1. What is retailing?

Retailing is a distribution process, in which all the activities involved in selling the merchandise
directly to the final consumer (i.e. the one who intends to use the product) are included.
- Itencompasses sale of goods and services from a point of purchase to the end user, who is
going to use that product.
Retailing is the selling of merchandise and certain services to consumers. It ordinarily involves the
selling of individual units or small lots to large numbers of customers by a business set up for that
specific purpose.

Q.2 What is the role of retailer in distribution?

1.Providing assortments:
•Manufacturers generally specialize in Producing specific types of products: For example, Cadbury’s
makes chocolates, Kraft makes dairy products, Kellogg makes breakfast cereals, and Everest makes
spices.
•If such manufacturers decided to have their own stores selling only their own products, consumers
would have to go to many different stores to make purchases for their requirements.
•Retailers collect a variety of products and services from a number of sources and then offer these
as an assortment to their customers, Offering an assortment enables their customers to choose
from a wide selection of brands, designs, sizes, colors, and prices in one location.

2.Breaking Bulk:
•Breaking bulk is beneficial to both manufactures and consumers.
•Manufacturers prefer to ship products in bulk quantity cartons in order to reduce transportation
costs as it is more cost effective for manufacturers to package and ship merchandise in larger,
rather than smaller quantities.
•Consumers, in turn, prefer to purchase merchandise in smaller, more manageable quantities.
•Retailers purchase the products in larger quantities from manufacturers and then offer the products
in smaller quantities to the consumers as per their requirements. This is called breaking bulk.

3. Holding Inventory:
•Holding inventory is a major function of retailers in order to keep inventory that has been broken
down from their bulk packaging into user-friendly sizes so that products can be mad available in
smaller quantities whenever consumers want them.
•This will enable consumers to conveniently maintain a small inventory products at home since they
are aware that the retailers will always maintain an inventory of the products they need at the store
and make the products available when they need more.
•This reduces the consumer’s cost of storing products. Consumers find this beneficial since they
have limited storage space especially for perishable merchandise like dairy and frozen products.

4.Providing convenient location & timing:

•Retailers select the locations of their stores and keep them open for longer timings so that they are
conveniently located and available to their customers for fulfilling their requirements of goods &
services as soon as they require them
5.Providing services:
Retailers provide services in order to make it easier for consumers to buy and use products:
•Providing credit to consumers so that they can use a product now and pay for it later.
•Providing the space required for displaying products so that consumers can see the variety and feel
and test them before buying.
•Provide additional information about the characteristics and availability of products to customers
through salespeople who are available to answer questions.
•With multi-channel retailing, retailers offer the flexibility of multiple retail formats like retail stores,
web sites, mail-order catalogs, and a toll-free number. This provides convenience and enables
customers to buy anytime during the day or night.
•Customers can also choose to pick merchandise up at a store at their convenience or have.

6.Recording & providing feedback:

• Retailers record transactions and feedback from customers which they inform back to wholesalers
and manufacturers in the form of sales forecasts, delivery delays, defective items, customer
complaints, inventory turnover, and other information.
•This retailer feedback enables the wholesalers and manufacturers to modify goods and services in
order to better satisfy customers and increase sales.

Q.3 How does a retail add value to the distribution chain?

●Break Bulk
● -Buy it in quantities customers want
●Hold Inventory
● -Buy it at a convenient place when you
● want it
●Provide Assortment
● -Buy other products at the same time
●Offer Services
● -See it before you buy, get credit, layaway

Q.4 Buyer decision process for a retail customer

•A buying decision process is the process a customer goes through when buying a product
•A series of steps the customer will take to make a purchasing decision
1.Need Recognition
Types of Needs for a Retail Customer
•Utilitarian needs: These are satisfies when purchases accomplish a specific task. Shopping needs
to be easy & effortless for these needs to be satisfied
•Hedonic needs: They are satisfied when purchases accomplish a need for entertainment, emotional
& recreational experience as in department stores or specialty services

2. information Research
Amount of information search depends on the value from searching versus the cost of searching
•Factors affecting amount of search:
1.Product characteristics: complexity, cost
2.Customer characteristics: Past experience, perceived risk, Time pressure
3.Market characteristics: Number of brands available

3.Evaluation of alternatives
Multi-attribute attitude model
•Customer sees a retailer, product or service as a collection of attributes or characteristics
•Predict a customer’s evaluation of a retailer, product or service based on
1. It’s performance on relevant attributes
2. The importance of those attributes to the consumer

4.Purchase
How to increase chances of store visit?
•Increase performance belief of the store
•Decrease performance belief of other stores
•Increase importance weight of attributes for your store
•Add a new benefit

5. Post purchase evaluation

Satisfaction
•Becomes a part of customer’s internal information
•Affects future store & product decisions
•Builds store & brand loyalty

Q.5 Explain the retail strategic planning process

Q.6. Explain Visual Merchandising.

