Overview
Chapter 11
Managing the Merchandise Planning Process
True / False Questions
1) Buyers, divisional merchandise managers, and general merchandise managers are some of those who undertake the responsibilities of merchandise management.
Answer: TRUE
Explanation: Merchandise management activities are undertaken primarily by buyers and their superiors, divisional merchandise managers (DMMs), and general merchandise managers (GMMs).
Difficulty: 1 Easy
Topic: Overview of Merchandise Management
Learning Objective: 11-01 Explain the merchandise management organization and performance measures.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
2) The highest classification level in the buying organization is the merchandise category.
Answer: FALSE
Explanation: The highest classification level in the buying organization is the merchandise group.
Difficulty: 1 Easy
Topic: Overview of Merchandise Management
Learning Objective: 11-01 Explain the merchandise management organization and performance measures.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
3) Fashion merchandise consists of items that are in continuous demand over an extended time period.
Answer: FALSE
Explanation: Staple merchandise categories are those categories that are in continuous demand over an extended time period.
Difficulty: 1 Easy
Topic: Overview of Merchandise Management
Learning Objective: 11-02 Contrast the merchandise management processes for staple and fashion merchandise.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
4) Seasonal merchandise consists of items whose sales fluctuate dramatically depending on the time of the year.
Answer: TRUE
Explanation: Seasonal merchandise categories consist of items whose sales fluctuate dramatically depending on the time of year. Some examples of seasonal merchandise are Halloween candy, Christmas ornaments, swimwear, and snow shovels.
Difficulty: 1 Easy
Topic: Overview of Merchandise Management
Learning Objective: 11-02 Contrast the merchandise management processes for staple and fashion merchandise.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
5) In marketing research, an in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.
Answer: TRUE
Explanation: The in-depth interview is an unstructured personal interview in which the interviewer uses extensive probing to get individual respondents to talk in detail about a subject.
Difficulty: 2 Medium
Topic: Merchandise Forecasting and Budgeting
Learning Objective: 11-03 Describe how to predict sales for merchandise categories.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
6) Assortment, or depth, of a merchandise category is the number of different merchandising subcategories offered.
Answer: FALSE
Explanation: The assortment, or depth, of merchandise is the number of SKUs within a subcategory.
Difficulty: 1 Easy
Topic: Devising Merchandise Plans
Learning Objective: 11-04 Summarize the trade-offs for developing merchandise assortments.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
7) Buyers need not compromise on breadth or depth of merchandise to increase product availability.
Answer: FALSE
Explanation: Buyers have a limited budget for the inventory investments they can make in a category. Thus, they are forced to sacrifice breadth of merchandise if they opt to increase depth, or they must reduce both depth and breadth to increase product availability.
Difficulty: 1 Easy
Topic: Determining Inventory Levels and Inventory Management
Learning Objective: 11-05 Illustrate how to determine the appropriate inventory levels.
Bloom’s: Understand
AACSB: Analytic
Accessibility: Keyboard Navigation
8) Shorter lead times result in a higher level of backup stock required to maintain the same level of product availability.
Answer: FALSE
Explanation: Shorter lead times result in a lower level of backup stock required to maintain the same level of product availability.
Difficulty: 2 Medium
Topic: Merchandise Control Systems
Learning Objective: 11-06 Analyze merchandise control systems.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) The quantity of merchandise has a bigger impact on profitability than allocation decisions.
Answer: FALSE
Explanation: Research indicates that allocation decisions have a much bigger impact on profitability than does the decision about the quantity of merchandise to purchase.
Difficulty: 2 Medium
Topic: Steps in the Merchandise Buying, Handling, and Allocating Process
Learning Objective: 11-07 Describe how multistore retailers allocate merchandise to stores.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) An ABC analysis identifies the performance of individual SKUs in the assortment plan.
Answer: TRUE
Explanation: An ABC analysis identifies the performance of individual SKUs in the assortment plan. It is used to determine which SKUs should be in the plan and how much backup stock and resulting product availability are provided for each SKU in the plan.
Difficulty: 1 Easy
Topic: Evaluation of Merchandise Management Systems
Learning Objective: 11-08 Review how retailers evaluate the performance of their merchandise management decisions.
Bloom’s: Remember
AACSB: Analytic
Accessibility: Keyboard Navigation
Reviews
There are no reviews yet.