Mkt 320 exam 3
The cost of a product is $150, markup is 50 %, and markdown is 30%. What's the final selling price?
$210
• Markup %
= (retail price - retailers cost)/retail price
When a manufacturer ships merchandise to a retailer's distribution center, a _____ tells the retailer's distribution center what has been shipped and when it will be delivered.
Advanced Shipping Notice (ASN)
businesses share inventory information with suppliers, allowing those suppliers to automatically replenish inventory when needed.
Automated continuous replenishment
Operating profit margin is also sometimes called_______
Earnings before interest and taxes (EBIT)
In 1971, Leonardo Del Vecchio founded Luxottica, a manufacture of eyeglasses, and a Gordo Italy. Exoticas purchase of the lens crafter chain is an example of ______
Forward integration
GMROI (gross margin return on investment)
Gross margin (net sales - COGS) / average inventory at cost (beginning inventory + ending inventory)/2
BRIC stands for Brazil, Russia, ____________, China.
India
Big lots is a _____ , dicks sporting goods is a ______, and Publix is a ______
Off price retailer, category specialist, conventional supermarket
Rather than owning warehouses to store merchandise, retailers can use public warehouses that are owned and operated by an independent company. This is a form of
Outsourcing
RFID stands for
Radio Frequency Identification
A store typically draws 20 to 30% of its customers from its ________
Secondary trading area
Last month, Harry Krishna spent $97.61 at Walgreens, $19.87 at CVS, and $88.60 in the pharmacy section of Walmart. If we divide the amount that Harry spent at Walmart ($88.60) by his total drug-related expenditures for the month ($97.61 + $19.87 + $88.60), we are left with a quotient of .4299 (42.99%). Retailers refer to this figure as Walmart's __________.
Share of Wallet (SOW)
An Example of intra-type competition is when _______ and _______ compete for the same customers dollar.
Speedway; 7-Eleven
set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from the vendors to the retailer's customers
Supply chain management
All other things being equal, the best area for locating a store is________
The area that will generate the greatest long-term profit
• vendor chosen by the retailer -helps the retailer better understand consumer shopping behaviors -create assortments that satisfy consumer needs -improve profitability of the merchandise category
category captain
The second step in merchandise management planning is to __________.
develop an assortment plan
An item that is sold by a retailer for a price that is less than the retailer's cost is __________.
loss leader
The third step in merchandise management planning is to __________.
set inventory and product availability levels
Merchandise like men's crew socks, frozen peas, college-ruled loose-leaf notebook paper, and 60-watt light bulbs would be considered __________.
staple merchandise
In an October 1, 2018 article in the Courier-Journal, reporter Bailey Loosemore mentioned that prices are typically higher at a Kroger in Prospect (where Kroger has no competition) than at a Kroger on Buechel Bypass in Bashford Manor (where Kroger is located near a Walmart, a Target, and a Costco store).In the same article, we read that grocery prices at a Walmart near E.P. Tom Sawyer State Park (where Meijer, Target, and Kroger are also located) are typically lower than at the New Albany location (where competitors are fewer and not as close by).From this information, we can determine that Kroger and Walmart practice __________.
zone pricing
As the authors of your textbook indicate, frequent shopper programs are one of the available approaches to retaining the best customers and increasing the retailer's share of wallet from those customers. However, this approach has some limitations. Which of the following is a limitation that the authors point out?
- It is difficult to achieve a sustainable competitive advantage based on a frequent-shopper program. This is largely because a competitor can easily find out about the program and imitate it - and most do. - Frequent-shopper programs are expensive to launch, expensive to maintain, and expensive to support. - If a problem arises in a frequent-shopper program, it is difficult to make corrections. Customers will react negatively to any change that they perceive to be a "take away."
Regarding RFID, with which of the following statements would the authors of your textbook likely agree?
- RFID tech enables accurate real-time tracking of a product all the way from the factory to checkout in the store - Using RFID on an individual item can reduce theft - RFID technology is costly to implement - AN RFID chip can hold more data than a UPC barcode - In the future, RFID tags may replace UPC tags
Regarding reverse auctions, which of the following is NOT consistent with what the authors of the textbook say?
