CH14 Developing Merchandise Plans

Question 1

merchandising (p. 339)

Answer 1

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

Question 2

merchandising philosophy (p. 339)

Answer 2

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

Question 3

micromerchandising (p. 340)

Answer 3

retailers adjust shelf-space allocations to respond to customer differences and other differences among local markets

Question 4

cross-merchandising (p. 341)

Answer 4

when a retailer carries complementary goods and services to encourage shoppers to buy more

eg. starbucks and their to-go cups

Question 5

resident buying office (p. 343)

Answer 5

an organization, either internal or external, that retailers use to stay closely connected with key market trends when their headquarters buying staff cannot manage it alone

Question 6

cooperative buying (p. 344)

Answer 6

a gr of retailers gets tgt to make qty purchases from suppliers and obtain volume discounts

Question 7

buyer (p. 344)

Answer 7

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

Question 8

sales manager (p. 344)

Answer 8

the manager who supervises the on-floor selling and operational activities for a specific retail department (think co lieu)

Question 9

forecasts (p. 344)

Answer 9

projections of expected retail sales for given period

Question 10

staple merchandise (p. 346)

Answer 10

regular products carried by a retailer

eg. fruits and vegetables in a grocery store

Question 11

basic stock list (p. 346)

Answer 11

specifies the inventory level, color, brand, style category, size, package, and so on for every staple item carried by the retailer (think of an excel sheet with all the info)

Question 12

assortment merchandise (p. 346)

Answer 12

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

eg. CT being an asian grocery store has food items, household products, and skincare

Question 13

model stock plan (p. 346)

Answer 13

used to project specific items

many items are ordered for popular sizes and colors, and small amounts of less popular sizes and colors fill out the assortment

Question 14

fashion merchandise (p. 346)

Answer 14

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

eg. 4 seasons vs. 52 seasons in fashion

Question 15

seasonal merchandise (p. 346)

Answer 15

products that sell well over nonconsecutive time periods

eg. air conditioners in the summer time, ski equipment in the winter

Question 16

fad merchandise (p. 346)

Answer 16

high sales are generated for a short time (think “it went viral on tiktok!”)

Question 17

never-out list (p. 346)

Answer 17

used to determine the amount of merchandise to purchase for resale

the goal is to always purchase these items so that they’re always in stock

Question 18

product life cycle (p. 348)

Answer 18

shows the expected behaviour of a good or service over its life

intro, growth, maturity, and decline

Question 19

assortment (p. 349)

Answer 19

the selection of merch a retailer carries

Question 20

width of assortment (p. 350)

Answer 20

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

think how wide is the number of product lines

Question 21

depth of assortment (p. 350)

Answer 21

the variety in any one good/service category (product line) a retailer carries

think how deep does the product line go

Question 22

manufacturer (national) brands (p. 352)

Answer 22

brands produced and controlled by manufacturers

eg. Apple, Coke, Levi’s, Nike, Revlon, etc.

Question 23

private (dealer or store) brands (p. 352)

Answer 23

brands that contain names designated by wholesalers or retailers

eg. Kirkland by Costco, AmazonBasics by Amazon, President’s Choice by Loblaw

Question 24

generic brands (p. 354)

Answer 24

feature products’ generic name as brands

eg. ginger Gravol vs. ‘ginger capsules’ by Equate

Question 25

battle of the brands (p. 355)

Answer 25

when manufacturer, private, and generic brands fight each other for more space and control

Question 26

category management (p. 356)

Answer 26

a systematic approach that groups similar products into discrete categories, managing them as strategic business units to maximize sales, profitability, and customer satisfaction while improving overall productivity

eg. pharmacy categorizes things by purpose (eg. digestion, first-aid, vitamins, kids section, etc.)