Test 1 FASH 351

What refers to the management processes related to buying and selling fashion products; that is, product assortment planning, acquisition, pricing, presentation, and sales to fulfill a company's financial goals.

Merchandising

Which of the following statements about the global fashion industry is FALSE?

The global fashion industry is primarily comprised of very large multinational corporations that offer similar merchandise around the world.

Effective supply chain management in the fashion industry depends on all of the following EXCEPT?

ability to vertically integrate most design, development, manufacturing, and distribution systems.

Which of the following statements about the supply chain management in fashion is FALSE?

because there are no contractors in the US, domestic production for US fashion brand companies require that they own their factories.

What refers to the strategy used by fashion brand companies to combine apparel and accessories in their product offerings and visual merchandising?

cross-merchandising

Direct-to-consumer fashion brands typically integrate design, marketing, and retailing functions of their supply chain and use for manufacturing functions.

cut, make, and trim contractors

Weaving and knitting are the two most common methods of what?

fabric construction

Although omnichannel retail integration strategy was popular in the past, most retailers no longer use this strategy in their retail operations.

false

Because of the decline in the number of department stores, currently, very few fashion brands can be found at the moderate price zone.

false

Because of the fast-paced nature of the fashion industry, the mission statements of fashion brand companies change on a regular basis, typically two to three times per year.

false

Brand identity and brand image of a fashion brand are the same thing.

false

Cotton, wool, silk, bamboo, and rayon are all examples of natural fibers.

false

Only fashion brand companies at the luxury price zone articulate business goals, business objectives, and social objectives.

false

Tariffs (also known as duties) are taxes assessed on domestic production.

false

Which of the following is NOT used by fashion brand companies as a criterion in making decisions about where they will contract production?

location of the design headquarters of the fashion brand company

Fashion brand companies compete with one another for which refers to the percentage of the total volume a particular company or brand captures.

market share

Which of the following is NOT an example of a trade association?

the business of fashion

My fashion brand company has hired and organization to complete a factory audit. The organization being hired is independent of both by fashion brand company and the factory. This is known as

third-party auditing

WWW, apparel magazines, and sourcing journal are examples of?

trade publications

An example of first-party auditing processes is when a fashion company that owns its own factories and has its own team of factory auditors

true

An example of onshoring is when a US fashion company contracts production in Mexico to take advantage of trade agreements with Mexico.

true

Brand differentiation results in creating distinct brand images in the minds of consumers.

true

Business objectives for a fashion brand company may include strategies as to how the company might increase sales, decrease expenses, or raise funds for growth.

true

Diffusion brands are typically at the bridge price zone.

true

Environmental sustainability is advanced when product life-cycle materials, production, use, maintenance, and end-of-life are taken into account in the design and production of fashions.

true

Fair trade standards focus on paying fair wages, engaging in environmentally sustainable practices, providing healthy and safe working conditions, and being open to public accountability.

true

Fashion brand companies use sourcing fairs to connect with both domestic and offshore contractors

true

Fashion brand companies will assess the infrastructure of a region, the basic facilities and systems that allow the company to operate, in determining whether or not to source in that region.

true

Fashion products, whether they are cars, home decor, or apparel, are a reflection of economic, cultural, social, and psychological influences.

true

Fast fashion company Zara uses vertical integration strategies to design, manufacture, and sell hundreds of millions of items each year through its 2,000+ stores and online market.

true

Fast fashion retailers including H&M, Zara, and UNIZLO were all in operation by the mid 1980s.

true

It is important for the business strategies of a fashion brand company to align with its mission.

true

PLM in the fashion industry are the technologies used to track fashion product information through their design, development, manufacturing, and retailing stages.

true

RFID and UPC bar codes are used to scan inventory throughout the company's supply chain.

true

Some luxury fashion brand companies have offered capsule collections using a see now, buy now supply chain calendar whereby fashions seen on the catwalk can immediately be purchased.

true

Supply chain management in the fashion industry is the coordination and management of the business activities necessary to take a fashion product from materials and manufacturing to retail.

true

Take publications in the fashion industries, most typically print and/or digital magazines, newpapers, and newsletters, are geared to and used by professionals in the industries.

true

Textile converters take greige goods and finish them with finishes that enhance the aesthetic, performance, or color characteristics of the materials.

true

Textile mills are found throughout the world, producing a variety of fabrics for multiple end uses.

true

Zara, H&M, and Mango are examples of fast fashion SPA brands.

true

Which of the following would NOT be an example of a business goal for a fashion brand company?

we strive to be the best company in the world within our product category

Which of the following statements about contract production is FALSE?

with contract production, fashion brand companies control all aspects of production thus assuring the quality of merchandise that will be shipped.

