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Unit – I

1. Define retailing
According to Philip kotler, “Retailing includes all the activities involved in selling goods
or services to the final consumes, for personal, non-business use. A retailer or retail store is any
business enterprise wholesales volume comes primarily from retailing.
2. What do you mean by retailer?
Any organization selling to final consumers whether it is a manufacturer, wholesaler or
retailer is doing retailer.
3. Mention the functions of the retailer?
1. Providing an assortment.
2. Breaking the bulk.
3. Holding inventory.
4. Providing services
4. Define breaking the bulk?
To reduce transportation cost manufactures and wholesales shift cases of frozen dinner or
cartoons to retailers. Retailers when offer the product in smaller quantities tailor up to individual
consumers and households consumption patterns. This is called breaking the bulk.
5. Mention the roles of a retailer?
• Sells products and services to the customers.
• Attempt to satisfy consumer needs by having the right merchandise at the right place,
right price, when the consumer wants it.
• Providing markets for plats for sell their merchandise.
6. What are the opportunities offered by retailing?
1. Management opportunities.
2. Entrepreneurial opportunities.
Management opportunities:
The high competitive and challenging environment retailers are hiring and promoting
people with the wide range of skills and interest.
Entrepreneurial opportunities:
Retailing provides opportunities for people wishing to start their own business.
7. Mention the benefits of foreign investment in retailing?
1. Faster take up of modem retail formats.
2. Improved productivity and efficiency of the retail sector.
3. To improve quality of employment.
4. Investment in supply chain.
5. Reduced number of intermediaries.
6. Loyal prize for consumers.
7. Improved product quality and services for consumers.
8. What do you mean by holding inventory?
Holding inventory means the consumers can keep a small inventory of products at home
by maintaining an inventory retailer provides the benefits to consumers.
9. What are the services offered by the retailer?
The retailer serves the consumer by functioning as a marketing intermediary and creating
time, place and ownership utility for the consumer.
10. What are the challenges faced by global retailer?
o Emergence of new markets.
o Empowered customers.
o Technology enabled efficiencies.
o Rise of e age.
11. Define Haats, Melas and Mandis.
Haats are periodic markets that form a major part of the rural market system in India.
This is a location which witnesses a public gathering of buyers and sellers at fixed times and at
fixed location.
Melas are fairs, and they can range from commodity fairs to religious fairs. Virtually
every state in India has melas for which it is known; it is estimated that more than 25,000 melas
are held annually in the country. It is also estimated that the average outlets in every mela would
be more than 800 and the average sale per mela would be Rs.143 lakh.
Mandis are markets set up by the state government for the sale of agricultural produce
directly from the farmers. Close to 6,800 mandis exist in India and are believed to cater to a
population of 1.36 lakh.
12. Mention the rivers of retail change in India?
o Changing income profits.
o Diminishing difference bulk rural and urban India.
o Changes in consumption patterns.
o The emergence of young earning India.
13. Mention the evolution of retail in India?
a. Traditional formats
b. Established formats
c. Emerging formats
Unit - II
1. Define organized Retailing
Organized Retailing comprises mainly of modern retailing with busy lishopping malls,
multistoried malls and huge complexes that offer a large variety of products in terms of quality
value for many and makes shopping a memorable experience.
2. Mention the Evolution of Retail formats
1. The industrial Revolution.
2. The emergence of self – service.
3. The development of supermarkets and convenience stores.
4. Specialist stores, malls and other formats.
5. The rise of the web.
3. What are the fundamental principles of modern selling?
 They fixed product prices before sale and that customers bought at the set prices.
 The prices were determined on the basis of stock turns and the amount of profit that
would be generated from the product.
 They departmentalized the products. Accounting systems were devised to determine the
contribution of various departments and this enabled them to drop unprofitable goods.
4. Classify the theories of Retail Development?
1. Environmental Theory
2. Cyclical Theory
3. Conflict Theory
5. What do you mean by environmental theory?
Retail institutions are economic entries and retailers confront an environment which is
made up of customers, competitors and changing technology. This environment can alter the
profitability of a single retail store as well as of cluster and centers.