Visual merchandising is a marketing practice that uses floor plans, colour, lighting, displays,
technology, and other elements to attract customer attention. Its ultimate purpose is to use the retail
space to generate more sales by making a store stand out and attracting shoppers.
The 4 Elements of Visual Merchandising?
Within visual merchandising, there are 4 key elements. These elements are where the
advertisements can be placed to attract customers. These four areas are:
1.The store exterior –
•marquees (it is an architectural canopy that extends over the entrance.)
•window displays and
•Entrance: it should be such that it should provide customer convenience as well as store security.
Small stores may have one entrance. Big stores consists one for entrance and other for exit. There
are different types of entrances being used now days like revolving, push-pull, electronic entrances.
2. The store layout – selling space, personnel space and merchandising space
3. The store interior – the store design (floor and wall coverings, fixtures and lighting)
4. The interior display – the way of displaying the merchandise

Objectives of Visual Merchandising

•Attracting the attention of passers-by and enticing people to enter a store is the number one aim of
great visual merchandising.
•Your store’s display window is the first thing people see, and it can be a deciding factor in whether a
customer enters the store or not.
•Great window graphics create a story, something customers can relate to, and elicit a positive
experience from the get-go. This isn’t limited to seasonal displays, nor props. Incorporating artistic
installations, using striking graphics, lighting and even video displays all work together to create a
unique feeling. There are dozens of possible applications for window designs, in-store and outside
of it.
•Visual merchandising doesn’t only help a store attract customers: it helps increase sales and gives
customers a good reason to come back again, whilst giving your business a competitive advantage.
This is why visual merchandising is so important.
Example-
-Themed Window Displays: the most common way of attracting the attention of people passing are
window graphic designs.
•Lighting and Digital Arrangements: The use of digital images and careful light placement creates an
innovative event that is impossible to replicate.
•Mixed elements: a combination of colour and light translates into an eye-catching logo that
transitions from day to night and never loses its appeal.
•Vehicle Wrapping.

Q.7 Explain the GAP model of service quality

•The gap model of service quality is a framework professionals use to analyze customer satisfaction
and identify areas for improvement.
•Most companies, regardless of whether they are sales- or service-focused, involve some
component of customer service.
•Some industries that use this tool include retail, food, hospitality and health care.
•Also known as the five gaps model or the customer service gap model, this tool addresses the
most common communication challenges that can cause a gap between customers' expectations
of service and the service they actually receive.
•The model also helps managers better understand their customers to meet their needs.
5 types of gaps

•Each gap is a difference between an expectation and a deliverable. The five gaps that the
framework examines are:
1. Gap between management perception and customer expectation-
This gap measures what customers expect and what management thinks they want.
•This can occur when management doesn't have enough information about their customers'
expectations.
•For example, managers at a supermarket may think shoppers want more brand-name items and
self-checkout stations. However, shoppers are more concerned about the store's cleanliness and
employee friendliness.
•Market research and feedback can help you better understand your customers before you make
significant changes to your products or services.
•Consider hosting customer panels and interviews, implementing satisfaction surveys or conducting
comprehensive studies to ensure your perception of what your customers want is correct.
2. Gap between management perception and service quality specification
•This gap examines the difference between management's perception of quality service and the
steps it takes to provide that level of service.
•Managers may understand what their customers expect but haven't established the necessary
training or standards to meet these expectations.
•For example, managers at a fast-food restaurant may tell staff members to fill orders quickly
without specifying the acceptable amount of time.
•Managers need to define the level of service they want their customers to experience to diminish
the potential for miscommunication.
•Develop standard operating procedures for your team and establish SMART goals that are specific,
measurable, actionable, relevant and timely.
•Addressing each area can help create parameters that are easy to understand and empower the
team to complete tasks successfully.

