exam 3

Question 1

Process by which a retailer attempts to offer appropriate quantity of the right merchandise in the right place, at the right time, so that it can meet the company’s goals.

Answer 1

merchandise management

Question 2

List of the SKUs that a retailer will offer in a merchandise category and reflects the variety and assortment that the retailer plans to offer in a merchandise category

Answer 2

assortment plan

Question 3

wide variety of products and a large amount of different products.

Answer 3

variety

Question 4

retailer carrying a number of variations of a single product

Answer 4

assortment

Question 5

if the backup stock is too low

Answer 5

lose sales and customers

Question 6

if the backup stock is too high

Answer 6

scare financial resources will be wasted on needless inventory that could be profitable and more variety and assortment

Question 7

Certain items are priced lower than normal to increase customers traffic flow and/or boost sales of complementary products

Answer 7

leader pricing

Question 8

-A limited number of predetermined price points

Answer 8

price lining

Question 9

A price that ends in an odd number (.9)

Answer 9

odd pricing

Question 10

The presentation of a store and its merchandise in ways that will attract the attention of potential customers.

Answer 10

Visual merchandising

Question 11

an assortment of items that customers see as substitutes for each other.

Answer 11

merchandise category

Question 12

retail selling price initially set for the merchandise minus the cost of the merchandise.

Answer 12

initial markup

Question 13

the actual sales realized for the merchandise minus its costs

Answer 13

maintained markup

Question 14

Identifies markdown items when its weekly sell-through percentages fall below a certain level.

Answer 14

sell-through

Question 15

Cuts prices on the basis of how long the merchandise has been in the store.

Answer 15

rule-based

Question 16

store design objectives

Answer 16

Implement retailer’s strategy
o   Build loyalty
o   Increase sales on visits
o   Control cost
o   Legal considerations—Americans with Disabilities Act
o   Design trade-offs