I85PREP
⌘ K
Assam Higher Secondary Skill Subject Retail Trade study materials
Assam Higher Secondary Skill Subject Retail Trade study resources

Assam Higher Secondary Skill Subject Retail Trade practice questions

One question at a time. Build your Assam Higher Secondary Skill Subject Retail Trade understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Introduction to Retail and the Retail Ecosystem

In retail terminology, what does the 'supply chain' of a retail store refer to?

  1. The sequence of activities that moves goods from producers to the retailer and finally to customers Correct answer.
  2. The layout plan showing where each product category is placed
  3. The record of daily cash collections maintained by the cashier
  4. The list of employees working in different shifts at the store

Explanation

The supply chain covers all the linked activities and parties that bring a product from its source to the end customer, including suppliers, transporters, warehouses and the retailer. Cash records, staff rosters and floor layouts are internal store matters, not the flow of goods.

Question 2Introduction to Retail and the Retail Ecosystem

A shop that sells goods directly to final consumers for personal or household use is best described as which type of retailer?

  1. A distributor
  2. A manufacturer
  3. A retailer Correct answer.
  4. A wholesaler

Explanation

A retailer is the business that sells goods or services directly to the final consumer for personal or household use. Wholesalers and distributors sell mainly to other businesses, and manufacturers produce the goods rather than selling them to end users.

Question 3Introduction to Retail and the Retail Ecosystem

Which of the following is an example of a service retailer rather than a goods retailer?

  1. A grocery supermarket
  2. A hair salon Correct answer.
  3. A stationery shop
  4. A footwear showroom

Explanation

Service retailers sell intangible experiences or activities, and a hair salon provides a service rather than a physical product. Supermarkets, footwear showrooms and stationery shops primarily sell tangible goods to consumers.

Question 4Introduction to Retail and the Retail Ecosystem

What is the main purpose of visual merchandising in a retail store?

  1. To negotiate credit terms with suppliers
  2. To calculate the profit earned on each product line
  3. To train new staff in billing procedures
  4. To arrange products and displays so that they attract customers and increase sales Correct answer.

Explanation

Visual merchandising uses product placement, displays, lighting and store design to make merchandise attractive and encourage purchases. Profit calculation, supplier negotiation and staff billing training belong to finance, purchasing and operations functions.

Question 5Introduction to Retail and the Retail Ecosystem

A customer buys a packet of biscuits from a nearby shop that stays open until midnight. Which benefit of retailing does this situation best illustrate?

  1. Possession utility, because ownership is transferred only after a warranty period
  2. Place utility, because goods are made available at a convenient location and time Correct answer.
  3. Time utility, because the price is fixed by the government
  4. Form utility, because the biscuits were manufactured from raw materials

Explanation

Retailing creates place utility by making products available where and when customers need them, such as a late-night neighbourhood shop. Form utility comes from manufacturing, and possession utility refers to the transfer of ownership to the buyer.

Question 6Introduction to Retail and the Retail Ecosystem

Which of these best describes the term 'e-tailing' in the retail ecosystem?

  1. Selling goods at wholesale rates to other traders
  2. Selling goods and services to customers through online channels Correct answer.
  3. Selling goods through door-to-door salespersons
  4. Selling goods only through vending machines

Explanation

E-tailing, or electronic retailing, refers to selling goods and services to consumers over the internet through websites, apps and marketplaces. Vending machines, door-to-door selling and wholesale trade are different channels or business models.

Question 7Introduction to Retail and the Retail Ecosystem

A retail chain buys goods from a producer and resells them to customers. In this relationship, what role does the retail chain perform for the producer?

  1. It acts as a channel member that helps distribute the producer's products to end consumers Correct answer.
  2. It guarantees that all products will be sold at the producer's price
  3. It takes over the production process from the manufacturer
  4. It sets the manufacturing cost of each item

Explanation

Retailers are channel members who bridge the gap between producers and consumers by stocking and selling goods in convenient quantities. They do not produce the goods, set manufacturing costs, or guarantee sales at a fixed price.

