Test 965A FASHION MERCHANDISING PLAN 1
2008 DECA Ontario Provincials
Test 965A FASHION MERCHANDISING PLAN 1
1.Environmental regulations are often developed to encourage buying and merchandising businesses to participate in
A.law enforcement. C.resource identification.
B.recycling programs. D.ethical contracts.
2.Quantex is organized as a partnership with eight equal partners. The partners would like to expand their business but limit the amount of money they could personally lose if the business were to fail. What form of ownership should Quantex consider?
A.Sole proprietorship C.Monopoly
B.CorporationD.Partnership
3.What marketing activity makes up about half of the total marketing costs?
A.Warehousing C.Packaging
B.Transportation D.Distribution
4.One advantage to a business of installing a global-positioning system in all of the business's delivery vehicles is that the drivers can
A.calculate the fuel needed to complete a route.
B.identify possible delays in traffic.
C.obtain accurate directions to destinations.
D.gain access to inventory data.
5.One of the most effective ways to encourage ethical behavior is to provide employees involved in the distribution process with a(n)
A.competitive salary. C.suggestion box.
B.organizational chart. D.code of ethics.
6.Which of the following is a situation that might cause horizontal conflict among several channel members:
A.An intermediary returns defective products for credit on future purchases.
B.An intermediary sells directly to consumers.
C.A manufacturer begins to sell products online.
D.A manufacturer sells the same product to many competing businesses.
7.One characteristic of an intensive distribution strategy is that products are
A.available in a specific geographic area. C.available in all possible locations.
B.sold by only a few vendors. D.sold in closed sales territories.
8.Under which of the four key areas of evaluating channel membership performance would an agreement on performance standards fall?
A.Future consideration C.Financial concerns
B.Ethical and legal issues D.Working relationships
9.Which of the following is a type of simple, written report that usually is distributed to employees within a retail chain's purchasing department:
A.Memorandum C.Handbook
B.Proposal D.Newsletter
10.To provide good service, store employees should give customers
A.unsolicited advice. C.personal opinions.
B.limited information. D.complete attention.
11.Which of the following is an example of an employee reinforcing a service orientation through communication:
A.Selecting certain customers to help C.Agreeing that customers are always right
B.Telling customers they are misinformedD.Offering to find information for customers
12.In most cases, the person who initially listens to customer complaints is the
A.sales manager. C.buyer.
B.salesperson. D.store owner.
13.One way that electronic data interchange (EDI) has made order processing more efficient is by
A.creating a secure connection to the merchant's web server.
B.eliminating the need for paper documents used in business transactions.
C.responding to customer inquiries through e-mail.
D.increasing the amount of information that can be transmitted over the Internet.
14.Lynx Wholesale Company mailed an advance invoice to Swifton's retail store. When the shipment of six cases of shampoo, eight cases of notebook paper, and nine cases of household detergents arrived, Swifton's receiving department was able to use the invoice to complete a ______check of the goods.
A.direct C.blind
B.random D.quality
15.Improved security and increased efficiency in marking and moving merchandise are advantages to a retail chain of storing goods
A.in centralized warehouses. C.in stockrooms.
B.on the sales floor. D.with freight forwarders.
16.A retailer that sells products in a variety of shapes and sizes would be likely to use ______for storage.
A.uniform containers C.metal pallets
B.wooden crates D.adjustable shelves
17.One reason why many small retailers plan to store excess goods in the drawers of counters on the selling floor is because they have
A.inadequate sales. C.unused shelving.
B.limited space.D.reserve stock.
18.A major benefit of a dollar-control inventory system is that it
A.spots slow-moving merchandise. C.shows the value of stock on hand.
B.reduces inventory investment.D.identifies inventory shrinkage.
19.Calculate the amount of inventory shrinkage given the following information: periodic stock count, 545 units; previous stock count, 800 units; units purchased, 150; and unit sales, 400.
A.50 C.5
B.25 D.150
20.When determining closing book inventory, the total merchandise deductions are found by adding
A.sales, markdowns, and shortages. C.markdowns and markups.
B.purchases and markdowns.D.opening inventory and purchases.
21.Damaged merchandise that retailers send to salvage is often
A.refurbished. C.destroyed.
