RETAIL MANAGEMENT IIBM EXAM QUESTION AND ANSWER PROVIDED

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Retail Management
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice & Short Notes Type Questions.
 Answer all the questions.
 Part One carries 2 marks each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. The minimum value of Conversion ratio is_________
a. 0
b. 0.5
c. 2
d. 1
2. The law of retail gravitation is also called__________
a. Huff‟s law.
b. Belly‟s law.
c. Philip Kotler‟s law.
d. Relly‟s law.
3. In Huff‟s probability model of retail store location, the exponential „alpha‟ denotes,
a. The attractiveness of the store.
b. Power of the store in terms of potential customer located farthest.
c. It is simply a power over the attractiveness of the store.
d. None.
4. If the market has low level of retail saturation then the chances of success in the market is,
a. Higher.
b. Lower.
c. Unpredictable.
d. Extremely lower
5. If the original price be „a‟ and the reduce price be „b‟ then the mark down % in Pricing techniques
is given by,
a. (a – b)/a.
b. (a – b)/b.
c. (b – a)/a.
d. (b – a)/b.
Part Two:
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1. What do mean by „Super market‟?
2. What do you understand by Upper and Lower threshold in pricing methodologies?
3. What does the term „silent market‟ say?
4. Explain „Gap theory‟ related with service quality.
5. Explain barometric technique used for sales forecasting.
Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Retail Management
Shane Flynn graduated from UCD with a Bachelor of Arts in 1994 and has worked in the retail sector
ever since. Although he has always entertained the idea of postgraduate studies, after four years in
university Shane was ready to get out and start earning some money in the „real world‟.
While working as retail business manager for Statoil Ireland in 2005, Shane learned about the part-time
MBS in Retail Management in DIT Aungier Street, and decided the time was right for a return to
college. „It was very hard, but I‟m glad I had commercial experience before I undertook this, I don‟t
know if I would have managed it straight after the BA degree,‟ he says.
His management were completely in agreement and Shane received full support, with regard to both
fees and time-off, during his two-year studies. The MBS in Retail Management required that Shane
attend lectures every Tuesday afternoon from 2pm, and also spend a week „on-campus‟ attending
lectures and producing papers on three or four occasions. Topaz Energy Group acquired both Statoil‟s
and Shell‟s Irish operations while Shane was in college, and he is now retail manager of every Statoil
and Shell branded filling station in Ireland. Thankfully, Topaz was more than willing to continue
supporting Shane‟s educational efforts.
In response to a query on how his course work could be applied to real-life work situations, Shane
mentions his dissertation topic that examined whether a lean management strategy can give a
competitive advantage to a forecourt operator. „Very specifically that helped me, but in all the classes I
learned something that I‟ve been able to apply successfully to work, be it human resource management,
supply chain, or whatever.‟
1. Did the fact that Shane was working and could think of real-world applications for what he was
END OF SECTION B
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learning make the course more interesting?
2. How would you describe Shane‟s experience of part-time postgraduate education?
Caselet 2
Bobcat India Limited revolutionized footwear selling in India. The company hit upon the idea of
reaching customers through exclusive retail stores way back in 1932 and set up its own outlets,
which numbered around 1,200. It was no mean task setting up such a large network of retail outlets,
especially when 90% of them were owned and operated by the company, the rest being dealerowned
and operated. This chain store format identify has been a strong differentiating factor in the
Indian retail sector, being the first of its kind. Combined with the high quality of the footwear, the
brand soon had top-of-the-mind recall and stayed there for many years. Unit a few years ago, the
name „Bobcat‟ was synonymous with organized retailing in India, the only one of its kind.
The Chain Store Format
The Bobcat chain store format had its own credo – a signature store design with exclusive signage
and windows in order to facilitate easy association in the minds of the Indian consumers.
At present there are only two major categories of stores in the Bobcat Chain Store format:
(a) Bobcat Family Stores
(b) Bobcat Bazaar
(a) Bobcat Family Stores
These are sub-dividend into two formats again, based on the size of the stores. They are:
(1) Super Stores, generally more than 5,000 sq.ft. Catering to customers in the footwear category.