Question 8Introduction to Retail and the Retail Ecosystem

Which statement correctly distinguishes a department store from a single-line specialty store?

  1. A department store sells only to wholesalers, while a specialty store sells to consumers
  2. A department store operates without any sales staff, while a specialty store depends entirely on staff
  3. A department store offers many product categories under one roof, while a specialty store focuses on a narrow category Correct answer.
  4. A department store stocks only food items, while a specialty store stocks only clothing

Explanation

A department store is organised into several sections covering different product categories, whereas a specialty store concentrates on one narrow range such as footwear or electronics. Both normally sell to final consumers and both use sales staff.

Question 9Introduction to Retail and the Retail Ecosystem

A small neighbourhood store keeps very little stock and places frequent small orders with its supplier. Which benefit does this practice mainly provide?

  1. Higher manufacturing output for the producer
  2. Lower inventory holding cost and less risk of unsold stock Correct answer.
  3. Guaranteed lower prices from every competitor
  4. Elimination of the need for record keeping

Explanation

Ordering small quantities frequently reduces the money tied up in inventory and lowers the risk of stock becoming unsold or obsolete. It does not raise production output, control competitors' prices, or remove the need to keep records.

Question 10Introduction to Retail and the Retail Ecosystem

Which element of the retail marketing mix is concerned with how and where customers can obtain a product?

  1. Place Correct answer.
  2. Promotion
  3. Price
  4. Product

Explanation

In the retail marketing mix, place covers distribution and access, including store location, online channels and availability. Product concerns the assortment, price concerns the amount charged, and promotion concerns communication with customers.

Question 11Introduction to Retail and the Retail Ecosystem

A retailer wants to know which products are selling fastest so it can reorder them in time. Which retail activity directly supports this?

  1. Recruitment of additional cashiers
  2. Negotiation of the shop's electricity contract
  3. Sales data analysis and stock monitoring Correct answer.
  4. Interior decoration of the store entrance

Explanation

Analysing sales data and monitoring stock levels shows which items move quickly and when reordering is needed. Decoration, cashier recruitment and utility contracts affect the store's appearance or operating costs but do not identify fast-moving products.

Question 12Introduction to Retail and the Retail Ecosystem

In the retail ecosystem, what is the primary function of a warehouse located between producers and retail stores?

  1. To store goods in bulk and supply stores as needed Correct answer.
  2. To display goods to final consumers for selection
  3. To collect payment from customers at the billing counter
  4. To manufacture goods from raw materials

Explanation

A warehouse holds goods in bulk and releases them to retail stores when required, helping balance supply and demand. Display to consumers happens in stores, manufacturing happens in factories, and payment collection is a store-level activity.

Question 13Introduction to Retail and the Retail Ecosystem

A customer compares two brands of shampoo, checks the ingredients, and chooses the one that suits her hair type. Which stage of the buying process does this represent?

  1. Need recognition
  2. Payment and billing
  3. Post-purchase behaviour
  4. Evaluation of alternatives Correct answer.

Explanation

Comparing brands and checking product features is the evaluation-of-alternatives stage, where the buyer weighs options before choosing. Need recognition comes earlier, post-purchase behaviour comes after the purchase, and billing is a transaction step.

Question 14Introduction to Retail and the Retail Ecosystem

Why is the location of a retail store considered a key factor in its success?

  1. It fixes the wholesale price of all products
  2. It determines customer footfall and convenience of access Correct answer.
  3. It removes the need for advertising
  4. It decides the quality of goods produced by suppliers

Explanation

A good location brings the store close to its target customers, increasing footfall and ease of access. Location does not set wholesale prices, eliminate promotion, or influence the quality standards of suppliers' production.

Question 15Introduction to Retail and the Retail Ecosystem

A retail store offers a loyalty card that gives points on every purchase. Which retail trend does this best reflect?