B.marked down. D.warehoused.
22.Compute the stock turnover rate if retail sales for a given period are $5,000,000 and the average value of the inventory during that time is $500,000.
A.1 C.100
B.10 D.1,000
23.By promoting their goods and services and offering a number of purchasing arrangements, merchandising businesses help to create ______utility.
A.financial C.place
B.time D.possession
24.Which producers are the foundation on which all other businesses depend?
A.Raw goods C.Builders
B.Manufacturers D.Retailers
25.One way a general merchandising business can transfer the risk of losses due to fire, theft, or destruction is by purchasing ______insurance.
A.transportation C.liability
B.property D.personal injury
26.Which of the following would result if a nation's productivity increased at a greater rate than its population:
A.Improved standard of living C.Increased unemployment
B.Reduced use of technologyD.Decreased standard of living
27.Handling differences of opinion within the team should help team members to learn how to
A.manipulate others. C.disagree constructively.
B.reach conclusions. D.make good decisions.
28.Which of the following are characteristics of adaptable people:
A.Objectivity and attentiveness C.Empathy and disrespect
B.Creativity and resistance D.Fairness and fear
29.School grading systems, most sport-related awards, and wages and bonuses for work are examples of
A.formal recognition. C.informal recognition.
B.recognition that does not motivate. D.recognition that is ineffective.
30.If you like to feel as though you are an important member of the team, you will probably work best under a(n) ______manager.
A.authoritarian C.laissez-faire
B.hands-off D.democratic
31.Which of the following is the most common investment for an individual who hopes to lessen the financial burden for dependent children with a case settlement in the event of the individual's death:
A.Business investments C.Life insurance
B.Securities such as stocks and bonds D.Real estate purchases
32.A store owner applying for a bank loan would probably ask the accounting department to provide records that show the value of the store's total
A.equipment. C.inventory.
B.cash. D.assets.
33.Which of the following is not a question about changes in a merchandising business's market that sales forecasters might need to ask:
A.Is the makeup of the trading area changing?
B.What is the current rate of inflation?
C.Has the local population increased or decreased?
D.Will our customers be the same as they have been?
34.When the owner or manager of a general store uses a budget, s/he
A.can more accurately evaluate employees. C.has to try to make it interesting.
B.demonstrates leadership. D.makes more informed decisions.
35.Another name for a profit and loss statement is a(n)
A.balance sheet. C.inventory sheet.
B.liability list. D.income statement.
36.Exit interviews provide a company the opportunity to learn which of the following:
A.Employees' views on policies, procedures, and operations
B.Insider information about competing companies
C.Employees' training and educational background
D.Employees' beginning and ending wages
37.If employees are fired because their conduct is in serious violation of company policies, they are being terminated for
A.resigning. C.cause.
B.performance. D.incompetence.
38.One reason it is usually important to recognize or reward employees and volunteers who worked on an event is to
A.obtain their feedback. C.make them feel appreciated.
B.remind them of their participation. D.get a future commitment.
39.What might result if employees complain about their working conditions but the business puts off taking any action?
A.Decreased turnover C.Decreased vandalism
B.Increased production D.Increased absenteeism
40.A business owner marked down a line of products in order to sell them, but customers still didn't buy them. Marketing research might have been used in this situation to protect the business from
A.financial loss. C.competitors.
B.embarrassment. D.loss of clientele.
41.The general role of marketing in our private enterprise system is to coordinate
A.production and consumption. C.government and business.
B.selling and distribution. D.production and pricing.
42.Marketers know that changing one marketing-mix element affects the
A.end goal. C.strategy.
B.result. D.other elements.
43.Which of the following is one of the main reasons why general merchandisers have been forced to pay more attention to the needs of specific consumers:
A.Increased costs of mass production C.Less knowledgeable consumers
B.Increased amount of competitionD.Fewer differences among consumers
44.What do retailers need to do before developing specific strategies to appeal to certain groups of customers?
