_______ refers to the exchange of goods or commodities against money or service.

A. Distribution

B. Place

C. Sales

D. Myopia

View Answer

C. Sales

Sale has ________ function in an organization.

A. Only loss generating

B. only revenue generating

C. both loss as well as revenue generating

D. neither loss nor revenue generating

View Answer

B. only revenue

__________ is the provider of goods or services.

A. The Supplier

B. The Buyer

C. The Seller

D. The Consumer

View Answer

C. Seller

_______is the process of making a product available to the end consumer or business.
A. Sales

B. Distribution

C. Exchange

D. Barter

View Answer

B. Distribution

In Sales Management, ERP stands for ________.

A. Enterprise Research Planning

B. Enterprise Resource Process

C. Enterprise Resource Planning

D. Enterprise Resale Planning

View Answer

C. Enterprise Resource Planning

Even prior to the introduction of money, people used to exchange goods in order to fulfil the needs,

which is known as the _______.

A. Charter System

B. Marketing Myopia

C. Barter System

D. Bargain System

View Answer

C. Barter System

__________refers to the administration of the personal selling component of a company’s marketing

program.
A. Sales management

B. Distribution Management

C. Promotion Management

D. Marketing Management

View Answer

A. Sales management

In Sales Management, SFA System stands for ________

A. Sales Force Activation

B. Sales Force Automation

C. Sales Factor Automation

D. Sales Force Achievement

View Answer

B. Sales Force Automation

Choose the correct statement.

A. Marketing management is a broader concept and sales management is a part of marketing management.

B. Sales management is a broader concept and marketing management is a part of marketing management.

C. Marketing management and sales management, both are equivalent.

D. There is no connection between sales management and marketing management.

View Answer

A. Marketing management is a broader concept and sales management is a part of marketing management.

Sales and Distribution Management majorly focuses on the___________ .

A. Buying aspect of an organization

B. Selling aspect of an organization

C. Negotiating aspect of an organization

D. Producing aspect of an organization

View Answer

B. Selling aspect of an organization

GO TO PART 2 – MCQ ON SALES ORGANIZATION & PERSONAL SELLING

_________ is the responsibility of the sales manager.

A. Sales Management

B. Distribution Management

C. Marketing Management

D. Both A & B

View Answer
D. Both A & B

The oral presentation of a company’s products, or services to one or more prospective purchasers for
the purpose of making a sale is known as ______.

A. Sales Planning

B. Personal Selling

C. Sales & Distribution Management

D. Oral Selling

View Answer
B. Personal Selling

Personal selling is used extensively in ___________.

A. Simple and less technical products

B. Complex and non technical products

C. Complex and highly technical products

D. Simple & highly technical products

View Answer
C. Complex and highly technical products

Personal selling has ________ .

A. One Way Communication

B. Two Way Communication

C. Indirect Communication

D. Direct Communication

View Answer
B. Two Way Communication

The ultimate objective of personal selling is to ________

A. increase the sales volumes

B. increase of sales revenue

C. increase the number of distribution channels to gain corporate clients

D. All of the above

View Answer
D. All of the above

A sales organisation bridges the gap between the market and the …………………..

A. Human Resource capacity of the firm

B. Financial capacity of the firm

C. Productive capacity of the firm

D. Marketing capacity of the firm

View Answer
C. Productive capacity of the firm

_______ is a group of people working together to achieve the objective of sales.

A. Salesforce

B. Sales Organization

C. Sales Team

D. Marketing Dept.

View Answer
B. Sales Organization

_________is the most basic forms of the sales organization.

A. Line sales organization

B. Functional sales organization

C. Line and staff sales organization

D. Both A & B

View Answer
A. Line sales organization

_______ is the geographical area a sales person is assigned.

A. Vertical integration

B. Territory

C. Marketplace

D. Quarter

View Answer
B. Territory

________ is a financial plan depicting how resources should best be allocated to achieve the
forecasted sales.

A. Sales Budget

B. Sales Audit

C. Sales Control

D. Sales P&L plan

View Answer
A. Sales Budget

Most producers use _______ to bring their products to market or end users.

A. Brokers

B. Retailers

C. Intermediaries

D. Distributors

View Answer

C. Intermediaries

__________is a distribution system in which the ultimate buyer acquires the title directly from the

manufacturer of the product.