- Retailers use reverse auctions only to procure merchandise for resale. They never use them to buy store fixtures or furnishings, such as carpet, shelving, or lighting. - The terms and conditions of a reverse auction require a retailer to buy from the vendor who quotes the lowest price. - Reverse auctions are more popular with vendors than with retailers -Increasingly, reverse auctions are becoming retailers' preferred means of procuring national brands.
Regarding slotting fees, which of the following statements is consistent with the information in your textbook?
- Vendors of products with low brand loyalty pay the highest slotting fees. - A slotting fee that is collected from General Mills by Kroger or Albertsons may exceed $1 million.
According to the authors of your textbook, one of the advantages of the EDLP pricing strategy is that it __________.
- reduces advertising and operating expenses - reduces stockouts - improves inventory management - assures customers of low prices
Regarding "push supply chains" and "pull supply chains," which of the following statements is consistent with information in your textbook?
- In a pull supply chain, a store is less likely to be overstocked of out of stock - In a push supply chain, merch begins moving through the chain because of forecast-driven decision to ship it at a particular time -In a pull supply chain, merchandise begins moving through the chain because it has been requested by the retailer. - A pull approach does not work well when order commitments must be made months in advance, as is often the case in fashion retailing. -A pull approach increases inventory turnover. - A pull system requires a more costly and sophisticated information infrastructure than a push system.
Regarding a retailer's distribution center (DC), which of the following statements is consistent with the information that is presented by the authors of your textbook?
-Cross-docked merchandise usually spends only a few hours in the DC, at most - Most distribution centers run 50 to 100 outbound truck routes in one day - A DC makes it easier for a store to avoid a stockout - A DC enables a retailer to carry less merchandise at individual stores
For a shopping center, retail industry experts recommend______ Spaces per thousand square feet.
10 to 15
Keith Heath works for a supermarket chain as a buyer.The following figures are relevant to the performance of Keith's merchandise during the past year. Net sales: $2,400,000 Gross margin: $480,000 Average inventory: $288,000 Cost of goods sold: $1,920,000 Keith's merchandise has generated gross margin return on investment (GMROI) of __________.
166.67 %
Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance.Last summer, Kent and Scratch bought a truckload of Whirlpool washing machines that had minor cosmetic defects. They paid $300 each for the machines, which they displayed in the store with a "take-it-or-leave-it" retail price of $500. Three months later, none of the machines had sold, so Kent and Scratch reduced the price to $400. Within a month, all of the machines had sold.The maintained markup on this truckload of merchandise was _____ percent.
30
The NAICS code for the Kroger supermarket on Euclid Avenue in Lexington is 445110. Which of the following is also true about this code?
445110 is the code of the fresh market supermarket in the Lansdowne shops shopping center on Tates Creek Boulevard Anything else about supermarkets
For a shopping center, retail industry experts recommend_______ Space is per thousand square feet of retail store space.
5.5 spaces
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store.For most of the merchandise she sells, Sondra sets the price by "keystoning."This means that if Sondra sells a pair of chrome-studded black multi-buckle knee-high platform boots for $150, the markup (as a percent of retail price) must be ____ .
50%
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories retailer. At present, the retailer has eleven locations: three at regional malls, six in strip centers, and two standalone stores. Key financial figures for Sondra's business for the fiscal year 2021 include: Net sales: 1,700,000 Operating expenses: 322,000 Interest expense: 1900 Total current assets: 253,300 Fixed assets: 462,100 Net after-tax profit: 505,260 Taxes: 97,440 Cost of good sold: 773,400 What was Gothic Ghoullery's return on assets in FY 2021?
70.63%
Polly-Esther Cotton is a buyer for a national women's wear chain. Yesterday, Polly-Esther told her significant other that she is "going to market" and she will be away for a week and a half.In this context, what does "market" mean?
A concentrated area where vendors are permanently located; here, they show new merchandise during certain times of the year.
When a retailer is deciding on a type of location it needs to select a location that is consistent with
All of the above - The typical shopping behavior of members of its target market, it's positioning strategy, the density of the target market population in relation to the location
Men's wearhouse purchased black leather belts for $16 each and priced them to sell for $29.99 each. What was the markup on the belts?
