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69 True/False questions

  1. DistributorFashion leaders pay high prices for new looks.

          

  2. Cumulative MarkupMaintained markup is the difference between the merchandise cost and the actual selling price. (minus the markdowns) Formula:
    Maintained mu$ = initial mu$ - net mds$
    GM = maintained mu - transportation - workroom + cash discounts
    Maintained mu = Gm + transportation + workroom costs - cash discounts

          

  3. Whole sale merchandisingDesigner, Sales executive, Merchandiser

          

  4. Trickle up theoryFashions move from higher social levels to lower. how?

          

  5. Fashion Coordinator & Fashion directorTrickle down, Trickle across, and Trickle up
    The point is that these three theories are all at work at once in the market place and the challenge to the retailer is to identify what is happening in time to have the goods that customers want just before the come into the store or on to the web site.

          

  6. Price Pointsare incredibly important to all retailers businesses and are often determined FIRST in the Markup formula. Today MSRP's are often used.(manufacturers suggested retail price). Retailers and manufacturers have gross margin goals and will establish a IMU (initial Mkup) based on those goals.

          

  7. TrendA fad has a short life cycle. Savvy retailers capitalize on fads. Ex: High heeled sneakers

          

  8. Trickle down theoryFashions move from higher social levels to lower. how?

          

  9. Types of MarkdownsDamages, Employee Discounts, Promotional Markdowns (temporary), Clearance Markdowns (permanent)

          

  10. Trickle across theoryFashion looks are similar at Saks and Target. Why?

          

  11. Economic Role of FashionHigh fashion looks are created by designers and exclusive stores.
    Fashion leaders buy these looks during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave.

          

  12. Influencing fashion changeTechnology, Economic Conditions, Social Conditions, celebrities, Hollywood, and Globalization

          

  13. Related Merchandising ResponsibilityThe Planning ,Development and Presentation of a product line created for a Target Customer. To have the right goods at the right time in the right quantities at the right price and in the right place! Retail merchandising includes all of the activities associated with Buying and Selling merchandise.

          

  14. Fashion GoodsBasic goods are necessities that rarely change, ex., pots and pans.
    Customers buy them for rational reasons, ex., replacing windshield wipers.

          

  15. BuyerA fad has a short life cycle. Savvy retailers capitalize on fads. Ex: High heeled sneakers

          

  16. Marketing Channelrepresents the flow of goods From producer to whole sales to retailer to consumer (producer-->whole sale-->retailer-->consumer)

          

  17. Fashion TrendFast pace

          

  18. one-hand buyingWhen the Markup% is given and the cost is known it is easy to figure out how to determine retail.
    Formula = 100-Mkup% = cost complement
    Cost divided by CC % = retail
    Example a sweater cost is $40 and the retailer has a 54% markup goal.
    100-54%=46% ( CC ) $40 divided by 46%= $ 86.96
    $86.96 would be the retail price of the sweater.

          

  19. maintained markupthe first markup or original price.

          

  20. Pricing challengeFashions originate on the street and move up. When?

          

  21. Two tracks in Fashion IndustryOperations & Merchandising

          

  22. Retail MerchandisingDesigner, Sales executive, Merchandiser

          

  23. Retailers and FashionThe Planning ,Development and Presentation of a product line created for a Target Customer. To have the right goods at the right time in the right quantities at the right price and in the right place! Retail merchandising includes all of the activities associated with Buying and Selling merchandise.

          

  24. Retail Mark Up% =the first markup or original price.

          

  25. Retail PriceSales diminish; retailers lower prices, replace the look for a newer trend.

          

  26. markdown totalsThe total markdowns for a period can be shown as a percentage of net sales for that period.
    MD$ for a period = Total MD$ / net sales x 100 = MD%.
    Junior dresses total MD$$50,000 / sales $500,000 = 10% period markdowns.

          

  27. Cost= an item's characteristics: crew or "v" neck sweater; it may be in or out of fashion.

          

  28. PeakA fad has a short life cycle. Savvy retailers capitalize on fads. Ex: High heeled sneakers

          

  29. High FashionHigh fashion looks are created by designers and exclusive stores.
    Fashion leaders buy these looks during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave.