(2) High-street stores that are anywhere between 500 and 1,500 sq.ft. Found in busy shopping areas.
(b) Bobcat Bazaar
Bobcat Bazaar stores sell the company‟s planned economy product lines and marked-down
merchandise round the year. Known as R-pair stores, their performance depends heavily upon the
availability of marked-down merchandise. Such markdowns are done on products that have suffered
quality accidents, are shop-soiled, lines that are closed-out etc.
Recent Format Developments
New retail formats have begun to supersede conventional ones. Independent big-box multi-brand
department stores have started selling footwear as a category, especially in metros and cities. Malls
are another new shopping format that is growing rapidly in the metros. Many upcoming footwear
retailers are obtaining space inside the malls as mall partners to take advantage of the ready footfalls
available. For the existing independent Bobcat stores it is expensive now to run campaigns and
promotions to attain the required footfalls and expected conversions.
Merchandising in Bobcat Family Stores
The exclusively of the „Bobcat‟ brand to the Bobcat retail stores was the differentiating factor for
customers until recently. However, a few years ago the company decided to sell Bobcat branded
goods through its channel sales wing called Bobcat Wholesale. Hitherto, the wholesale channel had a
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different brand for itself called BSC. This wholesale channel supplies merchandise to footwear
retailers across India through its authorized distributors. The brand Bobcat has now been extended to
this wholesale channel too, which means that Bobcat branded goods is available in every other local
footwear store. The exclusivity of the brand to its own outlets has come to an end. And, even as the
sales of the wholesale division remain stagnant, what compelling reasons can a customer have to
visit a Bobcat Store now? A peculiar feature of the Bobcat store was its odd price points: Rs 149.95,
199.95, etc.
Merchandise presentation and Visual Merchandising
Bobcat pioneered the concept of show window displays in India with a style that was unique to the
company. It was professionally managed, with an exclusive team handling the motif and the design.
Every month the direction to decorate the show windows were given by a mailer prepared by special
decorators. Sales personnel in each store were trained to be window decorators too. Recently, these
windows had to be done away with because the company thought that they should follow the
contemporary practice of free-access retailing, where all merchandise pairs are displayed in open
shelves to enable customers to help themselves. Remember, in India footwear is always tried on a
footstool and bought after considerable service extended by the salesperson personally. Free-access
retailing may work when there is adequate space inside a store to move around. The effect of such
„pigeon-hole‟ free access is that they give an impression that they are Bobcat‟s R-Pair outlets. What
can now entice the customer into entering a Bobcat store?
Customer Service
Though Bobcat faces tough manpower challenges (the store sales personnel and managers have
separate labor unions), the sales personnel who are on its permanent rolls are trained in selling
footwear. However, there are a large proportion of untrained and temporary hands. Further,
salespersons do not wear any uniform and hence customers can hardly identify them. There is as yet
no loyalty program to create customer stickiness to any store or the brand, and most of the stores are
not connected by a central information system or ERP (enterprise-wide resource planning) as the
organization has its limitations when it comes to investing in such initiatives. Organized retail
companies need to have non-negotiable standards of customer service or they will lose customers to
its competitors. The company is now losing its market share despite its strong position in categories
like men‟s footwear, children‟s uniform shoes, etc. However, the number of stores it has around the
country is around the same, at 1,200. The company now needs to put together a plan for both its
survival and growth on a war footing. The top management is revisiting its strategies in every
functional area to turn the company around.
1. What store format mix would you recommend for the company?
2. Did the company do the right thing by extending the in-store brand to the wholesale channel?
What should it do now?
Section C: Applied Theory (30 marks)
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 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. “The Indian Retail sectors are witnessing a transition phase where organized retailing is taking a
lead over unorganized retailing”. In the light of above statement, explain the current states of
Indian Retailing.
2. “The customer is fully satisfied when the perceived services meets or exceeds their
expectations”. Explain?