Approximately 47%
______ Is the process of grouping consumers into market segments based on what they want the product to do for them.
Benefit segmentation
Retail is great value by ordering large quantities that are convenient for manufactures to ship, and then offering them for sale in the smaller quantities that are convenient for consumers to buy. Providing value through this activity is called________.
Breaking bulk
Briar Dwyer moved into his first ever apartment a couple weeks ago. This evening briar will be having dinner guess and he has begun strategizing to prepare the meal halfway through the morning briar mentally goes through the paces of preparing and serving a masterful almost from scratch meal for himself and then five guest he is expecting. Quality and styles merchandise: 6 Ease of parking lot in front entrance access: 4
Briar will go to target
Jenna Mckenna has had a bad day at work. To cheer her self up, she spends a couple of our shopping at the mall and buy herself and your snowboard at Dick's Sporting Goods. In the scenario Jenna is seeking to satisfy ___needs through shopping.
Hedonic
toby scobee Has little to no preference for a brand of tires. He says Goodyear Hozier fire stone Toyo Michelin Uniroyal Dungloe BF good rich Cooper they're all about the same round black and made of rubber. Toby will only go one place to buy tires for his Toyota Camry, NTB. When the tires on the Camry are worn enough to need replacement Toby goes to NTB. Once he's there, Toby will look at the displays and read the signs and brochures, as well as talking to the service representative if necessary. Toby strategy is to choose the tires that have the best warranty in his price range. Based on the authors explanation of types of buying decisions, Toby's tire shopping behavior most closely resembles ________.
Limited problem solving
Coca-Cola, Planters, and Purina One are _____________ brands.Big K (sold by Kroger), Archer Farms (sold by Target), and Ol' Roy (sold by Walmart) are ____________ brands, also sometimes called ___________ brands.
Manufacturer's; private-label; store
The authors of your textbook describe [a] __________ as "a specific type of retail analytics that focuses on the composition of the . . . bundle of products purchased by a household during a single shopping occasion."
Market basket analysis
In 2017, Bass Pro shops purchased its largest Intratype competitor, Cabela's. The two outdoor retail giants are built on similar business models, and they target customers with similar interests. At the time of the purchase, Cabela's and bass pro shops were operating stores and many of the same cities and states. However, Cabela's also had stores in several US states and Canadian provinces where there were no bass pro shops including Idaho, Montana, Utah, Wyoming, the Dakotas, Minnesota, Maine, British Columbia, Saskatchewan, and Manitoba. Bass Pro shops acquisition of Cabela's most resembles a _________ growth strategy.
Market expansion
The_______ of an influencer campaign = the revenue earned from it minus the cost of paying the influencer divided by the cost of paying the influencer
Return on investment
Under federal law, a vendor cannot charge different prices on "goods of like grade and quality."Exceptions are allowed in the case of a retailer that is performing functions that lower the vendor's cost of doing businesses with that retailer. For example, a retailer that can receive one large shipment at its central distribution center - where other retailers require multiple small shipments to their individual stores - provides the vendor with money-saving efficiency in the loading and shipping process. Therefore, the vendor can legally offer that retailer a price that accurately reflects the lower cost of doing business with the retailer.The specific law that sets forth these provisions is the __________.
Robinson-Patman Act (1936)
A retail strategy identifies 1) the retailers target market, 2) The format the retailer plans to use to satisfy the target markets needs, and 3)__________
The bases on which the retailer plans to build a sustainable competitive advantage
Regarding supply chain management, with which of the following statements would the authors of your textbook likely agree? A. When supply chain management activities are performed efficiently...... B. Efficient supply chain management enables retailers to carry less... C. In recent years....
