KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2015/2016
AUGUST/SEPTEMBER EXAMINATION
ABDT2143 PRINCIPLES OF RETAIL MANAGEMENT
FRIDAY, 28 AUGUST 2015

TIME: 2.30 PM 4.30 PM (2 HOURS)

DIPLOMA IN BUSINESS STUDIES
(MARKETING)
DIPLOMA IN ENTREPRENEURSHIP

Instructions to Candidates:
SECTION A (25 marks)
Answer ALL TEN (10) sub-questions.
Each of the sub-questions numbered 1.1 to 1.10 given on the next page, has only one correct answer.
For section A, you are required to give your answer on the question paper by placing a circle O
around the letter (either A, B, C or D) that gives the correct answer to each sub-question.
If you wish to change your mind about an answer, block out your first attempt and then encircle
another letter. If you do not indicate clearly your final choice, or if you encircle more than one letter,
no mark will be awarded for the sub-question concerned.
NOTE: SECTION A MUST BE DETACHED AND TIED TOGETHER WITH YOUR
ANSWER BOOK BEFORE IT IS HANDED IN.
SECTION B (75 marks)
Answer THREE (3) out of four (4) questions.

This question paper consists of 5 questions on 4 printed pages.

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ABDT2143 PRINCIPLES OF RETAIL MANAGEMENT
SEAT NO.: __________________________________
INDEX NO. (IN FIGURE):______________________
INDEX NO. (IN WORDS):______________________
____________________________________________
SECTION A (25 marks)
Answer ALL TEN (10) sub-questions.
Question 1
1.1

One of Mydins hypermarket strategies is to have their products sold at or below cost. This is
known as ________.
A.
B.
C.
D.

1.2
A.
B.
C.
D.

A retail store that carries a narrow product line with deep assortments is called a ________.

specialty store
grocery store
convenience store
department store
1.3

A.
B.
C.
D.

a loss leader
non store marketing
product variety
odd pricing

In todays challenging market environment, given the slowing population growth rate,
retailers can still grow by ________.

reducing the number of retail outlets

minimising focus on customer services
take legal action on competitors for unfair competition
taking away sales from competitors
1.4

There are many pricing objectives that a retail outlet can adopt. The skimming strategy will
be ideal for a retail outlet when ________.
A.
B.
C.
D.

1.5

revenues are equal to expenses

the retail outlet has excess inventory on hand
customer demand is dropping
the retail outlet has a temporary monopoly with its product line
Which type of discount is normally used by suppliers to encourage prompt payment by
retailers?
A.
B.
C.
D.

Cash discount.
Trade discount.
Seasonal discount.
Quantity discount.
This question paper consists of 5 questions on 4 printed pages.

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ABDT2143 PRINCIPLES OF RETAIL MANAGEMENT
SEAT NO.: __________________________________
INDEX NO. (IN FIGURE):______________________
INDEX NO. (IN WORDS):______________________
____________________________________________
1.6

Which of the following external forces does NOT have a major impact on the supply chain?
A.
B.
C.
D.

1.7
A.
B.
C.
D.

The type of store cluster that consists of a group of retail businesses planned, developed,
owned, and managed as a unit is called ________.

franchise
shopping mall
central business district
cooperative
1.8

A.
B.
C.
D.

Political environment
Technological environment
Employee morale
Social cultural forces

A retailer seeks to ensure that the indoor temperature is within the highest standards of
comfort. This policy is an example of ________.

promotion management
building and fixture management
credit management
price management
1.9

The four Ps in the retail marketing mix are ________.

A.
B.
C.
D.

1.10

physical evidence, promotion, process and people

positioning, product, process and people
promotion, product, place and price
place, positioning, people and process

The goal of space allocation is to ________.

A.
B.
C.
D.

minimise customer access to high value items

maximise back room stock capacity
make largest amount of space available to hold merchandise and be shopable
evenly divide space to all functional areas
[Total: 25 marks]

This question paper consists of 5 questions on 4 printed pages.

4
ABDT2143 PRINCIPLES OF RETAIL MANAGEMENT
SECTION B (75 marks)
Answer THREE (3) out of four (4) questions.
Question 2
(a)

Explain the FOUR (4) types of layouts that a retailer can use.

(8 marks)

(b) Examine FOUR (4) constraining factors that could limit a retailers objective of having an
optimal merchandising mix.
(12 marks)
(c)

List any FIVE (5) transaction services commonly provided by the retailer to their customers.
(5 marks)
[Total: 25 marks]

Question 3
(a)

Assess FIVE (5) social trends that can affect the activities of retailers.
(b)

(15 marks)

Illustrate any FIVE (5) pricing strategies that can be used by hypermarkets in the country.
(10 marks)
[Total: 25 marks]

Question 4
(a)

Competition can be waged on many fronts. Outline the FIVE (5) major fronts that retailers
will have to consider when competing for their target customers.
(10 marks)

(b)

Illustrate THREE (3) stages from the wheel of retailing theory.

(c)

Store design includes both the exterior and interior of the store. Assess any THREE (3) items
related to the store design.
(9 marks)
[Total: 25 marks]

(6 marks)

Question 5
(a)

Assess THREE (3) criteria a retailer would require to meet when choosing a target market. Provide
an example for each criterion.
(12 marks)

(b)

Define freestanding location. Analyse any FOUR (4) advantages of having a freestanding location.
(13 marks)
[Total: 25 marks]

This question paper consists of 5 questions on 4 printed pages.