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170 True/False questions

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


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


  3. What is a key benefit of separating the buying and selling functions in retailing?Existing and potential competition, target market


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


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


  6. Open to buy:The amount of money you have to spend on purchases


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


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


  9. Searching through computer data to find trends and patterns that might otherwise have gone unnoticed is known as:Maintain markups increase


  10. For inventory purposes which would be subtracted from initial stock counts?"On Order"


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


  12. Using the following info how many are in stock.Is it collected systematically, it involves using information from different sources, it is a step by step process
    (All of the above)


  13. Excessive inventory could be caused by?All of the above


  14. Chief benefit that vendor owned stores give to designers?...


  15. Markup is a quantitative performance objective against which buyers can be evaluated. Markup is defined as the difference betweenMerchandise cost and its selling price


  16. T/F
    Buyers should seek secondary data before making plans to obtain primary data.


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


  18. The marketing concept is geared toward:External factors for making buying decisions


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


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


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


  22. T/F carrying too wide of a merchandise assortment can hurt stock turnoverNo. It is not easy compared to basic stock


  23. 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.


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


  25. Are sales for plus size market increasing?Decreasing


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


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


  28. The number of department stores in the US is?Weekly inventories


  29. Is mass customization only in the apparel segment of retailing?Your BOM for FEB


  30. What is the formula to determine planned purchases=Sales/Average stock


  31. Definition of a wholesalerA measurement of the profitability of a retailers sales


  32. Why would you ever buy from a wholesaler?Hurricanes/natural disasters


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


  34. Which of the following publications would give the buyer the best information about current economic trends?Is it collected systematically, it involves using information from different sources, it is a step by step process
    (All of the above)


  35. Skills needed by retail includes computer literacy, which involves all of the following except:More casual clothing


  36. Typically quick response does not require?External factors for making buying decisions


  37. When buyers use numbers to state quantitative performance measurements, which is more important?To maintain an ending inventory of $50,000


  38. The primary advantage of central buying includes all of the following except:
    Buying decisions are made by specialists
    Lower merchandise costs can result
    Centeralized data make trends easier to detect
    Sales forecasts for the entire chain are less reliable
    Maintain markups increase


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


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


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


  42. Definition GMROI...


  43. T/F
    Data that buyers collect in marketing research will lead to an immediate solution to their questions


  44. 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
    Sales associates have more knowledge about market conditions than do buyers


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


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


  47. An applicant for a job as a buyer has a college degree. Which trait would best indicate that the applicant possesses?Existing and potential competition, target market


  48. For most retailers the internet provides all of the following advantages except:Consumer incomes


  49. 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
    TJ Maxx


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


  51. The overall framework or plan of action that guides a retailer isLatinos


  52. Which of the following market segments is a key target market of TV shopping channels?`The elderly


  53. Kohl's has established itself in a market niche between department stores anddiscount department stores


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


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


  56. 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.


  57. Which job title listed below would be primarily responsible for evaluating fashion trends?Self esteem


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


  59. Which one of these components would be entered at cost?Purchases


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


  61. In most large retail organizations the buyers immediate superior is theNo, it is in other places. Automobiles!


  62. Which one of these activities would NOT decrease stock turnover?Reducing the price of merchandise in the store


  63. T/F
    The hypermarket concept was first developed in Australia


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


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


  66. All of the following could be used to describe the buyer's job exceptRoutine


  67. Reductions examples:Shrinkage, markdowns, employee discounts


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


  69. In basic stock planning the re order period is the time the order is placed and the merchandise is on the floorlead time


  70. Planned BOM stock levels can be calculated by multiplying planned sales by?"On Order"


  71. After the fear of credit card fraud, which of the following is the primary concern of online customers?Maintain markups increase


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


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


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


  75. 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


  76. Re order period is after the the merchandise has been soldHigh school seniors


  77. Which of the following retailers was the first successful specialized superstore?Is it collected systematically, it involves using information from different sources, it is a step by step process
    (All of the above)


  78. Who is responsible for making most of the retail purchases in the United StatesWomen


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


  80. In determining planned purchases which is added to sales?Your BOM for FEB


  81. Difference between primary data and secondary?Yes. NOt a disadvantage


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


  83. Retail buying invlovesThe amount of money you have to spend on purchases


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


  85. The three types of departmentalization typically found in retail stores include all of the following exceptcentralized


