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Factors to be considered before setting up retail shop. - SS1 Commerce Past Questions and Answers - page 1

1

What is an important factor to consider when choosing a location for a retail shop?

A

Proximity to competitors

B

Accessibility to the target market

C

Limited parking facilities

correct option: a

Accessibility to the target market

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2

What should be considered when determining the product selection for a retail shop?

A

Personal preferences of the shop owner

B

Least popular products in the market

C

Market demand and customer preferences

correct option: c

Market demand and customer preferences

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3

What is an essential aspect of store layout and visual merchandising?

A

Complicated and confusing navigation

B

Dim lighting and cluttered displays

C

Product visibility and easy navigation

correct option: c

Product visibility and easy navigation

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4

What should be considered when determining the pricing strategy for a retail shop?

A

Arbitrary pricing without considering production costs

B

Ignoring competition and setting high prices

C

Striking a balance between affordability and profitability

correct option: c

Striking a balance between affordability and profitability

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5

Why is it important to conduct thorough financial planning before setting up a retail shop?

A

To underestimate the initial investment costs

B

To ignore ongoing expenses and cash flow projections

C

To assess the financial viability and sustainability

correct option: c

To assess the financial viability and sustainability

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6

What is the role of market research in setting up a retail shop?

Market research helps understand customer preferences, market demand, and competition, which aids in making informed decisions regarding product selection, pricing, and marketing strategies.

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7

Why is store location an important factor in retail shop setup?

Store location affects the accessibility to the target market, foot traffic, and visibility, which can significantly impact the potential customer base and overall success of the retail shop

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