A. Direct Distribution
B. Indirect Distribution

C. Exclusive Distribution

D. Intensive Distribution

View Answer

A. Direct Distribution

________is a distribution system that involves territorial protection for authorised dealers.

A. Direct Distribution

B. Indirect Distribution

C. Exclusive Distribution

D. Intensive Distribution

View Answer

C. Exclusive Distribution

_______ is a distribution system that uses middlemen i.e. wholesalers and retailers to reach the

ultimate buyer.

A. Direct Distribution

B. Indirect Distribution

C. Exclusive Distribution

D. Intensive Distribution

View Answer

B. Indirect Distribution

In distribution Management, VMS stands for _________.

A. Vertical Marketing System

B. Vertical Marketing Structure

C. Vertical Management System

D. Vocal Marketing System

View Answer

A. Vertical Marketing System

In distribution Management, HMS stands for_________.

A. Horizontal Marketing Structure

B. Higher Marketing System

C. Horizontal Marketing System

D. Hyper Marketing Structure

View Answer

C. Horizontal Marketing System

_______is a distribution strategy that strives to have the firm represented in the maximum number of

outlets.

A. Direct Distribution

B. Indirect Distribution

C. Exclusive Distribution

D. Intensive Distribution

View Answer

D. Intensive Distribution

________ is a distribution system that involves territorial protection for authorized dealers.

A. Direct Distribution
B. Indirect Distribution

C. Exclusive Distribution

D. Intensive Distribution

View Answer

C. Exclusive Distribution

_________ sells to the customers or consumers.

A. Wholesaler

B. Retailer

C. Broker

D. Drop-shipper

View Answer

B. Retailer

Even prior to the introduction of money, people used to exchange goods in order to fulfil the needs,

which is known as the ___________.

A. Charter System

B. Marketing Myopia

C. Barter System

D. Bargain System

View Answer

C. Barter System

________ means actual transfer of possession.

A. Virtual Distribution
B. Exclusive Distribution

C. Direct Distribution

D. Physical Distribution

View Answer

D. Physical Distribution

Avon, Amway and Tupperware use ___________.

A. Direct Marketing Channel

B. Indirect Distribution Channel

C. Exclusive Distribution Channel

D. Intensive Marketing Channel

View Answer

A. Direct Marketing Channel

Members of the marketing channel system perform _______ function.

A. Production

B. Sensing

C. Negotiation

D. Bartering

View Answer

C. Negotiating

Marketing channel that has no intermediary levels is known as ________ .

A. Exclusive Marketing Channel

B. Personal Marketing Channel

C. Direct Marketing Channel

D. Indirect Marketing Channel

View Answer

C. Direct Marketing Channel

GO TO PART 4 – SDM MISCELLANEOUS MCQS

________directly purchase goods from the manufacturer in large quantity at a discounted price.

A. Consumers

B. Wholesalers

C. Retailers

D. Affiliates

View Answer

B. Wholesalers

______is directly connected to the customers or consumers.

A. Manufacturer

B. Wholesalers

C. Retailer

D. Distributor

View Answer

C. Retailer

_______involves all the activities involved in selling goods and services to those buying for resale or

business use.

A. Manufacturing

B. Wholesaling
C. Retailing

D. Distributing

View Answer

B. Wholesaling

_________do not carry inventory or handle the product.

A. Cash and Carry Wholesaler

B. Wholesale Merchants

C. Industrial Distributors

D. Drop shippers

View Answer

D. Drop shippers

______bring buyers and sellers together and assist in negotiation.

A. Affiliate

B. Brokers

C. Agents

D. Drop shippers

View Answer

B. Brokers

1. Two commonly faced problems in the services business are –

a. Lack of training
b. Resistance to selling
c. Making the service tangible
d. Sales promotion
Ans. a & b

2. Sales promotion tools aimed at three tools are –

a. Customers
b. Incentives
c. Intermediaries
d. Salesforce
Ans. a, c, d

3. The most important objectives of _____ is to convince customers to make a purchase.

a. Direct marketing
b. The person selling
c. Person to person communication
d. Integrating programs
Ans. B

4. How profitable a given customer is over time defines your _____.

a. Assessment
b. Cycle efficiency
c. Follow up
d. Lifetime value
Ans. D

5. When a player assumes more of a leadership role on a team, It is called_____.

a. Stepping up
b. Stepping stone
c. Follow the leader
d. None of the above
Ans. A

6. We should lead from the right brain and manage from the _____.
a. Central brain
b. Whole-brain
c. Left brain
d. Right brain
Ans. C