When supply chain management activities are performed efficiently, consumers are able to buy merchandise in the desired quantities at a preferred location and appropriate time
Porter McWhorter's seasonal allergies were acting up when he got out of bed yesterday morning. Throughout the day, his symptoms got worse.On the way home from campus, Porter stopped at CVS to buy Claritin. On the shelf, next to the blue Claritin packages, he noticed similarly-colored packages of "non-drowsy allergy relief tablets" with the red CVS logo in small print. When Porter picked up both the Claritin package and the CVS non-drowsy allergy relief tablets package, he saw that both medications have the same active ingredient: 10 mg Loratadine. Porter sees that he can buy almost twice as many CVS "non-drowsy allergy relief tablets" as he can Claritin tablets for the same price.The authors of your textbook would classify CVS' private-label allergy relief tablets as a(n) __________ brand.
copycat
As they are developing their CRM programs, many retailers use the "customer pyramid" classification to identify their highest-value customers. On the pyramid, customers are classified hierarchically based upon their customer lifetime value (CLV) scores. These four tiers of customers, in order of bottom of the pyramid to top, are labeled
lead , iron , gold , and platinum .
A(n) __________ is an assortment of items that customers see as substitutes for one another. A few examples might be men's outerwear, soft drinks, fashion footwear, salty snacks, kitchen gadgets, floor coverings, and swim apparel.
merchandise category
"Multi-unit pricing" means the same thing as __________.
quantity discount
The purpose of an open-to-buy system is to __________.
record how much of the merchandise budget has been spent at any given time, and keep track of how much remains available to spend
Vincent Laurent, an English-speaking Frenchman, meets with buyers from the United States when they visit Paris. Once in Paris, the buyers rely on Vincent to make appointments with French vendors, which saves the buyers time and helps them penetrate the market. During the buyers' meetings with vendors, Vincent serves as an interpreter and assists in negotiations.From this information, we can conclude that Vincent works for a(n) __________.
resident buying office
SWOT analysis stands for
strengths, weaknesses, opportunities, threats
The authors of your textbook state that efficient supply chain management provides 2 principle benefits to retailers and their customers. Those benefits are fewer stockouts and _______
tailored assortments
Keystoning
the practice of marking up prices by 100 percent, or doubling the cost
Levi Strauss, a national manufacturer of apparel, will supply JCPenney with its most-popular styles of jeans only if JCPenney also carries other, lesser-known Levi's products, as well as the Dockers line of apparel and accessories.Levi Strauss is enforcing a(n) __________ in its relationship with JCPenney.
tying agreement
Scooter Tudor woke up with a cold this morning. As he struggled with his symptoms throughout the day, he became aware that he was probably going to get worse before he starts getting better.On the way home from the university, Scooter stops at Walgreens to buy Zyrtec. On the shelf, next to the green Zyrtec packages, Scooter notices similarly-colored packages of Wal-Zyr "all day allergy tablets" with the red Walgreens logo in small print. When Scooter examines both the Zyrtec package and the Wal-Zyr package, he sees that both medications have the same active ingredient: 10 mg Ceterizine Hydrochloride. Scooter sees that he can buy almost twice as many Wal-Zyr pills as he can Zyrtec pills for the same price.The authors of your textbook would classify Wal-Zyr as a(n) __________ brand.
copycat
The 7C framework has seven critical elements that retailers need to consider carefully when devising digital or online marketing strategy and creating websites. The seven elements are?
core goals contextual elements content community communication commerce and connection.
To calculate __________, retailers use a mathematical model that takes into consideration the gross margin from a customer's past purchases, the estimated cost (including advertising and other promotion) of acquiring the customer, and the cost of processing merchandise that has been returned by the customer.
customer lifetime value (CLV)
If you make an airline reservation for a flight to, say, Miami, you're likely to be charged a higher price two weeks from now than if you make the reservation today.The rate that you pay for your hotel stay in South Beach might also differ based on the day and time that you book your reservation. Not only that, but your rate may be different from what a government employee, a member of AAA, or a member of AARP would be charged.The process of charging different prices for goods or services based on the type of customer, the time of the day, the day of the week, the season of the year, or level of demand is called __________ or __________ pricing.
dynamic; individualized
The fourth step in merchandise management planning is to __________.
establish a control system for managing inventory
When designer Vince Camuto created women's shoe brands Antonia Melani, Gianni Bini, Nurture, and Michelle D to be sold only at Dillard's, the retailer and the designer were teaming up to launch __________ private-label brands.