6. Define Cyclical Theory

Cyclical Theory can be defined as where change follows a pattern and phases can have
definite identifiable attributes associated with them.

7. What are the phases present in the wheel of Retailing?

 Entry phase
 Trading up phase
 Vulnerability phase
8. Define accordion theory.
This theory suggests that retails innovators often first appear as low – price operators
with a low cost structure and low profit– margin requirements, offering some real advantages,
such as specific merchandise, which enables them to take customers away from more established

9. What do you mean by conflict theory?

Conflict means, where the competition (or) conflict between two opposite types of
retailers, leads to a new format being developed.
10. Define the concept of retail cycle?
According to Philip kotler, the concept of product life cycle is also applicable to retail
organizations. This is because retails organizations pass through identifiable stages of
innovation, development, maturity.
11. Define Business Model with respective to retailing
In retail, a Business model would dictate the product and / or services offered by the
retailer, the pricing policy that he adopts, the communications that he follows to reach out to his
customers and the size, look and the location of his retail store.
12. Mention the critical factors affect the retail business model.
i. Trends in market positioning
ii. Competition
iii. The organizational capabilities
13. Project the classification or retail formats.
The basic classification done is based on store based retailers and non – store retailers.
The store based retailers can be further classified on the basis of the merchandise that they offer,
(or) by the manner of ownership.
14. Explain the following things:
i. Classification on the basis of ownership
ii. Classification on the basis of merchandise offered
i. Classification on the basis of ownership
On the basis or ownership, retail store can be an independent retailer a chain retailer
or a corporate retail chain, a franchise or a consumer co – operative.
ii. Classification on the basis of merchandise offered
On the basis of the merchandise mix that they offer to their customers, they may be
very broadly be classified into the food oriented and the general merchandise retailers.
15. What do you mean by non – store based retailing
A direct relationship with the consumer is the basis of any kind of non – store retail
volume. It may be broadly classified into direct selling and direct response marketing.
16. What do you mean by?
1. Independent Retail
2. Corporate Retail chain
3. Franchising
1. Independent Retail
An independent retailer is one who owns and operates only one retail outlet. Such an
outlet is managed by the owner and proprietor and a few other local hands or family members
working as assistant in the shop.
2. Corporate Retail chain.
When two or more outlets are under a common ownership, it is called a retail chain (or)
corporate retail chain. There stores are characterized by similarity in the merchandise offered to
the consumer, the ambience, advertising and promotions.
3. Franchising
A franchise is a contractual agreement between the franchiser and the franchises, which
allows the franchises to conduct business under an established name as per particular business
format, in return for a fee (or) compensation.
Example: Mc Donald, Pizza Hut.
17. Define i) Convenience Stores, ii) Super Markets, iii) Hyper Market, iv) Specialty Stores,
v) Department Stores, vi) Off-Price Retailers.
i) Convenience Stores:
The food marketing institute defines convenience stores as a small local store selling
mainly groceries, open until late at night or even 24 hours per day and is sometimes abbreviated
to c-store. The store size ranges from 3,000 to 8,000 sq ft and they are targeted at customers who
want to make their purchases quickly.
Example: 7-Eleven, Circle K, Albert Heijn, and SPAR.
ii) Super Markets:
A super market is a store with a selling area of between 400 sq. m and 2,500 sq m
selling at least 70% foodstuffs and everyday commodities. These are large, low cast, low margin
high volume, self-service operation designed to needs for food, groceries and other non-food
items. The size of these stores varies from 8,000 to 20,000 sq feet.
Example: Nilgiri’s, Foodworld, Subhiksha, food Bazzar.
iii) Hyper market:
The word hyper market is derived from the French word hypermarche, which is a
combination of supermarket and deportment store. A retail store with sales area of over 2,500 sq
m, with at least 35% of selling space devoted to non-grocery products, termed as a hyper market.
The stores occupy an area which ranges from 80,000 to 2, 20,000 sq.ft. And offer a variety of
food and non-food products like clothes, jewellery, cycles, CD’s and DVD’s and computers and