END OF SECTION C
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IIBM Institute of Business Management
Examination Paper MM.100
Consumer Behaviour
Section A: Objective Type & Short Questions (30 Marks)
 This section consists of Multiple Choice & Short Notes Type questions.
 Answer all the questions.
 Part One carries 2 marks each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. The Yellow color is related with personality links like________
a. Caution, warmth
b. Power, informality
c. Passion, excitement
d. Purity, innocence
2. Consumers having high ethnocentric value in CETSCALE for foreign made products are likely to
feel that________
a. It is worthy to purchase the foreign products.
b. It is wrong to purchase foreign made products.
c. Only foreign made products should be purchased.
d. They should remain neutral.
3. If the OSL(optimum stimulation level) score of a person is greater than the lifestyle he/she is
living then he/she likely to
a. Take rest
b. Appear quite satisfied
c. Seem bored
d. Can not be predicted.
4. The psychologists who disagree with the Freud‟s theory of personality are usually referred
as_______
a. Non Freudians
b. Freudians
c. Neo Freudians
d. C-Freudians
5. According to Sigmund Freud, the human personality consists of 3 interacting systems viz the id,
the superego and the ego. What actually „id‟ refers to
a. Its role is to see the individual‟s needs in a socially acceptable fashion.
b. Its role is to drive impulsions for the needs to be satisfied immediately.
c. Its function is to control and balance the impulsive demands.
d. None
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Part Two:
1. What is a „common man approach‟?
2. Differentiate between „Enculturation‟ and „Acculturation‟.
3. Write a short note on „Rokeach Value Survey‟, a widely used value instrument, in consumer
behavior studies.
4. Explain the „Sociometric method‟ of measurement in „Opinion Leadership‟.
5. What do you understand by the term „Viral marketing‟?
Section B: Caselets (40 marks)
 This section consists of Caselets.
 Answer all the questions.
 Each caselet carries 20 marks.
 Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
The Indian refrigeration industry had apparently reached maturity in the eighties. The introduction
stage could be seen in 1962-66; growth, 1967-80; and maturity 1981-88.Between 1989-90 and 1990-
91, the market grew by 12 to 12.35 lakhs units; in 1992-93 it is estimated to have come down from
12 to 10.39 lakhs pieces. Thus, the decline seems to have begun. Presently, there are six main
competitors in the refrigerator market in India. The industry seems to have structure prevailing in
monopolistic competition. The products at present available in the market are under the brand names
of Godrej, Kelvinator, Voltas, Videocon, BPL and Allwyn. The new entrants to the market like BPL
and Videocon with latest ultra modern refrigeration technology have thrown down the gauntlet to the
existing leaders like Godrej and Kelvinator. A study has been conducted to find out what change
have occurred in consumers behavior due to the emergence of these new challenges, because, for all
one knows; a very tough competition has recently emerged among the industrial giants due to which
consumer behavior has undergone drastic change. The main purpose of study is to see how defectors
are affecting consumer behavior. The specific objectives of this study are positioning of products
and brands, rating of different parameters and their ranking, consumers‟ degree of satisfaction,
estimating ideal capacity and ideal prices. Consumer‟s perception of price and brand, awareness of
different brands and various sources of information to the consumer. This survey leads to the
conclusion, that most of the people are aware of 165-liter capacity with awareness of nearly 95%,
others are less known to consumers. The most important parameters for customers while buying a
refrigerator are technology, cooling efficiency, durability, price, capacity and after-sales service in
that order. According to the dealers, the customers consider brand name, technology, cooling
efficiency, durability and after-sales service as very important. Other parameters like special
gift/price, guarantee/warranty are just important parameters. According to the customers, BPL,
END OF SECTION A
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Voltas and Videocon are high – priced refrigerator; Godrej and Kelvinator, comparatively lowpriced;
and Allwyn, medium-priced. From the dealers‟ survey it has been found out that the ideal
capacity is 165 liter; and the ideal price Rs. 7,000-8,000.
