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2008 DECA Ontario Provincials AAMTest 945 APPAREL AND ACCESSORIES MARKETING 1

1. In order to protect shoes from damage during shipping, producers should use properA. packaging. B. labeling. C. routing. D. tagging.

2. Which of the following examples demonstrates the use of satellite tracking within a distribution channel:A. A technological system creates an efficient routing plan for transportation companies.B. A computer system performs warehouse functions that are usually executed by humans.C. A dispatcher has current knowledge of a delivery truck's location and destination.D. An inventory specialist enters product status information into a handheld electronic device.

3. It is illegal for an apparel manufacturer to operate company-owned outlets to sell its products when it uses the outlets to

A. expand its product line into a new area. C. drive independent retailers or distributors out of business.B. increase its target market. D. keep prices competitive.

4. Packaging jewelry in a biodegradable or recyclable container is one way a channel member can participate in the ethical concept of

A. social awareness. C. green marketing. B. consumer protection. D. international marketing.

5. As a result of effectively coordinating distribution with other marketing activities, an apparel retailer is often able to provide

A. good customer service. C. free delivery. B. low-cost custom goods. D. flexible credit terms.

6. What does a group's leader do?A. Takes the meeting minutes C. Makes sure the group members agree B. Puts the group on a certain course D. Follows up with everyone

7. Which of the following statements about effective listening is true:A. Good listeners do not need to take notes. C. People can improve their listening skills.B. To be a good listener, just pay attention. D. Most jobs do not require listening skills.

8. Which of the following is a guideline for apparel-store employees to use in communicating with coworkers:A. Use a direct approach in speaking to an angry coworkerB. Feel free to express their complaints about their jobsC. Be sure to share rumors and gossip with their coworkersD. Think about what they want to say before they say it

9. Clothing-store employees usually are able to provide good customer service by considering the customers'A. appearance. B. habits. C. wages. D. needs.

10. When customers complain, what is the general rule that department-store personnel follow in order to assure that customers receive fair and consistent treatment?

A. Store policy B. Store procedure C. Customer service plan D. Customer complaint plan

11. Before placing new items on the sales floor for customers to purchase, an apparel retailer usuallyA. moves older merchandise to sale racks to make room for the newer merchandise.B. holds older merchandise in the store's warehouse until the next selling season.C. places new merchandise in less visible parts of the store until the older items are sold.D. transfers the new items to a central warehouse until the inventory count on old items is complete.

12. What is an advantage to an apparel business of the perpetual inventory control system?A. Its costs are low for the initial installation. B. It gives continuous feedback on the amount and value of the inventory.C. It provides accurate, up-to-the-minute data.D. It provides figures to check the accuracy of the periodic inventory count.

Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio


13. Which of the following would be included in inventory shrinkage:A. Office space C. Raw materialsB. Human resources D. Buildings

14. Which of the following should apparel stores do in order to maintain a unit inventory control system:A. Prepare purchase orders C. Copy receiving forms B. Keep accurate records D. Organize dated invoices

15. In the apparel industry, strategic management is demonstrated in which of the following phrases:A. Planning and organizing for the future C. Obtaining funds for business projects B. Recruiting appropriate employees D. Regularly updating business processes

16. "I'm tired of the government's telling me what to do. They made me become a teacher, they determine my salary, and they even control where I can live," the worker complained. What type of economic system is this person complaining about?

A. Free enterprise C. TraditionalB. Market D. Communist command

17. Which of the following is considered the primary incentive for starting a dress boutique:A. Competition C. Profit motive B. Supply and demand D. Private property

18. In which of the following situations would consumers' purchasing power decrease:A. Interest rates decrease from 8% to 7%. C. Take-home pay remains at a constant level.B. Federal income-tax rates decrease by 1/2%. D. Pay raise is 5% and inflation rate is 6%.

19. Which of the following is an internal factor that has an effect on business cycles:A. Political changes C. New discoveries B. Inventory levels D. Foreign conflicts

20. Which of the following is not a benefit of international trade:A. Availability of scarce resources C. Improved standard of livingB. Exchange of technology D. Higher prices for goods

21. Which of the following is one of the positive effects that an increase in international trade is having on fashion retailers:A. Reducing speculative risks C. Opening up new marketsB. Expanding distribution systems D. Lowering supply levels

22. A positive self-concept is often accompanied byA. achievement. C. conceit.B. insecurity. D. failure.

23. A positive attitude toward coworkers is most likely to result in __________ behavior.A. cooperative C. destructiveB. conscientious D. unproductive

24. Which of the following is not a characteristic of integrity:A. Paying your debts promptly C. Making sure you earn your payB. Telling the truth at all times D. Blaming others for your mistakes

25. When an apparel-store employee reacts defensively to criticism, the result is likely to beA. negative. C. pleasant. B. sympathetic. D. cooperative.


26. A department-store employee's ability to empathize with someone else is limited by the number/nature of his/her experiences and by his/her

A. self-understanding. C. physical traits.B. job training. D. job skills.

27. Which of the following is a major block to effective communication:A. Empathy C. PrejudiceB. Interaction D. Nonverbal cues

28. You can improve your relationships with others if youA. get to know them. C. focus on your differences. B. socialize with them often. D. ask them a lot of questions.

29. One of the direct benefits to apparel-industry employees of being part of a team is that it can improveA. product quality. C. expense control.B. overall productivity. D. job satisfaction.

30. A person with vision for the future wants toA. make important decisions. C. create positive change. B. avoid making mistakes. D. set specific goals.

31. A bank denies a shoe-store owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?

A. Operating budget C. Income statementB. Budget D. Balance sheet

32. Which of the following is an example of a situation in which an apparel retailer might decide that it needed to decrease expenses after comparing the categories in its profit-and-loss statement:

A. Revenues are rising. C. Cash flow is steady.B. Salaries are lower. D. Sales are the same.

33. You are a marketing-research specialist for an apparel manufacturer and have been asked to develop ideas for a new clothing item that the company might produce. In order to compile age, income, and geographic information on possible customers, you should obtain

A. secondary data from company sales records.B. primary data from industry organizations.C. secondary data from government agencies.D. primary data from marketing-research companies.

34. Which of the following is a characteristic of the data collection step in marketing research:A. The least tedious step in marketing researchB. The step in which the most mistakes are madeC. The least expensive step in marketing researchD. The step that is most interesting to researchers

35. Median is the measurement of central tendency that indicates theA. exact middle. C. average. B. most common response. D. distance between high and low.

36. Successful clothing-store chains know that their main responsibility is to marketA. the lowest priced items. C. what consumers want. B. what is easiest for them to make. D. all the items they can produce.

37. Which of the following is one of the main reasons why apparel retailers have been forced to pay more attention to the needs of specific consumers:

A. Fewer differences among consumers C. Less knowledgeable consumersB. Increased costs of mass production D. Increased amount of competition


38. One of the first steps in the marketing planning process involves developing the __________ of the business.A. promotional methods C. basic objectives B. pricing strategy D. distribution systems

39. A marketing plan is an important part of the overall __________ plan.A. promotional C. salesB. business D. management

40. What type of sales forecasting method is based on the results of gathering and analyzing all kinds of numerical market data?

A. Qualitative C. Long-term forecastingB. Quantitative D. Intermediate forecasting

41. What software program would a local clothing-store owner use to organize and sort customer information in order to mail postcards to customers about a sale?

A. Database C. SpreadsheetB. Word processing D. Desktop publishing

42. Which of the following demonstrates a typical reason for a handbag manufacturer to keep records relating to payroll deductions:

A. Because companies need to document wages paid B. Because some employees leave their jobs C. Because a governing agency will review the records D. Because employees want to know the amounts

43. Department-store retailers must keep up to date about the latest styles in order to plan their merchandiseA. assortments. B. assignments. C. estimates. D. trends.

44. A dress-boutique owner who stops a suspected shoplifter should immediatelyA. search the suspect. C. call the police. B. ask for identification. D. accuse the individual.