combine supermarkets, discount and warehouse retailing principles.
Examples: Giant, Big Bazzar and Star India bazaar
iv) Specialty stores:
A store specialized in a particular type of merchandise or single product of durable goods
(that is home furniture and household goods, consumer electronics) or a range of normally
complementary durable goods product categories is termed as a specialty store. The size of an
area under 8,000 sq ft.
Examples: praline fitness station and Gautier furniture.
v) Department stores:
Department stores can be defined as averaging 7,000 sq m., selling at least fashion
clothing, accessories, cosmetics, household goods and often a much broader assortment, from
more are less separate departments an several floors. The size of departmental store various from
20,000 to 40,000 sq.ft and stocks anywhere between 50,000 to 1, 00,000 SKU’s.
Example: Marks and Spencer, Sears, J.C.Penny, Harrods, Selfridges, ect.
vi) Off-price retailers:
Off-price retailers owned by specialty or departmental stores may merchandise from the
parent company as well as merchandise acquired from other retailers. This format largely
depends on volume sales to make money.
Example: These include pantaloon factory Outlets, Levi’s Factory Outlets, etc.
18. Mention the characteristics of hypertext deformed by IGD?
 A selling area between 5,000sq.m and 15,000 sq m.
 A wide range of products including food and non-food products.
 Discounted offer.
 A destination offer.
19. Define wholesale club?
A retail/wholesale hybrid that offers consumers and small business, a limited and
economical selection of food and nonfood products. These measure about 1, 20,000 sq.ft; 60
percent of the space is devoted to bulk size of both grocery and GM/HBC products.
20. What do you mean by direct selling and direct response marketing?
Direct selling:
Direct selling involves making a personal contact with the end consumer, at his home or
place of work. Cosmetics, jewellery, food and nutritional products, home appliances and
educational materials are some of the products sold in this manner.
Direct response marketing:
 Catalogue retailing or mail order;
 Television retailing; and
 E-tailing.
21. Define cash and carry?
The term “Cash and Carry” means that customers do their own order picking pay in cash
and carry the merchandise away. The cash and carry is a wholesale format that aids retailers and
22. What are the things present in services retail?
1. Retail banking.
2. Car rentals.
3. Providers of various services like electricity, gas, etc.
4. Service contracts which may be entered into for servicing of consumer durables like
maintenance of water filters, computer system, etc.
23. What do you mean by automatic vending/kiosks?
This is the most impersonal form of retailing. However, it provides convenience to the
customers as they have access to the products round the clock. It is a popular form of retailing
aboard and is used to sell routinely purchased items like soft drinks, candy, cigarettes and
newspaper. While tea and coffee vending machines are a popular sight at the airports in India.
24. What do you mean by catalogue showrooms?
Catalogue retailers usually specialize in hard goods such as house ware, jewelery
and consumer electronics. A customer walks into this retail showroom and goes through the
catalogue of the products that he would like to purchase. The range of the catalogue showrooms
of 20,000 sq feet to 2, 00,000 sq feet.
1. Mention the types of Retail location?
The types of retail location are as follows.
 Free standing/ Isolated store
 Part of business district
 Part of a Shopping center

2. Define Isolated store?

An Isolated store is a store located along a major traffic artery, without any other
competitive retailers around. The biggest advantage of such a location is that there is no
competition around.

3. Define Business district and explain its types?

A Business district is a the place of commerce in a city, which developed historically as
the centre of trade and commerce in the city or town and most of the time it have no pre-set
format or structure. A business district can be classified as follows’
Central business district: It is the main centre of commerce and trade in the city. It is
characterized by peak land rates and intense development. It has good accessibility in terms of
transport from all the parts of the city. Ex: Connaught place in New Delhi.
Secondary Business district: It is characterized by a good mix of retailers, the stores are
generally smaller than those in the CBD and public transportation is adequate.
Neighborhood business district: It is an unplanned shopping area that has developed to serve the
needs of the neighborhood. It is characterized by the presence of stores like Super market,
stationary stores, medical shops, etc.