exclusive
The first step in merchandise management planning is to __________.
forecast category sales
Even though they do not have authorization from manufacturers, distributors will sometimes divert products from low-price markets to sell them in high-price markets.For example, a consumer in the U.S. who is shopping for a new Japanese-built Yamaha grand piano may find one for $27,500 and another very similar one for $14,000. The difference is that the $27,500 Yamaha piano was built for the U.S. market; the $14,000 Yamaha piano was built for the southeast Asia market and was intended to be sold at a list price of $8,500 in that market.Through unauthorized redirection into the U.S., some distributor (which has not been authorized by the Yamaha Corporation) makes additional money, even though the consumer pays less. (The consumer may actually be ripped off, though, because the wooden parts of the piano have been carefully selected and treated for optimal performance in the humidity of southeast Asia; those parts may crack or wear out prematurely from becoming excessively dry in some areas of the U.S.)This scenario is an example of __________.
gray-market merchandise
If a retailer can sell an item for $6 and needs a 40% markup on selling price to meet profit objectives, that retailer should pay no more than _______ for the item.
$3.60 6 x .40 = 2.4 6 - 2.4 = 3.6
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store.For most of the merchandise she sells, Sondra sets the price by "keystoning."This means that if Sondra sells a pair of chrome-studded black multi-buckle knee-high platform boots for $150, the markup must be _____.
$75
As a retailer develops its CRM program, which of the following is likely to be one of its objectives?
- Convert "good" customers into high-LTV customers, perhaps through add-on sales. - Get rid of unprofitable customers, i.e., "get the lead out." - Retain high-LTV customers - and gain a greater share of wallet from them by providing more value.
_____ enables the accurate, real-time tracking of every single product from manufacturer to checkout in the store, thus decreasing warehouse, distribution, and inventory costs, as well as reducing stockouts and theft, increasing margins.
RFID
With regard to gathering identifying information from customers, which of the following statements is consistent with the information that appears in your textbook?
It is easier to gather a customer's identifying information when the customer makes an online purchase than when the customer makes an in-store purchase.
Shirley Turley owns Ballistic Bazaar, a gun shop and shooting range.Ballistic Bazaar pays $822 for a Sig Sauer 1911 Carry Scorpion. To set her retail price for the SKU, Shirley applies an initial markup that is 33.33% of her selling price. Then, to implement odd pricing, she rounds the price upward to the nearest 99 cents.The retail price of this particular SKU will be _____.
$1,232.99
Sondra Alondra owns Gothic Ghoullery, a specialty apparel and accessories store.For most of the merchandise she sells, Sondra sets the price by "keystoning."This means that if Sondra buys a pair of chrome-studded black multi-buckle knee-high platform boots for $75, she'll set the retail price at ____.
$150 keystoning is doubling the price
If you're walking into Martin's Cigar Shop in Lexington for the first time, the first thing you notice is likely to be the sign on the door: This is a work-free smoke place. The second thing you're likely to notice is that the customers are in no hurry to leave after they make a purchase. A "regular" customer is likely to take a seat, light a recently-purchased cigar, and engage in conversation about such time-honored topics as cigar preferences, single-barrel bourbon, horse race handicapping, politics, and the Kentucky Wildcats. Most of the customers will not shop at any of the other cigar retailers in town. Most regular customers have also bought a humidor from Martin's at one time or another, and most keep at least a couple dozen fine cigars on hand at home. Furthermore, most regulars also visit Martin's several times per week, most know several other regulars by their first name, and most will treat a newcomer to the same good-natured ribbing that they dish out to the other regulars. The authors of your textbook would say that Martin's customers are, collectively, a classic example of __________.
