offering best quality products
These type of retailers would try to avoid price competition
A. Speciality shops
12 B. Supermarkets D
C. Discount houses
D. Conventional retailers
A small independent unit located in busy places like airports, bust & railway
stations, selling soft drinks, cigarettes, beverages and open on three sides to
13 handle the customer rush is known as C
A. Stop-over store
B. Convenience store
C. Kiosk
D. Discount store
The retailer is able to provide the service to the customers by
(i) Merchandising
14 (ii) Service B
(iii) Format used
(iv) Communication process used
A. Only (i)
B. All (i), (ii), (iii) & (iv)
C. (i) & (ii)
D. (i), (ii) (iv)

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 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

A decision related to the product variety and assortment is called as

A. Merchandise planning
15 B. Merchandising A
C. Merchandising strategy
D. None of the above
Which of the following factor impact the width & depth of the goods stored?
A. Relationship with the suppliers
16 B. The space availability D
C. Availability of trained personnel
D. All of the above
E. None of the above
This is one of the important function of retailing
A. Social responsibility
17 B. Stock holding & risk taking B
C. Fund mobilization
D. None of the above
One of the most important advantage of e-tailing over store shopping is that it
facilitates ________________ shopping
18 A. Home A
B. Any-time
C. Comparison
D. Regular
One of the major disadvantage of e-tailing is that, in it a consumer cannot touch
or ____________ the product
19 A. Evaluate C
B. Compare
C. Feel
D. See
One of the characteristics of retail business is that, the order size tend to be
small, but _____________
20 A. Regular D
B. Occasional
C. Consistent
D. many
A store selling standard merchandise at low price and for low margins is known
as _____________________
21 A. General store C
B. Convenience store
C. Discount store
D. Departmental store
A franchisee sells a producer’s products ____________
A. Exclusively
22 B. Regularly A
C. Mostly

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 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

D. occasionally
Modern retailing systems believes in large volumes at low margins but are NOT
characterised by ___________________ service.
23 A. Maximum C
B. Optimum
C. Personalised
D. Minimal
Merchandise planning relates to merchandise variety and _____________
A. Assortment
24 B. Depth A
C. Width
D. choice
Retailer is the person who sells the goods in ________________
A. Large volume
25 B. Small quantities B
C. Both A & B
D. None of the above
A retailer has the direct interaction with ____________
A. Manufacturer
26 B. Wholesaler D
C. Customer
D. All of the above
Which one of the following is NOT one of the activities performed by the
retailers:
27 A. Keep large assortment of goods C
B. Ensure availability and visibility of the products
C. Cater to a limited variety of customers
D. Holding stock and managing inventory
Providing convenience to the shoppers is the __________ aspect of store design
A. Important
28 B. Social D
C. Financial
D. functional
The store ambience is considered to be as a ___________ aspect of store design
A. Unique
29 B. Social B
C. Financial
D. Functional
‘Subway’ fast food outlets displaying the detailed menu options at prominent
place is an example of _____________ aspect of store design
30 A. Functional A
B. Convenience
C. Social
D. Service

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 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

_____________ is the key task of the retailers

A. Crisis management
31 B. Risk management D
C. Inventory management
D. All of the above
All of the following are possible types of service that a retailer can offer except
___________
32 A. Self service B
B. Limited service
C. Full service
D. Self-selection
The best way a retailer can differentiate himself in the competitive environment
is
33 A. Increase advertisement of the store and merchandise C
B. Offer lowest prices
C. Always be well stocked with basic merchandise that the customer would
expect to find
D. Not sell any of the merchandise brand that the competitors are selling

Prof. Sameer Patil www.dimr.edu.in