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


  87. Do retailers hire outside firms to do their physical inventories?Yes


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


  89. Largest category of non durables?Food


  90. Problems with Secondary dataThe amount of money you have to spend on purchases


  91. Benefits that vendor owned stores offer for themselves?Sales/Average stock


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


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


  94. T/F
    Fashion is affecting almost all merchandise categories in retail stores today.


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


  96. All of the following retailers are known for their fast fashion strategy except:TJ Maxx


  97. Determine open to buy what do you subtract from your planned purchases?"On Order"


  98. Economic factors are consideredExternal factors for making buying decisions


  99. The accuracy of a sales forecast will depend on:Decreasing


  100. Psychographic trends are related to all of the following exceptConsumer incomes


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


  102. Is reordering of Fashion Merchandise easy compared to basic stock reordering?No. It is not easy compared to basic stock


  103. Your EOM stock for January is the same as?Your BOM for FEB


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


  105. More working women in the United States will result in all of the following except:Maintain markups increase


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


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


  108. Which of the following is the best example of an emotional buying motive?Self esteem


  109. External Sales factors examplesHurricanes/natural disasters


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


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


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


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


  114. 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


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


  116. Which of the following best describes good marketing research?big k mart


  117. Nondurable Retail CategoryWhen potential sales of existing products are lost to new items


  118. What does Donnagher creative services do?Forecasts fashion


  119. The first and most important part of the 6 month plan is forecasting what?Sales + Reductions + EOM - BOM


  120. Many college graduates are attracted to jobs as buyers because of?Travel Opportunities


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


  122. 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


  123. T/F a manufactures rep can only represent one manufactererFalse


  124. The original "Mazur Plan" used to organize most retail stores included all of the following functions except:
    Individual markup percentages


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


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


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


  128. 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


  129. Does EDI reduce clearical and administrative costs for a retailer? What is EDIIT WILL REDUCE.
    Electronic Data Interchange.....Quick Response....The vendor


  130. T/F
    Automatic reordering systems are most often used with fashion merchandising.


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


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


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


  134. Net sales =Gross sales - customer returns = net sales


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


  136. In recent years the number of latinos in the US hasincreased


  137. Which of the following is not one of the emerging retailing formats?big k mart


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


  139. Generation Z includes consumers up toShrinkage, markdowns, employee discounts


  140. Before taking a physical inventory it should be grouped by>Merchandise Manager


  141. Is a higher stock turnover rate an advantage?Yes. NOt a disadvantage


  142. Today in the United States the number of male homemakes is?increased


  143. 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


  144. Key sources of internal information for making buying decisions include all the following exceptTrade journals


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


  146. T/F Many retailers count on the 4th quarter for over half the company profitsTrue


  147. For which of the following types of merchandise will buyers probably have more difficulty in making purchasing decisions?
    fashion or basic merchandising
    Business week


  148. Research has shown quick responses increases:Sales


  149. What is the first step of positioning a retail store?Market identification


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


  151. How do buyers recognize that the end is near for a fad?A fashion is a currently accepted or popular style and a fad is pop up trend of fashion.


  152. Which of the following is the most difficult for buyers to forecast?Tastes of customers


  153. What will increase stock turnover?Decreasing average stock


  154. Retailers having traditional storefronts and an online presence are known asClicks and morter


  155. Whats the formula for stock turnover?Sales/Average stock


  156. Retail stores represented by buying offices can have their buyers make fewer and shorter trips to the marketTrue


  157. Who has to approve the sales forecast made by the buyer?Sales/Average stock


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


  159. WHich of the following businesses is not a major warehouse club?big k mart


  160. The employment outlook for buyers is expected to grow slower than the average for all occupationsTrue


  161. What are some of the things buyers need to consider when they are forecasting?Existing and potential competition, target market


  162. Knowing that the typical consumer member of a warehouse club spends $75 per visit is an example of which type of data?Decreasing


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


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


  165. The largest minority market in the United States is:Latinos


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


  167. Being overbought causes all of the following except?Markdowns


  168. 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?Merchandise Manager


  169. How often do most retailers do physical inventory?Once a year (walmart and target)


  170. What is canibalization?When potential sales of existing products are lost to new items