  1. Reducing the product assortment to a single item
  2. Shifting from retailing to manufacturing
  3. Using customer relationship tools to build repeat purchases Correct answer.
  4. Moving all sales to wholesale channels

Explanation

Loyalty programmes are customer-relationship tools that reward repeat buying and help retailers retain customers. They do not change the retailer into a manufacturer, shrink the assortment to one item, or move sales into wholesale channels.

Question 16Introduction to Retail and the Retail Ecosystem

Which combination correctly pairs a retail format with its typical characteristic?

  1. Specialty store - sells only to wholesalers in bulk
  2. Convenience store - very large floor area with a narrow product range
  3. Factory outlet - sells only fresh vegetables
  4. Supermarket - wide range of food and household goods with self-service Correct answer.

Explanation

A supermarket typically offers a broad assortment of food and household products on a self-service basis. Specialty stores sell to consumers, convenience stores are small with a limited range, and factory outlets sell surplus branded goods rather than only vegetables.

Question 17Introduction to Retail and the Retail Ecosystem

A retailer notices that online orders peak during festival weeks. Which supply-chain response best addresses this pattern?

  1. Plan seasonal stock build-up and arrange extra delivery capacity before the peak Correct answer.
  2. Stop accepting online orders during festival weeks
  3. Permanently reduce the product range after the festival season ends
  4. Shift all sales to a single physical counter

Explanation

Seasonal demand peaks are managed by forecasting, building stock in advance and arranging additional logistics capacity so orders can be fulfilled on time. Reducing the range, refusing orders or abandoning online channels would harm sales rather than meet demand.

Question 18Introduction to Retail and the Retail Ecosystem

A retailer sells a product at a low price but earns a thin margin per unit. Which condition would make this strategy sustainable?

  1. High sales volume that spreads fixed costs over many units Correct answer.
  2. High storage costs for unsold inventory
  3. Very low customer footfall throughout the year
  4. Frequent stock-outs of the product

Explanation

Low-margin pricing works when large volumes spread fixed costs such as rent and salaries across many units, so total profit remains healthy. Low footfall, high storage costs and frequent stock-outs all reduce sales or raise costs and undermine the strategy.

Question 19Introduction to Retail and the Retail Ecosystem

A producer wants its products to reach many small towns where large retail chains do not operate. Which channel arrangement is most suitable?

  1. Appointing local independent retailers and distributors in those towns Correct answer.
  2. Restricting sales to online orders from metro cities
  3. Selling only through a single flagship store in the capital city
  4. Selling directly only to large departmental stores in big cities

Explanation

Local independent retailers and distributors already have reach and knowledge of small-town markets, making them effective channel partners where large chains are absent. A single city store, metro-focused online sales or big-city departmental stores would leave those towns unserved.

Question 20Introduction to Retail and the Retail Ecosystem

A retailer's store is well stocked and well located, yet sales remain low because customers find the aisles confusing and staff unhelpful. Which conclusion best reflects retail ecosystem thinking?

  1. Store performance depends on coordinated elements such as layout, service and merchandise working together Correct answer.
  2. Stock levels are the only factor that affects sales in a store
  3. Staff behaviour has no influence on customer purchases
  4. Location alone guarantees retail success regardless of other factors

Explanation

Retail success comes from several interconnected elements - merchandise, layout, service and location - supporting one another; a weakness in one can offset strengths in others. Treating location, stock or staff as the sole determinant ignores how these factors interact in the retail ecosystem.

Question 21Customer Service and Customer Relationship Management

In retail customer service, which term describes the total value a customer brings to a store over the entire period they keep buying there?

  1. Shrinkage ratio
  2. Footfall conversion rate
  3. Customer lifetime value Correct answer.
  4. Average transaction size

Explanation

Customer lifetime value estimates the total revenue or profit a shopper generates across all future purchases. It helps a retailer decide how much to invest in retention, loyalty programmes and service recovery.

