Question 1

Direct product profitability equals an item's ________.

Accepted Answer

A)   annual sales divided by the total linear footage devoted to a product category
B)   gross profit less its direct retailing costs (but not including general overhead) 
C)   annual gross profit divided by the total linear footage devoted to the item
D)   number of days of supply on the shelfE) A) and D)
F) All of the above

Question 2

Resident buying offices are used by retailers that have main stores nearby important market centers.

Accepted Answer

A) True 
 B)False

Question 3

A major characteristic of micromerchandising is the ________.

Accepted Answer

A)   lower costs through quantity discounts
B)   use of rationalized retailing
C)   appeal to local tastes
D)   use of the top-down approach to space managementE) None of the above
F) C) and D)

Question 4

A good or service will be supplied in one basic version in which stage of the product life cycle?

Accepted Answer

A)   introduction
B)   growth
C)   maturity
D)   declineE) All of the above
F) None of the above

Question 5

Distinguish among scrambled merchandising,complementary goods and services,and substitute goods and services.

Accepted Answer

Scrambled merchandising refers to the pr...

Question 6

Orders for staples are generally made using negotiated contracts.

Accepted Answer

A) True 
 B)False

Question 7

A major retailer desires to use specialists to plan,implement,and control the merchandising function.The most appropriate buying organization is a(n) ________.

Accepted Answer

A)   decentralized buying organization
B)   inside buying organization
C)   informal buying organization
D)   formal buying organizationE) A) and B)
F) All of the above

Question 8

The target market expands to include middle-income consumers who are somewhat more innovative than the average consumer in which product life cycle stage?

Accepted Answer

A)   introduction
B)   growth
C)   maturity
D)   declineE) None of the above
F) All of the above

Question 9

Merchandise planning is most problematic for ________.

Accepted Answer

A)   staple merchandise
B)   seasonal merchandise
C)   impulse merchandise
D)   fad merchandiseE) All of the above
F) A) and B)

Question 10

What are the advantages and disadvantages of micromerchandising programs?

Accepted Answer

Micromerchandising programs have several...

Question 11

The traditional product life cycle curve is bell-shaped.

Accepted Answer

A) True 
 B)False

Question 12

The battle of the brands relates to a battle for shelf space and promotional emphasis between manufacturer and private brands.

Accepted Answer

A) True 
 B)False

Question 13

A vertical fashion trend occurs when a fashion ________.

Accepted Answer

A)   is not successful when passed down to the mass market
B)   is first accepted by an upscale market segment, but undergoes changes in its basic form as it is sold to the general public
C)   is passed from the lower to the upper social classes
D)   retains its basic form as it is accepted by the general publicE) A) and B)
F) A) and C)

Question 14

A retailer can purchase a national brand of canned corn for $.39.The canned corn sells for $.52.Total direct retailing costs for the corn (warehouse costs and direct labor) equal $.03 per can.In addition,$.05 per can is charged for administrative overhead.What is the direct product profitability per can?

Accepted Answer

A)   $.05
B)   $.10
C)   $.13
D)   The answer cannot be determined from the information provided.E) A) and B)
F) All of the above

Question 15

Decentralized buying organizations generally secure the best merchandise fit with each specific geographic area where a retailer has stores.

Accepted Answer

A) True 
 B)False

Question 16

A department store chain,based in western Pennsylvania,can best keep in touch with developments in the ladies clothing market,based in New York City,through a(n) ________.

Accepted Answer

A)   informal buying organization
B)   cooperative buying organization
C)   resident buying office
D)   inside buying organizationE) A) and C)
F) A) and D)

Question 17

Which is an example of a specialized buying organization for a national supermarket chain?

Accepted Answer

A)   a buyer being responsible for purchasing for all stores in the Southwest
B)   a buyer having an assistant buyer and an assistant to the buyer report to him or her
C)   a buyer purchasing seafood directly from major fishing fleets
D)   a buyer having a $2,000,000 budget each monthE) A) and B)
F) None of the above

Question 18

Which merchandising strategy is similar to scrambled merchandising?

Accepted Answer

A)   cross-merchandising
B)   micromerchandising
C)   cross selling
D)   rationalized retailingE) A) and B)
F) A) and C)

Question 19

If it takes a retailer three days to process an order and the supplier an additional five days to deliver the merchandise,the retailer should begin to order the merchandise at least 15 days before the old inventory runs out.

Accepted Answer

A) True 
 B)False

Question 20

In the horizontal trend theory,a new fashion is accepted by a broad range of consumers when first introduced.

