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Merchandising strategies

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offering fewer SKUS within a merchandise classification means tha ta retailer will be offering
more variety
T OR F. CRM is based on the philosophy that retailers can increase their profitability by building relationships with their better customers.
T
a retailers use of quick response inventory management to replace sold merchandise quickly is an example of
effective supply chain management
basic stock inventories are controlled by developing an inventroy at the SKU size and color level, which will generate an automatic order when the ____________ _________ is reached
reorder point
T OR F. the buyer is responsible for the gross margin of his/ her department
T
T OR F. logisitics is an important means to manage customer relationship information
F
T OR F. when considering the life cycle of a product it produces it is not important for a supplier to wrory about what happens to the product once it has shipped the product to the retailer. it is the retailer's problem alone to deal with a product it buys and sells to the consumer, the supplier has no responsibility for the product it produces
F
T OR F. Walmart uses EDI information technology systems to create an effective distribution strategy to keep its store in stock on important merchandise
T
the benefits of fast or high turnover include
less risk for markdowns, fewer sizes and colors to organize on the selling floor, sales volume achieved with less inventory than slower turnover merchandise
Evaluating service quality considers both the retailer's and customer's expectations of service and actual service provided or experienced. this difference between expectation and reality in customer service is known as the _____ _____
service gap
basic/staple merchandise is always fast turnover merchandise
F
sales minus returns is known as _____sales
total
T OR F. National brands are never high-priced products
F
A set of business activities that focuses the exchange of information between ______&_______for the purpose of proper flow of merchandise is known as supply chain management
Vendor retailer
what is the management process by which a retailer attempts to offer the right quantity of the right merchandise at the right time while meeting the company's financial goals?
merchandise management
Customer Relationship management strategies in today
environmental concerns for products sold, efficient, clean store environment, and non-exploitive labor practices both in store and for products sold.
the physical flow of merchandise known as ____ is extremely important for controlling the efficient flow of products from supplier to the retailers warehouse
logistics
Sustainable practices in retailing encourages suppliers to select easily renewable raw materials used in products that are sold at retail
T
wide variety of a retailers merchandise is defined as
the number of different styles within a classification
forecasting fashion merchandise categories includes using
previous sales info, awareness of local or specific influences on a merchandise category, trend services
SKU means:
Stock Keeping Unit
BOM means _______and is an important part of seasonal budget planning
beginning of month inventory
T OR F. There is no difference in a retailer's cost of acquiring new customers vs. existing customers who already know the store.
F
sustainable practices in the fashion business include:
retail store taking responsibility for the products that they produce and sell suppliers showing how the raw material they use were not produced causing dramatic pollution retail store buyers selecting products made from easily renewable resources.
reducing the retail price of merchandise known as a _____ ___ is an important way to sell more merchandise particularly during a planned store wide sales event
mark down
most fashion budge plans are created for a __ month period
6
Logistics is:
Planning and control of transporting products among suppliers, DC and the stores.
When investigating who are the retailers most valued customer it is important to collect customer preferences their purchases and their responses to marketing efforts for the purpose of creating a customer ________
database/ databank
Nordstrom has information about a customer that includes what he has pruchase ( the color sizes and styles) and how he has responded to recent store promotions. this store information is called
preferential customer database
what action does a retailer need to take to close the customer service gap?
commit to high quality service from top management, set service goals, be willing to use technology to standardize certain aspects of their customer service
T OR F. Effective supply chain management using QR for efficient replacement of sold items is a great way to create competitive advantage.
T
when implementing sustainable practices retailers must consider what type of raw materials are used in the ____selected for the target market
product
Using sustainable practices in retailing are often difficult to adopt because retailers must: (2 things)
compete with other retailers for the lowest price regardless of the merchandise product methods and Worry about getting more merchandise on time, not what to do with discarded products for their store.
T OR F. it costs the retailer much more to maintain existing customers than to find new ones.
F
T OR F. Perceived value is a relationship of benefit received and the price paid for the benefit
T
Licensing a famous person's name for your private label product is a good way to gain immediate recognition for your product.
T
When buying national brand products, a buyer who is a skilled negotiator understands that use of threatening behavior and losing his temper are great ways to pressure a vendor into an agreement
F
T OR F. A retailer would be improving customer service if the retailer reduced the gap between its customer's expectation and its perception of customer's expectation.
T
in the fashion industry, pollution is created by: ( 2 things)
collecting and shipping discarded apparel to poor countries from industrialized countries and taking discarded apparel to a land fill
T OR F. Fast turnover means inventory is selling quickly within a given time period.