A.Select target markets C.Prepare sales forecasts
B.Analyze external threats D.Generate product ideas
45.Which of the following is an example of a marketing strategy that a merchandising business might develop in order to achieve an objective it has outlined in its marketing plan:
A.Reducing operating costs C.Increasing profits by 10%
B.Obtaining $1 million in salesD.Lowering prices by 5%
46.Why is it important for a retailer to conduct a situational analysis during the marketing-planning process?
A.To ward off problems C.To forecast expenses
B.To identify customers D.To redesign products
47.Torry's staff is young and lacks work experience. A new store is coming to town that will be competing with Torry's store. Torry decides to send his staff for training, so they will be better prepared to face the competition. What SWOT marketing strategy is Torry using?
A.S-T C.W-T
B.S-O D.W-O
48.Predicting the number of units of a good or service that a merchandiser will sell during a given time is referred to as a(n)
A.test market. C.sales forecast.
B.marketing strategy. D.economic outlook.
49.In the next two years, the CMV Corporation wants to increase the market share of its premiere product line by seven percent. This is an example of a(n)
A.advertising goal. C.marketing objective.
B.financial budget. D.purchasing strategy.
50.Which one of the following is a method that a manager might use to control marketing planning:
A.Gamesmanship C.Operating delays
B.Behavioral displacement D.Environmental monitoring
51.Why is it important for businesses to maintain records about the quantities and types of merchandise that customers are purchasing?
A.To develop new displays C.To plan credit programs
B.To forecast future sales D.To organize special events
52.At what point do most businesses prefer to stop suspected shoplifters?
A.Outside the business C.As soon as s/he picks up an item
B.Inside the business D.In clear view of other customers
53.What do many retail establishments require their employees to do after an accident occurs?
A.Help redesign the work areas C.Complete accident-report forms
B.Attend a safety training program D.Participate in counseling sessions
54.When handling emergency situations, it is important for store employees to
A.know what to do. C.evacuate the building.
B.move the victim. D.listen to the radio.
55.Creating the goods and services that all businesses must have in order to stay in business is one of the main purposes of
A.mechanization. C.consumption.
B.production.D.specialization.
56.Which of the following is an example of a merchandising business controlling expenses in order to increase profits:
A.Creatively allocating funds C.Effectively using display space
B.Obtaining a higher level of credit D.Expanding promotional activities
57.What would a retailer establish as part of its equipment maintenance program?
A.Investment system C.Inspection schedule
B.Cleanup procedure D.Purchasing routine
58.A personal characteristic that helps people to reach their goals is
A.procrastination. C.passivism.
B.perseverance.D.pessimism.
59.If individuals enjoy operating machinery, driving vehicles, or using tools, they might consider a career that involves working with
A.animals. C.people.
B.things. D.information.
60.Sales representatives from a specific industry who gather together to display and discuss their products with buyers are participating in a
A.chamber of commerce. C.trade show.
B.resident buying office. D.trade association.
61.What do both buyers and sellers want to receive when exchanging goods and services for a specific price?
A.Credit C.Profit
B.Value D.Prestige
62.Developing a pricing structure that encourages customers to buy additional services that they don't need in order to obtain the original product is often a(n) ______tactic.
A.unethical C.accepted
B.predatory D.illegal
63.Offering low-priced items that are unavailable to attract customers to a business that then tries to sell them high-priced items is an example of
A.high-pressure selling. C.price-ticket switching.
B.bait-and-switch advertising.D.loss-leader promotion.
64.What is an effective way for a merchandiser to increase its share of the market for a specific product?
A.Lower the price of the product C.Price above the competition
B.Develop a liberal return policyD.Offer free delivery on all purchases
65.What advantage would a business receive from paying cash for resale products?
A.Faster delivery C.Improved credit
B.Lower price D.Better service
66.How is variable-cost margin calculated?
A.Divide variable costs by the number of units sold.
B.Divide total fixed costs by total variable costs.
C.Subtract variable costs per unit from selling price per unit.
D.Add variable costs to fixed costs.
67.Which of the following is a purchasing-related cause of markdowns:
A.Assortment mistakes C.Market changes
B.Promotional errors D.Liberal return policies
68.During which stage of new-product development does a retail merchandiser determine if it is practical to market a product?
