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Retail Merchandising

Delves into planning and implementation of merchandising techniques to product assortment, visual presentation, and inventory management for retail businesses.

















The ability to negotiate favorable terms due to the proposition of high volume purchases? is called ___________.

  • Bin/Display Bin
  • Bricks and mortar store
  • Buying Power
  • Catchment

An effective way for a retailer to reduce the risk of shoplifting for small, expensive items is to place them

  • In storage vaults
  • On gondolas in the back of the store.
  • In locked display cases.
  • On wire shelves near the store's entrance

Who is the most important person in every retail transaction?

  • customer

Area immediately adjacent to selling space for stock reserves

  • Stockroom
  • Boutique
  • Aisle
  • Checkout

Principles of MerchandisingArea allocation: Net Selling Area (?? % of GFA Gross Floor Area)

  • 85%
  • 75%
  • 80%
  • 70%

Which item has the shortest shelf life?

  • Image:
  • Image:
  • Image:
  • Image:

_______________ is a type of business buys products at wholesale price and sells the same at retail price.

  • Merchandising Businesses

_________________ Area: For store functions incl. Show windows, storage rooms, lockers & cashiers space

  • Non-selling

Policy should be specific/definite.

  • Simple
  • Flexible
  • Stable
  • Specific

To make money and have financial ____________.

  • independence

Name the shop that is in a building as opposed to an internet shopping site, a street market stall, party sales, van sales or door-to-door sales.

  • Bin/Display Bin
  • Bricks and mortar store
  • Buying Power
  • Catchment

Apart from opening online retail store, the retailers take the help of _________ _______ such as 3D mock-ups to let the customer try the products on themselves.

  • augmented reality

What is Retail Design?


fairs, hawkers, weekly bazaars, flea markets are examples of established retail

  • True
  • False

The best shop interiors effectively combine p______ ID elements with changeable/s______ Visual Merchandising Display elements

  • permanent seasonal

_________________ is a type of manufacturing business that sell, rent, and develop properties, including land, residential homes, and other buildings.

  • Real-estate business

Which of the following statement about e-tailing is FALSE

  • It does require floor space to displayproducts.
  • It allows the customer having internet accessto shop any tie, any place.
  • It saves time of the customer otherwise spenttravelling to a shopping place in the real world.
  • It creates a platform for products from aroundthe world, which are imported by e-tailer whenthe customer places an order

Retail design is primarily a specialized practice of architecture and interior design, however it also incorporates elements of

  • interior decoration

The unwritten rules or guidelines that are peculiar to every culture or organization and are supposed to be observed by all parties.

  • Decorum
  • Policies
  • Protocol
  • Advertising

What is the first thing you should do when seeing a customer?

  • Walk the opposite direction
  • Greet them within 30 seconds
  • Ask how you can help
  • Ignore them. They will ask you for help if they need it.

When the customer gives a buying signal, what should the sales associate do?

  • Determine if the customer needs anything else.
  • Turn the customer over to a more seasoned sales associate.
  • Wait to see if the customer wants anything else.
  • Close the sale before the customer changes his mind.

E-tailing is a process of selling or purchasing the product using Internet for B2B orB2C transactions.

  • True
  • False

Place your popular or targeted products between .....

  • floor level and eye level
  • eye level and knee level
  • eye level and waist level

They are small store generally located near residential premises, and are kept open till late night or 24/7.

  • Convenience stores
  • Supermarkets
  • Hypermarkets
  • Specialty stores

It is a business owned by two (2) or more people.

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative

This layout maximizes product display while minimizing empty space, and it's almost always the most popular option among customers.


Independent retailer, Chain stores, Franchises, Cooperative stores

  • Store based
  • Non-store based
  • Service based


  • [A] Assortment display [B] Item display
  • [A] Item display [B] Assortment display
  • [A] Item display [B] Associated display

Basic Retail Store Programming Considerations

  • •Store type / locations
  • •Schedule / budget
  • •The context of the location
  • •Styles & Trends

Which of the following is not a part of the Retail Product Cycle?

  • allocation
  • distribution
  • manufacturing
  • markdowns

What type of inventory is the merchandise which is housed within the individual retail locations/stores?

  • on-hand inventory
  • standard inventory
  • total inventory
  • retail inventory

When changing window display theme, is it preferable to change store interior theme as well?

  • Yes
  • No

What are the characteristics of dissonance-reducing buying behavior?

  • Expensive, infrequent purchase with high buyer involvement and few perceived differences
  • Inexpensive, frequent purchase with low buyer involvement and few perceived differences
  • Expensive, infrequent purchase with high buyer involvement and strong brand recognition
  • Inexpensive, frequent purchase with low buyer involvement and strong brand recognition

In relation to channel management, which of the following actions should the manufacturer take to effectively introduce a new product to the marketplace:

  • Use appropriate promotional techniques to inform channel members
  • Establish ethics policies
  • Improve communication with distributors or wholesalers
  • Apply for a line of credit

Modern retailers are adapting new technology for marketing, retailoperations, and business transactions

  • True
  • False

The party that established (manages) the franchise is known as ___________.