3. Gap between service quality specification and service delivery

•This gap assesses the difference between what level of service management tells expects from
staff and what type of service the customer actually receives.
•Customers may receive lower-quality service than managers want if team members can't meet
expectations.
•At this stage, managers might audit the customer experience to identify areas for improvement.
•Often, in this type of situation, the team may benefit from receiving additional training.
•In some situations, management may need to review their hiring practices to select both capable
and willing candidates to provide quality customer service.
•A few areas you can consider when analyzing this gap include team members' aptitude, health,
attitude and cultural factors.
For example, managers at a call center may have specific standards for how many calls a
representative completes each hour.
•If they see that many find it challenging to meet the goal, managers may decide to provide more
training.
•They may also revisit their hiring practices to ensure candidates are comfortable speaking with
customers over the phone.

4. Gap between service delivery and external communication

•This gap analyzes the difference between the service a company tells customers it provides and the
service they actually receive.
•It measures whether the company advertises and shares information about its services accurately
instead of exaggerating its claims.
•Advertisements and company statements significantly impact customer expectations, so managers
need to ensure claims are honest.
•For example, a hotel's website and brochures might feature clean and modern-looking rooms, but if
the staff doesn't properly maintain the rooms between guests, there may be a gap between what
customers expect and what they receive.
•Reviewing advertising materials regularly can help you accurately depict the services you provide
customers

5.Gap between expected service and experienced service

•This gap addresses the difference between the level of service customers expect and the level they
perceive.
•This can occur when the company's claims are honest but misinterpreted by the customer.
•Interactions with other customers and previous experiences with your company may also influence
the type of experience that customers expect.
•For example, a sales associate at a boutique clothing store may welcome guests, ask if they need
help finding anything, offer to prepare a dressing room and check on them to ensure the clothes fit
properly.
•While the sales associate may be providing the company's expected quality of service, customers
may perceive this service as overwhelming based on experiences shopping at other stores.
•Collecting regular customer feedback can help you identify this gap.
•Consider implementing transactional surveys to assess how customers perceive the quality of the
service they receive.

Q.8 Different layouts of a retail store

Types of Store Layouts

•Grid
•Racetrack/ Loop
•Free Form
1.Grid layout -
•Mainly used in grocery stores
•Long gondolas in repetitive pattern.
•Easy to locate merchandise
•Does not encourage customers to explore store–Limited site lines to merchandise
•Allows more merchandise to be displayed
•Cost efficient
•Used in grocery, discount, and drug stores.

2. Loop/ racetrack
•Loop with a major aisle that has access to departments and store’s multiple entrances.
•Draws customers around the store.
•Provide different site lines and encourage exploration, impulse buying
•Used in department stores
•Used in malls & departmental store

3. Free form( Boutique) layout

•Fixtures and aisles arranged asymmetrically
•Pleasant relaxing ambiance doesn’t give cheap –small store experience
•Inefficient use of space
•More susceptible to shoplifting salespeople can not view adjacent spaces.
•Used in specialty stores and upscale department stores, luxury retail or fashion brands.

Q.9 Why is it important to study consumer behaviour?

