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Fashion Merchandising Final flashcards |
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  • Nondurable Retail Category

    Food, things that go bad

    Largest category of non durables?

    Food

    What is the difference between convenience products and specialty products?

    Convenience products you don't take time to decide about the purchase, specialty you put in time and research before you buy

    Is reordering of Fashion Merchandise easy compared to basic stock reordering?

    No. It is not easy compared to basic stock

    Women wearing longer length skirts would probably cause changes in all of the following products except?

    Gloves

    What is the difference between a fashion and a fad?

    A fashion is a currently accepted or popular style and a fad is pop up trend of fashion.

    Of the following product categories which would fashion have the least impact?

    Hardware

    How do buyers recognize that the end is near for a fad?

    Laggards begin accepting the product

    Of the product life cycle stages which stage will the product be accepted by only a few people?

    Introduction stage

    What is the group called that will accept a new fashion first?

    innovators

    At which stage of the product life cycle will it most likely be priced at its highest?

    Introduction

    Fashion adoption theories: which one is based on the wealthy having the most influence on fashion?

    Downward

    Fashion adoption theories with opinion leaders within a specific market segment having the strongest influence?

    Horizontal

    Fashion adoption theories which one is based on young people having the strongest influence?

    Upward

    Is mass customization only in the apparel segment of retailing?

    No, it is in other places. Automobiles!

    Does Haute Couture make big money for designers? What is its purpose?

    No. Its purpose is to make the designer stand out and make them unique/name for themselves. Popularize their name, brand awareness, designer name recognition, it is an inspiration.

    What is it called when a product is designed or sold through a celebrity or corporate name?

    Liscensed

    First place a buyer should start on information for a sales forecast?

    Past sales

    What are some of the things buyers need to consider when they are forecasting?

    Existing and potential competition, target market

    Economic factors are considered

    External factors for making buying decisions

    External Sales factors examples

    Hurricanes/natural disasters

    Difference between primary data and secondary?

    Primary data is collected by you first hand, secondary is what has already been published. Secondary data example: Trade publications

    Problems with Secondary data

    Can be outdated

    The accuracy of a sales forecast will depend on:

    ALL OF THE ABOVE

    What is the inventory planning method that maintains stock levels in a specific relation to sales called?

    Stock to sales ratio method

    Which one of these activities would NOT decrease stock turnover?

    Reducing the price of merchandise in the store

    Who has to approve the sales forecast made by the buyer?

    Merchandise Manager

    T/F carrying too wide of a merchandise assortment can hurt stock turnover

    TRUE

    T/F Stock turnover rate is the average number of times stock is sold during a period of time

    true

    T/F forecasts that attempt to predict sales far into the future will be less accurate then short term predictions

    true

    Planned BOM stock levels can be calculated by multiplying planned sales by?

    stock to sales ratio

    Whats the formula for stock turnover?

    Sales/Average stock

    Is a higher stock turnover rate an advantage?

    Yes. NOt a disadvantage

    What will increase stock turnover?

    Decreasing average stock

    Open to buy:

    The amount of money you have to spend on purchases

    Determine open to buy what do you subtract from your planned purchases?

    "On Order"

    In determining planned purchases which is added to sales?

    Reductions

    Is a merchandise plan for a specific # of months or any time period?

    Anytime period of time

    Which one of these components would be entered at cost?

    Purchases

    The first and most important part of the 6 month plan is forecasting what?

    Sales

    Being overbought causes all of the following except?

    Maintain markups increase

    Developing a merchandising plan should increase all of the following except?

    Markdowns

    Reductions examples:

    Shrinkage, markdowns, employee discounts

    Your EOM stock for January is the same as?

    Your BOM for FEB

    What is the formula to determine planned purchases=

    Sales + Reductions + EOM - BOM

    Net sales =

    Gross sales - customer returns = net sales

    In basic stock planning the re order period is the time the order is placed and the merchandise is on the floor

    lead time

    Re order period is after the the merchandise has been sold

    ...

    T/F Many retailers count on the 4th quarter for over half the company profits

    True

    Which one of the four things should not factor into merchandise selections?

    The buyers personal opinion/likes

    What is canibalization?

    When potential sales of existing products are lost to new items

    Are sales for plus size market increasing?

    Yes

    What does Donnagher creative services do?

    Forecasts fashion

    Excessive inventory could be caused by?

    All of the above

    How often do most retailers do physical inventory?

    Once a year (walmart and target)

    Before taking a physical inventory it should be grouped by>

    Classification

    For inventory purposes which would be subtracted from initial stock counts?