          

  30. Growth100 -Mkup% = cost complement %
    Retail x CC% = cost
    Example: A retailer wants to price point as sweater for $88. The departmental mkup that the buyer must achieve is 54%
    100-54%=46%. $88 x 46% = $40.48

          

  31. Store- level MerchandiserVisual Merchandiser, Fashion coordinator, Fashion Director

          

  32. Business TrendTakes a while to change

          

  33. Clearance MerchandiseCertain residual (leftover) goods are marked down permanently. These include: Discontinued Goods, Seasonal Merchandise
    Broken Assortments
    Slow Sellers: Unseasonable weather, Wrong assortments,Poor presentation,Late delivery

          

  34. Sales ExecutiveSales diminish; retailers lower prices, replace the look for a newer trend.

          

  35. Tactical Price ChangesIntroduction, Growth, Peak, Decline

          

  36. Types of MarkupInitial Markup, Cumulative Markup,

          

  37. DesignerSales diminish; retailers lower prices, replace the look for a newer trend.

          

  38. Classic100 -Mkup% = cost complement %
    Retail x CC% = cost
    Example: A retailer wants to price point as sweater for $88. The departmental mkup that the buyer must achieve is 54%
    100-54%=46%. $88 x 46% = $40.48

          

  39. IntroductionFashion leaders pay high prices for new looks.

          

  40. Everyday Low Pricing (EDLP)EDLP, a value-oriented pricing strategy using ongoing promotional pricing, no advertising. May also be called EDV ( every day value) Result: Lower GM but lower expenses. Used by Wal-Mart and Toys "R" Us, not by all discounters.

          

  41. Basic GoodsFashion goods often are not necessities; they change frequently, ex., junior sportswear. Customers buy them for emotional reasons, "I've got to have that wristwatch."

          

  42. Determining the Price PointDetermining the retail price point is up to the buyer and the type of store the retailer is.... Department, Specialty, or discount store.

          

  43. Theories of fashion acceptanceTrickle down, Trickle across, and Trickle up
    The point is that these three theories are all at work at once in the market place and the challenge to the retailer is to identify what is happening in time to have the goods that customers want just before the come into the store or on to the web site.

          

  44. Importance of Maintained markupMaintained markup is the difference between the merchandise cost and the actual selling price. (minus the markdowns) Formula:
    Maintained mu$ = initial mu$ - net mds$
    GM = maintained mu - transportation - workroom + cash discounts
    Maintained mu = Gm + transportation + workroom costs - cash discounts

          

  45. Total Sales Revenue=Price X Units sold

          

  46. Promotional PricingWhen the Markup% is given and the cost is known it is easy to figure out how to determine retail.
    Formula = 100-Mkup% = cost complement
    Cost divided by CC % = retail
    Example a sweater cost is $40 and the retailer has a 54% markup goal.
    100-54%=46% ( CC ) $40 divided by 46%= $ 86.96
    $86.96 would be the retail price of the sweater.

          

  47. Operation Track:Training Program/ assistant buyer (buying responsibility)--> Senior assistant buyer, associate buyer--> Buyer (apparel)--> Divisional Merchandiser manager (responsible for all branch buyers, product selection, floor sets, not really doing but over seeing like a referee)--> General Merchandise Manager (GMM)/ VP (Top management, keeper of division, know corp goals)

          

  48. Stylebuys and prices merchandise for resale

          

  49. Retailer's ChallengeDetermining the right price is the retailer's challenge, to always keep in mind the target customer and the store's objectives and image.
    To Create the perfect Price Point to entice the customer to BUY while still meeting profit objectives.
    To establish a Promotional Policy that generates business and liquidates markdowns while still meeting profit objectives

          

  50. Corporate retail merchandising optionsBuyer, Planner, Distributor, Product developer

          

  51. Fashion Life CycleIntroduction, Growth, Peak, Decline

          

  52. MerchandiserLiaison between the designer and the sales team.

          