7. The second critical skill for personal management is _____.

a. Thread
b. Producer
c. Subordinates
d. Delegation
Ans. D

8. Delegation can b classified into –

a. Gofer delegation
b. Supervision of efforts
c. Stewardship
d. Micromanaging
e. Scheduling
Ans. a & b

9. The_____ multiyear programme and framework for training and measuring standards of capability are
operated for all store staff.
Ans. The signet jewellery academy
10. ____ is a flexible programme consisting of six elements that better enable store staff to meet the
needs of customers.
a. BCD
b. LME
c. ACE
d. EPS
Ans. C

11. System has helped companies to_____.

a. Increase sales
b. Expand more efficiently
c. Reducing training and development cost
d. All of the above
Ans. D

12. No hype no pressure just excellent_____ built around credibility and integrity.
a. Goods
b. Services
c. Talk
d. Think
Ans. B

13. A new retired sales consultant for a daily newspaper trips to mind was_____.
a. Gallatin
b. Fred
c. Rich
d. None of the above
Ans. B

14. Fish believes in the concept of _____.

a. Cooperation
b. Coordination
c. Teamwork
d. Mutual trust
Ans. D

15. The two criteria for sales compensation use are_____ and_____.
a. Customer perception
b. Customer persuasion
c. Customer retention
d. Customer contact
Ans. b & d

16. Pay for the point of persuasion is the rule of_____.

a. Finger
b. Purchase
c. Thumb
d. Satisfaction
Ans. C
17. E-Commerce is the primary sales link with the customer, but customers must be convinced to sin up
is known as _____.
a. Signing up
b. Matriculation selling
c. Forward selling
d. Cross-selling
Ans. B

18. Two most common errors are –

a. Land lording
b. Appeasement pay
c. Sales expenses
d. Buying decisions
Ans. a & b

19. Once monetary needs are realized_____ needs can be realized with sales incentives.
a. Social acceptance
b. Personal esteem
c. Psychic income
d. Self realization
Ans. C

20. Behavioral model is given by _____.

a. B.F. Skinner’s
b. Fried
c. Meredith
d. Maritz
Ans. A

21._____ is the companion of a surprising number of sales professionals.

a. Negotiation
b. Fear
c. Desire
d. Pride
Ans. B

22. _____ is a routine job.

a. Negotiation
b. Desire for recognition
c. Sales
d. Incentive program
Ans. C

23._____ are important & provide accountability to promote entrepreneurial spirit and reduce turnover.
a. Trends
b. Projections
c. Benchmarks
d. Territories
Ans. D
24. Finding and visualizing groups of facts not previously known is –
a. Sequences
b. Clustering
c. Forecasting
d. Associations
Ans. B

25. _____ contains department or division-wide information.

a. Data mining
b. Data warehousing
c. Datamart
d. Data clustering
Ans. C

26. Logistics can be classified into –

a. One that is linked to operations
b. That is linked to strategy
c. That is linked to forecasting
d. That is linked to responsibility
Ans. a & b

27. Modes of transaction available in logistics are not include –

a. Rail
b. Road
c. Air
d. Water
e. Ship
f. Pipeline
Ans. E

28. Transportation is used by businesses for the delivery of goods from distant suppliers.
a. Air
b. Sea
c. Rail
d. Road
Ans. B

29. The philosophy of _____ is based on the principle of less quantity is lesser interval resulting in more
deliveries.
a. VMI
b. JIT
c. TQM
d. SCM
Ans. B

30. Basic functions in warehousing are –

a. Handling
b. Storage
c. Information transfer
d. All of the above
Ans. D
31. Key influencer for consumer services and entertainment can be –
a. Family & friends
b. Retailers & store staff
c. Specifiers
d. None of the above
Ans. A

32. Priceline.com is a market of _____.

a. BZC operation
b. BZB auctions
c. CZB auctions
d. CZC format
Ans. C

33. _____ are at the end o supply chain.

a. Distributor
b. Customer
c. Retailers
d. Wholesaler
Ans. C

34._____ base on early, frequent and proactive involvement with key suppliers to develop a partnership
for improvement.
a. GSE approach
b. SER approach
c. HR’s approach
d. HP’s approach
Ans. D

35. This is not the type of supply chain.

a. Ripe supply chains
b. Internal supply chain
c. Network oriented supply chain
d. Value chains
Ans. C