Question 22Customer Service and Customer Relationship Management

A sales assistant greets a shopper, listens to the requirement, and then suggests a product that fits it. Which customer service skill is being demonstrated most directly?

  1. Queue management
  2. Needs identification Correct answer.
  3. Upselling pressure
  4. Visual merchandising

Explanation

Needs identification means discovering what the customer actually wants before recommending anything. Listening first and matching a product to the stated requirement is the core of consultative selling in retail.

Question 23Customer Service and Customer Relationship Management

Which action best demonstrates 'service recovery' in a retail store?

  1. Training staff to avoid speaking to dissatisfied customers
  2. Displaying the refund policy only at the billing counter
  3. Offering a discount to every customer who enters the store
  4. Apologising, correcting the mistake, and following up with the customer Correct answer.

Explanation

Service recovery is the planned response to a service failure: acknowledge it, fix it, and confirm the customer is satisfied. A follow-up shows accountability and rebuilds trust after the problem.

Question 24Customer Service and Customer Relationship Management

What is the main purpose of a customer feedback form kept at the billing counter?

  1. To record the daily cash balance of the counter
  2. To track the attendance of sales staff
  3. To list the suppliers of each product category
  4. To collect structured information that helps improve store service Correct answer.

Explanation

Feedback forms gather customer opinions in a structured way so management can spot service gaps and act on them. Cash, attendance and supplier records are internal operational documents, not customer feedback.

Question 25Customer Service and Customer Relationship Management

A customer says, 'I am just looking around.' What is the most appropriate retail response?

  1. Ask the customer to leave if they do not buy
  2. Acknowledge politely and stay available at a distance Correct answer.
  3. Follow the customer closely through every aisle
  4. Insist on showing the latest arrivals immediately

Explanation

Respecting browsing space keeps the shopper comfortable while signalling that help is available. Over-attentiveness often drives browsers out of the store before they decide to buy.

Question 26Customer Service and Customer Relationship Management

Which of these is a component of the 'moment of truth' in retail service?

  1. The direct interaction when a customer evaluates the store's service Correct answer.
  2. The annual stock audit conducted by the accounts team
  3. The negotiation of rent with the shop owner
  4. The process of filing GST returns for the outlet

Explanation

The moment of truth is the point of contact where a customer forms an impression of the service quality. It typically occurs during interaction with staff, the product or the checkout experience.

Question 27Customer Service and Customer Relationship Management

In retail CRM, what does 'customer segmentation' mean?

  1. Grouping customers by shared characteristics to serve them better Correct answer.
  2. Dividing the store floor into billing and display zones
  3. Splitting staff into morning and evening shifts
  4. Separating damaged stock from saleable stock

Explanation

Segmentation groups customers by attributes such as purchase frequency, spend or demographics so offers and service can be tailored. It is a customer-facing CRM activity, not a store or staff arrangement.

Question 28Customer Service and Customer Relationship Management

A loyal customer has bought from a store for three years. Which behaviour from staff best builds relationship retention?

  1. Charging a service fee for repeat purchases
  2. Remembering the customer's usual preferences and greeting them by name Correct answer.
  3. Offering the same standard pitch used for every new walk-in
  4. Redirecting the customer to a competitor for niche items

Explanation

Personal recognition makes a repeat customer feel valued and increases the likelihood of continued loyalty. Tailored service based on remembered preferences is a practical retention technique in retail CRM.

Question 29Customer Service and Customer Relationship Management

A customer complains that a purchased shirt shrank after the first wash. Which first step reflects good complaint handling?

  1. Listen fully, apologise for the inconvenience, and verify the purchase details Correct answer.
  2. Offer a store credit before hearing the complaint
  3. Refuse to talk until the store manager arrives
  4. Argue that the customer must have washed it wrongly

Explanation

Effective complaint handling begins with attentive listening and acknowledging the customer's experience. Verifying purchase details then allows a fair resolution such as replacement or refund under policy.