4. Define shopping centre and mention the basic configuration of shopping centre?
It is a group of retail and other commercial establishments that is planned, developed,
owned and managed as a single property. The basic configuration of a shopping centre is a mall
and a strip centre.

5. Mention the basic types of Shopping centers’?

 Neighborhood shopping centre
 Community shopping centre
 Regional shopping centre
 Super regional centre
 Fashion/ specialty centre
 Power centre
 Theme centre
 Outlet centre

6. What are the steps involved in choosing a retail location?

 Identify the market in which to locate the store
 Evaluate the demand and supply chain within the market
 Identify the most attractive sites
 Select the best site available.

7. Define Compatibility?
Compatibility: It refers to the location of the retail store which would enable a potential
customer to have a look at it.

8. Define Trade area and classify the parts of a trade area?

A Trade area refers is the geographic area that generates the majority of the customers for
the store. Knowing the boundaries of the trade area helps the retailer estimate the number of
potential customers that may patronize the store.
A trade area typically contains three parts-
• Primary
• Secondary
• Fringe or Tertiary

9. Classify the trade area with respect to individual store?

A trade area with respect to individual store may be classified into two types:
 Convenience shopping trade areas
 Comparison-shopping trade areas
10. What are the steps present in identifying the alternative sites?
 Traffic
 Accessibility of the market is also a key factor
 The total number of stores and type of stores that exist in that area
 Amenities available
 To buy or to lease
 The product mix offered

11. Define atmospherics and mention the things present in it?

It is a design of an environment, with the help of visual communications, lighting, color,
music and scent to stimulate the customers perceptual and emotional responses and thereby
influence the buying behavior.

12. Mention the types present in positioning of retail shops?

Types of layout are as follows:
 Grid layout
 Race track layout
 Free form layout

13. Define: i) Grid layout ii) Race track layout?

Grid layout: It is commonly used in super markets and discount stores. While one area of the
display is along the walls of the store, the other merchandise is displayed in a parallel manner.
Race track layout: the display will be in the form of a race t5rack or a loop with a major aisle
running through the store. It is popularly found in department store.

14. Mention the chief considerations present in layout selection?

 Selecting a layout which allows for the complete presentation of the merchandise
 Striking the right balance between the spar used for displays and service areas
 Designing the stores according to the needs and wants of the customer including
the seating arrangements etc.
 A store has to be designed keeping in mind the merchandise that the retailer
intends to sell.
15. Define Planogram?
A planogram is a tool used by retailer that helps to determine the location of merchandise
within a department moreover it is a diagram which visually communicates.
A planogram is created after taking the following account:
 Product sales.

 Movement of products within the product category.

 Space required for various products.

These helps to brand loyalty and customers trust.

16. Mention the importance of store design?

The importance of store design needs to be understood from the perspective of the
retailer as well as from the perspective of the customer.

17. Define Exterior store design?

The exterior store design is a function of the location of the store site, which is a
combination of various factors like the site itself, facilities like parking and the ease of access.
The architecture of the building is a combination of the frontage and the exterior of the
building the display space and the health and safety provisions provided.

19. Define Space planning and how it helps to determine the space availability?
Space planning helps a retailer to determine the amount of space available for selling and
for storage. It also helps to determine
 The location of the various departments.
 The location of the various products within the department
 The pros/cons of specific locations
 The relationship of space to profitability.
20. Define Aesthetics?
It takes it to consideration as the factors like:
 Actual size

 The colors

 Textures Within the store to create particular look and feel of the store.