Q.10 Types of customer service

 1. Live chat support
•Customers can use live chat support to instant message a service agent on a company's website.
Agents instant message back and forth with customers to provide solutions and answer questions.
This tool is very popular because it provides customers with quick and direct support compared to
typical phone conversations.
2. Email support
•Customers contact companies by sending messages to a designated email address, which is
typically displayed on the company's webpage. While email support is often a little slower than live
chat support, it still provides customers with the ability to contact service agents through a text-
based format without directly interacting with another human. This helps customers document
important information, explain themselves clearly and avoid time-consuming efforts to receive
support.
3. Self-service support
•Self-service support primarily exists in the form of frequently asked questions (FAQs) published on
a company's website. This tool works well for customers who typically do their own research before
contacting customer support through more direct channels. Also, customers who know a fair
amount about the products they use can usually navigate self-service support technologies easily to
find the exact answers they're seeking. Most companies offer self-service support options
nowadays, and they typically supplement other direct forms of customer service.
4. Interactive voice support
•Interactive voice support is an automated telephone system that interacts with customers in a
limited fashion through a dial pad and voice requests. Interactive voice is a great way for companies
to support customers with very simple questions without needing to have actual agents present.
Also, interactive voice systems can be updated frequently to store relevant information that
customers are looking for. This makes it so that live support agents don't need to answer every
single question customers have. They can focus on helping them resolve issues that the voice
support can't handle.
•The fundamental challenge of using interactive voice systems is that customers aren't interacting
with an actual human, which means they will sometimes be redirected or put on hold many times.
Companies can avoid this if they strategically and purposefully design their interactive voice
systems to allow customers to request help from a live agent when necessary.
5. Social media support
•Now that social media is one of the most popular digital tools used for communication across the
globe, companies have adapted it to serve as a powerful channel for customer service. To offer
social media support, agents constantly monitor a company's social media presence on platforms
like Facebook, Twitter and Instagram to answer customer inquiries in comments and messages.
•A large portion of social media support is done through crisis management—customers often
publish reviews of companies and products on these public platforms in order to get the help they
need urgently. Agents then respond to these reviews publicly and offer solutions, which can help
maintain customer loyalty. An added bonus occurs when other users read positive exchanges
between customers and service agents. This can be a great marketing tool for a company, as it
shows their commitment to meeting customer needs.
6. Web commerce support
•Web commerce support is when companies offer advice and information for customers during the
purchasing process. It typically occurs when customers sign on to a website to purchase a product
or service and find themselves with questions. To answer those questions, companies often publish
Q&As about certain products or allow customers to ask each other questions on the product's page
within their web platform. This type of support helps customers find answers on their own—similar
to self-service support—but makes it easier for customers to find product-relevant information in a
timely manner.
7. On-site support
•On-site support is offered in person at business locations or customers' homes. Companies use on-
site support to provide repairs and troubleshooting services to customers with technological issues
or consulting needs. The biggest advantage of offering on-site support is that it allows agents to
interact with customers on a more personal basis, which can help them build stronger customer
relationships to make repeat business more likely. Even further, customers are typically drawn to
support solutions that are convenient for them, such as when service is delivered to their door.
8. Telephone support
•Telephone support is a classic way of offering customer service. To receive telephone support,
customers call agents on the phone to ask questions and explain their problems verbally. This
allows them to describe complicated situations with ease. There are some challenges in telephone
support processes, like poor cellular service that can lead to dropped calls and limited staff
availability that can lead to long wait times. Nevertheless, telephone support allows agents to better
assess a customer's tone and emotions, and it helps older generations who are not as
technologically savvy access great service.

Q.11 Explain the concept of supply chain management

A supply chain is an entire system of producing and delivering a product or service, from the very
beginning stage of sourcing the raw materials to the final delivery of the product or service to end-
users.
•A supply chain is the network of all the individuals, organizations, resources, activities and
technology involved in the creation and sale of a product. A supply chain encompasses everything
from the delivery of source materials from the supplier to the manufacturer through to its eventual
delivery to the end user.
-Steps in the supply chain
The fundamental steps of a supply chain in order are as follows:
•Sourcing raw materials.
•Refining those materials into basic parts.
•Combining those basic parts to create a product.
•Order fulfillment/Sales.
•Product delivery.
•Customer support and return services.
-The 5 Components of Supply Chain Management
Component 1: Planning
•One of the biggest questions procurement teams need to ask is whether the organization plans to
manufacture goods themselves or they will buy ready-made goods.
•In the event that the company manufactures finished products, the next question that arises is
where will raw materials be sourced? Will it be from local, regional, or international suppliers?

Component 2: Sourcing
•Following on the heels of the first component is the second step which involves sourcing.
•This step is one of the most critical of the entire supply chain as it is at this stage that the biggest
cost savings can be achieved.
•Choose the right vendor offering the ideal price and who has the capacity to deliver required
volumes in a timely fashion and you’ve struck gold.

Component 3: Inventory
•Having several suppliers so you can secure enough raw materials and or products so you can
remain fully stocked up is extremely important.
•2020 demonstrated the importance of getting this component correct. According to RetailNext, 28%
of surveyed businesses suffered severe shortages and even went out-of-stock of certain key items.
56% of these enterprises had to renegotiate contracts.