  • Franchisor
  • Franchisee
  • Franchise

What is this an example of?

  • exclusive program
  • customer service
  • loyalty program
  • coupon

In visual merchandising, products are typically displayed in such a way as to attract consumers from the intended market by drawing attention to the product’s ....

  • bad feature and problems
  • best features and benefits
  • acceptable features and benefits

Place your most profitable items at

  • knee level
  • eye level
  • waist level
  • shoulder level

_____________ refers to the creative display of products for sale in a way that encourages customers to buy more items or products.

  • Merchandising

When a situation analysis reveals that a competitor's market share has steadily increased over the past year, the Franklin Electronics Store has identified an

  • Internal change
  • Internal weakness
  • External threat.
  • External strength.

Click the image that has the longest shelf life.

  • Image:
  • Image:
  • Image:
  • Image:

This refers to excess inventory that is kept on hand in case the customers buy more than the company anticipated.

  • Extra Stock
  • Total Stock
  • On-Hand Stock
  • Safety Stock

Window DisplaysUse p_____ , i_____, s_____ and products to convey an idea/ message to help connect customers with products

  • props images signage

A business might reduce a product's price during the growth phase of the product's life cycle because

  • The product tends to attract early adopters during this phase of the life cycle.
  • . the business wants to recover its research and development costs.
  • It can lower advertising costs since the product has a loyal customer base.
  • Competitors have introduced similar products to the marketplace.

The party that sells goods and services within the framework of the franchise is known as ___________.

  • Franchisee
  • Franchisor
  • Franchise

What is Visual Merchandising?Visual Merchandising can refer to w_____ displays , s_____ displays or s_____ displays

  • window shelf stock

Successful retail organizations are recognizing that customerloyalty is a key factor in their success. What does customer loyaltymean to a retail business?

  • Loyal customers spend more time when making a purchase and that increases their value to the retailer.
  • Customer loyalty decreases the amount of advertising a retailer must do to be competitive.
  • Customer loyalty increases employee satisfaction and loyalty.
  • Repeat business from loyal customer's increases a retailer's sales and profit because shoppers buy more often, recommend the retailer to others, and pay more for goods and services.

Produce products, either from raw materials or from component parts, then sell their products at a profit.

  • Agriculture and mining business
  • Manufacturers
  • Real-estate business

The process of choosing getting the right products to the right place at the right time so that customers can purchase them is called...

  • merchandising
  • _selection
  • Allocation
  • Distribution

The following question is an example of:"Are you looking for a sofa today?"

  • open ended
  • closed ended

Which of the following is an indicator that the customer is ready for a sale?

  • The customer decides to make a call to check on shirt sizes with her husband.
  • The customer approaches the counter and reaches for her purse.
  • The customer continues searching through the tie rack for a complimentary tie.
  • The customer asks the sales associate for the price of a shirt.

The owners of a corporation have limited liability, and the business has a separate legal personality from its owners.

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperative

You assist a customer in the computer department and see a potential for a big sale; however, don't want to overwhelm your customer or lose his trust. How should you proceed?

  • Determine his immediate and long-term needs, create a purchase plan, and supply him with your contact information as well as contact information for the computer help desk.
  • Recommend your most simple model for ease in spite of the fact it is your worst performing model.
  • Suggest he enroll in a computer class at the local senior center before making a purchase.
  • Talk clearly and slowly, explaining the function of each component of your most expensive model.

To have a ______ career.

  • second

___ out of 10 consumers in the United States say they have paid a higher price for something in order to do business with a company that delivers great customer service.

  • 5
  • 8
  • 7
  • 6

Act as the middleman and get goods produced by manufacturers to the intended consumers; they make their profits by marking up their prices.

  • Service Business
  • Retailers and Distributors
  • Utilities
  • Manufacturers

Which of the following is NOT a primary area of accountability for a Retail Manager?

  • Research and long-term planning of the merchandise that will be sold in the store.
  • Selling and service standards to ensure customers are satisfied.
  • Ensuring that customers receive the right products at the right time and that they are displayed appropriately.
  • Training employees to prepare them with product knowledge, selling and service skills.
  • Making sure the sales floor is recovered, damaged goods are returned, and safety and loss prevention standards are in place.

5 Core Principles in Business Operations

  • [No Answer]

Include banks and other companies that generate profits through investment and management of capital.

  • Service Business
  • Financial Business
  • Transportation Business
  • Utilities

This is the process of distributing merchandise to various retailer locations. What and how much goes to each store depends on the store size and location

  • distribution
  • merchandising
  • supply chain
  • allocation

This is the process of taking products from the warehouse and distrubution centers to be sold to customers

  • distribution
  • allocation
  • automation
  • merchandizing

Eye-catching & CreativeEffective retail interiors take into account the importance of attractive Displays to capture shoppers’ a_______ u_______ c_______ c_______ that link back to the Brand identity

  • attention using creative concepts

Total/Retail inventory includes the inventory throughout retailer's entire enterprise.

