Class 11 Retail Chapter 1 Fundamentals of Retailing

By Parimol / Class 11 Retail

Class 11 Retail Chapter 1 Fundamentals of Retailing Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Retail Chapter 1 Fundamentals of Retailing Question Answer and select need one. Class 11 Retail Chapter 1 Fundamentals of Retailing Notes Download PDF. AHSEC Class 11 Elective Retail Question Answer English Medium.

Class 11 Retail Chapter 1 Fundamentals of Retailing

Join Telegram channel

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 11 Elective Retail Textual Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Retail Textbook Solutions English Medium for All Chapters, You can practice these here.

Fundamentals of Retailing

Chapter: 1

SESSION 1: BASICS OF RETAILING

Check Your Progress

A. Fill in the blanks:

1. The goods sold in a retail store are for _______________ use.

Ans: Consumer.

2. Wholesalers operate between ____________ and retailer.

Ans: Manufacturer.

3. Unorganised retail is featured by _____________ and _____________ units.

WhatsApp Group Join Now

Telegram Group Join Now

Instagram Join Now

Ans: Small, scattered.

4. The local baniya or kirana shop comes under ______________ retailing.

Ans: Unorganised.

5. All items are provided under one roof in ______________ retailing.

Ans: Organised.

6. Retail is the sale of _______________and ________________ from individuals to the end-user.

Ans: Goods, services.

7. _______________combines the features of supermarkets and general merchandise stores.

Ans: Hypermarkets.

B. Multiple choice questions:

1. The purpose of retail business is to ___________________.

(a) Go for partnership.

(b) Make maximum promotion.

(d) Offer products and services.

Ans: (d) Offer products and services.

2. Place utility is making the products available at _____________.

(a) Showrooms.

(b) Convenient location.

(d) Regional stores.

Ans: (c) Distant places.

3. The retail store changes format to suit the requirements of ___________.

(a) Wholesalers.

(b) Producers.

(d) Tax payers.

Ans: (c) Consumers.

4. Under organised retailing, the most common feature is that ________________.

(a) Number of brands and products are large.

(b) Purchases are on credit basis.

(d) All of the above.

Ans: (a) Number of brands and products are large.

5. Unorganised retail is confined to __________________.

(a) Particular locality.

(b) Different branches.

(d) All of the above.

Ans: (a) Particular locality.

6. The unorganised retail units operate based on _____________.

(a) Partnership.

(b) Sole-trader.

(d) All of the above.

Ans: (b) Sole-trader.

7. Retail stores offer sale of goods and services from individuals to ________________.

(a) End-user.

(b) Consumers.

(d) All of the above.

Ans: (a) End-user.

8. Retail has changed our lives and changed the way we ______________.

(a) Speak.

(b) Eat.

(d) None of the above.

Ans: (c) Live.

C. State whether the following statements are True or False:

1. Retailing is the final step in the distribution of goods.

Ans: True.

2. Wholesalers are not intermediaries in the distribution channel.

Ans: False.

3. Kirana store is a form of unorganised retailing.

Ans: True.

4. Size of employees is more in unorganised retail business.

Ans: False.

5. Providing customer services is not a function of retailer.

Ans: False.

D. Match the Columns:

Column A	Column B
1. Wholesaler	(A) Convenience stores.
2. Kirana shops are the best examples of	(B) Centralised buying and decentralised selling.
3. Provides different types of products under one roof	(C) Automated retail stores.
4. Small stores located near residential areas are called	(D) Organised retail sector.
5. Hypermarket refers to	(E) Customers drop money and acquire product from automated equipment.
6. Departmental stores refer to	(F) Operates between manufacturer andretailer.
7. Vending machines	(G) Unorganised retail sector.
8. Red–box is an example of	(H) Supermarket and general merchandise store.

Ans:

Column A	Column B
1. Wholesaler	(F) Operates between manufacturer andretailer.
2. Kirana shops are the best examples of	(G) Unorganised retail sector.
3. Provides different types of products under one roof	(D) Organised retail sector.
4. Small stores located near residential areas are called	(A) Convenience stores.
5. Hypermarket refers to	(H) Supermarket and general merchandise store.
6. Departmental stores refer to	(B) Centralised buying and decentralised selling.
7. Vending machines	(E) Customers drop money and acquire products from automated equipment.
8. Red–box is an example of	(C) Automated retail stores.