Component 4: Production and Transportation

•The next important component in supply chain management is production, warehouse, and
transportation.
•This element of the supply chain takes a look at what is needed to ensure that the organization is
producing the correct volume of products and that product quality meets established standards.

Component 5: Return of Goods

•What do you do when a customer returns a product that’s faulty? What is the protocol to handle
such an incident?
•These questions are answered in the final component of the supply chain ‘Return of Goods’.
Because customer satisfaction is extremely important, it is imperative that there be a clearly defined
protocol surrounding the returns process.

Q.12 Explain importance of Customer Relationship

Management in retail industry
Customer relationship management (CRM) refers to the principles, practices, and guidelines that an
organization follows when interacting with its customers.
•Elements of CRM range from a company's website and emails to mass mailings and telephone
calls. Social media is one-way companies adapt to trends that benefit their bottom line. The entire
point of CRM is to build positive experiences with customers to keep them coming back so that a
company can create a growing base of returning customers.
•Increasingly, the term CRM is being used to refer to the technology systems companies can engage
to manage their external interactions with customers at all points during the customer lifecycle, from
discovery to education, purchase, and post-purchase.
Benefits of CRM
•A CRM system helps businesses organize and centralize their information on customers, allowing
for easier access and customer support.
•Businesses use CRM systems to optimize sales and marketing and improve customer retention.
•Data analytics is also much easier, where businesses can track the success of various projects or
campaigns, identify trends, infer associations, and create visually intuitive data dashboards.
•Customers enjoy better service and are more likely to report higher satisfaction as a result.
•Customer interactions including complaints are stored and can be easily recalled so that customers
do not have to constantly repeat themselves

Technology in CRM
•CRM Software
•Special CRM software aggregates customer information in one place to give businesses easy
access to data, such as contact data, purchase history, and any previous contact with customer
service representatives.
•This data helps employees interact with clients, anticipate customer needs, recognize customer
updates, and track performance goals when it comes to sales.

•CRM Cloud Solutions

•Cloud-based systems provide real-time data to sales agents at the office and in the field as long as
a computer, smartphone, laptop or tablet connects to the internet.
•Such systems boast heightened accessibility to customer information and eliminate the sometimes
-complicated installation process involved with other CRM products or software.

•CRM Human Management and Artificial Intelligence

•All of the computer software in the world to help with CRM means nothing without proper
management and decision-making from humans. Plus, the best programs organize data in a way
that humans can interpret readily and use to their advantage. For successful CRM, companies must
learn to discern useful information and superfluous data and must weed out any duplicate and
incomplete records that may give employees inaccurate information about customers.

Q.13 Explain third party logistics

Third-party logistics is a service that receives shipments of stock, stores and tracks warehouse
inventory, and picks and packs orders to ship to your customers. Most 3PL warehouses serve many
clients, sending orders for multiple eCommerce companies.
•A 3PL can also be called a fulfillment company, fulfillment warehouse, or fulfillment center.
Companies that provide 3PL services offer the same services as order fulfillment companies. These
services generally include:
•Warehousing
•Inventory management
•Picking and packing
•Shipping and receiving.

•Third-party logistics providers manage inbound and outbound transportation for their clients, as
well as warehousing.
•Most 3PL companies own or lease warehouse space where they store merchandise for their clients,
pick orders, and ship packages.
•Most 3PLs don’t own a fleet of delivery trucks, though some (most notably Amazon) provide last-
mile transportation services as part of their end-to-end logistics services.
•Third-party refers to the fact that you’re outsourcing your order fulfillment.
•You don’t own the warehouse, hire the staff, or manage the operations.
•Instead, you rent storage space for your products in a large warehouse that stores products for
multiple companies.
•Warehouse employees receive your products and place them into inventory.
•They pick items from shelves to fill orders and pack them securely for shipping.
•The 3PL works with various carriers to deliver orders to your clients.
•Third-party logistics warehouses are designed to maximize speed and efficiency.
•As your business grows, your 3PL can handle the extra volume, and you can expand your capacity
without hiring additional staff.
•A 3PL can work with you on ways to get lower shipping rates and faster delivery times.
•When you use a 3PL company for your eCommerce fulfillment, you benefit from the experience and
focus of supply chain professionals.

Q.14 Why outsourcing of supply chain is important? What are its limitations