Retail Management MCQ Questions and Answers Part – 2

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Retail Management MCQ Questions and Answers Part – 1

Retail Management MCQ Questions and Answers Part – 2

Retail Management MCQ Questions and Answers Part – 3

51. The best way for a retailer to differentiate itself in the eyes of the consumer form the competitions is to.
A. increase advertising of sale items.
B. offer the lowest prices in town.
C. always be well-stocked with the basic items that customers would expect to find in your store.
D. not sell any of the brand names the competition is selling.
ANSWER: C
52. The boomerang effect is a relatively new phenomenon that describes
A. the recent trend for firms to seek bankrupts protection.
B. the way styles from years ago come back as today’s most popular styles.
C. the recent trend of children returning to live with their parents after having already moved out.
D. the recent trend of having most companies report losses for the current quarter.
ANSWER: C
53. Discretionary income is.
A. all personal income after taxes and retirement savings.
B. all personal income after savings
C. all personal income after taxes.
D. personal income after taxes minus the money needed for necessities.
ANSWER: D
54. The final stage of the consumer shopping/purchase model around which all other stages revolves is the.
A. buy decision stage.
B. active information gathering stage.
C. purchase stage.
D. post-purchase evaluation stage.
ANSWER: D
55. What type of competitive structure are most retail firms involved in?
A. horizontal competition.
B. monopolistic competition.
C. vertical competition.
D. pure competition.
ANSWER: B
56. Which of the following marketing functions is one the retailer could not perform?
A. selling.
B. sorting.
C. location analysis.
D. buying.
ANSWER: C
57. Facilitating institutions may best be described as specialists that.
A. take title but not possession of the merchandise.
B. take title to the merchandise in order to facilitate the transaction
C. manage the channel so as to increase over-all efficiency marketing functions
D. perform certain marketing functions, in which they have an expertise, for other channel members.
ANSWER: D
58. Which one of the following factors is not found on a six month merchandise budget?
A. planned gross margin.
B. current liabilities.
C. planned sales percentage
D. planned purchases at retail.
ANSWER: B
59. The — provides the retailer with a picture of the organization’s profit and loss situation
A. expense report.
B. index of inventory valuation.
C. statement of cash flow.
D. income statement.
ANSWER: D
60. What word best describes the relationship between a retailer’s pricing decisions and the merchandise,
location, promotion, credit, services, image and legal decisions that retailers must make?
A. independent.
B. separate.
C. interactive.
D. competitive.
ANSWER: C
61. If a retailer is offering the same products and quantities to different customers at different prices, the
retailer has what kind of pricing policy?
A. two-price
B. customary.
C. flexible.
D. leader.
ANSWER: C
62. Which of the following areas should not be taken into consideration when formulating a retailer’s
promotional strategy?
A. the retailers credit customers.
B. the price level of the merchandise.
C. merchandise inventory levels.
D. the retailer’s net worth.
ANSWER: D
63. The two objectives of institutional advertising include:.
A. creating a positive store image and public service promotion
B. publicity and sales promotions.
C. advertising a sale and generating store traffic
D. using “other people’s money” and using “co-op” money.
ANSWER: A
64. Which of the following should not be part of the campus shoppe’s advertising campaign’s objectives.
The campus shoppe desires to increase.
A. awareness of its two locations
B. sales among incoming freshmen.
C. sales to 40 percent.
D. All the above belong in the retailer’s advertising objectives
ANSWER: D
65. Consumer premiums are considered to be a form of.
A. joint-sponsored sales promotion.
B. publicity that utilizes OPM.
C. advertising.
D. sole-sponsored sales promotion.
ANSWER: D
66. A transient customer is a consumer who visits a retailer.
A. and finds the item desired in a matter of minutes
B. only when his or her regular retailer is closed.
C. that does not meet his or her customer service expectations.
D. while on vacation
ANSWER: C
67. Merchandise availability is an example of a.
A. cost of sales
B. pretransaction service.
C. operating cost.
D. transaction service.
ANSWER: D
68. Which of the following is not a factor in determining the service level to offer
A. income of target market.
B. price image of the retailer.
C. services offered by the competition
D. firm’s management structure
ANSWER: D
69. Which of the following is not a factors is not one of the elements that need to be considered when
designing a sales job?
A. feedback from supervisors.
B. the number of complaints a salesperson should have to handle.
C. the amount of variety involved
D. the appropriate degree of autonomous.
ANSWER: B
70. Which of the following is not part of a visual communications program
A. Store name and logo.
B. institutional signage.
C. lifestyles graphics.
D. television advertising
ANSWER: D
71. In which of the following behavioural models there will be no product differentiation and brands as a
factor plays very little role in the purchase preferences.
A. Complex buying behaviour.
B. Variety seeking behaviour.
C. Dissonance reducing behaviour.
D. Habitual buying behaviour
ANSWER: D
72. A set of basic values, perceptions, wants and behaviour learnt by a member of society from the family and other important constitution is called.
A. Social learning.
B. Sub-culture.
C. Culture.
D. Social development.
ANSWER: C
73. Which of the following factors include forces like small groups, family, social roles and status that will have an influence on buyer’s behaviour?
A. Cultural factors.
B. Psychological factors.
C. Personal factors.
D. Social factors
ANSWER: D
74. Which of the following psychological factors drive a person to satisfy his need and wants.
A. Motivation.
B. Perception.
C. Learning.
D. Beliefs and attitudes.
ANSWER: A
75. Which of the following buying instruments does not found in consumer buying?
A. Requests for quotations.