36._____ bridges the gap between consumer demand and producer supply.
a. Courier
b. Transportation
c. Inventory
d. Logistics
Ans. D

37._____ becomes the amount a customer is willing to pay for the product/service provided by the
supplier.
a. Value
b. Money
c. Cost
d. Interest
Ans. A
38. Information flows can be categorized as –
a. Strategy
b. Tactical
c. Functional
d. Operational
Ans. a, b, d

39. Make versus buy –

a. Operational decision
b. Strategic decision
c. Functional decision
d. Tactical decision
Ans. B

40. Capturing, analyzing and disseminating the right _____ is key to the success of any operation.
a. Data
b. Information
c. Demand & supply
d. None of the above
Ans. B

41._____ and sourcing are important elements in the packages as they reflect specific aspects of the
product.
a. Packaging
b. Pricing
c. Distribution
d. Supplying
Ans. B

42. The _____ is that the value chain may be used to identify and understand the specific sources of
competitive advantages.
a. Kotler’s agreement
b. Fried agreement
c. Porter’s agreement
d. None of the above
Ans. C

43._____ is a tool which estimates inventory requirements at stocking locations.

a. ERP
b. DRP
c. SCM
d. MRP-II
Ans. B

44._____ is defined as the development of a long term relationship with a limited number of suppliers on
the basis of mutual confidence.
a. Third-party logistics
b. Use of ERP/DRP technique
c. Co makers
d. Postponement
Ans. C
45. E-business is SCM can be classified as –
a. E-commerce
b. E-procurement
c. E-collaboration
d. All of the above
Ans. D

46. Selling services involves guidelines –

a. Facilitation of equality assessment by customer
b. Making service intangible
c. Use of references from internal sources
d. Recognition importance of customer contact personnel
Ans. a & d

47. Public relations is concerned with marketing tasks involves.

a. Reinforcing positioning
b. Building and maintaining image
c. Handling problems and issues smoothly
d. All of the above
Ans. D

48. Personal selling’s objective of promotion should include_____.

a. Building product awareness
b. Creating interest
c. Providing information
d. Stimulating supply
Ans. a, b, c

49. Personal selling strategy involves these three key elements_____.

a. Sales team
b. Understanding of clients
c. Sales performance
d. Sales structure
Ans. a, b, & d

50. It is a method for communicating with corporate customers due to increasing cost in the direct sales
force.
a. Mass marketing
b. Target marketing
c. Direct marketing
d. Personal marketing
Ans. C

51. Duties and responsibilities of a sales executive are not –

a. Conducts cols calls prospects and qualities and qualities account opportunities
b. Develop a detailed territory plan
c. Develop a detailed budgeting plan
d. Act as a resource for multiple industries
Ans. D
52. Stewardship delegation requires five areas of the commitment to expectations.
a. Guidelines
b. Consequences
c. Productivity
d. Desired results
Ans. C

53. Recruitment procedures involve –

a. Online facilities
b. Continue to improve the suitability of new stores personnel
c. Training
d. Development of training software’s
Ans. a, b, c

54._____ is a graphic depiction of the normal distribution of employee performance is an organization.

a. The behavioural model
b. The bell curve
c. Psychological model
d. Imagination model
Ans. B

55._____ is a systematic plan for the utilization of manpower and material resources.
a. Human resource
b. Financial planning
c. Budget
d. Material planning
Ans. C

56. Advantages of the budget does not include –

a. It serves as a basis for evaluating the performance of the supervisor
b. Efficiency and improvement in working of the organization
c. IT helps in developing a team spirit where participation in budgeting is encouraged
d. Minimizes the possibilities of buck-passing if the budget figures are not met
Ans. A

57. Functions of logistics management involves –

a. Right time
b. Right price
c. Right quality
d. Right product
Ans. a, b, c

58. Disadvantages of SEA transportation are –

a. High cost
b. Longer lead/delivery times
c. Suitable for a product with long lead times
d. Ideal for transporting heavy and bulky goods
Ans. a & b

59. Strategies decisions are required in managing the supply chain are –
a. Warehousing
b. Transportation
c. Make varies buy
d. Information technology solution and information
e. All of the above
Ans. E

60. Material handling consists.

a. Receiving
b. Storing
c. Information transfer
d. Shipping
e. Handling
Ans. a, b, d

