Question 1

Describe both the staple merchandise and fashion merchandise categories.

Accepted Answer

Staple merchandise consists of items whi

Question 2

The second highest level in the merchandise classification structure is the

Accepted Answer

A)  stock-keeping unit. 
B)  category. 
C)  department. 
D)  merchandise group. 
E)  classification. 
A)  stock-keeping unit. 
B)  category. 
C)  department. 
D)  merchandise group. 
E)  classification.

Question 3

________ is also referred to as the level of support or service level.

Accepted Answer

A)  Product assortment 
B)  Product availability 
C)  Product satisfaction 
D)  Product depth 
E)  Product breadth 
A)  Product assortment 
B)  Product availability 
C)  Product satisfaction 
D)  Product depth 
E)  Product breadth

Question 4

Which of the following schemes is the correct order describing the levels of the merchandise classification scheme from the highest level to the lowest level?

Accepted Answer

A)  Department-Merchandise Group-Classification-Category-stock-keeping unit (SKU) 
B)  Merchandise Group-Classification-Department-Category-SKU 
C)  Merchandise Group-Department-Classification-Category-SKU 
D)  Classification-Department-Category-Merchandise Group-SKU 
E)  Category-Classification-Merchandise Group-Department-SKU 
A)  Department-Merchandise Group-Classification-Category-stock-keeping unit (SKU) 
B)  Merchandise Group-Classification-Department-Category-SKU 
C)  Merchandise Group-Department-Classification-Category-SKU 
D)  Classification-Department-Category-Merchandise Group-SKU 
E)  Category-Classification-Merchandise Group-Department-SKU

Question 5

In terms of merchandise, what is the difference between a classification and a category?

Accepted Answer

A classification is a group of items tar

Question 6

A retailer's merchandise group is managed by a

Accepted Answer

A)  divisional merchandise manager (DMM). 
B)  general merchandise manager (GMM). 
C)  buyer. 
D)  category captain. 
E)  category manager. 
A)  divisional merchandise manager (DMM). 
B)  general merchandise manager (GMM). 
C)  buyer. 
D)  category captain. 
E)  category manager.

Question 7

Which of the following analysis techniques compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required?

Accepted Answer

A)  Sell-through analysis 
B)  GMROI 
C)  ABC analysis 
D)  Inventory turnover analysis 
E)  Multiattribute analysis 
A)  Sell-through analysis 
B)  GMROI 
C)  ABC analysis 
D)  Inventory turnover analysis 
E)  Multiattribute analysis

Question 8

Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. The store does not sell any other product. Therefore, the store has little

Accepted Answer

A)  category. 
B)  assortment. 
C)  medley. 
D)  merchandise mixtures. 
E)  variety. 
A)  category. 
B)  assortment. 
C)  medley. 
D)  merchandise mixtures. 
E)  variety.

Question 9

In marketing research, an in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following products is an example of a classification?

Accepted Answer

A)  Sweaters 
B)  Infant apparel 
C)  Polo shirts 
D)  Shoes 
E)  Formal shirts 
A)  Sweaters 
B)  Infant apparel 
C)  Polo shirts 
D)  Shoes 
E)  Formal shirts

Question 11

A(n) ________ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provide the product availability, and the order points and quantities.

Accepted Answer

A)  inventory management report 
B)  sell-through analysis 
C)  periodic inventory control system 
D)  perpetual inventory control system 
E)  automatic ordering report 
A)  inventory management report 
B)  sell-through analysis 
C)  periodic inventory control system 
D)  perpetual inventory control system 
E)  automatic ordering report

Question 12

A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin pans, and during other weeks it sells none. A reorder takes up to three weeks. The probability of running out of pans and alienating its customers can be alleviated by maintaining

Accepted Answer

A)  non-ledgered stock. 
B)  cycle stock. 
C)  hidden inventory. 
D)  backup stock. 
E)  lead stock. 
A)  non-ledgered stock. 
B)  cycle stock. 
C)  hidden inventory. 
D)  backup stock. 
E)  lead stock.

Question 13

After developing a plan for managing merchandise within a category, the next step in the merchandise management process is to

Accepted Answer

A)  allocate the merchandise to the stores. 
B)  make the purchase. 
C)  order through vendors. 
D)  re-evaluate the plan using last year's plan. 
E)  penetrate new markets. 
A)  allocate the merchandise to the stores. 
B)  make the purchase. 
C)  order through vendors. 
D)  re-evaluate the plan using last year's plan. 
E)  penetrate new markets.

Question 14

Which of the following statements does not describe the approach that deals with cycle (base) stock?

Accepted Answer

A)  A retailer tries to reduce the base stock to keep its inventory investment low. 
B)  One approach for reducing the base stock is to reorder and receive merchandise from the vendor more often. 
C)  Frequent orderings with smaller quantities will reduce transportation costs. 
D)  Shorter delivery time from the vendor will reduce the level of base stock. 
E)  Shorter lead time from the vendor will reduce the level of base stock. 
A)  A retailer tries to reduce the base stock to keep its inventory investment low. 
B)  One approach for reducing the base stock is to reorder and receive merchandise from the vendor more often. 
C)  Frequent orderings with smaller quantities will reduce transportation costs. 
D)  Shorter delivery time from the vendor will reduce the level of base stock. 
E)  Shorter lead time from the vendor will reduce the level of base stock.