21. What do you mean by Fixtures, Floorings& ceilings, Lighting?


Fixtures are used for storing and displaying merchandise. They may be floor
fixtures or wall fixtures and are manufactured in various materials like wood, glass, steel and
Ex: fixtures include tables, racks, shelves, bins and other materials.
Flooring and Ceilings:
Floorings, ceilings and the walls work together in creating an image. Ceilings are
important because they house the air-conditioning and the lighting. Right lighting is necessary
for the merchandise to be seeing in its true color and form.a store may use different types of
flooring depending on the image that it strives to create. For example, a high priced jewellery
showroom may use carpets, while a supermarket would use flooring which is easy to maintain.
Lighting is a key factor of retail design. The lighting scheme to be adopted for the
store has to be decided upon keeping in mind the kind of products being sold in the store and
the target audience. Effective lighting is key to the sale of merchandise and it also helps create a
favourable first impression of the merchandise and its surroundings.

22. Define Graphics & signages and mention the classification present in it?
Graphics and signages inform the customers about the products, merchandise,
price and special offers and they also direct customers. Sign ages and graphics when used in the
store window, can compel customers to enter the store. It is common for many retailers to use
posters, photo enlargements and other graphics in the windows. When merchandise is placed
near such photos and sign ages, the look is enhanced.
 Theme graphics
 Campaign graphics
 Promotional graphics

23. Define supply chain & point out its objectives?

Supply chain Management ensures a smooth and efflicient flow from raw material
to finished goods into the hands of the consumer.
Objectives of supply chain management are to ensure that the right product
reaches the right place at the right time and importantly, for the right price and profit for the

24. Mention the flows present in supply chain?

25. What do you mean by high volatility?

Demand for certain products is rarely stable or linear. It may be influenced by the
vagaries of weather, movies, TV Shows or indirectly by advertising.

26. What do you mean by vendor managed inventory, CPFR, Cross docking?
Vendor managed inventory (VMI):
Wal-Mart & other retailers are counting on key suppliers to actively participate in
their inventory management programs. Procter & Gamble even has its own employee stationed
at the headquarters of Wal-Mart to manage the inventory replenishment of Procter & Gamble
products. Inventory wide, this practice is known as vendor managed inventory.
. CPFR: (collaborative Planning Forecasting and Replenishment:
Collaborative Planning Forecasting and Replenishment, or CPFR, is one of the
hottest buzzwords in the chin context. By aligning the forecasts of a retailer and vendor. CPFR
offers the opportunity to increase in-stock positions, gross margins and sales, while reducing
inventory investments and stock-outs.
Cross Docking:
Cross docking is the function of warehouse or distribution centres, which was
introduced by Wal-Mart. Cross docking is a system in which the vendors ship merchandise to a
distribution centre, pre packed in quantities required by each store.
27. Define logistics?
Logistics as that part of the supply chain process that plans, implements, and
controls the efficient, effective forward and reverse flow and storage of goods, services, and
related information between the point of origin and the point of consumption in order to meet
customers’ requirements.

28. What do you mean by retail logistics?

It is the organized process of managing the flow of merchandise from the sources
of supply to the customer. Thus, it incorporates the following functions:
 Physically moving the goods from one location to another, where location may be

a distribution centre, warehouse, store or manufacture

 Stocking the goods, at the locations needed, in the quantities needed.

 The management of this entire process

29. Define customer service and customer satisfaction?

Customer service is a task, other than pro active selling that involves interactions
with customer in person or by telecommunications, mail or automated process. It is designed,
performed and communicated with two goals in mind: operational productivity and customer

Customer satisfaction: It is how the customers measure externally, the service performance of a
firm. An important key to customer satisfaction is obtaining customer feedback. The aim of
customer satisfaction is to identify the gap between the customer’s perception of service and
actual service.
30. Explain the three ways of increasing value through benefits?

Three ways of increasing value through benefits are,

 Value improvement

 Value extension

 Value extension

31. Define service gap, knowledge gap, standard gap, delivery gap, communication gap?

Service Gap: The service gap is the gap between customers expectation of service and their
perceptions of the service actually delivered.