  53. MarkdownsMarkdowns are a reduction in price. They may be expressed in dollars—now $30 off—or in percentages—lower by 20%.
    The formula: Markdown % = MD$ divided by original price x 100.
    A jacket marked down $25, originally $125 would be
    $25 / $125 x100 = 20%. An additional $20 markdown reducing the jacket to $80 can be stated according to the current price of $100 or it may be combined with the first markdown and shown as apercent off the original price. Formula:
    Md% = total $md / original price x 100 = 36%.
    Markdown $ may be computed when a markdown % and retail price are known. Example: a 30% MD on a dress now priced at $80 uses this formula: MD$ = $80 x .30 (or 30%) = $24.
    The new (marked down) retail price is found by subtracting the $md from the $retail. $80 -$24 = $56.
    Or 100-MD% =CC% retail x MD%=new retail price. 100-30% =70%. $80 x 70% = $56

          

  54. Avoiding deceptive pricingTo avoid deceptive pricing, retailers need to know government regulations regarding: Regular price comparisons; comparisons to the competition, Lowest price; free merchandise Going out of business Bait and switch; rainchecks; predatory pricing.

          

  55. Product DeveloperDetermining the right price is the retailer's challenge, to always keep in mind the target customer and the store's objectives and image.
    To Create the perfect Price Point to entice the customer to BUY while still meeting profit objectives.
    To establish a Promotional Policy that generates business and liquidates markdowns while still meeting profit objectives

          

  56. Fashion IndustryToday fashion is an integral part of our economy and our culture.
    It is hard to find a product that does not contain some element of fashion! Retailers promote fashion through advertising, sales promotion, product presentation and direct selling. Fashion drives sales but makes the retailer's job more complex.

          

  57. DeclineSales diminish; retailers lower prices, replace the look for a newer trend.

          

  58. why are prices vital?Retail prices are the chief source of sales revenue and profits for a retail organization. Price times units sold = total sales revenue.
    It is the job of the Retailer to create retail prices . Today most manufacturers work with retailers to create retail prices.

          

  59. corporate level MerchandiserVisual Merchandiser, Fashion coordinator, Fashion Director

          

  60. Mass FashionHigh fashion looks are created by designers and exclusive stores.
    Fashion leaders buy these looks during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave.

          

  61. FashionHigh fashion looks are created by designers and exclusive stores.
    Fashion leaders buy these looks during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave.

          

  62. Vertical IntegrationPerforming more than one Channel Function is called Vertical Integration. Why is this function so popular today? Increased control of the product at the retail level. (signature stores). Fiscal Advantages. Exclusive distribution of private label

          

  63. Initial MarkupMaintained markup is the difference between the merchandise cost and the actual selling price. (minus the markdowns) Formula:
    Maintained mu$ = initial mu$ - net mds$
    GM = maintained mu - transportation - workroom + cash discounts
    Maintained mu = Gm + transportation + workroom costs - cash discounts

          

  64. Managing markdownsLike sales and inventory, markdowns are planned in advance and tracked over time by department and or category. Last year's markdowns are the basis for planning this year's; they are watched throughout the year and compared with industry figures. High markdowns may bring high sales but lower profits.

          

  65. Merchandising Track:Sales associate (non managerial associate) --> 3rd Key, key holder, cashier, head cashier, assistant manager--> Assistant manager, department head --> Store Manager (whats going on at the store level, hiring, firing, loss prevention)--> District Manager (not in merchandising, link between store manager and regional manager)--> Regional Manager (link between district manager and VP/ director)--> VP of stores, Director of stores

          

  66. Plannerprojects sales and stocks based on past sales and trends.

          

  67. Visual MerchandiserThe Planning ,Development and Presentation of a product line created for a Target Customer. To have the right goods at the right time in the right quantities at the right price and in the right place! Retail merchandising includes all of the activities associated with Buying and Selling merchandise.

          

  68. Fad100 -Mkup% = cost complement %
    Retail x CC% = cost
    Example: A retailer wants to price point as sweater for $88. The departmental mkup that the buyer must achieve is 54%
    100-54%=46%. $88 x 46% = $40.48

          

  69. Transforming Basics into FashionMarketers change customers' attitudes by transforming rational buying motives reasons into emotional ones.
    They offer new features and benefits such as color and texture, styling, and details. How was this done with hosiery, men's underwear, and kitchen appliances?