EXAM 4 RETAIL MANAGEMENT LUKE
HOPKINS QUESTIONS & VALID
COMPLETE SOLUTIONS
Merchandising - Correct Answer ✔✔ the purchasing, pricing, display and sale of
merchandise
focuses on product aspect of marketing mix
merchandising philosophy - Correct Answer ✔✔ sets the guiding principles for all the
merchandise decisions that a retailer makes
merchandising philosophy should reflect - Correct Answer ✔✔ Target market desires
Retailer's institutional type
Market-place positioning
Defined value chain
Supplier capabilities
Costs
Competitors
Product trends
Scope of Merchandising - Correct Answer ✔✔ buying involves selling and purchasing
goods sold by retailer
buying and selling functions - Correct Answer ✔✔ Assortments
Advertising pricing
Point-of-sale displays
Employee utilization
Personal selling approaches
Micromerchandising - Correct Answer ✔✔ Retailer adjusts shelf-space allocations to
respond to customer and other differences among local markets
cross merchandising - Correct Answer ✔✔ Retailers carry complementary goods and
services to encourage shoppers to buy more
merchandise plans - Correct Answer ✔✔ process of offering the right kind of product, at
the right place and price
end goal=maximize sales while assuring minimizing markdowns
forecasting - Correct Answer ✔✔ projections of expected retail sales for given periods
components:
, overall company projections, product category projections, item by item projections,
store by store projections
timing - Correct Answer ✔✔ -seasonality -special events -new product releases
brands - Correct Answer ✔✔ Manufacturer (National)
Private (Dealer or Store)
Generic
private labels - Correct Answer ✔✔ increase in store loyalty, increase in market share,
differentiates stores, increased Chanel power over suppliers, higher profit margins
assortments - Correct Answer ✔✔ number and type of products that store displays for
purchase
ALDI - Correct Answer ✔✔ limits product selection which allows chain to keep prices
low and focus on quality 17% cheaper than Walmart
Innovativeness - Correct Answer ✔✔ retailers ability to introduce new and creative
ideas and approaches to retail industry
can include: new products/services, new shopping experience, unique marketing or
sales strategy
Gathering Info - Correct Answer ✔✔ retailers gather info about merchandise decisions
from multiple sources. most effectively track customer preferences through customer
loyalty programs
-use point system
-tier system to reward high purchasers
-charge upfront fee for VIP benefits
-use non monetary programs around customer values
-partnership to provide all inclusive offers
merchandise sources - Correct Answer ✔✔ -company owned (1 strategic business unit
within retail company)
-outside, regularly used supplier
-outside, new supplier
types of evaluation - Correct Answer ✔✔ 1.) inspection; occurs every single unit
delivered
2.) sampling; used with regular purchases of large qualities of breakable, perishable or
expensive items
3.) description; items are not sampled or inspected
HOPKINS QUESTIONS & VALID
COMPLETE SOLUTIONS
Merchandising - Correct Answer ✔✔ the purchasing, pricing, display and sale of
merchandise
focuses on product aspect of marketing mix
merchandising philosophy - Correct Answer ✔✔ sets the guiding principles for all the
merchandise decisions that a retailer makes
merchandising philosophy should reflect - Correct Answer ✔✔ Target market desires
Retailer's institutional type
Market-place positioning
Defined value chain
Supplier capabilities
Costs
Competitors
Product trends
Scope of Merchandising - Correct Answer ✔✔ buying involves selling and purchasing
goods sold by retailer
buying and selling functions - Correct Answer ✔✔ Assortments
Advertising pricing
Point-of-sale displays
Employee utilization
Personal selling approaches
Micromerchandising - Correct Answer ✔✔ Retailer adjusts shelf-space allocations to
respond to customer and other differences among local markets
cross merchandising - Correct Answer ✔✔ Retailers carry complementary goods and
services to encourage shoppers to buy more
merchandise plans - Correct Answer ✔✔ process of offering the right kind of product, at
the right place and price
end goal=maximize sales while assuring minimizing markdowns
forecasting - Correct Answer ✔✔ projections of expected retail sales for given periods
components:
, overall company projections, product category projections, item by item projections,
store by store projections
timing - Correct Answer ✔✔ -seasonality -special events -new product releases
brands - Correct Answer ✔✔ Manufacturer (National)
Private (Dealer or Store)
Generic
private labels - Correct Answer ✔✔ increase in store loyalty, increase in market share,
differentiates stores, increased Chanel power over suppliers, higher profit margins
assortments - Correct Answer ✔✔ number and type of products that store displays for
purchase
ALDI - Correct Answer ✔✔ limits product selection which allows chain to keep prices
low and focus on quality 17% cheaper than Walmart
Innovativeness - Correct Answer ✔✔ retailers ability to introduce new and creative
ideas and approaches to retail industry
can include: new products/services, new shopping experience, unique marketing or
sales strategy
Gathering Info - Correct Answer ✔✔ retailers gather info about merchandise decisions
from multiple sources. most effectively track customer preferences through customer
loyalty programs
-use point system
-tier system to reward high purchasers
-charge upfront fee for VIP benefits
-use non monetary programs around customer values
-partnership to provide all inclusive offers
merchandise sources - Correct Answer ✔✔ -company owned (1 strategic business unit
within retail company)
-outside, regularly used supplier
-outside, new supplier
types of evaluation - Correct Answer ✔✔ 1.) inspection; occurs every single unit
delivered
2.) sampling; used with regular purchases of large qualities of breakable, perishable or
expensive items
3.) description; items are not sampled or inspected
