Retail & Fashion Chapter 5: Merchandising

What is merchandising?

• To buy and sell goods in business.

• To manufacture goods.

• To advertise products.

• To provide customer service.

Merchandise planning is a method that retailers use to make intelligent ______ before they purchase merchandise for their stores.

• decisions

• guesses

• mistakes

• assumptions

Merchandise planning is done for the entire store, each ______ within the store, and then each classification of merchandise within a department.

• department

• employee

• customer

• register

Merchandise planning can be a valuable tool to help prevent retailers from ______-buying, as well as under-buying.

• over

• slow

• late

• short

A merchandise plan is a basic budgeting tool that assists the retailer or buyer in meeting ______ or classification goals.

• departmental

• seasonal

• financial

• operational

Most merchandise plans will begin with a sales goal for the time period being planned, usually how many months?

• 3 months

• 6 months

• 9 months

• 12 months

Planned Sales are expressed in ______ figures and reflect the sales needed to meet the goal for a particular month.

• dollar

• unit

• percentage

• inventory

Planned reductions are the dollar amounts of any ______ in the selling price of merchandise.

• decrease

• increase

• discount

• markup

What does the Merchandise Life Cycle refer to?

• Customer acceptance levels and buying levels of an item of merchandise.

• The process of manufacturing goods in a factory.

• The transportation of goods from warehouse to store.

• The pricing strategy used for seasonal sales.

Which stage of the Merchandise Life Cycle is characterized by few sales, a limited group of customers, and small quantities being purchased?

• Introduction

• Growth

• Acceptance

• Decline