45. The aisles of a department store should be kept free of clutter in order to preventA. spontaneous combustion. C. carpet wear.B. customers from falling. D. shoplifting.

46. What is one of the first procedures to follow if department-store employees detect a fire in the facility?A. Contact corporate headquarters. C. Evacuate the premises. B. Locate fire extinguishers. D. Hide the valuables.

47. Which of the following activities consumes most of an apparel buyer's time:A. Merchandise pricing C. Promotion B. Merchandise selection D. Sales force management

48. In which of the following situations might a project planner estimate that it will take three 40-hour weeks to complete a task that can be performed in 50 hours:

A. The business plans to observe a one-day national holiday.B. Management organizes a two-day weekend meeting.C. Many employees work flexible 40-hour schedules.D. The assigned employee schedules a one-week vacation.

49. Which of the following is a reason why garment manufacturers try to control expenses in order to purchase the most modern equipment:

A. To satisfy suppliers C. To remain competitive B. To spend excess cash D. To offer good benefits


50. Which of the following is not a reason that shoe-store employees should perform housekeeping duties:A. To give the store a well-organized appearance B. To attract customers C. To support sales D. To keep employees occupied

51. Why is it important for a clothing-store cashier to verify the change fund?A. To make buying change unnecessaryB. To make sure the coins equal the currency C. To make sure the total is correct D. To make proving cash an easier job

52. Which of the following is one way that department-store chains expect their employees to show loyalty to the business:A. Socializing with coworkers C. Ignoring safety hazardsB. Working overtime without pay D. Coming to work on time

53. What department of a large apparel-store chain should a job seeker contact to find out whether the company has job openings?

A. Training and development C. Credit B. Payroll D. Human resources

54. What should apparel-industry employees in today's changing world do to prevent their skills from becoming obsolete?A. Change jobs frequently C. Delegate responsibility B. Modify personal behavior D. Continue their education

55. In the apparel industry's channel of distribution, which activity provides goods or services to the final consumer?A. Retailing B. Merchandising C. Wholesaling D. Marketing

56. The marketing factor of place affects the price factor because of the costs involved in A. opening a business. C. distributing products. B. leasing retail space. D. preparing displays.

57. When an apparel business develops a complex pricing structure that makes it hard for the buyer to understand, the apparel business may be acting in a(n) __________ manner.

A. empathetic B. responsible C. unethical D. moral

58. Which of the following is a pricing law that is designed to help customers compare prices among similar clothing and accessory items:

A. Collusion B. Unit C. Utility D. Value

59. Government regulation is a factor that affects a jewelry store's pricing because pricing regulations prohibitA. minimum prices. C. unit pricing. B. price advertising. D. price fixing.

60. A promise made in a specific statement concerning the quality of a product is called a(n) __________ warranty.A. full B. implied C. express D. limited

61. A new fashion simultaneously appears in high-priced boutiques, moderately priced department stores, and discounters. This is an example of the __________ theory of fashion origin.

A. trickle across B. trickle down C. trickle up D. cycles across

62. Which of the following is an advantage to apparel businesses that use computer databases to manage their inventory:A. Increases efficiency C. Increases demand B. Decreases product usage D. Decreases order accuracy


63. When the XYZ Company compares its apparel items with the QRS Corporation's line of apparel goods, it is generating product ideas by analyzing its

A. direct competition. C. research policies. B. customers' needs. D. target market.

64. "Your money back if not satisfied" is an example of aA. recourse. B. warranty. C. guarantee. D. strategy.

65. Two major cities that influence trends and fashion in the apparel and accessory industry areA. Belfast, Ireland and Paris, France.B. Tokyo, Japan and London, England.C. Milan, Italy and Liverpool, England. D. New York City, U.S.A. and Frankfort, Germany.

66. When marketers refer to an apparel product's position, they mean itsA. importance to competitors. C. image in the eyes of consumers.B. physical characteristics. D. location in the business.

67. The sportswear buyer has planned purchases of $13,300 for July. Current inventory is $10,800 and there is $1,600 worth of merchandise on order. What is the open-to-buy?

A. $900 B. $600 C. $1,600 D. $3,100

68. When positioning clothing items, an apparel company should consider the target market'sA. strategies. B. wants. C. policies. D. benefits.

69. Franklin Apparel has paid a fee to the producer of a new line of designer children's wear in order to sell the line. What brand strategy is involved in this situation?

A. Brand repositioning C. Brand positioningB. Brand extension D. Brand licensing

70. A line of spring dresses is not selling well in February and March. An advantage of making a price reduction on these dresses now rather than waiting for the storewide after-Easter sale is that

A. customers will wait to buy other merchandise, assuming that other goods will also be reduced.B. the dresses may catch on and sell well to last-minute shoppers just before Easter.C. sales staff will make an extra effort to sell dresses that have price reductions.D. money obtained from these early markdowns can be used to buy styles that may sell better.

71. Determine a clothing store's planned purchases for next month based on the following information: planned monthly sales of $23,675; planned reductions of $1,220; desired end-of-month stock of $42,725; and planned beginning-of-the-month stock of $42,225.

A. $21,545 B. $23,765 C. $25,395 D. $27,225

72. One of the most important factors that a handbag buyer considers when deciding on quantities to purchase isA. the sales and profit potential of the merchandise. B. the availability of discounts.C. advanced dating and vendors' guarantees.D. transportation charges.

73. The role that promotion plays in apparel and accessories marketing is toA. ensure that businesses offer appropriate products.B. determine what consumers want and need to buy.C. help businesses to keep their prices competitive.D. communicate the benefits of the products to buyers.


74. Which of the following is an example of an institutional promotion:A. A newspaper ad featuring the "special-of-the-week" B. A billboard featuring a clothing store's social concerns C. A radio spot featuring the comfort of a specific type of shoe D. A television ad featuring an end-of-season sale for swimsuits

75. When a manager of a large apparel manufacturer takes potential customers out for lavish dinners and buys them expensive gifts, it might appear as if the manager is engaging in the unethical practice of

A. slander. B. puffery. C. bribery. D. fraud.

76. An advantage in using technology such as television, radio, and the Internet is that a department store can promote its clothing items to many people

A. with minimal cost. C. without much effort. B. at the same time. D. under difficult circumstances.

77. Which of the following is an example of out-of-home media:A. An electrical sign located in a high-traffic areaB. An eye-appealing card placed in a mailbox C. A calendar imprinted with a company's nameD. A poster on the wall of a subway station

78. Your new advertising client is describing what s/he wants in a print ad. S/He keeps emphasizing that "a picture is worth a thousand words." Based on this statement, what element of the print ad should you focus on?

A. Copy B. Illustration C. Headline D. Identification

79. When a clothing designer decides to create an infomercial to advertise a new clothing line, it can maximize its customer response rate by requesting a call to action __________ the infomercial.

A. at the beginning of C. several times during B. at the end of D. in the middle of

80. Which of the following is a housekeeping duty needed for the regular upkeep of displays:A. Removing trash C. Replacing lights B. Sweeping aisles D. Vacuuming carpet

81. Point-of-purchase displays contribute to a clothing store's merchandising efforts becauseA. point-of-purchase displays are provided by suppliers.B. customers find these displays to be informative.C. customers can purchase directly from these displays.D. point-of-purchase displays protect goods from shoplifters.

82. In order for a clothing boutique to coordinate its displays and its advertisements, the clothing boutique should set up its displays of advertised goods

A. by the time the ad appears. C. when customers request the goods. B. after the ad has appeared. D. during the time the ad is appearing.

83. Which of the following is an example of an intangible product that a department store offers:A. Designer fragrance C. Flannel pajamas B. Cosmetic makeover D. Leather shoes

84. Which of the following is an example of a salesperson solving a problem to provide the type of service that helps to maintain good relationships with customers:

A. Shipping expensive substitutes C. Replacing defective products B. Offering additional discounts D. Making daily appointments


85. Why would a department-store sales associate promptly replace an item that a customer said was sold to him/her by mistake?