1. Due to the emergence of new industrial giants like BPL and Videocon, consumer
behavior has undergone a sea-change. In what ways?
2. Discuss which will be the most effective strategy according to you that will make
consumer brand loyal in the refrigerator industry.
Caselet 2
Walking down the streets of Delhi‟s Connaught place, capital‟s business heart, Mike Steve, 50 years
old CEO of Macnine shoes (India), was looking at the feet of the busy office goers. The CEO
purposely walked to his office near Super Bazar from the Palika car parking to have a first hand
feeling of the market response to the Macnine shoes, and in general the foot-wear habit of urban
Indians. Macnine shoes brought an image of simple no fuss yet elegant office-going shoes. The
shoes, known for its comfort and reasonable prices shared a good market share in face of
competition from Windsor, Red Tape, Lee Cooper, Woodland, etc. but as the days passed Mike‟s
trained eyes could see the changing scenario. Office goers no longer seemed to prefer “no fuss”
shoes, there was a distinct preference for heavy looking chunky shoes. People‟s perception about
office-going shoes was changing from regular 6-hole laced shoes to these heavy looking shoes. As a
result, Macnine shoes‟ market share decreased by 10 per cent between 1998 and 1999. Disturbed by
the fact, Mr. Steve called a meeting of the departmental heads and after five-hour long meeting it
was accepted, Indian consumers had undergone a sea change in their attitudes and perceptions about
the products. Office was no long seen as a boring work-place where a “no nonsense” rather “stiff
upper lip” attitude has to be maintained. Office was seen as more a part of regular life and a relaxed
“as you want to be” (of course within limits) attitude. Keeping pace with the time, Macnine shoes
also should shed its “traditional” image. More importantly, consumers are going more and more for
branded shoes, rather than mass production shoes that will be available at the retail shops. The
departmental heads agreed that there is a definite price-quality perception in the mind of the
consumers. Consumers perceive high price as a certificate of high quality that will be associated with
the branded products. Based on the price-quality perception, Macnine shoes were decided to be
positioned in the market. Dramatically changing from the basic principle of quality and affordability
targeting the growing middle class, the company saw a better prospect in developing a high priced
brand image as shoe was no longer, especially in big cities seen as necessity but it was a part of life
style marketing where shoes were seen as fashion accessories.
Macnine shoes which for over two decades was known for making popular affordable shoes,
took a one eighty degree turn and developed dedicated showroom with premium shoes and other
accessories like T-shirts, bags, socks etc. but, the result were quite contrary to what was expected,
the decrease in market share continued despite these efforts. The reason seems quite simple, or
decade‟s consumer has known the shoe to be in the affordable range. With this sudden change the
loyal buyers felt betrayed and turned away towards other local brands. The main selling point of the
company was missing the consumers no longer felt the urge to come to buy macnine shoes. The fact
was the brands who started as selling premium shoes were perceived to be in a category of catering
the upper category of consumers with extremely focused range of shoes which borne a premium
price. Talk of red Tape, talk of Lee Copper, the image that comes to the consumer‟s mind is of
premium shoes with all its associated characteristics. While past experience brings in the minds of
the consumer an “affordability” image of Macnine shoes. When the company drastically wanted to
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change the image, they could not fit into consumer perception of a premium shoe, while high price
deterred people who wanted affordability foremost. Macnine lost on both the grounds.
1. Explain the “role and status” for Macnine shoes.
2. Suggest some ways of changing consumer perception of Macnine shoes.
Section C: Applied Theory (30 marks)
 This section consists of Long Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. A college student has just purchased a new personal computer. What factors might cause the
student to experience post purchase dissonance? How might the student try to overcome it? How
can the retailer who sold the computer help reduce the student‟s dissonance? How can the
computer‟s manufacturer help?
2. An Advertising on a known deodorant shows a young beautiful girl is upset to meet her
boyfriend, as friends point out at her “Bad body odour”. The advertisement is trying to arouse
which motive in the consumer? Discuss by giving one similar examples?
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END OF SECTION B
END OF SECTION C