    Sales

    Typically quick response does not require?

    Weekly inventories

    Research has shown quick responses increases:

    Sales

    Using the following info how many are in stock.

    Beginning inventory......
    (Subtract returns to vendor)
    (Add Purchases)
    (Subtract Sales)
    (Add Customer Returns)
    =Stock

    Do retailers hire outside firms to do their physical inventories?

    Yes, to maintain accuracy of the books. Avoid shrinkage

    Does EDI reduce clearical and administrative costs for a retailer? What is EDI

    IT WILL REDUCE.
    Electronic Data Interchange.....Quick Response....The vendor

    Definition GMROI

    A measurement of the profitability of a retailers sales

    Definition of a wholesaler

    ...

    Know the Differences between exclusive, selective, integrated and differentiated- CHAPTER 11

    Exclusive-vendors only sell the product to one retailer in a trading area. Selective-Sell to one or more selected retailer in the same trading area.

    Chief benefit that vendor owned stores give to designers?

    More space to show entire line to the public

    T/F Purchases from a wholesaler rather than buying directly from manufacturer will result in a higher cost.

    True

    Why would you ever buy from a wholesaler?

    Small stores because manufacturer wants you to buy in huge amounts

    T/F a manufactures rep can only represent one manufacterer

    False

    Benefits that vendor owned stores offer for themselves?

    ...

    Which of the following is the best example of an emotional buying motive?

    Self esteem

    Retail buying invloves

    Selecting and purchasing products to satisfy wants and needs of consumers, keeping sales and inventory records

    Many college graduates are attracted to jobs as buyers because of?

    Travel Opportunities

    Benefits of direc marketing for consumers include all the following except:

    Better quality products guaranteed

    The largest minority market in the United States is:

    Latinos

    According to Maslow, which needs do consumers tend to satisfy first?

    Safety

    T/F Departmentalization occurs in retailing when the owner can no longer handle all the duties required of him or her

    True

    T/F
    A stores organizational structure will have little impact on how buying is conducted in that store

    False

    Which of the following is not a major role of the merchandise manager?

    Hiring

    The number of department stores in the US is?

    Decreasing

    T/F
    The warehouse requisition plan gives the store manager more freedom to make purchase decisions than does the central merchandising plan.

    True

    T/F
    The key limitation to relying on store records to predict consumer demand is that they do not reflect what the customer would ave purchased if it had been in stock

    True

    A customer choosing to make a purchase at one store because he or she has always shopped there is an example of which type of buying motive?

    Patronage

    T/F
    Almost half the businesses in the United States are each run entirely by one or two people

    True

    T/F
    Using past sales records to forecast sales is more reliable for basic merchandise than for fashion merchandising

    True

    The overall framework or plan of action that guides a retailer is

    Retail Strategy

    T/F
    Comparing sales figures from this year with sales at the same time last year is an example of marketing research

    True

    T/F
    Sears is the largest retailer in the United States

    False

    T/F
    Retail Buyers may select the best products available, yet have few sales.

    True

    Which of the following best describes how buyers determine how many sources they will use before making purchasing decisions?

    Type of information needed to make the purchase, type of merchandise they are purchasing, time available to make the purchase, (All of the above)

    The largest number of buying offices is located in which US city?

    New York

    Markup is a quantitative performance objective against which buyers can be evaluated. Markup is defined as the difference between

    Merchandise cost and its selling price

    In the past, most department stores used which type of target marketing?

    Undifferentiated

    T/F
    High performing retailers compete on the basis of price rather than value?

    False

    T/F
    For many consumers, shopping has become a chore an activity that many hate

    True

    Who is responsible for making most of the retail purchases in the United States

    Women

    A specialty store's typical customer is female between the age of 35-55 and has a household income of more than $40,000. This information is best described as what type of data?

    Demographic

    T/F
    When analyzing trends, buyers must realize that a general trend for the country may not be valid for a particular region or city.

    True

    A buyer who has been on the job two years is being considered for promotion. To which of the following positions would the buyer probably be promoted?

    Buyer for a major department

    More working women in the United States will result in all of the following except:

    More casual clothing

    Which of the following best describes good marketing research?

    Is it collected systematically, it involves using information from different sources, it is a step by step process
    (All of the above)

    All of the following could be used to describe the buyer's job except

    Routine

    Kohl's has established itself in a market niche between department stores and

    discount department stores

    At small independent stores, who is usually responsible for buying activities?

    Owner

    T/F
    Most retailers require that new buyers have college degrees.