A. To reduce inventory C. To gain informationB. To promote goodwill D. To increase sales

86. Department store sales associates who are not able to explain their company's selling policies to customers mayA. avoid misunderstandings. C. increase business. B. create goodwill. D. lose sales.

87. A leather accessories salesperson who meets with a retail customer in person might bring a laptop computer to the meeting so s/he can place the customer's order and

A. write a sales proposal. C. analyze the bill of lading. B. send a promotional message. D. check stock availability.

88. I'll buy 3,000 green sweaters from you, if you buy the same amount of purple shirts from me. This is an example of an illegal sales activity called

A. exclusivity. B. discrimination. C. reciprocity. D. misrepresentation.

89. Descriptive terms on a jacket's label, such as water-repellent and wrinkle-resistant, refer to the jacket'sA. size. B. care. C. finish. D. safety.

90. Which of the following is a true statement concerning brassieres, or bras:A. There are many different bra styles available. C. Bras must fasten in the back.B. The right size bra will be a perfect fit. D. Bras must have straps.

91. A benefit that is important to most shoe customers and should be mentioned by the salesperson is theA. range of available sizes. C. producer's location.B. ease of maintenance. D. hand crafting.

92. Many fashion retailers have apparel and accessory items made that are sold under their own brands. These are examples of __________ brands.

A. designer B. manufacturer C. national D. private

93. Which of the following describes the step in the selling process called prescribing solutions to customer needs:A. Trying to develop customer interest in the product B. Analyzing customer reactions and commentsC. Creating a favorable impression of the businessD. Selecting items that should be appropriate

94. A woman with a heavy neck can make her neck look slimmer by wearing aA. large, round bead necklace. C. choker-style scarf. B. long necklace which hangs in a V shape. D. brooch worn high on the shoulder.

95. What style of skirt might a salesperson show a customer who wants a skirt that is cut straight and narrow?A. Tapered B. Kilt C. Dirndl D. Sheath

96. When a department-store sales associate is closing a sale, which of the following statements is true:A. It is hard to tell when customers are ready to buy.B. You can make a sale without using a sales close.C. There is no one right time to close the sale.D. The salesperson's self-confidence may delay a close.

97. Determining a customer's satisfaction with a good or service definesA. buying motives. B. probing. C. sales quotas. D. follow-up.


98. A customer's clothing purchases are $155.17. Determine the total amount you would charge the customer after adding 3.5% sales tax.

A. $160.60 B. $6.43 C. $155.17 D. $5.43

99. Clothing stores that use electronic cash registers usually are able to eliminate mostA. check-out clerks. C. charge accounts.B. arithmetic errors. D. printed receipts.

100. Hannah is a sales representative for an apparel catalog company. An important step in making sure that Hannah properly processes the telephone orders is to

A. write legibly and in ink. B. complete all information on the form. C. route orders to the credit department.D. confirm accuracy of information with the customer.


1. APackaging. Packaging protects the shoes during shipping and makes it easier to ship and to store. Packaging also provides the shoes with customer appeal. Labeling or tagging shoes is necessary for identification but does not protect them in shipping. Routing is the path the product takes during shipping.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

2. CA dispatcher has current knowledge of a delivery truck's location and destination. Satellite tracking is the use of satellites and technological systems that allow for the transmission of information between two parties. Satellite tracking would help a business locate a package while it is en route in order to provide an estimated arrival time to the package recipient. Computer systems that perform warehouse functions that are usually executed by humans are called artificial intelligence systems. A computer software program would be used to create routing plans for transportation companies, not a satellite tracking system. Satellites are not generally needed to enter information into an electronic device.SOURCE: CM:004SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics:

A supply chain perspective (7th ed.) [p. 465]. Mason, OH: South-Western.

3. CDrive independent retailers or distributors out of business. It is in violation of antitrust laws to utilize dual distribution if a company does so solely to drive out competitors. It is not illegal for an apparel manufacturer to operate its own outlet stores as long as it promotes competition. Other legal activities include expanding a product line and increasing the target market.SOURCE: CM:005SOURCE: Pride, W.M. & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)

(pp. 366-367). Boston: Houghton Mifflin.

4. CGreen marketing. Green marketing refers to the practice of pricing, promoting, and distributing products in such a way that they do not harm the natural environment. Many manufacturers, including jewelers, choose to participate in this practice because of their code of ethics. Consumer protection deals with safety features and product labeling standards that protect the consumer. Social awareness is a term used to describe the practice of enlightening the community of business actions to promote social welfare. International marketing refers to marketing goods and services in foreign countries.SOURCE: CM:006SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e) [pp. 86-87]. Boston:

Houghton Mifflin.

5. AGood customer service. Distribution is one of the marketing functions that must work with the other marketing activities to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and needs while achieving company goals. Apparel retailers cannot satisfy those needs and provide quality customer service unless all the marketing activities work together. For example, apparel retailers are only able to serve customers when they have the advertised items on hand and at the right price. Not all apparel retailers sell custom goods, provide free delivery, or offer flexible credit terms.SOURCE: CM:007SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 178]. Mason, OH:

Thomson/South-Western.

6. BPuts the group on a certain course. Though each person in the group has the ability to influence the others, there's usually a leader who puts the group on a certain course. The leader does not necessarily take the meeting minutes, nor does s/he have to follow up with everyone later. In addition, the group members do not have to agree, though they may.SOURCE: CO:053SOURCE: QS LAP 29—Put In Your Two Cents

Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio

Test 945 APPAREL AND ACCESSORIES MARKETING — KEY 11

7. CPeople can improve their listening skills. Listening is a skill that can be improved through motivation and practice. Listening is an important part of on-the-job communication. For example, employees receive instructions, use the telephone, help customers, and interact with each other. In addition to paying attention, good listeners understand, evaluate, and respond to what is being said. They take notes because they recognize that they cannot remember everything.SOURCE: CO:119SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 179-182).

New York: Glencoe/McGraw-Hill.

8. DThink about what they want to say before they say it. Apparel-store employees should be able to express themselves to their coworkers. However, they should always think about what they want to say before saying it so that they do not cause problems or misunderstandings. Legitimate complaints or problems about the job should be discussed with the supervisor, not coworkers. Rumors and gossip should not be passed on to coworkers as they may not be true and could cause harm. A nondirective approach is best in communicating with angry coworkers as it helps to defuse their anger.SOURCE: CO:014SOURCE: Leskiar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet

generation (10th ed.) [pp. 413-414]. Boston: McGraw-Hill/Irwin.

9. DNeeds. Needs are requirements of some sort—the things that people must have in order to lead full and happy lives. Clothing-store employees should provide service based on the customers' needs, not on what they think the customers need. Considering what customers need will help clothing-store employees to provide good service and satisfy those needs. Good service should be provided regardless of customers' wages, habits, or appearance.SOURCE: CR:004SOURCE: HR LAP 32—Customer-Service Mindset

10. AStore policy. When a department-store has policies for its employees to follow in handling complaints, the customers are more likely to receive the same treatment. Procedures are the step-by-step processes that personnel follow in performing specific tasks. Customer service plan and customer complaint plan are not terms that businesses commonly use.SOURCE: CR:010SOURCE: HR LAP 23—Handling Customer Complaints

11. AMoves older merchandise to sale racks to make room for the newer merchandise. Retailers have a limited amount of floor space to display and sell merchandise. Apparel retailers often consolidate and move older merchandise (e.g., swimsuits) to clearance racks to make room for the newer items. The newer items are more likely to be placed in highly visible parts of the store because these items have higher markups that produce higher profit margins for the retailer. Although it is possible for apparel retailers to hold some merchandise for sale in the next selling cycle, some items are very trendy or slow moving. These items would be costly to the retailer to warehouse. Retailers do not usually transfer new merchandise to a warehouse to conduct inventory counts on older merchandise.SOURCE: DS:015SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 433]. Woodland

Hills, CA: Glencoe/McGraw-Hill.

