MGMT230
Contemporary Retail Management
Comprehensive Finals Test (Qns & Ans)
2025
1. Which of the following strategies is commonly used by
retailers to increase customer loyalty and repeat business?
- A. Dynamic pricing
- B. Loyalty programs
- C. Inventory reduction
- D. Product diversification
ANS: B. Loyalty programs
©/2025
, Rationale: Loyalty programs are designed to increase
customer loyalty and repeat business by rewarding customers for
their continued patronage.
2. What is the primary objective of omnichannel retailing?
- A. Reducing operational costs
- B. Increasing store size
- C. Enhancing customer experience by providing seamless
integration across multiple channels
- D. Expanding product lines
ANS: C. Enhancing customer experience by providing
seamless integration across multiple channels
Rationale: Omnichannel retailing aims to enhance the
customer experience by providing seamless integration across
various channels, such as online, in-store, and mobile.
Fill-in-the-Blank Questions
3. The process of analyzing customer purchase data to identify
trends and patterns is known as __________.
ANS: data mining
©/2025
, Rationale: Data mining involves analyzing customer
purchase data to identify trends and patterns, which can be used to
inform retail strategies and decision-making.
4. __________ is the practice of selling products to customers at
prices that fluctuate based on demand and other factors.
ANS: Dynamic pricing
Rationale: Dynamic pricing is the practice of selling products
at prices that change based on demand, competitor pricing, and
other factors, allowing retailers to optimize revenue.
True/False Questions
5. True or False: Visual merchandising involves creating
appealing store displays to attract customers and drive sales.
ANS: True
Rationale: Visual merchandising involves creating attractive
and engaging store displays to draw customers in and encourage
them to make purchases.
6. True or False: Retail shrinkage refers to the loss of inventory
due to external theft only.
©/2025
, ANS: False
Rationale: Retail shrinkage refers to the loss of inventory due
to various factors, including external theft, internal theft,
administrative errors, and supplier fraud.
Multiple Response Questions
7. Which of the following are key components of a successful
retail marketing strategy? (Select all that apply)
- A. Target market analysis
- B. Inventory mismanagement
- C. Competitive pricing
- D. Effective promotion
ANSs: A, C, D
Rationale: Key components of a successful retail marketing
strategy include target market analysis, competitive pricing, and
effective promotion. Inventory mismanagement can negatively
impact retail operations.
8. Which of the following technologies are commonly used in
contemporary retail management to enhance customer
experience? (Select all that apply)
- A. Augmented reality
©/2025
Contemporary Retail Management
Comprehensive Finals Test (Qns & Ans)
2025
1. Which of the following strategies is commonly used by
retailers to increase customer loyalty and repeat business?
- A. Dynamic pricing
- B. Loyalty programs
- C. Inventory reduction
- D. Product diversification
ANS: B. Loyalty programs
©/2025
, Rationale: Loyalty programs are designed to increase
customer loyalty and repeat business by rewarding customers for
their continued patronage.
2. What is the primary objective of omnichannel retailing?
- A. Reducing operational costs
- B. Increasing store size
- C. Enhancing customer experience by providing seamless
integration across multiple channels
- D. Expanding product lines
ANS: C. Enhancing customer experience by providing
seamless integration across multiple channels
Rationale: Omnichannel retailing aims to enhance the
customer experience by providing seamless integration across
various channels, such as online, in-store, and mobile.
Fill-in-the-Blank Questions
3. The process of analyzing customer purchase data to identify
trends and patterns is known as __________.
ANS: data mining
©/2025
, Rationale: Data mining involves analyzing customer
purchase data to identify trends and patterns, which can be used to
inform retail strategies and decision-making.
4. __________ is the practice of selling products to customers at
prices that fluctuate based on demand and other factors.
ANS: Dynamic pricing
Rationale: Dynamic pricing is the practice of selling products
at prices that change based on demand, competitor pricing, and
other factors, allowing retailers to optimize revenue.
True/False Questions
5. True or False: Visual merchandising involves creating
appealing store displays to attract customers and drive sales.
ANS: True
Rationale: Visual merchandising involves creating attractive
and engaging store displays to draw customers in and encourage
them to make purchases.
6. True or False: Retail shrinkage refers to the loss of inventory
due to external theft only.
©/2025
, ANS: False
Rationale: Retail shrinkage refers to the loss of inventory due
to various factors, including external theft, internal theft,
administrative errors, and supplier fraud.
Multiple Response Questions
7. Which of the following are key components of a successful
retail marketing strategy? (Select all that apply)
- A. Target market analysis
- B. Inventory mismanagement
- C. Competitive pricing
- D. Effective promotion
ANSs: A, C, D
Rationale: Key components of a successful retail marketing
strategy include target market analysis, competitive pricing, and
effective promotion. Inventory mismanagement can negatively
impact retail operations.
8. Which of the following technologies are commonly used in
contemporary retail management to enhance customer
experience? (Select all that apply)
- A. Augmented reality
©/2025
