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This set of Retail Management Multiple Choice Questions & Answers (MCQs) focuses on Retail Management Set 7

Q1 | Independent retailers who use a central buying organization and joint promotional effortsare called a
  • merchandising conglomerate
  • corporate chain store
  • retailer cooperative
  • voluntary chain
Q2 | A retail firm owned by its customers in which members contribute money to open theirown store, vote on its policies, elect a group to manage it, and receive dividends is called a
  • corporate chain store.
  • merchandising conglomerate
  • voluntary chain
  • consumer cooperative
Q3 | The oldest and most heavily trafficked city area is called
  • regional shopping center
  • prime location
  • urban district
  • Central business district
Q4 | Giant retailers called _____ concentrate on one product category such as toys or homeimprovement
  • Category killers
  • Variety stores
  • supercentres
  • box stores
Q5 | Retailers such as Benetton, The Body Shop, and Marks and Spencer carry mostly own- brand merchandise. These are called _____ brands
  • creative label
  • private label
  • house
  • retail label
Q6 | A_____ fee is the charge many supermarkets impose for accepting a new brand to coverthe cost of listing and stocking it.
  • inventory
  • slotting
  • initiation
  • stocking
Q7 | Which of the following is not one of the four major decisions that must be made withregard to market logistics?
  • How should orders be handled?
  • Where should stock be located?
  • How much stock should be held?
  • How should stock be financed?
Q8 | Which statement is not a benefit of formulating a retail strategy?
  • A retailer is forced to study the legal, economic, and competitive market
  • A retailer is shown how it can differentiate itself from competitors.
  • Sales maximization is stress
Q9 | A retailer's commitment to a type of business and to a distinctive role in themarketplace is its:
  • . objectives
  • organizational mission
  • retailing concept
  • image
Q10 | Which form of organization is subject to double taxation?
  • sole proprietorship
  • partnership
  • corporation
  • franchise
Q11 | When retailers identify customer segments and develop unique strategies to meet thedesires of these segments, they are using:
  • mass merchandising
  • niche retailing
  • bifurcated retailing
  • middle market retailing
Q12 | Those aspects of business that a retailer can directly affect, such as store hours andmerchandise lines carried are referred to as:
  • controllable variables
  • demographic statistics
  • lifestyle measures
  • uncontrollable variables
Q13 | Which is not considered one of the elements of "managing a business" in a retail strategy?
  • the retail organization
  • human resource management
  • operations management
  • merchandise management and pricing
Q14 | A systematic procedure for analyzing the performance of a retailer is called:
  • control
  • feedback
  • strategic planning
  • retail audit
Q15 | During each stage in the development of a retail strategy, retail managers should:
  • consider only controllable variables
  • refrain from "fine tuning" the strategy
  • look for both positive and negative feedback
  • consider no problems with the government to be a form of negative feedback
Q16 | Which of the following is a recommended strategy for retailers when consumers select theoutlet first and the brand second?
  • Appropriate pricing
  • Brand availability advertising
  • Brand image management
  • Price special on brands
Q17 | Which of the following types of retail businesses have unlimited liability?
  • Partnership and sole trader
  • Partnership and private company
  • Private company and sole trader
  • Private company and public company
Q18 | Any source of products or services for consumers is referred to as a _____.
  • Retail outlet
  • Contact point
  • Transaction point
  • Distribution outlet
Q19 | The retailer is usually in an excellent position to
  • Make the most profits in the channel
  • Be the channel leader
  • Gain feedback from consumers
  • Co-ordinate the production strategy
Q20 | Consumers acquiring product through mail, telephone, or computer orders is referred to as _____.
  • Outsourcing
  • Outlet shopping
  • Non-traditional shopping
  • In-home shopping
Q21 | Which of the following is the major reason consumers give for shopping online?
  • Want product delivered
  • Unique merchandise
  • Price
  • Convenience
Q22 | Which one of the following is NOT a form of direct marketing?
  • catalogue retailing
  • telemarketing
  • personal selling
  • direct mail
Q23 | The major reason people give for not shopping on the Internet is _____.
  • Lack of “touch”
  • Security concerns
  • Too difficult
  • Unfamiliar merchants
Q24 | The difference between retail and cost is called:
  • profit
  • markdown
  • income
  • markup
Q25 | Expenses that benefit the entire store are called:
  • controllable
  • direct
  • indirect
  • Margin results