B. Proposals.
C. Purchase contracts.
D. None of the above
ANSWER: D
76. Which of the following factors influence the organizational buying decision process?
A. Buyers objectives.
B. Purchasing policies and resources
C. Size and composition or buyers.
D. All of the above.
ANSWER: D
77. Which method of organizational buying is suitable for the second-hand (used.vehicles, buildings etc, that have unique characteristics, but vary depending on their condition and usage.
A. Inspection.
B. Description.
C. Sampling.
D. Negotiation.
ANSWER: A
78. When making ‘purchasing decisions’, the chief considerations involved in the organizational buying
are.
A. Product quality.
B. Price.
C. Service.
D. All the above.
ANSWER: D
79. Which of the following do not include while in the learning process of a market-oriented organization.
A. Open-minded inquiry.
B. Synergistic information distribution.
C. Mutually informed interpretation and accessible memory.
D. None of the above.
ANSWER: D
80. Management information system (MIS. supplies information, which includes data from both internal and external sources is useful for.
A. Order processing.
B. Invoicing.
C. customer analysis and product performance.
D. all of the above.
ANSWER: D
81. Marketing information system gathers information from internal sources like marketing intelligence and marketing research to help the manager in.
A. Assessing the information needs.
B. Developing the needed information.
C. Distributing the information.
D. All of the above
ANSWER: D
82. Which level of organization uses management information systems data in its decision making?
A. Lower level.
B. Middle level.
C. Top level.
D. All of the above.
ANSWER: D
83. Which system is useful in coordinating data systems, tools and techniques with supporting software and hardware that enable managers to take appropriate marketing decisions.
A. Sales decision support systems.
B. Marketing decision support systems.
C. Standardized information systems.
D. None of the above
ANSWER: B
84. Identify the correct sequence of the following marketing approaches in order of their existence.
A. Product-variety marketing; Mass marketing and Target marketing.
B. Target marketing; product, variety marketing and mass marketing.
C. Mass marketing; Product-variety marketing.
D. Mass marketing; Target marketing and product variety marketing
ANSWER: C
85. If a seller produces two or more products that have different features, styles, quality, sizes, etc it is called .
A. Mass marketing.
B. Target marketing.
C. Individual marketing.
D. Product-variety marketing.
ANSWER: D
86. A form of target marketing in which companies tailor their marketing programs to the needs and wants
of narrowly defined geographic, demographic, psychographic or benefit segments is called.
A. Macro marketing
B. . Micromarketing.
C. Horizontal marketing.
D. Mass marketing.
ANSWER: B
87. What is the term used if a market is divided into distinct groups of buyers who might require separate products or marketing mixes.
A. Market targeting.
B. Market positioning.
C. Market segmentation
D. Market coordination.
ANSWER: C
88. Market positioning is a combination of marketing actions that management takes, to meet the needs and wants of each target market. It includes.
A. Understanding consumer perceptions.
B. Position products in the mind of consumer.
C. Design appropriate marketing mix.
D. All of the above.
ANSWER: D
89. Which type of segmentation is commonly used for climate because of its broad impact on consumer behavior and product needs.
A. Geographical segmentation.
B. Demographic segmentation.
C. Geo-demographic segmentation.
D. Geographic segmentation.
ANSWER: A
90. ‘Lifestyle’, ‘Westside’ and ‘Shoppers stop’ have located their departmental shops in the areas frequently visited by upper-income people is an example of .
A. Psychographic segmentation.
B. Geo-demographic segmentation.
C. Demographic segmentation.
D. Geographic segmentation.
ANSWER: B
91. Which of the demographic variables is not used by marketers for demographic segmentation?
A. Family life cycle.
B. Income and occupation.
C. Gender.
D. Poverty.
ANSWER: D
92. Which type of segmentation, classified consumers according to relevant needs and buying behaviour,
regardless of their countries and culture.
A. Multi-attribute segmentation.
B. Inter-market segmentation.
C. Demographic segmentation
D. Psychographic segmentation.
ANSWER: D
93. Before a company decides to target a particular segment, which important factors are to be examined against organizations’s objectives and resources?
A. Market size.
B. Growth rate.
C. Structural attractiveness.
D. All of the above.
ANSWER: D
94. If an organization targets to market a particular product to a variety of segments in order to build a strong reputation in that product area is called.
A. Product specialization
B. Market specialization.
C. Selective specialization.
D. Single-segment concentration.
ANSWER: A
95. A positioning strategy should include the following strategies except.
A. Product strategy.
B. Personnel strategy.
C. Promotion strategy.
D. Advertising and sales promotion strategy.
ANSWER: B
96. Which of the following relationship strategies result into forming of a new organization.
A. Strategic alliance.
B. Partnership.
C. Joint venture.
D. None of the above.
ANSWER: C
97. Which type of organization consists of a small workforce, relying on independent suppliers who are located at several parts of the world with a sophisticated linked. information system.
A. Trading company.
B. Network corporation
C. International organization.
D. Global corporation.
ANSWER: B
98. Hindustan Motors (HM. alliance with Mitsubishi to manufacture and market Lancer cars in India is an example of.
A. Franchise agreement.
B. Vertical relationship.
C. Technological licence agreement.
D. Horizontal integrative relations.
ANSWER: C
99. In which of the following systems, management of the distribution channels will be undertaken by a single organization.
A. Vertical management systems.
B. Vertical marketing systems.
C. Conventional marketing systems.
D. None of the above.
ANSWER: B
100. The difference between the total value and the corrective cost of performing the value activities is.
A. Contribution.
B. Margin.
C. Revenue.
D. Performance.
ANSWER: B

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