  • true
  • false

Considerations for choosing materials for retail visual merchandising:

  • High traffic or low traffic area
  • Display for interior or exterior
  • Budget
  • Environmental impact

________ layout is the most widely used type of free flow layout.

  • boutique

Refers to the level of even-handedness in dispensing justice, whereby claims are recognized in the order of their legal and contractual priority.

  • Justice
  • Transparency
  • Fairness
  • Stewardship

The purpose of asking the participants of a research study to maintain product diaries is to obtain marketing research about consumers'

  • Financial skills
  • Viewing preferences
  • Essential needs
  • Purchasing habits

A ________ is an organization or economic system where goods and services are exchanged for one another or for money.

  • business

What course of action can a lender take if a debtor's account is past due?

  • File a judicial lien
  • Claim defamation
  • Apply for bankruptcy
  • Liquidate assets

The planning and execution of product distribution is called ______________.

  • Profit
  • One-stop-shop
  • Logistics
  • Merchandising

The area from where the majority of a shop's customers are located is known as _____________.

  • Bin/Display Bin
  • Bricks and mortar store
  • Buying Power
  • Catchment

These are retail stores which sell items that are produced in excess qualityat discounted price.

  • Specialty stores
  • Department store
  • Factory Outlets
  • Catalogue showrooms

When discussing with an associate how to handle an upset and dissatisfied customer, it is BEST to:

  • Coach the associate to get a manager as quickly as possible.
  • Coach the associate to diffuse the customer's anger first and find out why she is upset.
  • Coach the associate to allow the customer to vent her anger.
  • Coach the associate to inform the customer to stop being angry.

-Various Services, Providers, Banks, Car Rentals, Services contract

  • Store based
  • Non-store based
  • Service based

Policy must be unambiguous.

  • Clear
  • Stable

1. The most likely reasons that a vertically integrated apparel company might offshore its manufacturing processes to businesses located in India, Taiwan, and China are to

  • . lower its costs and increase its profit margins.
  • Eliminate its transportation costs and improve product quality.
  • Avoid its tax obligations and meet trade quotas
  • . reduce product mix and accommodate demand.

What do we call a large box in which products for sale are kept on the shop floor?

  • Bin/Display Bin
  • Bricks and mortar store
  • Buying Power
  • Catchment

Site SelectionAnalysis of c_____ , s_____, access & p_____ limitations

  • context shape physical

Listed below are several factors that affect the success of aretail business. Which of the following selections best describesinternal factors, which a Retail Manager can influence?

  • Product availability, shopping atmosphere, customer service
  • Pricing, product placement, customers.
  • Customers, branding, product availability.
  • Advertisement, Customers, Place & Price

Retailers update shop displays periodically to refresh shoppers’ interest in the Brand.Which Display Strategies is this referring to?

  • Eye-catching & Creative
  • Tell a Story, Communicate a Message
  • Seasons & Festivals

The customer is forced to follow a predetermined path through the retail area or showroom


Calculate the total owed for the following sales transaction that has a sales-tax rate of 7.25%: 3 picture frames for $22.59 each; 8 boxes of light bulbs for $8.50 box; 4 gallons of paint for $38.79 per gallon; 2 paint brushes for $9.35 each; and 1 light fixture for $167.49.

  • $511.72
  • $527.12
  • $515.27
  • $521.71

Originally made up of the tasks of a domestic steward, from stig and weard.

  • Protocol
  • Policies
  • Decorum
  • Advertising

Establishing an ImageImage: a brand's personality immediately recognizable by the consumer[ ____ ] [ ____ ] & develop an appropriate & imaginative design with a compelling appeal for them

  • Identify customers

-Direct Sales, Email Orders, Postal Orders, Telemarketing, AutomatedVending

  • Store based
  • Non-store based
  • Service based

This is the reason companies say that you would benefit from doing business with them instead of their competitors...

  • brand promise
  • company culture
  • company brand
  • mission statement

A trading entity such as a marketing tool or method, a product or group of products, or simply a trade brand is called ____________.

  • Franchise
  • Franchisee
  • Franchisor

How do retailers benefit by using electronic data interchange systems?

  • Decreases the need to check merchandise
  • Limits electronic communication
  • Reduces the order cycle time
  • Eliminates the need for intermediaries

Net Selling Area:Space used by customers incl.

  • display shelves, fitting rooms, cash counters & gift wrap areas
  • Show windows, storage rooms, lockers & cashiers space

____% of customers will tell family and friends about a bad customer experience

  • 73
  • 98
  • 63
  • 52

A retail store layout (whether physical or digital) is the strategic use of space to _________ the customer experience.

  • influence

As a Retail Manager, you influence the shopping experience byleading by example. Which of the following is NOT an example of how tolead Associates?

  • Keep Associates informed of all your concerns about the store's sales trends.
  • Be energetic and enthusiastic with others.
  • Demonstrate a genuine welcoming attitude toward every customer every day, and be passionate about customer service.
  • Know the service standards for your store and meet them consistently.

The following question is an example of:"Can you tell me about the color scheme in the room where you plan to put your new sofa?"

  • open ended
  • closed ended
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