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Summer 2013
Master of Business Administration- MBA Semester 3
MK0012 – Retail Marketing
Q1. Define e-tailing. Explain the future of electronic retailing (Definition- 2 marks; Future of electronic retailing- 8
marks) 10 marks
Answer : e- telling :
The sale of goods and services through the Internet. Electronic retailing, or e-tailing, can include business-to-business
and business-to-consumer sales. E-tailing revenue can come from the sale of products and services, through
subscriptions to website content, or through advertising.
E-tailing requires businesses to tailor traditional business models to the rapidly changing face of the Internet and its
users. E-tailers are not restricted solely to the
Q2. Explain the factors which are leading to the growth of retail sector. (Listing and explanation – 10 marks) 10
marks
Answer : Factors leading to the growth of retail sector :
1. Increase in per capita income:
Per capita Income means how much an individual earns, of the yearly income that is generated in the country
through productive activities. India has marked growth in per capita income by 10.5% which shows tremendous
increase in GNP (Gross National Product) of the country. Increase in per capita income reflects hike in income of
Households which in turn will consume more,
Q3. Describe the tools of Integrated marketing communication.
( Definition of Integrated marketing communication- 1 mark; Indirect marketing tool- 4 marks; Direct marketing
tool- 5 marks) 10 marks
Answer : Definition of Integrated marketing communication :
Integrated Marketing Communication (IMC) is a term that emerged in the late 20th century regarding application of
consistent brand messaging across myriad marketing channels. The term has varying definitions depending upon the
source cited. These definitions continue to form an ongoing discussion in marketing - and therefore are included here
for review, as the differences in these discussions
Q4. Discuss the Retail pricing strategies.
(Explanation- 1 mark; Retail Pricing Strategies- 9 marks) 10 marks

2. Answer : Retail pricing strategies :
1. Mark-up Pricing :
Markup on cost can be calculated by adding a pre-set (often industry standard) profit margin, or percentage, to the
cost of the merchandise. Markup on retail is determined by dividing the dollar markup by retail.
Be sure to keep the initial mark-up high enough to cover price reductions, discounts, shrinkage and other anticipated
expenses, and still achieve a satisfactory profit
Q5. Write a short notes on:
A. Types of retail store location with examples(any five)
(Types- 3 marks; examples- 2 marks)
Answer : Types of retail store location with examples :
1. Department Stores :
A department store is a set-up which offers wide range of products to the end-users under one roof. In a department
store, the consumers can get almost all the products they aspire to shop at one place only.
Examples :
Shoppers Stop, Pantaloon
B. Factors affecting retail store location(any five) (Factors – 5 marks) 5+5 = 10 marks
Answer : Factors affecting retail store location :
1. Population and Your Customer :
If you are choosing a city or state to locate your retail store, research the area thoroughly before making a final
decision. Read local papers and speak to other small businesses in the area. Obtain location demographics from the
local library, chamber of commerce or the Census Bureau.
2. Accessibility, Visibility and Traffic :
Q6. Write a short notes on: A. Classification of retail consumers based on shopping. (Classification- 6 marks)
Answer : Classification of retail consumers based on shopping :
In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity. To better
understand the rationale behind this theory and to face the challenge of building customer loyalty, we need to break
down shoppers into five main types:
Loyal Customers: They represent no
B. Types of Buying behaviour :
Answer :

3. 1. Impulse Purchases :
When a consumer stands at the checkout and notices lip moisturizer, magazines and gum, and adds one of the items
to his cart of groceries, it's often referred to as an impulse purchase. The consumer makes a purchase with little to no
thought or planning involved. In most instances this happens with low-priced items.
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