12. BIt gives continuous feedback on the amount and value of the inventory. This information will help maintain balanced and fresh stock. Perpetual inventory control is not as accurate as periodic inventory control because it does not count shrinkage. Periodic inventory control provides more accurate counts than perpetual inventory control. The initial cost for setting up a perpetual inventory control system is high because of the equipment and training expenses.SOURCE: DS:019SOURCE: DS LAP 2—Inventory Control Systems


13. CRaw materials. Inventory shrinkage is not confined to goods for resale. It includes shortages of raw materials, supplies, and equipment. Human resources, buildings, and office space are not tracked as aspects of a business's inventory.SOURCE: DS:026SOURCE: DS LAP 4—Inventory Shrinkage

14. BKeep accurate records. Keeping accurate records is an important function in order for apparel stores to maintain a unit inventory control system. The inventory system may be manual or computerized, but it is only as accurate as the information provided to it. Keeping accurate records and inputting that information correctly is necessary in order to maintain a unit inventory control system. Apparel stores do not maintain a unit inventory control system by preparing purchase orders, copying receiving forms, or organizing dated invoices.SOURCE: DS:091SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 442]. Woodland


15. APlanning and organizing for the future. Strategic management involves planning and organizing for the future. It does not involve obtaining funds. That is part of financial analysis. Recruiting appropriate employees is part of human resources management, and regularly updating business processes is part of operations management.SOURCE: EC:071SOURCE: EC LAP 19—Strictly Business (Business Activities)

16. DCommunist command. In a communist command economy, the government owns the means of production and distribution and controls many aspects of people's economic lives. In market, or free enterprise economies, people are free to make their own economic decisions. In a traditional economy, most economic activity is based on habit and tradition, or custom.SOURCE: EC:007SOURCE: EC LAP 17—Economic Systems

17. CProfit motive. The profit motive is the hope of making a profit that serves as an incentive for individuals to assume risks involved in investing in business. It is a goal toward which an individual or a business can work. Competition is the rivalry among two or more businesses to attract scarce customer dollars. Private property is anything of value that is owned by an individual or a business. Supply and demand work together to determine prices.SOURCE: EC:010SOURCE: EC LAP 2—Risk Rewarded

18. DPay raise is 5% and inflation rate is 6%. When the inflation rate is higher than the percent of raise that employees receive, the purchasing power of those employees decreases. This has a negative effect on the economy because the higher inflation rate means higher prices for goods and services. Although the employees received a raise, the raise was not equal to the rate of inflation so employees actually lost purchasing power. They have more money to spend, but the goods and services they want cost more than their pay increase. When interest rates decrease, consumers' purchasing power usually increases. Consumers' purchasing power does not change if their take-home pay remains at a constant level and all other variables remain the same. A decrease in federal income-tax rates usually increases consumers' purchasing power.SOURCE: EC:081SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 338-342).

Upper Saddle River, NJ: Prentice Hall.


19. BInventory levels. Some factors that affect business cycles are considered internal because they take place within the economic system itself. One internal factor is inventory levels because major changes in inventory levels can create changes in business cycles. When producers are optimistic about business activity, they increase their inventory levels in order to be prepared for the increase in demand. This action expands economic activities. However, if producers are concerned that consumers will not buy the goods in inventory, they cut back on production. This action causes the economy to contract. Political changes, new discoveries, and foreign conflicts are considered external factors because they take place outside the economic system.SOURCE: EC:018SOURCE: EC LAP 9—Business Cycles

20. DHigher prices for goods. A benefit of international trade is lower prices for goods because of competition and/or expansion of factories. An improved standard of living, exchange of technology among countries, and availability of scarce resources are all benefits of international trade.SOURCE: EC:016SOURCE: EC LAP 4—Beyond US (International Trade)

21. COpening up new markets. International trade is increasing, which is having a positive effect on retailers by opening up new markets. In many cases, the domestic market has reached capacity, and in order for retailers to grow, they need to find new markets. Foreign markets often provide that growth opportunity because their economies are improving, and their populations have more disposable income. Retailers that move into the international market often face more speculative risks because of differences in culture and the need to expand or develop new distribution systems. The increase in international trade usually does not lower supply levels.SOURCE: EC:094SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[pp. 83-86]. Upper Saddle River, NJ: Prentice Hall.

22. AAchievement. Self-concept is the way in which you see yourself. Developing a positive self-concept will normally help you to achieve your goals. It does not necessarily bring conceit or egotism. Poor self-concept usually leads to feelings of insecurity and failure.SOURCE: EI:016SOURCE: HR LAP 12—Self-Esteem

23. ACooperative. Having a positive attitude toward coworkers makes you more tolerant, cooperative, helpful, and considerate. This creates a pleasant work atmosphere in which coworkers support each other. Positive people are generally conscientious, but that does not cause their coworkers to be conscientious. Unproductive or destructive behavior would result from a negative attitude.SOURCE: EI:019SOURCE: EI LAP 3—Opt for Optimism

24. DBlaming others for your mistakes. Individuals with integrity live according to a code of ethics. They try to behave in an honest and fair manner under all circumstances. Blaming others for your mistakes is dishonest and not a characteristic of integrity. The other alternatives are characteristics of integrity.SOURCE: EI:022SOURCE: HR LAP 19—Honesty and Integrity

25. ANegative. A person who is defensive is easily angered or upset by criticism or suggestions perceived as criticism. His/Her defensive response is usually irritating to the person offering the criticism or suggestions, which may trigger an unsympathetic, unpleasant, or uncooperative reaction from the speaker.SOURCE: EI:003SOURCE: HR LAP 3—Handling Feedback


26. ASelf-understanding. A department-store employee must be able to comprehend her/his own thoughts, attitudes, and actions before s/he can identify similar qualities in others and empathize with them. The alternatives would not necessarily limit self-understanding or the perception of others.SOURCE: EI:030SOURCE: HR LAP 17—Empathy

27. CPrejudice. It is a strong, negative feeling seldom based on fact. Empathy is the ability to put yourself in another person's place. Interaction increases the probability that information is transmitted clearly. Eye contact, posture, and facial expressions are examples of nonverbal feedback which help the sender determine if a receiver is accepting or rejecting what is being communicated.SOURCE: EI:007SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [p. 50]. Cincinnati: South-

Western College.

28. AGet to know them. Getting to know other people helps you to understand them and to interact with them effectively. It is not appropriate to ask a lot of questions, but a few are acceptable. Socializing with them often does not ensure that you will improve your relationship. Focusing on your differences would damage the relationship.SOURCE: EI:037SOURCE: EI LAP 5—Can You Relate?

29. DJob satisfaction. An employee that knows s/he is making a contribution to the apparel business by being part of a team can improve his/her self-confidence and job satisfaction. It can also improve her/his decision-making and problem-solving skills. Teams often improve overall productivity, expense control, and product quality; however, these are benefits to the apparel business rather than to the employee.SOURCE: EI:045SOURCE: HR LAP 26—Teamwork

30. CCreate positive change. Vision is the future you desire to create and involves making positive changes to make it happen, which requires determination and hard work. A person who has a vision for the future does not avoid making mistakes and does not start out by setting specific goals. Visionary people often make important decisions, but this is not the reason why they want to make positive changes for themselves and for others.SOURCE: EI:063SOURCE: QS LAP 11—Picture This!