    True

    T/F
    Part of the buyers job will be to develop capable assistants

    True

    T/F
    The number of people who are going to be over 65 in a decade from now cannot be forecasted

    False

    Today in the United States the number of male homemakes is?

    Increasing

    T/F
    All customer requests identified through a want slip system should be stocked by the store

    False

    What is a key benefit of separating the buying and selling functions in retailing?

    Buyers can devote more of their time to product and market knowledge

    Being able to forecast consumer demand is a skill needed by buyers. Which personality trait should they exhibit?

    Vision

    T/F
    One recent research survey indicated that many consumers tend to go green only when other people can see it.

    True

    An applicant for a job as a buyer has a college degree. Which trait would best indicate that the applicant possesses?

    Goal-Setting Ability

    All of the following retailers are known for their fast fashion strategy except:

    TJ Maxx

    T/F
    Data warehouse techniques have not been widely adapted by mid-sized and small chain stores

    True

    T/F
    Accuracy of sales forecasting tends to improve as data mining techniques are used.

    True

    T/F
    The hypermarket concept was first developed in Australia

    False

    All of the following items have been directed at calming and relaxing customers except:
    CD Players
    Home Size Water fountains
    Candles
    Teas

    Teas

    A new retailer with limited funds would most likely select which of the following types of buying offices?

    Salaried

    T/F
    Retail Buyers are undifferentiated target marketing by eleminating product categories.

    True

    T/F
    Essentially buying offices make merchandise purchases for their client stores

    False

    T/F
    Buyers at some retail stores have responsibility for purchasing only one category of merchandise

    True

    A customer purchasing a new car because of improved gas milage would be an example of which type of buying motive?

    Rational

    T/F
    Customers who use loyalty cards also tend to be the most frequent shoppers

    True

    Psychographic trends are related to all of the following except

    Consumer incomes

    Which function within the retail store would have responsibility for moving merchandise purchased by the buyer to the sales floor?

    Operations

    T/F
    Fashion forecasters are business consultants that retailers can hire to help predict the number of items they should purchase

    True

    T/F
    Retailers look at baby boomers as a single market segment

    False

    Skills needed by retail includes computer literacy, which involves all of the following except:

    ability to design computer programs

    T/F
    Market studies have shown that customers are more trusting of retail advice given by a computer terminal than by a salesperson

    True

    The original "Mazur Plan" used to organize most retail stores included all of the following functions except:
    personnel
    merchandising
    control
    publicity

    Personnel

    Cumulative markup percentage has meaning for a buyer when it is compared against all of the following except:
    Past records
    Industry Averages
    Individual Markup percentages
    Established goals

    Individual markup percentages

    All of the following are reasons for buyers to get input from sales associates except:
    Customers ask sales associates for merchandise they cannot find stocked in the store
    Sales associates have more knowledge about why merchandise is not selling
    Sales associates are in continuous contact with customers
    Sales associates have more knowledge about market conditions than do buyers

    Sales associates have more knowledge about market conditions than do buyers

    What is the first step of positioning a retail store?

    Market identification

    The external source that provides the most current information about hte product trends would be?

    The internet

    The employment outlook for buyers is expected to grow slower than the average for all occupations

    True

    A store with a product assortment appealing to weightlifters is using which type of target marketing?

    Concentrated

    When buyers use numbers to state quantitative performance measurements, which is more important?

    Percentages

    After the fear of credit card fraud, which of the following is the primary concern of online customers?

    Privacy

    Which of the following publications would give the buyer the best information about current economic trends?

    Business week

    Retailers having traditional storefronts and an online presence are known as

    Clicks and morter

    T/F
    The primary job of the merchandise manager is to purchase merchandise for the store

    False

    All of the following are drawbacks to central buying except?
    Merchandise selection for local conditions may be difficult
    Cooperation between buyers and store managers may be strained
    Enthusiastic and more knowledgeable sales staffs are easier to maintain

    Enthusiastic and more knowledgable sales staffs are easier to maintain

    Which of the following is the best example of a quantitative performance goal for a retail buyer?

    To maintain an ending inventory of $50,000

    Which of the following is not one of the emerging retailing formats?

    Telemarketing

    Knowing that most of the customers of a local department store view themselves as conservative is an example of which type of data?

    Phsychographic

    In most large retail stores, all of the following are major job duties of merchandise managers except?

    Purchasing Merchandise

    T/F
    careers in retail buying require individuals who are analytical and quantitative; little creativity is required.

    False

    T/F
    Decentralization involves moving buyers from indivudal retail stores to the chain's headquarters

    False

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