(Explanation- 1 mark; Retail Pricing Strategies- 9 marks) 10 marksAnswer : Retail pricing strategies :1. Mark-up Pricing :
Markup on cost can be calculated by adding a pre-set (often industry standard) profit margin,or percentage, to the cost of the merchandise. Markup on retail is determined by dividing thedollar markup by retail.Be sure to keep the initial mark-up high enough to cover price reductions, discounts,shrinkage and other anticipated expenses, and still achieve a satisfactory profit
Q5. Write a short notes on:A. Types of retail store location with examples(any five)(Types- 3 marks; examples- 2 marks)Answer : Types of retail store location with examples :1. Department Stores :
A department store is a set-up which offers wide range of products to the end-users under oneroof. In a department store, the consumers can get almost all the products they aspire to shopat one place only.
Shoppers Stop, Pantaloon
B. Factors affecting retail store location(any five) (Factors – 5 marks) 5+5 = 10marksAnswer : Factors affecting retail store location :1. Population and Your Customer :
If you are choosing a city or state to locate your retail store, research the area thoroughlybefore making a final decision. Read local papers and speak to other small businesses in thearea. Obtain location demographics from the local library, chamber of commerce or theCensus Bureau.
2. Accessibility, Visibility and Traffic :Q6. Write a short notes on: A. Classification of retail consumers based on shopping.(Classification- 6 marks)Answer : Classification of retail consumers based on shopping :
In retail, this idea of focusing on the best current customers should be seen as an on-goingopportunity. To better understand the rationale behind this theory and to face the challenge of building customer loyalty, we need to break down shoppers into five main types:Loyal Customers: They represent no