A retail brand community
Minnie Small-Frye is a buyer for a chain of toddlers' and children's' apparel stores.This week, Minnie is working through adjustments to the chain's assortment plan for its winter clothing offerings.In order to decide which SKUs should continue to be in the plan - as well as to determine backup stock requirements and merchandise availability - Minnie is analyzing each SKU based on its sales, contribution to gross margin, and GMROI.Next, she'll classify the SKUs into four groups.The first group will consist of a small group of SKUs that account for a disproportionately-large share of the retailer's sales. Minnie will make a point of maintaining ample backup stock of these items, in order to ensure that the stores do not run out of them at any time during the winter season.The next group will consist of SKUs that sell pretty well, but account for a lesser share of the retailer's sales than the first group. Minnie will not give these SKUs as high a priority as the first group; in fact, she doesn't view the prospect of running out of them for a day or two as particularly tragic.Minnie's third group will consist of SKUs that account for a small percentage of sales, maybe ten or fifteen percent. Minnie will order only the most popular sizes of these items, and will expect store managers to place special orders for other sizes when customers occasionally request them.The fourth and final group will consist of SKUs that never sell until they're marked down. Yes, that's right - as good as Minnie is at her job, she still picks some losers from time to time. That's the nature of retailing. Minnie will eliminate most SKUs in the fourth group from the assortment plan.The procedure that Minnie is following is called __________.
ABC analysis
Carrefour asked a vendor, Colgate, to help it better understand how consumers shop for oral care products, and to help maximize sales of all oral care products that Carrefour carries, regardless of brand. Colgate dug into its own past research into consumer behavior and made several well-informed recommendations, including the suggestion that Carrefour display toothbrush products directly above toothpaste products, instead of side by side as it had been doing for years.Carrefour followed Colgate's advice. Thereafter, sales of oral care products in Carrefour stores increased by 6 to 16 percent, depending on location. Colgate's sales increased as well.By asking Colgate to serve in this advisory capacity, Carrefour gave the company preference over other oral care product vendors such as Unilever, Procter & Gamble, GlaxoSmithKline, and Church & Dwight. The authors of your textbook would say that in this example, Colgate is Carrefour's __________ for oral care products.
Category Captain
The retail mix consists of merchandise management, pricing, store design and display, location, customer service, and ______
Communication mix
To report chain wide sales growth statistics, retailers and retail industry analysts generally exclude locations that have been open for less than one year. The resulting figure is called ______
Comparable- store sales growth
Last week, Jolene Moline went shopping for bargain-priced clothing and shoes at Overstock.com.Jolene was thrilled to find a pair of Alfani boots (in her size!) for $51.99. As Jolene was finalizing her order, she said to herself, "I don't think I've seen this brand anywhere but Macy's before."Indeed, Jolene is correct. Alfani is one of Macy's private-label brands.The authors of your textbook would describe Jolene's new boots as __________ merchandise.
Diverted
If you use a desktop or laptop computer to shop, you are shopping in the______ Channel. If you use a smart phone or a tablet, that is called ________.
Electronic; the mobile channel
Matt Flatt buys most of his business attire and some of his casual attire at Joseph A. Bank.Matt thinks Jos. A. Bank's regular pricing is "a bit on the high side," but the clothes are well made and he likes the way they look and feel.Matt has learned to watch for sales at Jos. A. Bank's stores, as well as at the company's online store. A couple of months ago, during a two-day sale, he was able to buy an "Executive" suit for $199, instead of paying the regular price of $598. A month later, during a dress shirt sale, he ordered two "Reserve Collection" wrinkle-free dress shirts at the Jos. A. Bank website. The shirts were priced at two for $89 instead of the regular price of $109.50 each. Not too long thereafter, Matt took advantage of another sale and bought three "Traveler" sportshirts for $39 each (they're normally $89.50 each). The following month, during a four-day sale, he bought a "Traveler" suit for $279 instead of paying the regular price of $798.As an experienced Jos. A. Bank shopper, Matt knows he can expect several more sales this year, and he plans to add something relevant to his work wardrobe each time a sale happens.In this scenario, Matt is benefiting from Jos. A. Bank's __________ pricing strategy.
High/low
Kroger's Big K cola, Target's Archer Farms snacks, and Walmart's Ol' Roy dog food are examples of __________ brands.
House
A market segment is________ if it's customers needs are significantly different from those of customers in other segments- And if the retailer knows how to satisfy those needs.
