Merchandise Management Chapter 9
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Questions and Answers

How quickly did Zara manage to sell out of the pink scarves?

  • 1 day
  • 7 days
  • 10 days
  • 3 days (correct)

    • What technology does Zara utilize to track the location of garments in its stores?

  • Wi-Fi positioning
  • GPS tracking
  • Radio Frequency Identification Technology (RFID) (correct)
  • Barcode scanning

    • What is the typical time frame for new products to reach Zara stores after being designed?

  • 10 to 15 days (correct)
  • 5 to 7 days
  • 30 days
  • 20 to 25 days

    • How often does Zara dispatch new products to its stores?

    <p>Twice a week</p> Signup and view all the answers

    What allows Zara to eliminate the need for warehouses?

    <p>Highly responsive supply chain</p> Signup and view all the answers

    What percentage of customer insights is collected daily to inform Zara's design process?

    <p>Daily trend information flows into the database</p> Signup and view all the answers

    How many new designs does Zara launch annually?

    <p>12,000 designs</p> Signup and view all the answers

    What role does standardization of product information play in Zara's operations?

    <p>Allows for quick preparation of designs with clear instructions</p> Signup and view all the answers

    What is essential for effective product information and inventory management at Zara?

    <p>Managing thousands of fabric, trim, and design specifications</p> Signup and view all the answers

    How does Zara's distribution facility operate?

    <p>Using optical reading devices with minimal human intervention</p> Signup and view all the answers

    Which statement best defines the right product in merchandising according to the provided content?

    <p>A combination of aesthetic and functional features influencing customer appeal</p> Signup and view all the answers

    What does 'the right place' refer to in merchandising?

    <p>Product placement in-store and online</p> Signup and view all the answers

    What is one benefit of Zara's shorter lead times in fashion production?

    <p>It enables Zara to match current trends and customer desires.</p> Signup and view all the answers

    Why is it important for products to be available at the right time?

    <p>To ensure customer needs are met when they arise</p> Signup and view all the answers

    What does balancing inventory and sales volumes help avoid?

    <p>Overstocking that results in excess inventory</p> Signup and view all the answers

    How does Zara create artificial scarcity for its products?

    <p>By reducing the quantity of manufactured items for each style.</p> Signup and view all the answers

    What strategy does Zara employ regarding the variety of styles it offers each year?

    <p>It produces roughly 12,000 different styles annually.</p> Signup and view all the answers

    What is indicated by 'the right price' in merchandising?

    <p>Prices reflecting competitive market value while ensuring customer satisfaction</p> Signup and view all the answers

    How long does Zara allow its designs to remain on the shop floor?

    <p>Three to four weeks.</p> Signup and view all the answers

    What role does visual merchandising play in retailing?

    <p>It significantly influences the overall customer experience</p> Signup and view all the answers

    What happened when several customers requested pink scarves in different Zara stores?

    <p>It indicated a need for trend adaptation in designs.</p> Signup and view all the answers

    What effect does Zara's frequent turnover of clothing styles have on consumer behavior?

    <p>It pushes consumers to visit the stores more often to find new trends.</p> Signup and view all the answers

    How do lower quantities impact Zara's exposure to individual products?

    <p>It increases risk associated with unsold stock.</p> Signup and view all the answers

    Which of the following best represents Zara's approach to fashion design?

    <p>The principal designer is considered to be the customer.</p> Signup and view all the answers

    What is the primary focus of analysis in merchandise management?

    <p>Understanding the target market</p> Signup and view all the answers

    Why is planning an essential step in merchandise management?

    <p>It allows for purchasing merchandise ahead of the season</p> Signup and view all the answers

    What is involved in the acquisition phase of merchandise management?

    <p>Researching and negotiating with potential vendors</p> Signup and view all the answers

    Which role is primarily responsible for overseeing profitability in the merchandise team?

    <p>Merchandise Manager</p> Signup and view all the answers

    How does the merchandise philosophy guide the merchandise team?

    <p>By defining the target market and their needs</p> Signup and view all the answers

    What is a critical factor in the handling component of merchandise management?

    <p>Ensuring proper logistics for delivering merchandise</p> Signup and view all the answers

    What responsibility does the planner in the merchandise team have?

    <p>Generating reports on inventory levels</p> Signup and view all the answers

    Which responsibility is NOT typically assigned to buyers in the merchandise management process?

    <p>Developing marketing strategies</p> Signup and view all the answers

    What does Woolworths emphasize in their merchandise philosophy?

    <p>Consistent superior quality and innovation at great value</p> Signup and view all the answers

    How is 'variety' defined in a retail context?

    <p>The breadth of different product lines offered</p> Signup and view all the answers

    What is a deep assortment characterized by?

    <p>A large number of items within a specific product type</p> Signup and view all the answers

    What does the term 'stock keeping unit' (SKU) refer to?

    <p>A single item described in detail to differentiate it from others</p> Signup and view all the answers

    What is the primary focus of Shoprite's merchandise philosophy?