1. Differentiate between organised and unorganised retail with examples.

Ans: The differences between organised and unorganised retail business are as follows:

Organised Retail Business	Unorganised Retail Business
(i) A modern retail business is one where segregated items are brought under one roof. It refers to running the business in a systematic, advanced and scientific manner.	(i) It refers to family-run small traditional retail stores with poor infrastructure, inefficient processes with lack of technology, inadequate funding and absence of skilledmanpower.
(ii) Compulsory by law.	(ii) Not compulsory by law.
(iii) These type of retail units offer large number of items and their varieties.	(iii) These type of retail units offer few items and limited or no variety.
(iv) The size of a retail outlet is large and the stores and their layout is attractive.	(iv) The size is small and, usually, the layout and design of the shop is not organised.
(v) The size of employees is large and there are varied categories with different specialisations.	(v) The number of employees is less and an employee is required to perform varied functions.
(vi) The capital requirement is high and ownership may not enjoy perpetual succession.	(vi) The capital requirement is less and the business is owned by successors.
(vii) The terms of employment are regular and job security exists in the organised sector as the rules are regulated by thegovernment.	(vii) There is no job security in the unorganised sector as the units are small and scattered, which are largely outside the control of the government.
(viii) Business units are run in corporate style.	(viii) Business units run on soletradingor partnership style.
(ix\|) The network of retailers is vast — number of branches operate at different places.	(ix) The business network is narrow and is confined to a particular locality and carries business in a single unit.
(x) Eg: Supermarkets, departmental stores, hypermarkets, shopping malls, multilevel marketing, Internet and teleshopping, etc.	(x) Eg: Cobbler, vegetable and fruit vendors, kirana shops, the local baniya, paanwala, shops in mandi, haats, mela, etc.

2. Explain the types of retail business establishments.

Ans: Store retailing is classified in two categories: Based on merchandise offered and Based on ownership.

(i) Based on merchandise offered:

(a) Convenience stores: These are small-sized stores located in residential areas. They are open for long hours and offer a limited line of convenience products like eggs, bread, milk, vegetables, etc.

(b) Supermarkets: A supermarket is a self-service shop offering a wide variety of food and household products, organised into aisles.

(c) Hypermarkets: A hypermarket is a retail store that combines a departmental store and a grocery supermarket. Often very large establishments, hypermarkets offer a wide variety of products, such as appliances, clothing and groceries.

(d) Specialty stores: Consumer outlets, such as furniture, electronics, sports, appliances, jewellery stores, that offer unique, often individualised products or a large amount of products within a particular grouping of consumer goods are considered to be specialty stores.

(e) Departmental stores: A departmental store is a retail establishment offering a wide range of consumer goods in different product categories known as ‘departments’. Departments are made as per the types of goods to be sold. It requires a lot of capital to maintain different departments and a huge stock of goods. The profit or loss is calculated on the entire stock. It is a combination of decentralised buying and centralised selling. They also establish restaurants inside these stores. They provide home delivery services.

(ii) Based on ownership:

(a) Independent retailer: An independent retailer is a small business, owned and operated by an individual versus a corporation. An independent retailer has direct contact with customers. For example, local baniya or kirana store and paanwala. He or she decides the retail strategy based on the store location and product mix.

(b) Corporate retail chain: A retail chain is one of a group of stores engaged in the same kind of business in different locations, and under the same ownership and management. Chain stores in malls or shopping centres always look to improve their position and strengthen their brand identity in the marketplace. For example, Reliance, Bata, Arrow, Louis Philippe, Food World, etc.

(c) Franchising: Franchising is an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or tradename, as well as, certain business systems and processes to produce and market a good or service according to certain specifications. For example, McDonald’s, Pizza Hut, Van Heusen, etc.

(d) Consumer cooperatives: Consumer cooperatives are enterprises owned and

managed by consumers, which aim at fulfilling the needs and aspirations of their members. Consumer cooperatives often take the form of retail outlets owned and operated by their consumers. The customers or consumers of the goods and/or services the cooperative provides, are often also the individuals who have provided the capital required to launch or purchase that enterprise. For example, Apna Bazaars in Mumbai, etc.

3. Narrate the functions of a retailer.

Ans: Retailers buy varieties of goods from various manufacturers or wholesalers after estimating customer demand. Thus, a retailer provides a wide range of choice enabling the consumers to select the products of their choice.

