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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