61. Minimization of conflict can do by –

a. Segments the products
b. Setup exclusive or limited territories
c. Provide MDF / Co-op level and let the resellers choose to establish their own competitive advantage
d. None of the above
Ans. a, b, c

62. Tools which will help suppliers reach key influencers not include.
a. Product & technical information
b. Perform a marketing channels audit
c. Recognition
d. Sponsorships
e. Regular communication
Ans. B

63._____ is responsible for ensuring that product in distribution and reseller locations gets sold out.
a. Channel marketing
b. Companies
c. Clear segmentation
d. VAR’S
Ans. A

64._____ consists of the sale of goods or merchandise for personal or household consumption either from
a fixed location.
a. Wholesaling
b. Retailing
c. Distribution
d. Selling
Ans. B

65. The logistics partner usually take care of everything.

a. Outbound logistics
b. Inbound logistics
c. Relationships
d. Information
e. All of the above
Ans. E
66. _____ is a network of the manufacturer suppliers, and suppliers. Suppliers on the one hand and
customers and customer’s customer on the other hand.
a. ERP
b. SCM
c. DRP
d. SCI
e. BPR
Ans. B

67. The _____ identifies the linkages and interdependencies between suppliers, buyers, intermediaries and
end-users.
a. SCM
b. BPR
c. ERP
d. CRM
e. Value chain
Ans. E

68. Delaying the final labelling, assembly or packaging until the last moment is known as the principal
of_____.
a. DRP
b. Co-maker ship
c. Postponement
d. Outsourcing logistics
Ans. C

69._____ is a means of distributing information.

a. Internet
b. Intranet
c. VPN
d. WAN
Ans. B

70. The data warehouse concept ids gaining acceptance in part because of the possibility of fruitful_____.
a. Datamart
b. Data mining
c. Data replication
d. Data redundancy
Ans. B

71. System has helped companies in –

a. Increase sales
b. Reduce turnover of personnel
c. Expand more efficiently
d. Reduce training and development costs
e. Generate a significant return on investment
f. All of the above
Ans. F

72. Sales psychology factors include –

a. Pride
b. Need to desired
c. Fear
d. Desire for recognition
e. Conscience
f. Boredom avoidance
g. Al of the above
Ans. G

73. Match the following –

a. Association i. The recognition of patterns and a resulting new organization to data
b. Clustering ii. When one event can be correlated to another event
c. Sequences iii. Finding and visualizing groups of facts not previously known
d. Classification iv. The event leading to another later event
A. a-ii, b-i, c-iv, d-iii
B. a-iii, b-ii, c-iv, d-i
C. a-i, b-ii, c-iii, d-iv
D. a-iv, b-iii, c-ii, d-i
Ans. A

74. Problems and obstacles faced by a company in reaching to its key influencers are –
a. Key influencers do not respond to supplier’s approach
b. Reluctance by a company of dealing with all the industry’s key influences
c. Key influencers are already aligned with a competitor
d. Talk to end customers and channel partners
e. Analyze business sources
Ans. a, b, c

75. Supply chain performances do not include –

a. IT solution
b. Manufacturing support
c. Global freight management
d. Warehousing & distribution
e. Consolidation
f. Development of shipment strategies
Ans. a, b, c, d, e

1. Retailing encompasses the business activities involved in selling goods and services to consumers for
their personal, family, or household use. (True / False)
Ans. True

2. The word ‘retailing’ has come from the French word ‘Retailer’ which means to cut off a piece. (True /
False)
Ans. True

3. Retailers perform specific activities such as anticipating customer wants, developing assortments of
products, acquiring market information, and financing. (True / False)
Ans. True
4. The function performed by retailers or wholesalers in which they receive large quantities of
merchandise and sell them in small quantities is called ___.
Ans. Bulk Breaking

5. ___ provide a limited variety and assortment of merchandise at a convenient location in a 2000–3000
sq. ft. store with speedy check-out facilities.
Ans. Convenience stores

6. Examples of supermarkets are Subhiksha, Reliance Fresh, Food world, Food bazaar, and Nilgiri’s. (True
/ False)
Ans. True

7. ___ comprises of several product lines, typically clothing, home furnishings, and household goods,
with each line operated as a separate department managed by specialist buyers or merchandisers.
Ans. Departmental Stores

8. ___ are retailers that provide the online facility of buying and selling products and services via the
internet.
Ans. E-tailers