Identifiable
In the typical system for grouping merchandise within a retailer's buying organization, which of the following correctly describes the levels of merchandise, from highest to lowest? Or, said differently, from the broadest to the most specific?
Merchandise Group > Department > Classification > Category > SKU
A __________ is a group of items targeting the same customer type. A few examples might be men's big and tall sizes, gluten-free food items, or girls' sizes 4 to 6.
Merchandise classification
Five recent estimates, the Indianapolis-Carmel-Anderson_______ had a population of 2,028,614 with 863,002 of those individuals residing with an Indianapolis itself. By similar estimates the Mount Sterling Kentucky________ is populated by 46,758 of him 7240 to live within the community of Mount Sterling itself.
Metropolitan statistical area; Micropolitan statistical area
_______ are open air shopping centers that consist mainly of big box retail stores, which may be freestanding. Such a shopping center will usually have A limited number of smaller specialty stores as well. I Hamburg Pavilion, which is anchored by target, Kohl's, Best Buy, Dick's Sporting Goods, and Barnes & Noble is an example.
Power centers
If you divide "percentage change in quantity sold" by "percentage change in price," you are calculating __________.
Price elasticity
Fit & Active, L'oven, Beaumont, and Casa Mamita brands are available only at Aldi.These are examples of _____________ brands.
Private-label house
Walmart's Great Value brand of groceries and its Equate brand of nonprescription pharmaceutical items are examples of __________ brands.
Private-label house
As a vendor, Allie McNally works very well with Nordstrom's women's advanced modern sportswear buyer, Mollie Holley. The working relationship has been mutually satisfactory for several years.This past year, Allie's line of sportswear has included a few SKUs that sold poorly. It's now time to show Nordstrom (i.e., Mollie) the next season's product line. Allie expects that this time, Mollie will be a tougher negotiator than before.What should Allie be prepared to do?
Provide markdown money
Which of the following accurately portrays the impact of an efficient supply chain and info system?
all of the above
The fifth step in merchandise management planning is to __________.
allocate merchandise to stores
For retailers who wish to involve themselves in the CRM process, the first necessary activity is collecting customer shopping data. The second activity is __________.
analyzing customer data and identifying target customers
Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance. Last summer, Kent and Scratch bought a truckload of Frigidaire refrigerators that had minor cosmetic defects. They paid $1,100 each for the machines, which they displayed in the store with a retail price of $1,569.99. Three months later, none of the machines had sold, so Kent and Scratch reduced the price to $1,466.99. Within a month, all of the machines had sold. The maintained markup on this truckload of merchandise was ___ percent.
approximately 25
Kent Dent and his partner "Scratch" Hatch own Scratch & Dent Appliance.Last summer, they bought a truckload of LG clothes dryers that had minor cosmetic defects. Kent and Scratch paid $375 each for the machines, which they displayed in the store with a retail price of $579.99. Three months later, none of the machines had sold, so Kent and Scratch reduced the price to $529.99. Within a month, all of the machines had sold.The maintained markup on this truckload of merchandise was ___ percent.
approximately 30
A(n) __________ identifies the set of SKUs (within a category) that a retailer will offer in each of its stores.
assortment plan
Market basket analysis has found __________ to be the most common item in Americans' grocery carts.
bananas
Gross margin return on investment (GMROI) is a metric used by retailers to determine a(n) __________'s contribution to __________.
buyer; ROA
Joseph A. Bank offers its "Executive Collection" of men's suits in a wide variety of patterns and colors at a price of $598 each. A shopper at a Jos. A. Bank store or at josabank.com can also choose from a variety of higher-technology (cooler in hot weather) "1905" suits at $698 each, as well as from a few "Signature" suits (with a higher grade of wool and higher-quality lining) at $798 each and "Signature Gold" suits (made of higher-quality materials yet) at $998 each. For the man who wants a suit that is crafted in the USA out of fine Italian wool, the "Reserve" suit is available in a few colors for a price of $1,298.Joseph A. Bank's approach to pricing is best described as __________.
price lining
One out of every two ceiling fans sold in the United States is a Hampton Bay fan. Hampton Bay fans are available only at Home Depot. Hampton Bay is an example of a(n) __________ brand.
private-label