Question 30Customer Service and Customer Relationship Management

Which metric best measures how well a store converts visitors into buyers?

  1. Average employee tenure
  2. Conversion rate Correct answer.
  3. Inventory turnover ratio
  4. Gross margin percentage

Explanation

Conversion rate compares the number of transactions to the number of visitors, showing how effectively the store turns footfall into sales. Inventory turnover, margin and tenure measure other aspects of performance.

Question 31Customer Service and Customer Relationship Management

A customer is angry about a long billing queue. Which response shows empathy while solving the problem?

  1. Ignore the customer until the line moves
  2. Acknowledge the wait, apologise, and arrange faster billing or assistance Correct answer.
  3. Explain that queues are normal during peak hours
  4. Ask the customer to return on a less busy day

Explanation

Empathy means recognising the customer's frustration, and problem-solving means taking action to reduce it. Combining acknowledgement with a practical remedy such as opening another counter resolves the issue respectfully.

Question 32Customer Service and Customer Relationship Management

What is the primary role of a loyalty programme in retail CRM?

  1. To ensure suppliers deliver stock on time
  2. To encourage repeat purchases and collect purchase data on members Correct answer.
  3. To replace the need for any customer service training
  4. To reduce the store's rent and utility costs

Explanation

Loyalty programmes reward repeat buying and generate member-level data that supports targeted offers. They strengthen the customer relationship rather than replacing service skills or managing costs and supply.

Question 33Customer Service and Customer Relationship Management

A salesperson notices a customer comparing two smartphone models. Which approach best supports the buying decision?

  1. Recommend the most expensive model without discussion
  2. Explain the key differences relevant to the customer's stated use Correct answer.
  3. Leave the customer alone until they ask for billing
  4. Criticise the cheaper model to steer the sale

Explanation

Consultative selling helps the customer choose by clarifying features that matter for their actual use. Neutral comparison builds trust, while pressure or criticism of alternatives damages credibility.

Question 34Customer Service and Customer Relationship Management

In a retail store, what does 'after-sales service' typically include?

  1. Product display arrangement before opening hours
  2. Installation, warranty support and repair assistance after purchase Correct answer.
  3. Supplier negotiations for the next season
  4. Recruitment of new sales staff

Explanation

After-sales service covers everything that supports the customer once the sale is complete, such as installation, warranty claims and repairs. These touchpoints strongly influence repeat purchase and word-of-mouth.

Question 35Customer Service and Customer Relationship Management

A store wants to reduce customer complaints at checkout. Which change is most likely to help?

  1. Adding more product displays near the billing queue
  2. Cross-checking the bill with the customer and explaining charges clearly Correct answer.
  3. Removing the printed bill to speed up the process
  4. Assigning untrained staff to the counter during peak hours

Explanation

Most billing complaints arise from unclear charges or errors, so verifying the bill and explaining charges prevents disputes. Removing bills or using untrained staff increases the chance of mistakes and distrust.

Question 36Customer Service and Customer Relationship Management

Which statement best describes the difference between a 'complaint' and a 'query' in retail?

  1. A complaint expresses dissatisfaction, while a query seeks information Correct answer.
  2. A complaint is made by staff, while a query is made by customers
  3. A complaint concerns stock, while a query concerns pricing
  4. A complaint is always written, while a query is always oral

Explanation

A complaint signals that the customer is unhappy with something already experienced, whereas a query is simply a request for information before or during purchase. Recognising the difference helps staff choose the right response.

Question 37Customer Service and Customer Relationship Management

A customer's personal data is collected during a loyalty sign-up. Which practice is most appropriate?

  1. Inform the customer how the data will be used and obtain consent Correct answer.
  2. Store the data without telling the customer
  3. Use the data to call the customer repeatedly without permission
  4. Share the data freely with any third party for marketing

Explanation

Responsible customer data handling requires transparency about purpose and obtaining informed consent. Sharing or using data without permission violates privacy expectations and can breach data protection rules.