Knowledge gap: It is the difference between what consumers expect of a service and what the
management believes the consumers expect.

Standard gap: It is the difference between what the management perceives the customers to
expect and the quality specifications set for service delivery.

Delivery gap: It is the difference between the quality specifications set for service delivery and
the actual quality of service delivered.

Communications gap: It is the difference between the service that the firm promises it will
deliver through its external communications and the service that it actually delivers.

32. Define loyalty marketing?

Loyalty marketing may be defined as the business process of identifying,

maintaining and increasing the yield from the best customers through interactive, value-added
relationships, typically through the use of loyalty programmes.

33. Define the Purchaser- purveyor matrix and mention the loyalty marketing strategy?

The purchaser-purveyor loyalty matrix developed by Cuthbertson and bell

proposes five distinct loyalty marketing strategies: Pure, Pull, Push, Purchase, Purge. The matrix
axes consider the customers and retailers view of the loyalty schemes.
34. Explain the characteristics of good customer loyalty programme?

A good customer loyalty programme must contain the following characteristics:

 Visibility

 Simplicity

 Value

 Trust

35. Define the concept of retail price?

Price is an integral part of the retail marketing mix. It is the factor which is the
source of revenue for the retailer also the price of the merchandise communicated the image of
the retail store to the customers.

36. Define Markup pricing?

The markup price is the difference between the cost of the product and the final
selling price. The markup can be in rupee terms or can be in terms of a percentage.

37. Mention the Retail pricing policies and strategies?

The pricing strategy adopted by a retailer can be cost-oriented, demand oriented

or competition oriented.

Cost-oriented pricing, a basic markup is added to the merchandise to arrive at the price.
Retail price = cost + markup
Cost = Retail price – Markup
Markup = Retail Price – Cost
Demand oriented pricing focuses on the quantities that the customers would by at various
prices. It largely depends on the perceived values attached to the products by the customers.
Competition oriented pricing, when the prices adopted by the competitors play a key role in
determining the price of the product, it is said that Competition oriented pricing.
1. Retail inventory management: (RIM)
It is acquire and maintain a proper merchandise assortment while ordering,
shipping, storing, displaying, and selling costs are kept in check.

2. Elements of retail inventory management:

 Retailer tasks

 Inventory levels

 Merchandise security

 Reverse logistic

 Inventory analysis.

3. Vendor managed inventory (VMI):

Wal-Mart & other retailers are counting on key suppliers to actively participate in
their inventory management programs. Procter & Gamble even has its own employee stationed
at the headquarters of Wal-Mart to manage the inventory replenishment of Procter & Gamble
products. Inventory wide, this practice is known as vendor managed inventory.

4. Main causes for inventory shrinkage:

 Employee theft

 Customer shoplifting

 Fraud and administrative error by vendors

5. Key points of reducing theft in retail inventory planning:

 1st Loss prevention should be weighted as store are designed and built. Thus placement
of store entrances, dressing rooms and delivery areas should be planned from a security
stand point.

 2nd, a combination of security measures should be enacted, such as employee

background check, in – store guards and merchandise tags

6. Reverse logistics:
It encompasses flows that go from the retailer through the supply channel. It
typically involves items returned because of damages or defects, or less-than-anticipated retail

7. Inventory analysis:
Inventory status and performance must be analyzed regularly to gauge the success
of inventory management. Recent advances in computer software have made this action more
accurate and timely.

8. Methods of retail accounting:

 Cost method of accounting

o Physical inventory system

o Book inventory system

 Retail method of accounting

9. Definition of retail method of accounting:

In this method closing inventory is determined by calculating the average relationship
between the cost and retail values of merchandise available for the sales during the period.

10. Merits and demerits of retail method accounting:

 The retail method is easier to use when taking a physical inventory. The chances of
making errors in valuing merchandise are reduced since physical inventory is recorded at
retail value and costs do not have to decode.

