Ch. 15

Question 1

Assortment

Answer 1

selection of merchandise carried by a retailer. It includes both the breadth of product categories and the variety within each category

Question 2

Assortment Merchandise

Answer 2

apparel, furniture, autos, and other products for which the retailer must carry a variety of products in order to give customers a proper selection

Question 3

Basic Stock List

Answer 3

specifies the inventory level, color, brand, style category, size, package, and so on for every staple item carried by a retailer

Question 4

Battle Of The Brands

Answer 4

the competition between manufacturers and retailers for shelf space and profits, whereby manufacturer, private, and generic brands fight each other for more space and control

Question 5

Buyer

Answer 5

person responsible for selecting the merchandise to be carried by a retailer and setting a strategy to market that merchandise

Question 6

Category Management

Answer 6

merchandising technique that improves productivity. It focuses on product category results rather than the performance of individual brands or models

Question 7

Cooperative Buying

Answer 7

procedure used when a group of retailers make quantity purchases from suppliers

Question 8

Cross-Merchandising

Answer 8

exists when a retailer carries complementary goods and services so that shoppers are encouraged to buy more

Question 9

Depth of Assortment

Answer 9

the variety in any one goods/service category (product line) with which a retailer is involved

Question 10

Fad Merchandise

Answer 10

items that generate a high level of sales for a short time

Question 11

Fashion Merchandise

Answer 11

products that may have cyclical sales due to changing tastes and lifestyles

Question 12

Forecasts

Answer 12

projections of expected retail sales for given time periods

Question 13

Generic Brands

Answer 13

no-frills goods stocked by some retailers. These items usually receive secondary shelf locations, have little or no promotion support, are sometimes of less quality than other brands, are stocked in limited assortments and have plain packages. They are a form of private brand

Question 14

Manufacturer (National) Brands

Answer 14

produced and controlled by manufacturers. They are usually well known, supported by manufacturer ads, somewhat pre-sold to consumers, require limited retailer investment in marketing, and often represent maximum product quality to consumers

Question 15

Merchandising

Answer 15

activities involved in acquiring particular goods and/or services and making them available at the places, times, and prices and in the quantity to enable a retailer to reach its goals

Question 16

Merchandising Philosophy

Answer 16

sets the guiding principles for all the merchandise decisions a retailer makes

Question 17

Micromerchandising

Answer 17

strategy whereby a retailer adjusts its shelf-space allocations to respond to customer and other differences among local markets

Question 18

Model Stock Plan

Answer 18

planned composition of fashion goods, which reflects the mix of merchandise available based on expected sales. It indicates product lines, colors, and size distributions

Question 19

Never-Out List

Answer 19

used when a retailer plans stock levels for best-sellers. The goal is to purchase enough of these products so they are always in stock

Question 20

Private (Dealer, Store) Brands

Answer 20

contain names designated by wholesalers or retailers, are more profitable to retailers, are better controlled by retailers, are not sold by competing retailers, are less expensive for consumers, and lead to customer loyalty to retailers (rather than to manufacturers)

Question 21

Product Life Cycle

Answer 21

shows the expected behavior of a good or service over its life, the traditional cycle has four stages: introduction, growth, maturity, and decline

Question 22

Resident Buying Office

Answer 22

inside or outside buying organization used when a retailer wants to keep in close touch with market trends and cannot do so with just its head-quarters buying staff

Question 23

Sales Manager

Answer 23

person who typically supervises the on-floor selling and operational activities for a specific retail department

Question 24

Seasonal Merchandise

Answer 24

products that sell well over nonconsecutive time periods

Question 25

Staple Merchandise

Answer 25

consists of the regular products carried by a retailer

Question 26

Width Of Assortment

Answer 26

number of distinct goods/service categories (product lines) a retailer carries