VSBM Merchandising Management Quiz

Illegal practice in which a retailer lures a customer by advertising goods and services at exceptionally low prices, and then tries to convince the person to buy a better, more expensive substitute that is available. The retailer has no intention of selling the advertised item.

Occurs when stores in a planned shopping center complement each other as to the quality and variety of their product offerings.

The competition between manufacturers and retailers for shelf space and profits, whereby manufacturer, private, and generic brands fight each other for more space and control.

Occurs when the retailer sets its own standards and measures performance based on the achievements in its sector, specific competitors, high performance firms, and/or its own prior actions.

Increase in a retail price above the original markup when demand is unexpectedly high or costs are rising.

Paid, no personal communication transmitted through out-of-store mass media by an identified sponsor.

Exists when the stores at a given location complement, blend, and cooperate with one another, and each benefits from the others' presence.

Promotional budgeting procedure in which a retailer first allots funds for each element of the strategy mix except promotion. The funds that are left go to the promotional budget.

Computerized site selection tool in which potential sales for a new store are estimated based on sales of similar stores in existing areas, competition at a prospective location, the new store's expected market share at that location, and the size and density of a location's primary trading area.

Performance measure based on a retailer's net sales and total assets. It is equal to net sales divided by total assets.

Selection of merchandise carried by a retailer. It includes both the breadth of product categories and the variety within each category.

An open or closed display in which a retailer exhibits a wide range of merchandise.

Apparel, furniture, autos, and other products for which the retailer must carry a variety of products in order to give customers a proper selection.

Store's physical characteristics that are used to develop an image and draw customers. It is also known as atmospherics.

Positive, neutral, or negative feelings a person has about the economy, politics, goods, services, institutions, and so on.

Encompasses the actions that enhance the shopping experience and give retailers a competitive advantage.

Controls the amount and timing of markdowns on the basis of the length of time merchandise remains in stock.

Computerized approach that combines a perpetual inventory and reorder point calculations.

Outlines a retailer's planned expenditures for a given time based on expected performance.

Involves a retailer combining several elements in one basic price.