31. DBalance sheet. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. This includes the liabilities, or debts, that the business owes. The bank found that the shoe-store owner's current liabilities were too high to be extended. Budgets show estimated income and expenses but not what is currently owed. Income statements would include the income and expenses for a specific period of time but would not include outstanding debts.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

32. DSales are the same. Apparel retailers compare the categories in their profit-and-loss statements in order to make decisions about spending. By analyzing the profit-and-loss statement, an apparel retailer can find out if sales are keeping up with expenses or if it is spending more in order to make the same amount of money. If an apparel retailer finds that its sales are the same and have not increased over a period of time, the apparel retailer might decide to decrease expenses in order to increase profit. Most apparel retailers try to maintain a steady cash flow, which is the movement of funds into and out of the business. If revenues are rising and salaries are lower, an apparel retailer probably would not need to decrease expenses.SOURCE: FI:094SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)


33. CSecondary data from government agencies. Secondary data are information that have been collected for purposes other than the project at hand. Government agencies are a good source of secondary data because they compile extensive information on the general public, including median age and income statistics in geographic areas throughout the country. Company sales records would not contain age, income, and geographic information on customers. Information from marketing-research companies and industry organizations is considered to be secondary data rather than primary data.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

34. BThe step in which the most mistakes are made. The reason that the most mistakes are made in this step is that data collection can be a tedious chore. When researchers become bored, they may record data inaccurately. It is also the most expensive and least interesting step.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

35. AExact middle. The median is the middle value. That means that the number above the median is the same as the number below the median. For example, if 60 people respond to a questionnaire and 20 answer "A," 20 answer "B," and 20 answer "C," the median is "B" because there is an equal number higher and lower. The mode is the response most often given to a question. The mean is the arithmetic average of all the responses in a sample. Range is the distance between high and low.SOURCE: IM:191SOURCE: Hair, J. F., Jr., Bush, R. P., & Ortinau, D. J. (2000). Marketing research: A practical approach for the new

millennium (pp. 525-527). Boston: Irwin/McGraw-Hill.

36. CWhat consumers want. Clothing-store chains have found that it is just plain good business to base their decision making on customer needs and wants. They have learned that it is much better to determine what the customer wants and offer that item, than to develop or manufacture an item and then try to sell it. It is better for clothing-store chains to find out what the consumer is willing to buy instead of trying to market what is easiest to obtain. Successful clothing-store chains know that the quantity of items they can provide is greater than consumer demand. It is not always effective to market the lowest priced items.SOURCE: MK:001SOURCE: BA LAP 11—Have It Your Way!

37. DIncreased amount of competition. Increased competition among apparel retailers is one of the reasons mass marketing is on the decline, and target marketing is increasing. Competition has forced apparel retailers to pay more attention to the specific needs and wants of consumers who are more knowledgeable and diverse than ever before. Mass production costs less than other types of production.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met?

38. CBasic objectives. Objectives are the goals a business wants to achieve. Before a business can proceed with the marketing planning process, it must first develop its basic objectives such as to increase profits by a certain percent or increase market share by a certain amount. The most effective objectives clearly state what the business hopes to accomplish and within what time period. For example, an effective objective is to increase sales this year by 10% over last year. That is a clear goal to try to achieve. Once the objectives have been developed, businesses continue with the marketing planning process to design and implement strategies to achieve the goals. Elements of a marketing strategy might include pricing methods, promotional methods, and distribution systems.SOURCE: MP:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 41-42].

Mason, OH: Thomson/South-Western.


39. BBusiness. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. The marketing plan is one part of the overall business plan that identifies the nature of the company, how it will operate, and what its goals and objectives are. The purpose of the marketing plan is to identify how the business will achieve its goals. The promotional plan is part of the marketing plan and is the framework for the business's promotional activities. A marketing plan is not part of the management plan or the sales plan.SOURCE: MP:007SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 632-633]. Mason, OH: South-Western.

40. BQuantitative. Quantitative forecasting methods compile statistical data. These data can be internal and external information that is obtained from a variety of sources. When qualitative forecasting methods are used, a business prepares its sales forecasts by asking knowledgeable people to state their opinions or predictions about sales. Intermediate and long-term forecasts are sales forecasting time frames that exceed one year.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts

41. ADatabase. Database software allows companies to collect, store, and organize customer information. This information can be used to maintain, analyze, and combine customer information and to send postcards to specific customers. Word-processing, spreadsheet, and desktop publishing software do not perform the functions required by the local clothing-store owner.SOURCE: NF:009SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 162-164]. Woodland Hills, CA: Glencoe/McGraw-Hill.

42. ABecause companies need to document wages paid. Businesses (e.g., handbag manufacturers) typically keep records relating to payroll deductions so they can document what they've paid their employees—including wages earned and deductions made. Businesses do not keep payroll records because employees might quit, a governing agency might ask to see them, or employees might ask questions about the deductions made. They keep them for documentation purposes, and if the records happen to be useful in other situations, that's an added benefit.SOURCE: NF:001SOURCE: NF LAP 1—Record It (Business Records)

43. AAssortments. The merchandise assortment includes all the varieties (models, styles, colors, etc.) of the products that the department store carries. Most department-store retailers must order not only the latest styles in clothing but also cosmetics, jewelry, and other accessories that will complement the new styles. Merchandise planning cannot be estimated but must be done accurately. Trends occur in the fashion industry and are not planned by retailers. Assigning merchandise to the appropriate departments is done according to such factors as size, age group, or merchandise category after the styles have been selected.SOURCE: NF:063SOURCE: IM LAP 1—Fashion Trends

44. CCall the police. Shoplifting is a form of theft that is punishable under the law. Dress-boutique owners dealing with suspected shoplifters should immediately call the police who are the only ones who have the legal authority to deal with the suspected shoplifter. Dress-boutique owners may harm their case against shoplifters if they do more than detain the suspect and call the police. Dress-boutique owners should not ask the suspect for identification or accuse the individual of theft.SOURCE: OP:122SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management: Teacher's manual

(2nd ed.) [pp. 378-379]. New York: Glencoe/McGraw-Hill.


45. BCustomers from falling. Cluttered aisles are a safety hazard for both customers and employees. Employees should try to prevent falls by maintaining a clean work area. Spontaneous combustion is a fire that starts under such circumstances as when oily, dirty rags are left in a pile. Not all aisles have carpet. Keeping the aisles free of clutter will not prevent shoplifting.SOURCE: OP:007SOURCE: RM LAP 2—Following Safety Precautions

46. CEvacuate the premises. A fire is an example of an emergency situation that department-store employees should be prepared to handle. One of the first procedures to follow if a fire is detected in the facility is to evacuate the premises to protect the safety of customers as well as employees. Getting everyone out of the building is extremely important. Employees should know where the fire extinguishers are located and be able to use them if appropriate. However, they should first evacuate the premises before the fire gets out of control. After everyone is safely outside, it would be appropriate to contact corporate headquarters. Department-store employees would not hide the valuables under dangerous circumstances.SOURCE: OP:010SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program:

Year one (pp. 95, 338). Lansing, MI: Author.

47. BMerchandise selection. Selection of merchandise includes identifying merchandise with the greatest potential for resale, deciding what items to buy, calculating the appropriate quantities, choosing vendors, and determining when to buy. Managing the sales force, pricing goods, and planning promotions may also be part of the apparel buyer's responsibility, but selecting merchandise is the buyer's primary task.SOURCE: OP:015SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 314-315]. Mason, OH: South-Western.

48. DThe assigned employee schedules a one-week vacation. Project planners need to consider many variables when estimating the actual length of time it will take to complete certain tasks. If the employee assigned to perform the task will be unavailable because of a scheduled vacation, the project planner should allot additional time. In this situation, the task can be completed in 50 hours; but the assigned employee who works a 40-hour week will be on vacation for one week. Therefore, the employee will be able to work on the task for one 40-hour week, be away for one week, and work on the project for 10 hours the third week for a total of 50 hours. Observing a one-day national holiday will reduce the amount of available time by eight hours which would still provide 72 hours in two weeks to perform the task. Flexible 40-hour schedules total 80 hours in two weeks. A two-day weekend meeting will not take away time from the regular 40-hour week.SOURCE: OP:001SOURCE: Launi, J. (1999, May). Creating a project plan. Software development magazine. Retrieved October 10,

2007, from http://www.sdmagazine.com/documents/s=758/sdm9905d/9905d.htm?temp=16yLT5r1B6

49. CTo remain competitive. In order for workers to produce at their maximum level of productivity and remain competitive with other garment manufacturers, they must have the supplies and equipment necessary to do their jobs. In many cases, this means the garment manufacturer must keep up with advances in technology and replace old equipment with new. Garment manufacturers often need to provide their employees with the most modern equipment in order to remain competitive and continue earning a profit. Garment manufacturers do not purchase the most modern equipment in order to spend excess cash, satisfy suppliers, or offer good benefits.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control


50. DTo keep employees occupied. Finding chores in order to keep shoe-store employees busy is not a valid reason for assigning housekeeping responsibilities. Customers are attracted to well-organized, clean shoe stores. Housekeeping duties, therefore, help to support sales.SOURCE: OP:032SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


51. CTo make sure the total is correct. The clothing-store cashier is responsible for the change fund and should make sure it contains the amount of money that it should contain. This amount is determined by the needs of the clothing store, and it may vary from time to time. For example, a clothing store having a sale would expect more customers than usual, which would require more change. The clothing-store cashier may still need to buy change by exchanging one denomination for another, if the appropriate coins or currency are not available for a transaction. Verifying the change fund does not make proving cash an easier job, but it does ensure that the amount entered on the form for proving cash is accurate.SOURCE: OP:194SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 129-131). Cincinnati: South-

Western Educational.

52. DComing to work on time. Department-store chains expect their employees to be loyal, and one way that employees demonstrate loyalty is by coming to work on time. Employees who are dependable and report to work regularly and on time are showing loyalty because they realize that their efforts are necessary to the success of the business. If employees do not live up to their employer's expectations of loyalty, they may be terminated. Most department-store chains do not expect employees to work overtime without pay, socialize with coworkers unless they choose to do so, or ignore safety hazards.SOURCE: PD:020SOURCE: Daggett, W.R., & Miles, J.E. (1998). The dynamics of work: Introduction to occupations

(2nd ed.) [pp. 80-81]. Cincinnati: South-Western Educational.

53. DHuman resources. The human resources department in a large apparel-store chain handles such personnel responsibilities as hiring of staff, keeping personnel records, and administering benefit programs. Most human resources departments expect to answer inquiries from job seekers about possible job openings. The payroll department issues paychecks to employees. The credit department handles customer credit accounts. Training and development may be part of human resources, but it is set up to provide assistance to current employees or new hires, not job applicants.SOURCE: PD:026SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 35].

Mason, OH: South-Western.

54. DContinue their education. Employees who work in the apparel industry need to continue learning and improving their skills in order to keep up with changes in technology. For example, some apparel businesses are replacing existing equipment with advanced models that are more complex. Employees must be willing to learn the skills necessary to operate advanced equipment because their former skills are obsolete. Employees should not change jobs frequently. Modifying personal behavior will not necessarily prevent employees' skills from becoming obsolete unless they also continue their education. Many apparel-industry employees are responsible for performing specific tasks and are not able to delegate that responsibility to others.SOURCE: PD:033SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's wraparound edition (6th

ed.) [pp. 100-101]. New York: Glencoe/McGraw-Hill.


55. ARetailing. Retailing is the business activity of selling goods or services to the final consumer. Wholesaling is the business activity of firms that buy in large quantities from manufacturers/producers and sell in smaller quantities to retailers. Merchandising and marketing are functions designed to make goods or services more appealing to consumers and thereby create sales.SOURCE: PD:121SOURCE: Hugos, M., & Thomas, C. (2006). Supply chain management in the retail industry

(pp. 17-20). Hoboken, NJ: John Wiley & Sons.

56. CDistributing products. The place factor involves the shipping, handling, and storing of items and determining when and where they will be available. One reason place affects price is because there are costs involved in distributing products. For example, a manufacturer pays to ship products to a middleman, and the middleman pays to ship those products to a customer. Those costs are built into the price of the products. Leasing retail space, opening a business, and preparing displays are not place factors. SOURCE: PI:001SOURCE: PI LAP 1—Pricing

57. CUnethical. Unethical means lacking morals. An apparel business that intentionally tries to confuse customers by using complex or unclear pricing is acting unethically. Because this is an unethical practice, the apparel business is not being responsible, empathetic, or moral. SOURCE: PI:015SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 344]. Upper Saddle River, NJ:

Prentice Hall.

58. BUnit. Unit pricing is a technique in which customers are given the price per unit (e.g., pound, gram). Some governments require businesses (e.g., clothing and accessory stores) to clearly identify per unit pricing for their products so that customers can compare prices. Collusion or price fixing is an illegal business agreement in which businesses agree on prices of their goods or services, resulting in little choice for the consumer. Utility refers to the ability of something to satisfy needs and wants. Value is the amount of satisfaction that a product will provide a customer.SOURCE: PI:017SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 422). Tinley Park, IL: Goodheart-

Willcox.

59. DPrice fixing. Price fixing is an illegal agreement between businesses as to a price or price range for products such as jewelry. Even though the jewelry stores might choose a fair price, the practice is forbidden because it limits competition. There are various laws that govern the use of price advertising, minimum prices, and unit pricing, but the laws do not prohibit them.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

60. CExpress. An express warranty may be in written form or expressed verbally. An implied warranty is an unwritten warranty that is understood by the consumer and the seller that the product will perform as expected. Not enough information is given to determine if the promise covers the entire product (a full warranty) or specific parts of the product (a limited warranty).SOURCE: PM:001SOURCE: PP LAP 4—Warranties and Guarantees


61. ATrickle across. The trickle across theory says fashion is simultaneously adopted by groups at all socioeconomic levels. Therefore, high, moderate, and low-priced versions appear in different stores at about the same time. Trickle down indicates that fashions begin with exclusive stores and move down to lower priced stores. Trickle up indicates that fashions begin with lower priced, work-type clothing and move up to be popular with everyone. Cycles across is not a fashion theory.SOURCE: PM:044SOURCE: Donnellan, J. (2002). Merchandise buying and management (2nd ed.) [pp. 149-150].

New York: Fairchild Publications.

62. AIncreases efficiency. A database stores all of an apparel business's records and information in a central location. An apparel business uses computer databases to store sales records, financial information, inventory status information, etc. By storing the information in a networked computer system, employees can quickly obtain the same information at the same time, which can increase the apparel business's efficiency. Using a computer database does not decrease product usage, increase (consumer) demand, or decrease order accuracy.SOURCE: PM:039SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 451-453].

Boston: McGraw-Hill/Irwin

63. ADirect competition. An apparel business uses many resources to generate ideas for products. When an apparel business evaluates another apparel business's products, it is most often analyzing what its competitor is offering a market segment. The analysis helps the apparel business come up with different or better ideas than its competitor so it can develop products that stand out from the competition. In this situation, the XYZ Company is not generating product ideas by focusing on customers' needs, research policies, or target markets.SOURCE: PM:128SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 279). Tinley Park, IL: Goodheart-

Willcox.

64. CGuarantee. A guarantee is a promise made by the seller to the consumer that the seller will refund the consumer's purchase price if the product does not perform as expected. A warranty is a promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected. Recourse is someone or something to which one can turn for help. A strategy is a plan of action for achieving goals or objectives.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

65. BTokyo, Japan and London, England. Many large cities are considered hubs or centers for the fashion industry. In addition to Tokyo and London, New York City, Paris, and Milan are cities where many designers live and work and set the tone for fashion and style. Frankfort, Belfast, and Liverpool are not generally considered fashion centers.SOURCE: PM:052SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 168-171). Chicago:

Goodheart-Willcox.

66. CImage in the eyes of consumers. An apparel product's position is the way consumers view the item as compared to their view of similar and/or competing products. Management's ability to position an apparel product helps determine the company's profit. Marketers can choose to position their apparel products in relation to competitors, target markets, product class, or price and quality. The physical characteristics of an apparel product are referred to as product features. Product position does not mean the location in the business.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix


67. A$900. Open-to-buy is the amount of money available to spend on purchases. The formula for calculating open-to-buy is planned purchases minus current inventory and the amount of merchandise on order. In this example, open-to-buy is $900 ($13,300 – $10,800 = $2,500 – $1,600 = $900).SOURCE: PM:058SOURCE: Diamond, J., & Litt, S. (2002). Retailing in the new millennium (p. 269). New York: Fairchild Publications.