There are four main functions of retailer:

(i) Breaking bulk into small quantities: To reduce cost of long distance transportation, producers ship the goods in large quantities; middlemen including retailers, open these large packages and make the products available in smaller quantities to the consumers as per their needs.

(ii) Providing products information to customers: For retailers, product knowledge can mean more sales. To effectively sell to a customer, the retailer shows how a particular product will address his or her needs.

(iii) Providing customer services: Good customer service means helping customers efficiently in a friendly manner. It is essential to be able to handle issues for customers and do your best to ensure they are satisfied. Nowadays, services may include free home delivery, gift wrapping, credit facility and after-sales services.

(iv) Creating a convenient, comfortable and pleasant shopping experience for consumers: The aim of the retailer is to make the products required by the consumer conveniently available. Convenience is about speed, being in the right place at the right time and delivering everything that a customer needs there and then. The sales increase when the environment inside the retail store is friendly and pleasant. A warm welcome from the owner, offering the right products at relevant times with exceptional customer service, playing soft music, proper lighting, space for easy movement, courteous and well-dressed employees, etc., create a positive environment for customers.

(v) Providing feedback to producers about customer needs: To keep the product in demand and make it available to buyers at a competitive price, manufacturers have to constantly obtain feedback from users and improve the product. Due to their first-hand interaction with the customers, retailers have a good understanding of the customer needs. They share this information in the form of feedback with the producers.

F. Check your performance:

1. Demonstrate the functions of retailers.

There are four main functions of retailer:

(ii) Providing product information to customers: For retailers, product knowledge can mean more sales. To effectively sell to a customer, the retailer shows how a particular product will address his or her needs.

2. Differentiate between organised and unorganised retail business.

Ans: The differences between organised and unorganised retail business are as follows:

Organised Retail Business	Unorganised Retail Business
(i) A modern retail business is one where segregated items are brought under one roof. It refers to running the business in a systematic, advanced and scientific manner.	(i) It refers to family-run small traditional retail stores with poor infrastructure, inefficient processes with lack of technology, inadequate funding and absence of skilledmanpower.
(ii) Compulsory by law.	(ii) Not compulsory by law.
(iii) These type of retail units offer large number of items and their varieties.	(iii) These type of retail units offer few items and limited or no variety.
(iv) The size of a retail outlet is large and the stores and their layout is attractive.	(iv) The size is small and, usually, the layout and design of the shop is not organised.
(v) The size of employees is large and there are varied categories with different specialisations.	(v) The number of employees is less and an employee is required to perform varied functions.
(vi) The capital requirement is high and ownership may not enjoy perpetual succession.	(vi) The capital requirement is less and the business is owned by successors.
(vii) The terms of employment are regular and job security exists in the organised sector as the rules are regulated by thegovernment.	(vii) There is no job security in the unorganised sector as the units are small and scattered, which are largely outside the control of the government.
(viii) Business units are run in corporate style.	(viii) Business units run on soletradingor partnership style.
(ix\|) The network of retailers is vast — number of branches operate at different places.	(ix) The business network is narrow and is confined to a particular locality and carries business in a single unit.
(x) Eg: Supermarkets, departmental stores, hypermarkets, shopping malls, multilevel marketing, Internet and teleshopping, etc.	(x) Eg: Cobbler, vegetable and fruit vendors, kirana shops, the local baniya, paanwala, shops in mandi, haats, mela, etc.

SESSION 2: SALES ASSOCIATE SERVICES TO CUSTOMERS

Check Your Progress

SESSION 3: SKILLS HANDING RETAIL BUSINESS

Check Your Progress

SESSION 4: DUTIES AND RESPONSIBILITIES OF A SALES ASSOCIATE

Check Your Progress

See More Question Answer

Parimol

Hi! my Name is Parimal Roy. I have completed my Bachelor’s degree in Philosophy (B.A.) from Silapathar General College. Currently, I am working as an HR Manager at Dev Library. It is a website that provides study materials for students from Class 3 to 12, including SCERT and NCERT notes. It also offers resources for BA, B.Com, B.Sc, and Computer Science, along with postgraduate notes. Besides study materials, the website has novels, eBooks, health and finance articles, biographies, quotes, and more.