Accepted Answer

A) True 
 B)False

Exam 14: Developing Merchandise Plans

A major retailer desires to use specialists to plan,implement,and control the merchandising function.The most appropriate buying organization is a(n) ________.

Correct Answer
verified

Resident buying offices are used by retailers that have main stores nearby important market centers.

Correct Answer
verified

The battle of the brands relates to a battle for shelf space and promotional emphasis between manufacturer and private brands.

Correct Answer
verified

Direct product profitability equals an item's ________.

Correct Answer
verified

What are the advantages and disadvantages of micromerchandising programs?

Correct Answer
Answered by ExamLex AI
Micromerchandising programs have several...
View Answer

Which merchandising strategy is similar to scrambled merchandising?

Correct Answer
verified

If it takes a retailer three days to process an order and the supplier an additional five days to deliver the merchandise,the retailer should begin to order the merchandise at least 15 days before the old inventory runs out.

Correct Answer
verified

The target market expands to include middle-income consumers who are somewhat more innovative than the average consumer in which product life cycle stage?

Correct Answer
verified

In the horizontal trend theory,a new fashion is accepted by a broad range of consumers when first introduced.

Correct Answer
verified

The traditional product life cycle curve is bell-shaped.

Correct Answer
verified

A good or service will be supplied in one basic version in which stage of the product life cycle?

Correct Answer
verified

Correct Answer
verified

A department store chain,based in western Pennsylvania,can best keep in touch with developments in the ladies clothing market,based in New York City,through a(n) ________.

Correct Answer
verified

Merchandise planning is most problematic for ________.

Correct Answer
verified

A vertical fashion trend occurs when a fashion ________.

Correct Answer
verified

Decentralized buying organizations generally secure the best merchandise fit with each specific geographic area where a retailer has stores.

Correct Answer
verified

Distinguish among scrambled merchandising,complementary goods and services,and substitute goods and services.

Correct Answer
Answered by ExamLex AI
Scrambled merchandising refers to the pr...
View Answer

A major characteristic of micromerchandising is the ________.

Correct Answer
verified

Which is an example of a specialized buying organization for a national supermarket chain?

Correct Answer
verified

Orders for staples are generally made using negotiated contracts.

Correct Answer
verified

Exam 14: Developing Merchandise Plans

A major retailer desires to use specialists to plan,implement,and control the merchandising function.The most appropriate buying organization is a(n) ________.

Correct AnswerverifiedShow Answer

Resident buying offices are used by retailers that have main stores nearby important market centers.

Correct AnswerverifiedShow Answer

The battle of the brands relates to a battle for shelf space and promotional emphasis between manufacturer and private brands.

Correct AnswerverifiedShow Answer

Direct product profitability equals an item's ________.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of micromerchandising programs?

Correct AnswerAnswered by ExamLex AIMicromerchandising programs have several...View AnswerShow Answer

Which merchandising strategy is similar to scrambled merchandising?

Correct AnswerverifiedShow Answer

If it takes a retailer three days to process an order and the supplier an additional five days to deliver the merchandise,the retailer should begin to order the merchandise at least 15 days before the old inventory runs out.

Correct AnswerverifiedShow Answer

The target market expands to include middle-income consumers who are somewhat more innovative than the average consumer in which product life cycle stage?

Correct AnswerverifiedShow Answer

In the horizontal trend theory,a new fashion is accepted by a broad range of consumers when first introduced.

Correct AnswerverifiedShow Answer

The traditional product life cycle curve is bell-shaped.

Correct AnswerverifiedShow Answer

A good or service will be supplied in one basic version in which stage of the product life cycle?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A department store chain,based in western Pennsylvania,can best keep in touch with developments in the ladies clothing market,based in New York City,through a(n) ________.

Correct AnswerverifiedShow Answer

Merchandise planning is most problematic for ________.

Correct AnswerverifiedShow Answer

A vertical fashion trend occurs when a fashion ________.

Correct AnswerverifiedShow Answer

Decentralized buying organizations generally secure the best merchandise fit with each specific geographic area where a retailer has stores.

Correct AnswerverifiedShow Answer

Distinguish among scrambled merchandising,complementary goods and services,and substitute goods and services.

Correct AnswerAnswered by ExamLex AIScrambled merchandising refers to the pr...View AnswerShow Answer

A major characteristic of micromerchandising is the ________.

Correct AnswerverifiedShow Answer

Which is an example of a specialized buying organization for a national supermarket chain?

Correct AnswerverifiedShow Answer

Orders for staples are generally made using negotiated contracts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Micromerchandising programs have several...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Scrambled merchandising refers to the pr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified