Chapter 6 Merchandising
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. This plan uses figures from the previous year to create the plan for the current year.
a. / retail-sales plan / c. / merchandise planb. / inventory-control plan / d. / staple plan
____ 2. This is the dollar amount of any decrease that a store needs in order to meet the planned sales goal.
a. / planned stock / c. / planned salesb. / planned reduction / d. / planned purchases
____ 3. At this stage of the merchandise life cycle, the retailer should carefully watch the quantities purchased and look for early signs of declining sales.
a. / growth / c. / acceptanceb. / decline / d. / introduction
____ 4. What type of merchandise is stocked for several years or seasons until the merchandise is no longer popular
a. / fashion merchandise / c. / convenience merchandiseb. / seasonal merchandise / d. / staple merchandise
____ 5. What type of merchandise sell well during a particular time of the year and are stocked only for that time frame
a. / fashion merchandise / c. / convenience merchandiseb. / seasonal merchandise / d. / staple merchandise
____ 6. This stock list is used for fashion merchandise.
a. / basic stock list / c. / never-out listb. / model stock list / d. / fashion stock list
____ 7. A copy of this document that lists the style number of the merchandise and the amount purchased should be in the receiving area when the merchandise arrives.
a. / invoice / c. / inventory listb. / purchase order / d. / stock list
____ 8. This represents the merchandise available for sale.
a. / sales receipts / c. / inventoryb. / purchase order / d. / merchandise list
____ 9. This means accounting for the items in the inventory, merchandise in the selling area, and merchandise that is stored.
a. / merchandise plan / c. / stock turnoverb. / staple merchandise / d. / inventory control
____ 10. With this inventory system, retailers keep track of merchandise that is received and sold on a daily basis.
a. / annual inventory counts / c. / physical inventory systemb. / perpetual inventory system / d. / connecting inventory system
____ 11. Retailers use these rates to compare their business to their competition’s business.
a. / stock-turnover rates / c. / never-out list ratesb. / inventory rates / d. / basic stock list rates
____ 12. What component of merchandise reflects the projected sales needed to meet the goals for a particular month?
a. / planned sales / c. / planned reductionsb. / planned stock / d. / planned purchases
____ 13. What component of the merchandise plan reflects the merchandise that must be purchased during the planned time period.
a. / planned sales / c. / planned reductionsb. / planned stock / d. / planned purchases
____ 14. What component of the merchandise plan factors in the markdown, employee discounts, and shoplifting?
a. / planned sales / c. / planned reductionsb. / planned stock / d. / planned purchases
____ 15. Activities involved in acquiring particular goods and or services and making them available at the right place and time is called?
a. / merchandising / c. / decision makingb. / planning / d. / the marketing mix
____ 16. Merchandise managers must make numerous decisions, those decisions include all except?
a. / packaging & shipping / c. / Product mix & assortmentb. / branding & labeling / d. / Promotion & personal selling
____ 17. A strategic budgeting toll that assists retailers by using figures front he previous years to create a current six month plan is called what?
a. / Merchandising / c. / Merchandise planb. / Merchandise budgeting / d. / finance plan
____ 18. What type of merchandise do customers purchase continuously and may sell successfully for years?
a. / Fashion / c. / seasonalb. / staple / d. / convenience
____ 19. Staple merchandise uses what type of stock list to sort it’s items?
a. / Basic stock List / c. / never out stock listb. / model stock list / d. / merchandise stock list
____ 20. Fashion merchandise uses what type of stock list to sort it’s items?
a. / Basic stock List / c. / never out stock listb. / model stock list / d. / merchandise stock list
____ 21. Purchasing orders and invoices are checked during what stage of the receiving process?
a. / receiving area / c. / marketing merchandiseb. / checking in merchandise / d. / merchandise handling
____ 22. What stage of the receiving process are priced marked and UPC codes recorded?
a. / Receiving areas / c. / marking merchandiseb. / checking in merchandise / d. / merchandise handling
____ 23. In this stage the product has achieved acceptance by most of it potential buyers and alot of reminder mail and advertising is used.
a. / introduction / c. / maturity or acceptanceb. / growth / d. / decline
____ 24. In this stage the product keeps improving it sales and continues to increase also in this stage differentiated advertising is being used.
a. / introduction / c. / maturity or acceptanceb. / growth / d. / decline
____ 25. In this stage there is a shift in customer tastes, preference, or values and the market has become saturated.
a. / introduction / c. / maturity or acceptanceb. / growth / d. / decline
____ 26. The type of checking that involves checking a few items or containers to make more everything is okay also called a spot check
a. / blind check / c. / random checkb. / quality check / d. / direct check
____ 27. When everything moves through the receiving process that must be taken to the appropriate department for storage it is called
a. / marking / c. / deliveringb. / receiving / d. / processing claims
____ 28. When items come into the warehouse and all incoming shipments are entered into the inventory system control software it is called
a. / recording / c. / deliveringb. / counting / d. / comparing delivery
____ 29. When items come into the warehouse and quantity numbers are checked with receipt and bill this is called
a. / recording shipment / c. / deliveringb. / counting number of containers / d. / comparing delivery orders
____ 30. When items come in and the workers place the value on the item by programming its upc code, it is called
a. / marking / c. / deliveringb. / receiving / d. / processing claims
____ 31. Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor's brand. Based on the product life cycle what strategy would be most appropriate to use in this situation?
a. / Take the product off the marketb. / Do nothing; fluctuations in sales are common
c. / Modify the product to renew customer interest
d. / Triple the advertising budget for the product
____ 32. Which of the following is a way that a business can extend the life cycle of an established product?
a. / By promoting the product to current users / c. / By restricting distributionb. / By finding new uses for the product / d. / By attracting consumers who are innovators
____ 33. Why does a company need to know what stage of the product life cycle its products are in?
a. / To prevent imitators from entering the market / c. / To predict the length of the life cycleb. / To find new uses for the product / d. / to adapt it marketing strategies
____ 34. Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle?
a. / Because sales decline in the growth stage / c. / Because competitors have entered the marketb. / Because marketing strategies are adjusted / d. / Because production is more efficient
____ 35. How can businesses use computerized databases to sort and organize information about customers' purchases, brand preferences, and dollar amounts spent?
a. / to maintain sales strategies / c. / to develop inventory controlb. / to prepare financial reports / d. / to customize it marketing efforts
____ 36. In which stage of a product's life cycle do promotional activities focus on differences between competing products and how yours is better?
a. / Introductory / c. / Decliningb. / Growth / d. / Maturity