Question 38Customer Service and Customer Relationship Management

During a busy festival sale, a store sets up a separate help desk for exchanges. Which customer service principle does this best illustrate?

  1. Encouraging customers to avoid the store during festivals
  2. Reducing the number of staff on the sales floor
  3. Eliminating the need for a returns policy
  4. Segmenting service channels to match different customer needs Correct answer.

Explanation

A dedicated exchange desk separates after-sales needs from selling activity, so both run smoothly. This is an example of designing service channels around distinct customer journeys.

Question 39Customer Service and Customer Relationship Management

Which behaviour from a salesperson would most likely damage customer trust?

  1. Explaining the return policy clearly at purchase
  2. Recording the customer's complaint for follow-up
  3. Promising a delivery date that the store cannot meet Correct answer.
  4. Confirming stock availability before promising delivery

Explanation

Trust depends on reliable commitments, so a promise the store cannot keep leads to disappointment and complaints. Accurate information, clear policies and follow-up all strengthen the relationship.

Question 40Customer Service and Customer Relationship Management

A retailer analyses complaint records and finds most complaints concern delayed home delivery. Which action follows most logically from this analysis?

  1. Review the delivery partner's performance and set realistic delivery timelines Correct answer.
  2. Train staff to deny that delays occur
  3. Increase the advertising budget for home delivery
  4. Stop offering home delivery altogether without notice

Explanation

Complaint data should drive corrective action, so the logical step is to examine the delivery process and communicate achievable timelines. Advertising, withdrawal of service or denial does not fix the root cause.

Question 41Customer Service and Customer Relationship Management

What is the most effective way for a retail supervisor to use mystery shopping?

  1. Use it only to check the cash balance in the till
  2. Apply it to suppliers to check delivery quality
  3. Send trained evaluators to assess service standards against a checklist Correct answer.
  4. Ask regular customers to report on their own purchases

Explanation

Mystery shopping uses evaluators posing as customers to measure real service behaviour against defined standards. It provides objective evidence for coaching and process improvement.

Question 42Customer Service and Customer Relationship Management

A store offers a 'no-questions-asked' return policy but the billing staff routinely question customers before accepting returns. What does this situation best illustrate?

  1. An effective use of customer segmentation
  2. A successful implementation of service recovery
  3. A gap between the stated service promise and the actual service delivered Correct answer.
  4. A strong alignment of policy and staff training

Explanation

When the formal policy promises easy returns but staff behaviour contradicts it, customers experience a service quality gap. Closing such gaps requires aligning training and incentives with the stated promise.

Question 43Customer Service and Customer Relationship Management

A retailer wants to measure customer satisfaction after each purchase. Which measure is most directly suited to this purpose?

  1. Average number of hours staff work per week
  2. Number of suppliers registered with the store
  3. A short post-purchase satisfaction rating with a follow-up question Correct answer.
  4. Total monthly sales revenue of the outlet

Explanation

Satisfaction is a customer perception, so it must be captured directly from customers, typically through a brief rating and open question. Sales revenue, supplier counts and staff hours are internal measures that do not capture perception.

Question 44Customer Service and Customer Relationship Management

A customer threatens to post a negative review online after a poor experience. Which response best reflects professional CRM practice?

  1. Warn the customer against posting any negative review
  2. Ignore the threat and hope the customer forgets
  3. Take the complaint seriously, resolve it fairly, and invite the customer to share the outcome Correct answer.
  4. Offer a bribe in exchange for deleting the review

Explanation

Online reputation is shaped by how complaints are handled, so a fair and prompt resolution is the strongest response. Inviting the customer to share the outcome can turn a critic into a satisfied advocate.

Question 45Customer Service and Customer Relationship Management

A store's repeat-purchase rate is high but its average basket value is low. Which CRM strategy best addresses this specific pattern?