68. BWants. Positioning is a product-mix strategy in which an apparel company creates a certain image or impression of clothing items in the minds of consumers. The apparel company wants a target market to have a positive impression of the clothing items in order to stimulate sales. The desired impression depends on what the target market wants or expects. If the target market wants high-quality clothing and it is willing to pay a high price for quality, then the apparel company should use a product-mix strategy that positions the clothing items on the basis of superior quality at a high price. Rather than target markets, apparel companies have strategies and polices, while products (e.g., clothing items) have benefits.SOURCE: PM:042SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 645-646).


69. DBrand licensing. Brand licensing is the legal authorization by a brand owner to allow another company to use the brand in exchange for a fee. Disney is an example of a company that licenses its brands. Brand positioning refers to creating a certain image or impression of a brand as compared to those images or impressions of its competitors' brands. Brand extension is the brand strategy of using successful brands to introduce new products. Brand repositioning is a process that involves reevaluating the brand's characteristics, quality, and benefits and making necessary changes in order to change the way consumers see the brand.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

70. DMoney obtained from these early markdowns can be used to buy styles that may sell better. The markdown may promote sales and release money tied up in inventory so that it can be put to better use. Two disadvantages to taking early markdowns are that the dresses might sell better later and that customers will expect early markdowns on other merchandise. Sales staff should not be putting extra effort into selling reduced merchandise.SOURCE: PM:063SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 435, 437]. Upper Saddle River, NJ: Prentice Hall.

71. C$25,395. The formula for determining planned purchases for a month is planned monthly sales plus planned reductions, plus desired end-of-month stock, minus planned beginning-of-the-month stock. In this example, add planned monthly sales, planned reductions, and desired end-of-month stock ($23,675 + $1,220 + $42,725 = $67,620). From that figure, subtract planned beginning-of-the-month stock to determine planned monthly purchases ($67,620 – $42,225 = $25,395).SOURCE: PM:064SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 486-488).



72. AThe sales and profit potential of the merchandise. Apparel and accessory retailers want to get merchandise (e.g., handbags) into their stores that customers want and will buy. But, they also need to sell merchandise on which profits can be realized. Buyers are always concerned with the cost of merchandise and the profit potential. Although discounts are a factor in the buying process, they are good only when the merchandise can still produce a profit. Transportation charges are usually passed on to the consumer but are a minor consideration when determining what to purchase, unless the costs are outrageous. Advanced dating provides extra days to pay an invoice and still receive a discount on the total amount. Although advanced dating is a benefit, it is not a major factor in determining the quantities of handbags to buy, unless a quantity discount is also provided. Vendors' guarantees generally affect what to buy rather than how much to buy.SOURCE: PM:261SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)


73. DCommunicate the benefits of the products to buyers. Promotion provides a number of tools that apparel and accessories businesses can use to communicate with buyers. These include advertising, publicity, sales promotion, and personal selling. Promotion does inform consumers about prices, which helps businesses to be competitive, but it does not help apparel and accessories businesses to set prices. It also does not ensure that the apparel and accessories business's marketing mix is appropriate. Determining what consumers want and need to buy is a function of marketing research.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

74. BA billboard featuring a clothing store's social concerns. An institutional promotion is one that aims to create a certain image in the eyes of consumers. Institutional promotions are used to project a favorable impression of the company and to create goodwill. The other alternatives are examples of product promotion, which are intended to persuade customers to buy specific items.SOURCE: PR:002SOURCE: PR LAP 4—Know Your Options (Types of Promotion)

75. CBribery. Bribery refers to the activities in which a person engages that are meant to influence the actions of another person. A manager who takes potential customers out for lavish dinners and buys them expensive gifts might be viewed as engaging in bribery because s/he might be attempting to use these activities to obtain new customers. Bribery is often considered unethical business behavior because it creates an unfair advantage in the marketplace. Some, but not all, countries have laws regulating bribery practices. Puffery is the practice of using exaggerated expressions to describe a product or its features (e.g., "the best"). When a person makes accusations or negative comments about another person or entity, it is often called slander. Fraud is a deception purposely carried out to secure unfair or unlawful gain.SOURCE: PR:099SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 213, 219). Mason, OH:

South-Western.

76. BAt the same time. Many forms of technology allow department stores to communicate promotional messages to many people simultaneously. Television and radio commercials are broadcast through electronic airwaves, which have the capacity to reach thousands of people at the same time. In addition, satellite technology allows many people to access the same Internet web site at the same time. Certain forms of technology, such as television commercials, are expensive methods of communicating promotional messages and often take a lot of effort to produce. An individual's difficult circumstances do not necessarily provide the department store with an advantage when using technology to promote products.SOURCE: PR:100SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 507]. Mason, OH: South-Western.


77. AAn electrical sign located in a high-traffic area. Out-of-home media also include billboards, painted bulletins, blimps, and hot-air balloons. An eye-appealing card placed in a mailbox is an example of direct mail. A calendar imprinted with a company's name is an example of specialty advertising.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

78. BIllustration. This is a photograph, drawing, painting, or graphic. Since the client emphasizes picture in your discussion, you should give careful consideration to the illustration when designing the ad. Copy is the text of an ad that delivers the sales message. Headline is text set in large type and usually positioned at the top of the advertisement. Identification identifies the product or the advertiser who may be the producer and/or the seller of the product.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

79. CSeveral times during. As a form of direct advertising, an infomercial is a lengthy commercial (broadcast advertisement) that looks like a television program. To increase the number of viewers who respond to the advertisement, the clothing designer should request a call to action (e.g., place order, ask for more information) several times during the duration of the infomercial. This is because viewers do not always watch the entire infomercial. If the call to action appears only at the beginning, in the middle, or at the end of the broadcast, the viewers may miss it and not respond to the advertisement. When requesting a call to action, the infomercial should repeat the phone number, e-mail address, or web address many times, which may increase response rates.SOURCE: PR:089SOURCE: O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand promotion (3rd ed.)

[pp. 688-689]. Mason, OH: South-Western.

80. CReplacing lights. Merchandise displays often include special lighting fixtures that are intended to focus attention on the display. One of the housekeeping duties needed for the upkeep of these displays involves regularly checking the lights and replacing those that have burned out or are not working correctly. Displays with burned-out lights often create an unfavorable opinion of the store and the merchandise in the minds of customers. Sweeping aisles, removing trash, and vacuuming carpet are housekeeping duties associated with the entire store rather than with a display.SOURCE: PR:052SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 330]. Woodland


81. CCustomers can purchase directly from these displays. Merchandising is the process of having the right goods in the right place at the right time in order to make a profit. Point-of-purchase (POP) displays contribute to this effort because customers can select clothing items directly from the displays. POP displays may be placed on a rack, on a shelving unit, or in any location that the business chooses. Advantages of the displays are that they are sometimes provided by suppliers and often provide information that is important to customers. A disadvantage is that goods are easily stolen from POP displays.SOURCE: PR:114SOURCE: Diamond, J., & Diamond, E. (1999). Contemporary visual merchandising (pp. 205-210). Upper Saddle

River, NJ: Prentice Hall.

82. ABy the time the ad appears. The clothing boutique will benefit from using displays to support its advertisements. When the ad appears in print, customers who are attracted by the ad expect to find the advertised merchandise on display in the store. Waiting to prepare the display until customers ask for the goods, the ad is in print, or after it has appeared would be less effective.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill.