9. Give any one example of a hypermarket in India.

Ans. Star India Bazaar

10. Retail industry is one of the largest industries in India, with an employment of around 8% and
contributing to over 10% of the country’s GDP. (True / False)
Ans. True

11. Retailing also helps to create a place, time, and possession utilities. (True/ False)
Ans. True

12. Retailers participate in the sorting process by collecting an assortment of goods and services from a
wide variety of suppliers and offering them for sale. (True / False)
Ans. True

13. ___ is the understanding of how consumers make decisions to use their resources such as time,
money, and effort for buying, using, and disposing of goods and services.
Ans. Consumer behavior

14. An accurate understanding of consumer needs helps the retailer sell the product that is likely to be
successful in the market. (True/False)
Ans. True.

15. Retailers need to know the various influences that lead up to a purchase, not just the store where the
purchase is made. (True/False)
Ans. True.

16. The influence of culture on buying behavior varies from place to place and therefore marketers and
retailers have to be very careful in analyzing the culture of different groups, regions, or even countries.
(True/False)
Ans. True.
17. Buying decision of each person will be influenced by his/her role and status in society. (True/False)
Ans. True.

18. ___ step of decision making arises when the consumer becomes aware of his need for a particular
product or service.
Ans. Problem recognition.

19. ___ involves listing alternatives that will solve the problem at hand and a determination of the
characteristics of each.
Ans. Information search.

20. The ___ act involves the exchange of money or a promise to pay for a product or support in return of
ownership of a specific good.
Ans. Purchase.

21. Customers engaged in habitual problem solving spend very little time searching for information and
evaluating alternatives. (True/False)
Ans. True.

22. Limited consumer decision-making takes place when a consumer uses each of the steps in the
purchase process but does not spend a great deal of time on any of them. (True/False)
Ans. True.

23. ___ occurs when the consumer buys out of habit and skips steps in the process.
Ans. Routine consumer decision-making.

24. ___ refers to basic directional decisions and consists of the important actions necessary to realize
these directions in order to gain sustained competitive advantage.
Ans. Strategy

25. According to management guru Michael Porter, “strategy means choosing a different set of tasks to
deliver a unique mix of value”. (True / False)
Ans. True

26. In ___ strategy a firm believes that there exist ample opportunities by exploiting its current products
and current markets.
Ans. Market penetration

27. Expansion through ___ strategy involves the development of new or improved products for its
current markets.
Ans. Product development

28. ___ is comprised of the activities related to selling products directly to consumers through channels
such as stores, malls, kiosks, vending machines, or other fixed locations.
Ans. Retail marketing

29. Finding the correct marketing mix is an important part of positioning the retail outlet to be
distinguished from the competitors. (True / False)
Ans. True
30. The different products that the store offers are termed as merchandise mix. (True / False)
Ans. True

32. Location is typically the prime consideration in a customer’s store choice decision. (True / False)
Ans. True

33. A ___ is an environment that allows buyers and sellers to trade or exchange goods, services, and
information.
Ans. Market

34. ___ are the markets for products and services bought by individuals for their own or family use.
Ans. Consumer markets

35. ___ is defined as the process of splitting customers, or potential customers, in a market into different
groups, or segments, within which the customers share a similar level of interest in the same or
comparable sets of needs.
Ans. Market segmentation

36. Market segmentation allows in designing services that meet the potential market demand and
needs. (True / False)
Ans. True

37. Retail location affects transportation costs and human resources costs. (True/False)
Ans. True.

38. The retailer considers the number, size, and quality of competition before selecting a location.
(True/False)
Ans. True.

39. Type of goods to be sold is a major factor that helps while considering the location decision.
(True/False) Ans. True.

40. Typically the rent in a mall location is lesser than other retail locations (True/False)
Ans. False.

41. A shopping center or shopping arcade is one or more buildings forming a complex of shops
representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to
unit. (True/False)
Ans. True.

42. A ___ is a retail location that is situated on the major traffic artery, without any other competitive
retailers nearby.
Ans. Freestanding or isolated store location.

43. The first step in arriving at a decision on retail location is ___.

Ans. To identify the markets attractive and suitable for a retailer.

44. In order to determine the market potential, it is necessary to check the compatibility of the retail
store with the neighboring retail outlets in an area. (True/False)
Ans. True.
45. Customer attrition is one of the ways to measure the success of the retail location. (True/False)
Ans. True.