Question 15

Retail chains typically classify each of their stores on the basis of annual sales. According to this classification,

Accepted Answer

A)  A stores would have the largest sales volume. 
B)  C stores would receive the highest inventory. 
C)  B items represent 65 percent of SKUs in a category. 
D)  C items contribute to 20 percent of sales. 
E)  B items require the highest amount of backup stock. 
A)  A stores would have the largest sales volume. 
B)  C stores would receive the highest inventory. 
C)  B items represent 65 percent of SKUs in a category. 
D)  C items contribute to 20 percent of sales. 
E)  B items require the highest amount of backup stock.

Question 16

Which of the following terms is defined as the percentage of demand for a particular SKU that is satisfied?

Accepted Answer

A)  Assortment 
B)  Economic order quantity 
C)  Merchandise mix 
D)  Product availability 
E)  Variety 
A)  Assortment 
B)  Economic order quantity 
C)  Merchandise mix 
D)  Product availability 
E)  Variety

Question 17

A(n) ________ is used to keep track of the actual merchandise flows-what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers.

Accepted Answer

A)  model stock plan 
B)  fashion-oriented bookkeeping 
C)  open-to-buy system 
D)  order point 
E)  perpetual inventory 
A)  model stock plan 
B)  fashion-oriented bookkeeping 
C)  open-to-buy system 
D)  order point 
E)  perpetual inventory

Question 18

What can a retailer do to increase inventory turnover, and what are the drawbacks to these approaches?

Accepted Answer

To increase inventory turnover, a retail

Question 19

When there is a high inventory turnover, there is an increase in sales because

Accepted Answer

A)  price points are set higher to accommodate for potential sales loss. 
B)  new merchandise is continually available to customers. 
C)  the merchandise begins to look shopworn. 
D)  sales are increased by reducing prices. 
E)  more money is available to buy new merchandise. 
A)  price points are set higher to accommodate for potential sales loss. 
B)  new merchandise is continually available to customers. 
C)  the merchandise begins to look shopworn. 
D)  sales are increased by reducing prices. 
E)  more money is available to buy new merchandise.

Question 20

The highest classification level in a buying organization is the

Accepted Answer

A)  order point. 
B)  buying group. 
C)  stock-keeping unit. 
D)  merchandise group. 
E)  department. 
A)  order point. 
B)  buying group. 
C)  stock-keeping unit. 
D)  merchandise group. 
E)  department.

Describe both the staple merchandise and fashion merchandise categories.

The second highest level in the merchandise classification structure is the

________ is also referred to as the level of support or service level.

Which of the following schemes is the correct order describing the levels of the merchandise classification scheme from the highest level to the lowest level?

In terms of merchandise, what is the difference between a classification and a category?

A retailer's merchandise group is managed by a

Which of the following analysis techniques compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required?

Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. The store does not sell any other product. Therefore, the store has little

In marketing research, an in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Which of the following products is an example of a classification?

A(n) ________ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provide the product availability, and the order points and quantities.

A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin pans, and during other weeks it sells none. A reorder takes up to three weeks. The probability of running out of pans and alienating its customers can be alleviated by maintaining

After developing a plan for managing merchandise within a category, the next step in the merchandise management process is to

Which of the following statements does not describe the approach that deals with cycle (base) stock?

Retail chains typically classify each of their stores on the basis of annual sales. According to this classification,

Which of the following terms is defined as the percentage of demand for a particular SKU that is satisfied?

A(n) ________ is used to keep track of the actual merchandise flows-what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers.

What can a retailer do to increase inventory turnover, and what are the drawbacks to these approaches?

When there is a high inventory turnover, there is an increase in sales because

The highest classification level in a buying organization is the

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 11: Managing the Merchandise Planning Process

Describe both the staple merchandise and fashion merchandise categories.

The second highest level in the merchandise classification structure is the

________ is also referred to as the level of support or service level.

Which of the following schemes is the correct order describing the levels of the merchandise classification scheme from the highest level to the lowest level?

In terms of merchandise, what is the difference between a classification and a category?

A retailer's merchandise group is managed by a

Which of the following analysis techniques compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required?

Father Christmas is a retail store that sells a unique Santa made from fur, wool, and tapestry. The store does not sell any other product. Therefore, the store has little

In marketing research, an in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.

Which of the following products is an example of a classification?

A(n) ________ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provide the product availability, and the order points and quantities.

A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin pans, and during other weeks it sells none. A reorder takes up to three weeks. The probability of running out of pans and alienating its customers can be alleviated by maintaining

After developing a plan for managing merchandise within a category, the next step in the merchandise management process is to

Which of the following statements does not describe the approach that deals with cycle (base) stock?

Retail chains typically classify each of their stores on the basis of annual sales. According to this classification,

Which of the following terms is defined as the percentage of demand for a particular SKU that is satisfied?

A(n) ________ is used to keep track of the actual merchandise flows-what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers.

What can a retailer do to increase inventory turnover, and what are the drawbacks to these approaches?

When there is a high inventory turnover, there is an increase in sales because

The highest classification level in a buying organization is the

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters