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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
    False

          

  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
    False

          

  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
    True

          

  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.
    True

          

  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.
    False

          

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

          

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

          

  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
    True

          

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

          

  42. Definition GMROI...

          

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

          

  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
    True

          

  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.
    True

          

  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
    True

          

  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.
    True

          

  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.
    False

          

  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
    True

          

  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
    True

          

  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
    Candles
    Teas
    Teas

          

  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.
    increased

          

  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
    False

          

  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.
    True

          

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

          

  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.
    True

          

  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
    False

          

  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
    Women

          

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

          

  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:
    personnel
    merchandising
    control
    publicity
    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
    True

          

  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
    False

          

  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.
    True

          

  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
    True

          

  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
    True

          

  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
    False

          

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

          

  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