Page 1 of 54
FT 204 CH 1-4 MIDTERM EXAM 85 QUESTIOS
2025/2026 WITH 100% CORRECT ANSWERS
product development .......ANSWER......the strategic, creative,
technical, production, and distribution planning of goods
who develops products? .......ANSWER......- merchandiser
- designer
- product developer
advantages and disadvantages of product development
.......ANSWER......advantages:
- brand royalty, recognition, and exclusivity
- control over delivery, color, image, and markdowns
- profit gain as there is no middle man
disadvantages:
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- no partner to share responsibility if something goes wrong (no
RTV)
- takes a lot of time for line development (12-18 months)
- profit loss as you have to pay for designers, merchandisers,
sample development costs
knock off .......ANSWER......a very exact replica of clothing that is
sold for less than the original
example: Ariana Grande sued Forever21 for $10M in 2019
after they copied her clothing in 7 Rings MV
wholesale .......ANSWER......- sells goods to other stores in the
retail industry rather than the consumer.
- mass merchants, department stores, specialty stores
- Macy's sells a mix of wholesale brands (Free, People, Michael
Kors) and private brands (INC, Alfani)
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private label/private brand .......ANSWER......a good that is
manufactured for and sold under the name of a specific retailer,
competing with brand-name products
Wholesaler examples .......ANSWER......Michael Kors, Tommy
Hilfiger, Nike, Guess
Private Label examples .......ANSWER......GAP, Victoria Beckham,
Zara, Forever21
basic product .......ANSWER......the simplest form of a product. It is
not unique and is usually available from several companies.
seasonal product .......ANSWER......Products that affect supply
and demand based on the time of year the product is sold.
fashion forward product .......ANSWER......smaller quantities. May
only be in flagship stores, or online. Geared towards the leading
edge of the consumer base. Most expensive and the highest risk.
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Mature Industries .......ANSWER......industries produce products
with relatively stable sales from year to year, high competition
example: sportswear
Growth Industries .......ANSWER......Industries that make products
that have not yet saturated the marketplace. Growth products
utilize emerging technology that commands a relatively high
price, placing these products out of reach for some consumers
example: 3D printing, wearable tech
differential advantage .......ANSWER......Unique qualities of a
product that encourage customer purchase and loyalty
- lower price (walmart)
- superior quality (moncler)
- unique features/aesthetic (dior)
- minimal carbon footprint (patagonia)
FT 204 CH 1-4 MIDTERM EXAM 85 QUESTIOS
2025/2026 WITH 100% CORRECT ANSWERS
product development .......ANSWER......the strategic, creative,
technical, production, and distribution planning of goods
who develops products? .......ANSWER......- merchandiser
- designer
- product developer
advantages and disadvantages of product development
.......ANSWER......advantages:
- brand royalty, recognition, and exclusivity
- control over delivery, color, image, and markdowns
- profit gain as there is no middle man
disadvantages:
,Page 2 of 54
- no partner to share responsibility if something goes wrong (no
RTV)
- takes a lot of time for line development (12-18 months)
- profit loss as you have to pay for designers, merchandisers,
sample development costs
knock off .......ANSWER......a very exact replica of clothing that is
sold for less than the original
example: Ariana Grande sued Forever21 for $10M in 2019
after they copied her clothing in 7 Rings MV
wholesale .......ANSWER......- sells goods to other stores in the
retail industry rather than the consumer.
- mass merchants, department stores, specialty stores
- Macy's sells a mix of wholesale brands (Free, People, Michael
Kors) and private brands (INC, Alfani)
,Page 3 of 54
private label/private brand .......ANSWER......a good that is
manufactured for and sold under the name of a specific retailer,
competing with brand-name products
Wholesaler examples .......ANSWER......Michael Kors, Tommy
Hilfiger, Nike, Guess
Private Label examples .......ANSWER......GAP, Victoria Beckham,
Zara, Forever21
basic product .......ANSWER......the simplest form of a product. It is
not unique and is usually available from several companies.
seasonal product .......ANSWER......Products that affect supply
and demand based on the time of year the product is sold.
fashion forward product .......ANSWER......smaller quantities. May
only be in flagship stores, or online. Geared towards the leading
edge of the consumer base. Most expensive and the highest risk.
, Page 4 of 54
Mature Industries .......ANSWER......industries produce products
with relatively stable sales from year to year, high competition
example: sportswear
Growth Industries .......ANSWER......Industries that make products
that have not yet saturated the marketplace. Growth products
utilize emerging technology that commands a relatively high
price, placing these products out of reach for some consumers
example: 3D printing, wearable tech
differential advantage .......ANSWER......Unique qualities of a
product that encourage customer purchase and loyalty
- lower price (walmart)
- superior quality (moncler)
- unique features/aesthetic (dior)
- minimal carbon footprint (patagonia)