46. The three components of the merchandise mix are merchandise variety, merchandise assortment,
and merchandise ___.
Ans. Merchandise support

47. Planning, controlling, coordinating, and directing are the ___ of a merchandising manager.
Ans. Functions

48. The factors that influence merchandising are organization structure, size of the organization,
competition analysis, merchandising mix, and ___.
Ans. Target market

49. The four steps in the buying process are gathering product information, searching merchandise
suppliers, negotiating with selected suppliers, and ___.
Ans. Placing the order

50. The three stages of merchandise planning are developing sales forecast, determining merchandise
requirement, and ___.
Ans. Merchandise inventory planning

51. The components of merchandising management are merchandise planning, merchandise analysis,
merchandise control ___, and merchandise handling.
Ans. Merchandise acquisition

52. The two types of buying systems are stapled merchandise buying systems and ___ merchandise
buying systems.
Ans. Fashion merchandise buying systems

53. Buying systems influence sales volume, gross margins, markdowns, and ___.
Ans. Stock levels

54. The two commonly used methods to analyze merchandise performance are sell-through analysis and
___.
Ans. ABC analysis

55. Basic stock method, percentage variation method, stock to sales ratio method, and stock turnover
rate are the four methods of ___.
Ans. Merchandise inventory planning

56. The levels of planning merchandise are creating merchandise budget and ___ plan.
Ans. Assortment Plan

57. An important task of store administration involves ensuring that all the required permissions and
licenses to run a retail establishment are procured from the right authorities. (True/False)
Ans. True.

58. Managing store operations require integration among various functions within the store.
(True/False)
Ans. True.
59. ___ is necessary in order to ensure that miscreants do not spoil the retail store assets.
Ans. Security of the premises.

60. The size of the retail store and the level of operations determine the size and level of security
required. (True/False)
Ans. True.

61. ___ is the process and methods used to keep track of the stock in a retail business.
Ans. Retail inventory management.

62. An integral part of managing retail inventory at the store level is to display merchandise correctly.
(True/False)
Ans. True.

63. The ___ must see to it that each individual is adequately trained to excel in their job and supervise the
work that they do throughout their employment at the store.
Ans. Retail store manager.

64. Managing receipts involves defining the manner in which the retailer is going to receive payment for
the sales. (True/False)
Ans. True

65. The main objective of retail space management is to increase productivity by effective utilization of
space for merchandise display and customer movement. (True/False)
Ans. True.

66. The basic principles of store design require that the image being created is in tune with the
merchandise, the advertising, and the service offered by the store. (True/False)
Ans. True.

67. ___ is also sometimes called a signboard.

Ans. Store marquee.

68. Store marquee helps the retailer in identifying the store and in attracting customers and it is an
integral part of the building façade. (True/False)
Ans. True.

69. ___ describes the physical elements in a store design that appeals to consumers and encourages them
to buy.
Ans. Atmospherics.

70. ___ refers to the interior retail store arrangement of departments or groupings of merchandise
Ans. Store layout.

71. Mention the types of store layouts.

Ans. Grid layout, Diagonal layout, loop layout, and free form layout.

72. ___ is the presentation of a store and its merchandise in ways that will attract the attention of
potential customers, prompt them to buy, and eventually increase the sales of the store.
Ans. Visual merchandising.
73. The tools used for visual merchandising should help in attracting these five senses – sight, smell,
sound, touch, and taste. (True/False)
Ans. True.

74. ___ is the place where a customer is about to buy the product.
Ans. Point of Purchase (POP).

75. The primary purposes of fixtures are ___.

Ans. To efficiently hold and display merchandise.

76. The increased growth of markets has led to an increased size of retailers and intensified competition.
(True/False)
Ans. True.

77. The contribution of retailing can be measured in terms of its proportion to the GDP, the total
workforce it employs across the globe. (True/False)
Ans. True.

78. The Indian Retail industry has over 12 million outlets, which is the largest number of retail outlets in
the world. (True/False)
Ans. True.

79. The boom in retailing in India has been mainly observed in the urban markets. (True/False)
Ans. True.

80. Retailing methods in India are primarily in the form of ___.

Ans. Supermarkets, hypermarkets, and departmental stores.

81. Reliance, Tata group, Pantaloons, and Shoppers stop are some of the retail giants present in India.
(True/False)
Ans. True

82. A single-level large store that usually occupies a floor space of more than 5000 square feet selling
food and non-food goods is known as a ___.
Ans. Superstore.