Retail and Retailing | Management Skills Courses

The Retail and Retailing Quiz

1. Retail profit is generated by buying at one price, and selling on at another price that will cover overheads and leave an amount for the retailer’s profit.

True

False

2. All retailers work directly with manufacturers to come up with “own brand” product.

True

False

3. It is up to the vendor (who is bringing the product to market), to manage the product into the marketplace and try to maintain a flow of product that will satisfy demand, but not result in surplus stock. Any surplus will have to be sold below cost and will negatively affect any profit made on the line.

True

False

4. Click n collect means that the customer places their order online, then goes to the shop to collect it themselves. One of the reasons this is popular is what is known as the “final mile “.

True

False

5. Manufacturers need retailers to act as a middleman between them and the customer principally because they don’t have the retailer’s infrastructure and skill set.

True

False

6. Key factors for consumer when selecting delivery options include;-
Select all that apply

Reliability

Price

Convenience

Choice

7. The Benefits of multi-channel retailing for the retailer include;-
Select all that apply

Offering convenience and a variety of touch points for the consumer to make a purchase, drives sales, margin and profit

They are perceived as contemporary and responsive to new technology differentiates themselves in a crowded market,

Data can be collected across each channel

Price is not the only consideration, so they may make a little more margin

8. When selecting a product range the buyer will;-
Select all that apply

Be able to select as much product as they think will sell

Have targets to achieve in terms of sales and profitability

Will consider product sourcing,

Will consider product mix and margin mix,

9. A retailer’s objective usually include ;-
Select all that apply

Maximise profit for the owners and shareholders

Sell at a low margin

Build their market share

Increase product sales

10. The growth of online has meant for retailers
Select all that apply

Significant investment in new technologies

Transparent and fiercely competitive pricing

Information that helps them understand their customer’s demographics

The ability to segment their offer and target consumers them in new ways.

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