  1. Increase the price of every item without changing the offer
  2. Focus entirely on acquiring new customers through discounts
  3. Reduce the product range to a single category
  4. Use cross-selling and bundling offers aimed at existing loyal customers Correct answer.

Explanation

Loyal customers already return, so the opportunity is to increase spend per visit through complementary products and bundles. Acquisition discounts target a different problem, and narrowing range or blanket price rises risk losing the loyal base.

Question 46Customer Service and Customer Relationship Management

In retail customer relationship management, what does the term 'customer lifetime value' (CLV) estimate?

  1. The discount a customer receives on the first purchase after enrolling in a scheme
  2. The total profit a retailer can expect from a customer over the whole period of the relationship Correct answer.
  3. The time taken by staff to close a single sales transaction at the counter
  4. The number of visits a customer makes to the store in a single month

Explanation

Customer lifetime value projects the net profit a retailer can reasonably expect from one customer across the entire relationship, not just one sale. It combines purchase frequency, average spend, margin and expected retention period, so it guides decisions on how much to invest in retaining that customer.

Question 47Customer Service and Customer Relationship Management

A retail supervisor wants front-line staff to handle customer grievances consistently. Which step should come first?

  1. Offer a fixed discount coupon to any customer who raises any kind of complaint
  2. Publish a written escalation procedure that defines complaint categories, response times and who decides each type Correct answer.
  3. Refer every complaint directly to the store manager regardless of how small it is
  4. Ask each salesperson to resolve complaints in whatever way feels fair at the counter

Explanation

Consistency in complaint handling begins with a documented procedure that classifies complaints and assigns owners and time limits, so every staff member follows the same path. Only after the process is clear can training, monitoring and improvement follow.

Question 48Customer Service and Customer Relationship Management

A store manager reviews CRM data and finds that customers who buy once rarely return, while a small group buys very often. Which action best uses this segmentation?

  1. Design a reactivation offer for one-time buyers while giving the frequent group early access to new stock Correct answer.
  2. Cut the loyalty budget because most customers are not returning anyway
  3. Apply the same promotional message to both groups to keep communication simple
  4. Stop recording purchase history since the pattern is already known

Explanation

Segmentation is only useful when it changes what the retailer does for each group. One-time buyers need a reason to return, such as a reactivation incentive, while frequent buyers respond better to recognition and early access that deepen loyalty.

Question 49Customer Service and Customer Relationship Management

During a home-delivery delay, a retail call-centre agent tells the customer the revised date, explains the reason and offers a small goodwill gesture. Which service-quality dimension is being strengthened most directly?

  1. Tangibles, because the customer can see the store's physical layout
  2. Responsiveness, because the retailer acts promptly and keeps the customer informed about the delay Correct answer.
  3. Assurance, because staff wear a uniform with the company logo
  4. Empathy, because the agent speaks in the customer's local language

Explanation

Responsiveness concerns willingness to help and speed of communication, so giving a revised date, a reason and a gesture directly addresses it. The other dimensions relate to physical cues, competence and trust, or to caring attention, which this action does not primarily demonstrate.

Question 50Customer Service and Customer Relationship Management

A retailer's loyalty scheme gives points on every purchase, yet analysis shows members redeem points mainly on low-margin items and still defect to competitors. Which redesign best addresses this weakness?

  1. Remove the loyalty scheme entirely and rely on price discounts instead
  2. Restrict redemption to a single low-cost item so the cost to the retailer falls
  3. Tie rewards to behaviours that predict retention, such as repeat visits within a set period or buying across categories Correct answer.
  4. Increase the points earned on every purchase so members accumulate rewards faster

Explanation

A scheme that rewards volume alone can train members to buy only when points are attractive and to spend rewards on items that erode margin. Linking rewards to retention-linked behaviours, such as repeat visits or cross-category buying, aligns the incentive with the outcome the retailer actually wants.