30 Questions
What factors are considered in resource selection according to the text?
Manufacturer's promotional policies
What does the text describe buyers doing after examining the available merchandise in showrooms?
Taking notes on the available merchandise
Which term describes the aspect of cooperation related to reorder availability, fixtures, and signs?
Cooperation
In what phase are fashion seasons categorized according to the text?
Merchandise management
What action do buyers take after calculating open-to-buy expenditures for each department?
Writing purchase orders on their company's order forms
Which of the following is NOT a factor mentioned as part of resource selection in the text?
Seasonal discount rates
What is one of the roles of a buyer in a retail store?
Assigning floor space to merchandise
Which of the following is considered an external source for the buying and merchandise process?
Trade publications
During market weeks, what do buyers typically do?
Visit regional apparel marts
What is the main purpose of key vendors in the buying process?
Purchasing new lines in-depth
What differentiates a fashion retail store from a retail store with almost any product line?
Purchasing and pricing merchandise
Which department do buyers typically collaborate with according to the text?
Receiving department
What is the purpose of the four-five-four calendar in fashion merchandise sales forecasting?
To compare days of the week across different years
In fashion merchandise planning, how are merchandise assortments typically organized?
Using merchandise classifications or categories
What do merchandise subclassifications within a classification help to identify?
The specific styles within a product category
What does Open-to-Buy (OTB) represent in fashion retail?
The buyer's budget for purchasing merchandise
How does the four-five-four calendar help in comparing sales performance in fashion retail?
By comparing sales on corresponding days of the week
What is the primary benefit of categorizing merchandise assortments into classifications and subclassifications?
To provide a clear structure for product organization
What is the purpose of markdowns in retail?
To determine the selling price of the product
Which of the following is NOT a reason for markdowns in retail?
Low sales volume
What is the primary difference between initial markup and maintained markup?
Initial markup is added to the wholesale price, while maintained markup is added to the retail price
Which term refers to the amount added to the cost of a product to establish its selling price?
Markup
What kind of retailers often use a flexible markup policy?
Fashion retailers with a variety of products
Which journal in OTB helps in tracking orders and purchases?
On-order Purchase journal
What is the purpose of conveying the reasons for merchandise selection to sales associates?
To increase the probability of retail sales
How can cooperation between the buyer and visual merchandiser impact a business?
Generate sales and enhance image
What role does the buyer play in working with sales promotion staff?
Ensuring the product is presented attractively to target customers
Which pricing strategy involves setting a high initial price before gradually lowering it?
Price skimming
In visual merchandising, what is the purpose of highlighting items through interior displays, window displays, or signage?
To generate sales and enhance image
Which activity involves working on ensuring that the product is shown in an appealing way to the target customer?
Publicity
Study Notes
Factors in Resource Selection
- 6 factors considered in resource selection: minimum order requirements, distribution practices, exclusivity, manufacturer's promotional policies, off-price and closeout merchandise, and advertising allowances, including cooperative advertising and shipping practices.
The Role of the Buyer
- The role of the buyer involves merchandising, which includes finding the right merchandise for target customers, purchasing and pricing merchandise, assigning floor space, selecting items for visual presentation and promotion, and collaborating with other departments.
The Buying and Merchandise Process
- The buying and merchandise process involves both external and internal sources of information, including resident buying offices, fashion forecasters, trade publications, and reporting services, as well as past records, customer surveys, observations of shoppers, and competitors.
Market Week
- Market week is a traditional purchase period when buyers begin to make selections for the next season, reviewing new lines and key vendors.
Managing Fashion Merchandise
- A six-month plan or merchandise plan is used to manage fashion merchandise.
Sales Forecasting
- Sales forecasting is based on a four-five-four calendar, which balances the days in the months and compares days of the week with the same ones.
Planning the Merchandise Assortment
- Merchandise assortments are composed of merchandise classifications or categories, such as dresses, skirts, jeans, or jackets, with subclassifications indicating styles within a classification.
Preparing the Open-to-Buy
- Open-to-buy (OTB) is the buyer's budget, based on the six-month plan, and includes on-order purchase journal, on-hand stock, liquid open-to-buy, and formula for open-to-buy.
Markdowns
- Markdowns are the amount deducted from the cost of the product to determine the sale price, and can be due to out-of-season, buyer error, external factors, fit or quality, customer disinterest, price, or oversaturation.
A Buyer's Timing Calendar
- A buyer's timing calendar is essential in managing fashion merchandise.
Markup
- Markup is the amount added to the cost of the product to establish the selling price, and includes operating costs, incidental costs, initial markup, and maintained markup.
Pricing Strategies
- Pricing strategies for fashion merchandise include introductory pricing, price skimming, price lining or all-in-one pricing, loss leader, and other strategies.
The Sales Team and the Buyer
- The buyer works with the sales team to increase the probability of retail sales by conveying the reasons for merchandise selection.
Visual Merchandising and the Buyer
- The buyer and visual merchandiser can work together to generate sales, enhance image, and encourage repeat business.
Sales Promotion and the Buyer
- The buyer works with sales promotion staff to show the product in its best light and make it desirable to the target customer through advertising, sales promotions, publicity, special events, and fashion or trunk shows.
Test your knowledge on the role of buyers in retail stores, including selecting merchandise, pricing, and collaborating with other departments. Learn about the key responsibilities involved in merchandising for target customers.
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