Retail Management Final Test
Questions and Answers15
planogram - ANSWERS -a diagram that shows how and where specific SKUs should be placed on
retail shelves or displays to increase customer purchases
Elements in creating a store environment - ANSWERS -color, lighting, scent, music
Legal Considerations in Hiring
and Selecting Employees - ANSWERS --Equal Employment Opportunity commission (EEOC)
-Age Discrimination and employment act
-Americans with Disabilities Act
Shrinkage - ANSWERS -= (accounting record-actual inventory) / (sales)
stock turn over - ANSWERS -# of times during a period that average Inventory on hand is sold
assortment plan - ANSWERS -a list of merchandise that indicates in very general terms what
should be carried in a particular merchandise category
open-to-buy - ANSWERS -the plan that keeps track of how much is spent in each month and
how much is left to spend
staple merchandise - ANSWERS -regular products carried by retailer
, model stock plan - ANSWERS -# of each SKU in the assortment plan that the buyer wants to
have available for purchase in each store
fashion merchandise - ANSWERS -category of merchandise that typically lasts several seasons,
and sales can vary dramatically from one season to the next
manufactured brands - ANSWERS -a line of products designed, produced, and marketed by a
vender (also called national brand)
private brands - ANSWERS -products developed and marketed by a retailer and only available
for sale by that retailer (also called store brand)
generic brands - ANSWERS -unbranded, unadvertised merchandise found mainly in drug,
grocery, and discount stores
merchandise category - ANSWERS -an assortment of items that customers see as subtitles for
one another
category management - ANSWERS -The process of managing a retail; business with the
objective of maximizing the sales and profits of a category
advantages of rapid turnover - ANSWERS --fresh merch encourages consumers to buy more,
sales go up and increases sales volume
-less risk of obsolescent and markdowns, value of merch goes down the minute its displayed
-decreased operating expenses
disadvantages rapid turnover - ANSWERS --lowered sales volume
-increase cost of goods sold
-rapid turnover is preferred to slow turnover
Questions and Answers15
planogram - ANSWERS -a diagram that shows how and where specific SKUs should be placed on
retail shelves or displays to increase customer purchases
Elements in creating a store environment - ANSWERS -color, lighting, scent, music
Legal Considerations in Hiring
and Selecting Employees - ANSWERS --Equal Employment Opportunity commission (EEOC)
-Age Discrimination and employment act
-Americans with Disabilities Act
Shrinkage - ANSWERS -= (accounting record-actual inventory) / (sales)
stock turn over - ANSWERS -# of times during a period that average Inventory on hand is sold
assortment plan - ANSWERS -a list of merchandise that indicates in very general terms what
should be carried in a particular merchandise category
open-to-buy - ANSWERS -the plan that keeps track of how much is spent in each month and
how much is left to spend
staple merchandise - ANSWERS -regular products carried by retailer
, model stock plan - ANSWERS -# of each SKU in the assortment plan that the buyer wants to
have available for purchase in each store
fashion merchandise - ANSWERS -category of merchandise that typically lasts several seasons,
and sales can vary dramatically from one season to the next
manufactured brands - ANSWERS -a line of products designed, produced, and marketed by a
vender (also called national brand)
private brands - ANSWERS -products developed and marketed by a retailer and only available
for sale by that retailer (also called store brand)
generic brands - ANSWERS -unbranded, unadvertised merchandise found mainly in drug,
grocery, and discount stores
merchandise category - ANSWERS -an assortment of items that customers see as subtitles for
one another
category management - ANSWERS -The process of managing a retail; business with the
objective of maximizing the sales and profits of a category
advantages of rapid turnover - ANSWERS --fresh merch encourages consumers to buy more,
sales go up and increases sales volume
-less risk of obsolescent and markdowns, value of merch goes down the minute its displayed
-decreased operating expenses
disadvantages rapid turnover - ANSWERS --lowered sales volume
-increase cost of goods sold
-rapid turnover is preferred to slow turnover
