Understanding Buying and Merchandising in Retail

What is merchandise planning?

• The process of buying new stores and expanding locations

• Offering discounts and special promotions to attract new customers

• Ensuring the right products are available at the right time and price

• Developing marketing campaigns to promote products across multiple channels

What does the term "product" refer to in retail?

• The cost of running a store, including rent and utilities

• The store’s logo, branding, and overall image

• The services offered by employees to improve customer satisfaction

• The goods or services that a business selects to sell to customers

What is "price"?

• The amount of money requested or charged in exchange for a product

• The total expense a store incurs to operate, including all fixed and variable costs

• The store's weekly, monthly, or yearly sales goal set by management

• The total value of the store’s entire inventory in stock

What is "perceived value"?

• The percentage discount given on clearance items or during a sale

• The total cost involved in making a product, including labor and materials

• A customer’s own perception of a product’s worth or quality, often influenced by branding

• The listed price a product is sold for online or in-store, based on market value

What is "overhead"?

• The fixed costs of running a business, such as rent, utilities, and maintenance

• The total income a business has after all expenses have been accounted for

• The direct costs of producing a single unit of a product, including materials

• The final price that customers pay for a product at checkout, including taxes

What is the "break-even point"?

• The point at which costs equal the revenue generated from sales, meaning no profit or loss

• The moment when a product goes out of stock due to high demand

• A period when all products in a category are marked down to boost sales

• The time when new products are introduced to replace outdated items

What does "range" refer to in a merchandise plan?

• The layout and organization of store shelves to improve product visibility

• The different advertising channels, like social media and print, that a store uses to promote products

• The variety of products and the depth of choices offered within each category

• The annual income or revenue of the store, after all expenses are deducted

What is a "planogram"?

• A report of last year’s sales, showing trends and customer purchase behaviors

• A special type of sale that offers discounts on select products in specific sections

• A detailed diagram showing exactly where products should be placed on store shelves to maximize sales

• A list of products currently out of stock and awaiting restocking from suppliers

Where are products placed "above the fold"?

• In a high-traffic area or section of a webpage where they’re immediately visible to customers without scrolling

• In a part of the store or webpage that requires scrolling or additional clicks to view

• In the warehouse or storage room, ready to be displayed at a later time

• At the very bottom of a webpage or ad where they’re less visible to viewers

What is "markup"?

• A reduction in the product’s original price to clear inventory or increase sales volume

• The customer’s view or perception of a product’s value and quality, based on experience and branding

• The specific amount of shelf space a product takes up, which influences customer choices

• The additional amount added to a product’s cost to cover store expenses and achieve a profit