 Undertaking a physical inventory is simpler, it can be completed more often.

 The main demerit of the retail method is the bookkeeping burden of recording a lot of
cost and price data.

 Cost complement is an average figure based on the total cost of merchandise available for
sales and its total retail value.

11. Definition of retail audit:

Study of a selected sample of retail outlets, provided as subscription-based service by

market research firms. Retail-audit service providers gather information on a brand's sales
volume, sales trends, stock levels, effectiveness of in-store display and promotion efforts, and
other associated aspects.

12. Steps involved in retail audit:

1) Determining who does the audit

2) Determining when and how often the audit is conducted

3) Determining areas to be audited

4) Developing audit form(s)

5) Conducting the audit

6) Reporting to management

13. Difficulties in conducting retail audit:

 An audit may be costly to undertake

 It may be quite time-consuming

 Performance measure may be inaccurate.

 Incorrect dada may be collected

 Management may not be responsive to the findings

 Employees may feel threatened and not cooperate as much as desired.

14. Brand definition;

The American marketing Association defines a brand as “a name, term, design, symbol,
or a combination of them, intended to identify the goods or services of one seller or group of
sellers and to differentiate from those of the competitors”.

15. Building a retail brand:

It starts with a precise definition of the target customer group and their needs and
expectations. The retailer than needs to determine the specific value proposition that he is going
to offer to the end consumers. The retailer marketing and advertising efforts must fashion in
image around the brand that is not only consistent with same benefits, but also highlights the
various factors that will draw the consumers to the store.
16. Advertising objectives:
• Creating awareness about a product or store

• Create a desire to want a product

• To communicate the store’s policy on various issues

• It can also help in repositioning the store carrying nationally advertised brands

• It can also help reinforce the retailer’s corporate identity

17. Methods of advertising budget:

 Percentage of sales method

 Competitive parity method

 Research approach or task & objective method

 Incremental method
18. Define sales promotion and how it is aimed at consumers:
Sales promotion can be defined as a paid non personal form of communication, that
incentives customer to visit a store and/or purchase merchandise during a specific period of time.
It helps to the retailer by way of attracting customer traffic and enables quick result to be
It aimed at consumers:
• To stimulate trial purchase

• To encourage repeat purchase

• To encourage larger purchase

• Introduce a new brand/product

• Counter competitor’s strategy

19. Definition of public relations & publicity:

Public relations (PR) is a marketing communications function, when aims at fostering
goodwill. An important component of public relations is publicity. By way of public relations,
the retail organization strives to create and sustain a favorable image with consumers,
shareholders, suppliers & the public at large.

Personal selling:
It is a paid form of personal advertising where salespeople assist customers in satisfying
their needs through a person-to-person exchange of information. It is a process of learning the
needs and wants of the buyer and striving to satisfy them with the required product/service.
Point of Purchase (POP) Displays:
It defines Point-of-Purchase communication as the promotional signs and interior
displays, often located at the point of sale or alongside displays of merchandise. It has integral to
retail today. They help reinforce in store product branding, enhance retail sales floor
communication & provide information to the customers.

20. Definition of integrated marketing communication:

Synergistic approach to achieving the objectives of a marketing campaign, through a well
coordinated use of different promotional methods. As defined by the American Association of
Advertising Agencies, IMC " recognizes the value of a comprehensive plan that evaluates the
strategic roles of a variety of communication disciplines advertising, public relations, personal
selling, and sales promotion and combines them to provide clarity, consistency, and maximum
communication impact."

21. UPC:
Universal Product Code or the bar code is basically a product identifier, made up of
series of bars and spaces, which represent alphanumeric information.

22. EDI:
Electronic Data Interchange (EDI) is defined as the exchange of business information,
through standard interfaces, by using computers. It can also be interpreted as transmission of
business data between organizations in a computerized format that does not require the re-keying

Radio Frequency Identification is fast transformation the way business is being
conducted & monitored across the supply chain. RFID can be described as a wireless bar code
which provides wireless communication between objects & readers.

