Merchandising and Buying Quiz

What is the fundamental difference between buying and merchandising?

• Buying includes product purchases but not their sale, while merchandising includes the broad range of activities involved in buying and selling goods and services.

• Buying responsibility is in the main store, while responsibility for merchandising is in the branches.

• Buying responsibility is a line function, while merchandising responsibility is a staff function.

• Buying responsibility is a staff function, while merchandising is a line function.

A major advantage of a merchandising philosophy is that

• responsibility and authority are clear

• morale of in-store personnel increases

• it fosters the development of specialists

• it recognizes that buyers may not be effective supervisors

The same personnel handle both merchandising and other retail tasks in which buying organization?

• centralized

• decentralized

• informal

• formal

Which of the following is not an advantage of a formal buying organization?

• Well-defined responsibilities

• The use of full-time, specialized merchandisers

• Low costs

• Well-defined authority

Items such as undergarments, basic denim, socks, and briefs are examples of:

• staple merchandise

• fashion merchandise

• seasonal merchandise

• fads

Products that have cyclical sales due to changing tastes and lifestyles are:

• assortment merchandise

• fashion merchandise

• fad merchandise

• nostalgic merchandise

A high level of sales is generated for a relatively short time with:

• seasonal merchandise

• fad merchandise

• fashion merchandise

• nostalgic merchandise

The number of distinct goods/service categories a retailer carries is referred to as the:

• consistency of the product mix

• product life cycle

• depth of assortment

• width of assortment

A retailer seeking to offer one-stop shopping and generate customer loyalty would follow which of the following retail assortment strategies?

• wide and deep

• wide and shallow

• narrow and deep

• narrow and shallow

Which of the following is not a type of merchandising software?

• forecasting software

• predictive software

• innovativeness software

• allocation software