A.Screening C.Production
B.Brainstorming D.Consumption
69.Which of the following is usually responsible for grading goods:
A.Consumer groups C.Government agencies
B.Research organizations D.Sales representatives
70.When a manufacturer provides a full warranty with a product, it is the manufacturer's responsibility to
A.limit the time that an implied warranty is good.
B.replace or repair a faulty product.
C.repair only specific parts if they fail to function.
D.refund the purchase price if the product is misused.
71.Which of the following is a specific question that an employee might ask customers to evaluate their experiences with the retail merchandiser:
A.Do you want to open an account with us?
B.How often do you visit our web site?
C.How can we improve our service?
D.Do you want to receive our promotional materials?
72.When buyers add lower priced products or product lines, they are using the product-mix strategy of
A.trading-down. C.contraction.
B.trading-up. D.positioning.
73.A retail store should analyze each customer service in terms of the profit it makes for the store because
A.every service must be a profit maker.
B.if a service is unprofitable, prices must increase.
C.inappropriate services increase costs and absorb profits.
D.All of these answers are correct.
74.What business factor is a clothing store that decides to offer fitting rooms and alteration services paying attention to?
A.Policies C.Budget
B.Technology D.Products
75.Fisher Industries wanted to protect its new CD player for automobiles by listing it with the appropriate government agency. What kind of protection is this?
A.Brand licensing C.Registered trademark
B.Brand positioning D.Descriptive name
76.Planning and controlling sales, inventory levels, and profit margins are several activities involved in developing a
A.logical approach. C.merchandise mix.
B.market repositioning. D.merchandise budget.
77.What is one of the elements of a merchandising plan?
A.Potential vendors C.Planned markdowns
B.Operating expenses D.Shipping contracts
78.Why do retailers frequently decide to carry promotional merchandise?
A.Offers trendier choices to merchandise selectionC. Drives traffic for purchase of higher priced merchandise
B.Involves lower costs and higher marginsD. Shortens the purchase cycles
79.A large shopping mall's advertisement that promotes the mall's conservation efforts would be classified as ______advertising.
A.promotional B. institutionalC.patronageD.paid
80.Promotional activities focus on pointing out the differences between competing products when a company's product is in the ______stage of its life cycle.
A.growth B. introductoryC.decliningD.maturity
81.More retailers are installing and using kiosks in their stores to promote their merchandise because this form of technology is
A.generic. B. interactive.C.portable. D.seasonable.
82.Advertisers use such words or phrases as "introducing," "finally," or "at last" in a print ad headline in order to
A.offer something new or improved. C.make a claim.
B.arouse the curiosity of readers.D.promise a benefit.
83.When a business decides to create an infomercial to advertise its new product, it can maximize its customer response rate by requesting a call to action ______the infomercial.
A.several times during C.at the beginning of
B.at the end of D.in the middle of
84.A display which is designed to create an immediate favorable sales response for a certain item or line of items is called a(n) ______display.
A.balanced B. selectionC.promotionalD.institutional
85.Which of the following is a housekeeping duty needed for the regular upkeep of displays:
A.Sweeping aisles B. Dusting propsC.Removing trashD.Washing floors
86.A display fixture that can be expensive to replace is a(n)
A.costumer. B. hook stand.C.easel.D.kiosk.
87.A consideration for a retailer in deciding whether to use manufacturers' point-of-purchase displays is
A.display cost. B. space.C.color.D.product cost.
88.A merchandiser's well-established body of customers usually has an important impact on the merchandiser's
A.increased costs. C.financial success.
B.vendor relations. D.recruitment process.
89.Customers often judge a store's ethical standards on the basis of their initial and ongoing contact with the store's
A.board of directors. C.maintenance crew.
B.sales staff. D.receiving personnel.
90.Because technology increases sales efficiency and order processing, salespeople have more time to
A.build and maintain a clientele. C.focus on competitors' activities.
B.set their sales standards and goals. D.develop new goods and services.
91.If a retail salesperson does not disclose important information about a product during the selling process, s/he may be violating
A.consumer-protection laws. C.false-labeling policies.
B.customer-service regulations. D.exclusive-dealing statutes.
92.Which of the following kinds of product information would you use to help a customer who is comparing designer sweaters:
A.Materials and content C.Production process
B.Pricing information D.Product finish