23. E-tailing or E-commerce:

It includes the online trading of goods and services and encompasses various trading
steps such as online marketing, ordering, payment and delivery. E-commerce has been termed as
a generic title that describes a range of technologies and practices that are available to potentially
improve the efficiencies of training relationships.

24. Factors affecting the use of technology:

o Scale & scope of operations

o Financial resources available to the organization

o Nature of business

o Human resource available

1. What are the factors influencing the customer’s decision making?
 Range of Merchandise

 Location Convenience

 Time to travel

 Socio-cultural background of shopper

 Stage of the family life cycle of consumer

2. List out the steps involved in consumer decision making process?

Stage 1: Identification of a need for the product or service
Stage 2: Search for information
Stage 3: Evaluating alternatives
Stage 4: Purchase decision

3. What are the challenges for retail development in India?

 Retail not being recognized as an industry in India

 The high costs of real estate

 High stamp duties

 Lack of adequate infrastructure

 Multiple and complex taxation system

4. What do you mean by competitive forces and point out the forces?
Competitive forces mean the factors that influence the competitive position of a firm in a
industry or market. Five competitive forces are
1. Entry of competitors

2. Threat of substitutes

3. Bargaining power of buyers

4. Bargaining power of suppliers

5. Rivalry among existing firms

5. What are the knowledge and competence of a sales person?

 Acquiring product/merchandise knowledge

 Studying the customer

 Approaching the customer

 Presenting the merchandise

 Overcoming resistance

 Suggestive selling

 Closing the sale

6. Define In-home shopping?

In-home shopper is not always a captive audience. Convenience in ordering in an item,
without travelling for it is important in this shopping.In home shoppers are often also active
shoppers and they are affluent and well educated. Many in-home shoppers are self confident,
younger and venture some.

7. What do you mean by out shopping?

Out of home-town shopping, outshopping is important for both local and surroundings
retailers to study. Outshoppers are often male, young, members of a large family and new to the
community. Outshoppers differ in their life-styles from those who patronize neighborhood or
hometown stores.

8. What do you mean by online shopping?

Online shopping is the process whereby consumers directly buy goods or services from a seller
in real-time, without an intermediary service, over the Internet. If an intermediary service is
present the process is called electronic commerce. An online shop, eshop, e-store, internet shop,
webshop, webstore, online store, or virtual store evokes the physical analogy of buying products
or services at a bricks-and-mortar retailer or in a shopping mall.

9. Mention the role of personality in the retail shop?

Personality is a good predictor of one’s consumer behaviour. Consumer behaviour relied
heavily on psychoanalytic theory, which said that the human personality system consists of the
id,ego and super ego. Socio psychological theory recognize the connection between the
individual and society

10. Provide the importance of lifestyle in purchase decision?

Lifestyle is the way in which a person lives and spends his money. In simple terms what a
person does with his life. Lifestyles and demographics are often combined to create complex
market segments. This allows the marketers to tailor the products and promotional campaigns to
match the needs and wants of these select groups.

11. How does the social class influence the purchase decision?
Social class is a result of the interaction of education,occupation and income.individuals
may have high incomes without the benefit of education or occupational prestige,social class
tend to determine these class brings a number of expectations for what is considered
appropriate behaviour and consumption pattern.

12. What is the role of family and household influence in purchase decision?
Family unit is a very important consideration when examining consumer behaviour.
Many products that are purchased for consumption by some or all the family members. Other
members of the family may heavily influence the buying decision of one family member.

13. Define CRM?

CRM is a tool for servicing the customer.CRM is a process of collecting information
about the customers and aligning and remodeling the organization’s strategy to meet the
customer’s demand. The focus of CRM is on people rather than products and service.
14. Mention the importance of CRM in retail?
 CRM can add value to the offering made by the retailer.

 CRM is one-to-one marketing.

 Using CRM a retailer can create products and services to suit the needs of the consumer.