    <p>Providing affordable and accessible goods for middle-income markets</p> Signup and view all the answers

    Which of the following best describes a product line?

    <p>A group of products with complementary functions</p> Signup and view all the answers

    Why is it considered expensive to offer both wide variety and deep assortment?

    <p>It increases operational complexity and inventory costs</p> Signup and view all the answers

    Which of the following is NOT a factor used to describe a SKU?

    <p>Popularity</p> Signup and view all the answers

    What term describes a group of merchandise items that substitute or complement each other?

    <p>Category</p> Signup and view all the answers

    Which of the following is an example of a convenience good?

    <p>Everyday grocery items</p> Signup and view all the answers

    What is the primary characteristic of shopping products?

    <p>Customers typically compare multiple brands before making a decision.</p> Signup and view all the answers

    What is a potential disadvantage of national brands for retailers?

    <p>Competition among retailers can be intense.</p> Signup and view all the answers

    Which brand type is also known as a store or house brand?

    <p>Private label brand</p> Signup and view all the answers

    How does a well-known national brand typically contribute to a retailer's business?

    <p>It enhances good store image.</p> Signup and view all the answers

    What is a characteristic of generic brands?

    <p>They carry no brand identity.</p> Signup and view all the answers

    What is a primary advantage of private label brands?

    <p>Increased store loyalty.</p> Signup and view all the answers

    Study Notes

    Chapter 9: Merchandise Management

    • This chapter focuses on merchandise management, including components, retailer philosophies, merchandise strategy planning, merchandise types, and brand comparisons.

    Learning Objectives

    • Describe merchandise management components.
    • Identify retailer merchandise philosophies.
    • Discuss merchandise strategy planning for retail stores.
    • Identify and explain different merchandise types.
    • Compare and critique major retailer brand choices.

    Case Study: Zara - Affordable Fast Fashion

    • Zara is a highly successful global fashion retailer known for its "fast fashion" approach.
    • Zara rapidly adapts to changing trends, offering new designs within weeks.
    • Key to Zara's success is its focus on customer desires.
    • Zara creates a gap in the market by offering high-quality yet affordable clothing.
    • Zara prioritizes shorter lead times for merchandise creation and delivery to stores to match current trends.
    • The brand limits production quantities of each item, generating an impression of scarcity and desirability.
    • Zara's supply chain is highly efficient, enabling quick delivery of products to stores around the world.
    • Zara utilizes RFID technology for efficient location tracking and distribution management of merchandise.

    Merchandise Management

    • Analysis: Understanding target market needs and preferences is crucial for effective merchandise strategies.
    • Planning: Merchandise buyers plan well ahead of seasons. Relevant factors are trends and target market preferences.
    • Acquisition: Purchasing the desired merchandise requires thorough research and negotiation with suppliers.
    • Handling: Efficient logistics ensure merchandise reaches stores in perfect condition.
    • Control: Effectively managing a substantial budget requires careful monitoring and profitability considerations.

    Merchandise Team Roles

    • Merchandise Manager: Responsible for merchandise choices, oversees strategy, and ensures financial objectives are met.
    • Buyer: Ensures stores meet sales goals through purchasing merchandise.
    • Planner: Plans and controls the product range.
    • Assistant Buyer: Supports buyers, providing operational support, generating reports, and restocking merchandise.

    Merchandise Philosophy

    • Retailers are guided by their merchandise philosophy when stocking products.
    • The philosophy defines the target market, their desires, and how the retailer aims to satisfy those needs, considering positioning, image, and pricing.
    • Specific examples include Woolworths' focus on quality and sustainability and Shoprite's affordability focus.

    Merchandise Planning

    • Range: A product range consists of various products with depth and width.
      • Variety: Number of different types of product lines.
      • Assortment: Number of choices within a specific product type.
      • Stock-keeping unit (SKU): A single item with specific details (e.g., size, color, brand).
      • Category: A group of merchandise items that are substitutes or complements.

    Different Merchandise Types

    • Convenience goods: Items routinely purchased with minimal effort (e.g., groceries).
    • Impulse goods: Items bought on a sudden urge (e.g., candy).
    • Shopping products: Items compared across different brands before purchase (e.g., furniture).

    Brands and Branding

    • National brands: Manufacturer-branded goods.
      • Advantages: Good stores, low promotional costs, easier returns.
      • Disadvantages: Intense competition, potential lack of control.
    • Private label brands: Retailer-branded goods.
      • Advantages: Less promotion, potential high profitability, more control.
      • Disadvantages: Less consumer recognition, risk of poor-quality products.

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    Retail Management - CHAPTER 9 PDF

    Description

    This quiz covers Chapter 9 of Merchandise Management, focusing on its key components, retailer philosophies, and strategy planning. It also includes a case study on Zara, examining its fast fashion approach and comparison of retailer brand choices. Enhance your understanding of effective merchandise management in retail.

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