83. BCosmetic makeover. An intangible product is one that cannot be perceived through the senses. Some department stores sell cosmetics and have consultants on the site to provide customers with makeovers. The intent is encourage cosmetic sales by allowing customers to try the cosmetics (e.g., lipstick, eyeliner) and by showing them ways to enhance their facial features with the cosmetics. The results of the makeover can be seen, but the service of performing the makeover is an intangible product. A designer fragrance, flannel pajamas, and leather shoes are tangible products that are capable of being seen, touched, or smelled.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

84. CReplacing defective products. Salespeople often need to solve problems or handle customer complaints. Salespeople who are able to solve problems to a customer's satisfaction often provide the type of service that helps to maintain good relationships with customers. An example of solving a problem is replacing defective products. If a customer receives a shipment of defective products and the salesperson quickly replaces those products, the customer is satisfied. As a result, customers know they can count on the salesperson to solve future problems. Customers often continue to buy from salespeople who are willing to solve problems. Offering discounts is part of the process of negotiating price rather than solving problems. It would be inappropriate to ship expensive substitutes unless the customer agrees to accept more expensive items. Making daily appointments is not an example of solving a problem.SOURCE: SE:076SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 413-414]. Boston:

Irwin/McGraw-Hill.

85. BTo promote goodwill. Promptly handling a problem or a mistake will make the customer feel that s/he is being taken care of competently and will foster goodwill between the customer and the department store. Replacing one item for another will not increase sales or reduce inventory because it is an even trade. A sales associate would not gain information by replacing an item.SOURCE: SE:828SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

86. DLose sales. Department store sales associates may encounter problems when they are not knowledgeable of their company's policies and are unable to explain them to potential customers. Sales associates who cannot answer customers' questions about policies affecting the purchase of goods or services may lose sales. Sales associates who are not able to explain selling policies often destroy goodwill, create misunderstandings, and decrease business.SOURCE: SE:932SOURCE: SE LAP 121—Selling Policies

87. DCheck stock availability. Technology tends to increase the efficiency in processing a sale. Because laptop computers are small and portable, salespeople can easily take them to sales calls. The leather accessories salesperson can access the company's network to place orders and also to get important information for the customer, such as checking to see if a certain product (e.g., wallet) is available to ship. A bill of lading is a contract between a shipper and the transportation company. Salespeople often use laptop computers to send promotional messages, write sales proposals, and analyze shipping information, but they would not usually complete those tasks during a sales call.SOURCE: SE:107SOURCE: Hite, R., & Johnston, W. (1998). Managing salespeople: A relationship approach

(pp. 109-110, 115). Mason, OH: South-Western.


88. CReciprocity. Governments develop selling regulations in order to protect consumers and businesses from the unfair selling practices of other businesses. In some countries, reciprocity is an illegal selling activity because it limits competition in the marketplace. Reciprocity involves an agreement between two businesses to purchase large amounts of products from each other. Reciprocity can drive small companies out of business because they cannot compete with the large companies that have the resources to make these types of agreements. Although many governments implement sales regulations that prohibit discrimination, exclusivity, and misrepresentation, the example does not illustrate these practices.SOURCE: SE:108SOURCE: Greene, C. (2000). Selling: Business 2000 (p. 105). Mason, OH: South-Western.

89. CFinish. The surfaces of many products have had finishes applied to enhance the beauty of the products, increase their value, protect their surfaces, aid in their care, or provide safety features. This information usually is included on a product's label. Salespeople should explain the reasons for finishes to customers in order to enhance their sales presentations. Size is not a factor in a product's finish.SOURCE: SE:062SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 664-667).


90. AThere are many different bra styles available. Lingerie departments may stock as many as a dozen different styles from which customers can choose. Bras may be made to fasten in the back or the front. Some are made without straps or with removable straps for wear under strapless clothing. Choosing the right size is important but will not guarantee a perfect fit because of the variations in bra styles.SOURCE: SE:126SOURCE: Charlton, R. (2005, March 31). Bra sizes and bra types: Finding the right fit! Retrieved October 11, 2007,

from http://ezinearticles.com/?Bra-Sizes-and-Bra-Types—-Finding-the-Right-Fit!&id=24574

91. BEase of maintenance. The shoe salesperson should mention to customers the ease with which footwear can be maintained by buffing, wiping clean, spray cleaning, or quick polishing. Most customers are interested only in the shoe size that fits them and have no interest in the location of the shoe's producer. Hand crafting would mainly be of interest to the fashion-conscious customer.SOURCE: SE:129SOURCE: Stimpert, D. (n.d.). Caring for leather shoes: The benefits of proper shoe care. Retrieved October 11, 2007,

from http://shoes.about.com/od/shoe_care/a/c_leather_shoes.htm

92. DPrivate. Private brands are goods made by or for a particular store, retail organization, or distributor. An example of a private brand is J.C. Penney's Arizona brand. National brands are merchandise that is available in many stores in different parts of the country. Designer brands and manufacturer brands are types of national brands.SOURCE: SE:051SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 349]. Mason, OH:

Thomson/South-Western.

93. DSelecting items that should be appropriate. Prescribing solutions is the phase of the selling process in which the salesperson recommends specific goods or services which meet the customer's needs. By doing this, you are showing customers the products that will work best for them, based on their needs. Analyzing customer reactions and comments is part of discovering client needs. Trying to develop customer interest in the product is part of reaching closure. Creating a favorable impression of you and your business is part of establishing relationships with customers.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process


94. BLong necklace which hangs in a V shape. Jewelry tends to call attention to the area where it is worn. A woman with a heavy neck would not want to draw attention to the neck area. A long V-shaped necklace would draw the eye downward, whereas a choker-style scarf would draw the eye to the neck. Large, round beads would emphasize the heavy neck, and a brooch at the shoulder would draw the eye toward the neck area.SOURCE: SE:004SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [p. 247]. Chicago: Goodheart-Willcox.

95. DSheath. A sheath skirt is cut straight and narrow and may have a kick pleat or slit at the hemline. A kilt wraps around the body with two flat pieces of fabric overlapping in the front and pleats around the back. A dirndl skirt is gathered to a waistband all around. Tapered is a style of women's slacks.SOURCE: SE:140SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [p. 36]. Chicago: Goodheart-Willcox.

96. CThere is no one right time to close the sale. Most salespeople say that any time is the best time to close the sale, and they are always ready to initiate a close. Since all department-store customers are different, they may take longer or shorter periods of time to decide. Some form of sales close is necessary if a sale is to take place. Customers give various signals that they have made a buying decision, and salespeople need to learn how to recognize those signals. A department-store salesperson's display of self-confidence reassures customers and may lead to a close.SOURCE: SE:895SOURCE: SE LAP 107—Closing Sales

97. DFollow-up. Salespeople can follow up after sales have been made and also after sales presentations that did not result in sales. Sales quotas are the sales goals, or targets, that specify desired performance levels. Buying motives are the reasons that customers buy. Probing is an investigation of what customers think, feel, or know.SOURCE: SE:057SOURCE: SE LAP 119—Follow-up Strategies

98. A$160.60. To compute the total amount due from a customer, the sales tax on the sale must first be calculated. This is done by converting the sales tax rate into a decimal figure (3.5% = .035). Then, multiply the selling price ($155.17) by the decimal figure ($155.17 x .035 = $5.43). The tax and the selling price are added together to obtain the amount due from the customer ($155.17 + $5.43 = $160.60).SOURCE: SE:116SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (p. 135). Cincinnati: South-


99. BArithmetic errors. Electronic cash registers automatically calculate sales amounts, tax, and totals, thereby reducing the possibility of arithmetic errors by cashiers. Many electronic cash registers are attached to an optical scanner that reads the merchandise information. This system simplifies a cashier's job by entering the correct information and calculating the totals. The possibility of arithmetic errors is almost entirely eliminated. Stores that use electronic cash registers still need check-out clerks. These systems are able to process credit card charges and print receipts for customers.SOURCE: SE:153SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (p. 124). Cincinnati: South-



100. DConfirm accuracy of information with the customer. Before the conversation with the customer has ended, Hannah should repeat the information to the customer to ensure accuracy. Obtaining accurate information is the most important part of processing telephone orders. It is not necessary to write in ink, but the writing should be legible. Information on the form should be complete, but not all spaces on a typical form apply to every customer order. Orders usually are not routed to the credit department.SOURCE: SE:835SOURCE: Rokes, B. (2000). Customer service: Business 2000 (p. 62). Mason, OH: South-Western.

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