T
______ _______ is calculated by adding total sales minus cost of goods sold (total sales -COGS)
Gross margin
Which store executive is responsible for identifying a department's basic stock item and negotiating with the supplier to keep the supply flowing for that basic stock item?
Buyer
Using a __________ customer service strategy allows the retailer to tailor its services to meet individual customer needs.
customizable
staple or basic merchandise management systems manage inventory at the _____level
size and color level, known as the smallest SKU
T OR F. Sustainable practices in the fashion industry is only about organically grown cotton fiber products
F
t or f. a merchadise sales plan must include in part beginning monthly inventory and monthly markdowns needed to achieve the monthly sales plan
T
T OR F. Retailers such as Walmart and JC Penny use a prestige pricing strategy
F
within a lrg. retail co. the buyer for a department is responsible for the ____(the financial report card) of the department
GMOI ??
for a basic or staple item, the additional in store stock that is necessary to ensure that the retailer will not be out of stock is known as
back stock
T OR F. When setting retail prices, a buyer only needs to consider with the competition is charging for the same or similar products
F
T OR F. Service excellence will onlu occur when top management is committed to that objective.
F
sustainable practices in merchandise assortment planning should include
fair labor practices in manufacturing products, potential pollution to the environment as a result of manufacturing the products, use of materials tha twill not cause harm to the consumers
T OR F. the SVP/GMM is the boss of several DMM
T
Premium branding is a type of:
private label offered at comparable high priced national brand quality
T OR F. database information is often used to analyze customer shopping patterns buy isn't important in determining who to contact for future merchandise events.
F
department merchandise assortment decisions are made by the
buyer
T OR F. the proportion of fashion to basic in a department is to review the past sales figures
F
_____ _____ ______ allows for computer to computer communication of sales and other information within a store and also between the supplier and the retailer for replacement orders.
Electronic Data Interchange
Sustainable production means
use of renewable raw materials and non-polluting production methods.
F
T OR F. Personalized customer service is always less effective than standardized customer service.
fashion merchandise management systems plan for
dollar investment in a department over a specific time period, including planned sales, inventory and profit goals
T OR F. Accurate merchandise selection for a target market is an important competitive advantage in an aggressive retail environment
T
Pricing strategies include (4 things)
high-low pricing, everyday low pricing, coupons, rebates
T OR F. Customers evaluate service based on their expectations and perceived service, not on actual service received.
T
the narrow assortment of a retailers merchandise is defined as
the number of sizes and colors in a style within a classification
the __/__ rule tells us that a smaller percentage of all customers contribute the most business for a retailer
80/20
_______ is an example of intellectual property, which cannot be copied under any circumstances
trademark or logo
return on ______ is a measurement of financial health, meaning that dollars spent on inventory are returned through sales of that inventory
investment
____ _____ ____ is a business philosophy and a set of strategies, programs and systems that focus on identifying and building loyalty with a retailer's most valued customers
customer relationship management
T OR F. product life cycle must be considered only with forecasting the fall season
F
T OR F. Spending the most effort to create loyalty among all first-time customers is the best approach in a customer relationship management strategy
F
T OR F. Creating a unique selection of merchandise is one strategy to help build a loyal customer base for a retailer
T
T OR F. Buyer is responsible for the merchandise group gross margin (GMM)
F
more SKUS generally means
more inventory and slower turnover
Markup is the difference between regular retail price and sale retail price
F
T OR F. Using the word "Green" is all that is necessary to communicate sustainable practices.
F
T OR F. fast turnover means that the merchandise in the retail store sells very quickly in a short period of time with new shipments coming in frequently increasing sales staff morale and keeping customers excited about new merchandise coming in
T
Markup is the same as gross margin
F
EOM is actually the same as
BOM
what is not an advantage of carrying a national brand
lower profit than private labels
T OR F. Copy-cat branding imitates a national brand sometimes copying so closely as to risk intellectual property rights violations
T
Gross margin is the difference between _______ and ______
COGS AND RETAIL SALES
T OR F. Distribution centers are organized to receive and distribute product.
T
ther are 2 types of buying systems basic/staple merchandise buying and _________merchandise buying
fashion
customers often evaluate service quality based on _______service not actual service experienced.
perceived
T OR F. Ebay's primary competitive strategy is to provide core services to peopke who want to advertise and sell stuff in a newspaper classified section.
F
A risk factor for private label brands?
no markdown money

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