Fortunately, factory auditing processes in the global fashion industry have eliminated problems with wages and unhealthy factory conditions

false

Large corporations, such as Nike, strive to source production in as many countries and with as many different factories as possible

false

Specialty store retailers of private-label apparel chains such as Gap, UNIQULO, and H&M use a dual distribution or hybrid approach to supply chain integration.

false

The "yarn forward rule of origin" refers to an aspect of sourcing and quality assurance whereby high-quality yarns are selected for the materials.

false

The US and the UK are the only countries with fashion-related trade associations.

false

The phase search for the cheap needle refers to the management processes that assures that manufacturing facilities around the world have the latest technologies.

false

The term soft goods is used to describe the value-added aspects of fashion product supply chains.

false

Vogue, Elle, and apparel magazine are examples of consumer publications with a focus on fashion.

false

With the growth of fast fashion, the traditional supply chain calendar is no longer used by most wholesale fashion brand companies.

false

Which of the following supply chain calendars is characterized by continual color and trend forecasting, continual retail budget and assortment planning, and integrated design, development, and manufacturing systems?

fast fashion

Which of the following statements about fibers is TRUE?

fibers are divided into two primary divisions: natural fibers and manufactured fibers

The country of origin of a jacket designed in the US, made with fabric from Japan, cut and sewn in a factory in China, and sold by a US retailer would be what?

China

Which of the following is NOT and example of SPA?

Gap

The textile industry is organized around four basic components of textile production, including all of the following EXCEPT:

Garment Construction

Which of the following statements about the ready-to-wear(RTW) industry is FALSE?

In France, the RTW industry is known as HAUTE COUTURE

Which of the following statements about the price zones of fashion brands in TRUE?

SPA brands can be found at several price zones.

Because of the competitive nature of the fashion industry, pure competition is the most common type of the market system found in the industry.

false

The creation of a strong what is determined by the company through the company's brand strategy including logo, advertising, and promotional messaging created by the company.

brand identity

Organizational and company what are guidelines that outline human resources, health and safety, and labor and environmental standards that must be met by contract factories and other suppliers.

codes of conduct

Fashion brand companies sourcing decisions are largely based on manufacturing costs noting that low labor costs always result in lower manufacturing costs.

false

Which of the following is NOT a key aspect of design of fashion products?

design is designer-centered with a focus on addressing needs, wants, or problems of the designer through the creative process.

When comparing and evaluating sourcing alternatives, costs associated with what must be taken into consideration?

duties

Although this was evident in the past, today few fashion brand companies are contractors.

false

Because companies among the supply chain sectors in the fashion industry rarely, if ever, share data, supply chain management strategies require companies to estimate necessary data for efficient production and distribution.

false

What contractors provide design, development, and manufacturing services?

full-package

These provide design and preproduction services, fabrics, and trims, and labor for manufacturing fashions.

full-package contractors (both domestic and offshore)

Which of the following is NOT an advantage of the vertical integration supply chain strategy?

greater ability to use dedicated contractors for product development and manufacturing

The supply chain strategy used by Qurate Retail Group in which the company owns seven retail brands is known as what?

horizontal integration

A fashion brand company's what is a brief description of the company's fundamental purpose for its customers and society?

mission statement

The most common form of competition in the fashion industry is what?

monopolistic competition

What refers to production in a country outside the country where the merchandise will be sold at retail?

offshore production

What retail integration results in retail formats being integrated to create a seamless shopping experience for the consumer?

omnichannel

Which of the following statements about sustainable supply chains in the fashion industry is FALSE?

practices of fashion brand companies that enhance economic, environmental, social, and cultural sustainability focus almost entirely on safe and healthy manufacturing facilities.

Professionals in the what area of a fashion brand company forecast fashion trends and trends in consumer purchasing behavior in order to develop color, fabric, and garment silhouette directions for the company's merchandise offerings.

research and merchandising

What are the businesses that make a profit by selling goods and services to the ultimate consumer?

retailers

The decision by a fashion brand company about where and by whom to purchase materials and contract production is known as what?

sourcing

What are affiliated with a parent fashion brand company but carry a different name than the parent company.

sub-brands

Patagonia's footprint chronicles are an excellent example of what, which refers to the effective communication of where, how, and by whom all aspects of a fashion product are made and distributed?

supply chain transparency

The what supply chain calendar is based on a fashion system whereby fashion brands research and design fashion collections two to six times per year and market their collections to retail buyers who purchase styles to be sold to the ultimate consumer?

traditional

Although merchandising is most often associated with the buying and selling operations of fashion retailers, merchandising processes happen throughout the fashion supply chain.

true

Department stores often use private-label brands to differentiate themselves from other department stores.

true

Fashion brand companies compete on factors including price of merchandise, quality of merchandise, services offered, social benefit of merchandise, and innovation.

true

The term marketing refers to the management process that connects product offerings with the values, wants, needs, and behaviors of customers.

true

Fashion companies that use a what supply chain strategy to own and control several stages of production or several sectors of their supply chains?

vertical integration