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2005 DECA Ontario December ProvincialsTest 850 APPAREL AND ACCESSORIES (ASSOCIATE LEVEL) 1

1. Which of the following is a characteristic of discount apparel retailing:A. Many customer services C. Newest fashions and noveltiesB. Low prices and self-service D. High-quality materials and workmanship

2. One reason that apparel and accessory buyers might decide to use only a few suppliers is toA. gain an increased selection. C. obtain quantity discounts.B. encourage vendor competition. D. acquire a greater variety of goods.

3. What is the name of the financial report that contains the clothing company's assets, liabilities, and net worth?

A. Balance sheet C. Accounts payable ledgerB. Profit-and-loss statement D. Accounts receivable journal

4. By regularly reviewing their budgets, apparel businesses are able to determine if they areA. paying interest to customers. C. offering loans to employees.B. following their financial plans. D. receiving discounts from vendors.

5. What is a major reason for the current growth of direct fashion retailing?A. Most people now prefer to shop online.B. More women are now working full time. C. People are attracted to the weekly sales that direct retailers offer.D. Direct retailers contact clients about the arrival of unique fashions.

6. One reason an existing sportswear store might develop a company web site is toA. create a new revenue source. C. lower tax rates.B. reduce marketing expenses. D. increase its product mix.

7. One of the advantages to apparel manufacturers of using spreadsheet software is its ability toA. store information. C. create visuals.B. do calculations. D. write brochures.

8. The Deluxe Dress Shop routinely has employees take office supplies for personal use. This is an example of

A. burglary. C. pilferage. B. shoplifting. D. robbery.

9. Maria and Tierra are closing their fashion specialty store for the day. As part of the closing procedures, they check all the dressing rooms and stockrooms to ensure that

A. these areas are well stocked. C. these areas are clean.B. no merchandise is left in these areas. D. no one is hiding in these areas.

10. Who does the Occupational Safety and Health Administration (OSHA) hold responsible for keeping the work environment free of hazards?

A. Employees C. BuildersB. Customers D. Suppliers

11. What is the base figure for calculating the amount of sales tax a bridal salon owes to the state if it had gross sales of $549,210 and exempt sales of $29,925?

A. $549,210 C. $564,172B. $519,285 D. $579,135

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

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio


13. Which of the following is a rule of good listening:A. Eliminate background noise. C. Be thinking about what you will say next.B. Listen with empathy. D. Stand as close as possible to the speaker.

14. What often appears at the bottom of a business letter if a sales brochure is attached?A. Writer's identification C. Company signature B. Reference initials D. Enclosure notation

15. A simple written communication that briefly explains the status of a marketing activity is known as a(n) __________ report.

A. abstract C. employee B. proposal D. progress

16. A large menswear store that obtains private information about a customer's financial status and makes that information public is behaving in an __________ manner.

A. impersonal C. illegal B. immoral D. unethical

17. Shoe manufacturers try to develop effective and efficient distribution systems because distribution is responsible for about half of a business's total

A. operating funds. C. gross profits.B. sales volume. D. marketing costs.

18. Quality Distributors buys scarves, handbags, and belts from ABC Accessory and sells them to local clothing stores. Quality Distributors is an example of a(n)

A. producer. C. agent.B. retailer. D. intermediary.

19. What is one of the advantages to discount clothing stores of using electronic data processing and computerized inventory systems in the distribution function?

A. Reduces turnover C. Increases overheadB. Saves time D. Increases average stock on hand

20. It is illegal for a T-shirt manufacturer to operate company-owned outlets to sell its products when it uses the outlets to

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

21. Which of the following is an acceptable reason for returning goods to vendors:A. Short shipment C. Slow sellers B. Damaged items D. Early delivery

22. Reserve stock would be defined as items of stock thatA. will replace forward stock. C. have not been checked. B. have not been delivered. D. are being held for customers.

23. Which of the following is a technique that sportswear stores often use to ensure the accuracy of the physical inventory count:

A. Hire managers C. Plan schedulesB. Dismantle displays D. Train employees


24. Inventory management involves a dollar inventory control system in order toA. reduce the need for a manual count of all merchandise.B. track merchandise needs by customer wants.C. determine a clothing store's net profit or net loss. D. determine how many items are in stock at a particular time.

25. Terri Klauth performs an inventory check on December 29th every year that tallies each item in stock. What type of periodic unit control inventory system is she using?

A. Physical count C. Tickler controlB. Visual control D. Concentric control

26. An inventory term that is used in classifying stock according to its size, color, or style isA. FOB. C. UPC. B. GDP. D. SKU.

27. Which of the following is a marketing activity that menswear stores should coordinate with distribution:A. Purchasing C. ManagementB. Promotion D. Organizing

28. What type of channel conflict might occur if the manufacturer of a specific brand of shoes begins to allow retailers other than the authorized retailers to sell the brand-name shoes?

A. Horizontal C. IndustrialB. Vertical D. Contractual

29. Unique products for which buyers are willing to pay more are called __________ goods.A. industrial C. shoppingB. convenience D. specialty

30. If the ratio remains the same when prices go up or down, __________ prices do not change.A. market C. actualB. relative D. equilibrium

31. The uncertainty of not being able to predict the outcome of investing in a T-shirt shop is part of theA. plan. C. reward. B. incentive. D. risk.

32. According to the law of diminishing returns, what is the result of more and more workers being added to the jeans production process if all other factors remain unchanged?

A. Output will increase proportionately with each worker.B. Output will decrease significantly.C. Output will increase by smaller and smaller increments.D. Output will remain constant.

33. Which of the following types of credit requires a down payment:A. Installment credit C. Credit cardB. Open-account credit D. Revolving credit

34. A jewelry store's financial statements, sales reports, and inventory records are examples of marketing information gathered from __________ sources.

A. economic C. externalB. internal D. environmental


35. Market researchers often place mystery shoppers in public places to observe and record consumer buying behavior. Some people find this practice unethical because

A. most data collected from these activities are usually unreliable.B. businesses do not pay participants for their ideas and information.C. researchers are involving participants without obtaining their consent.D. observers overlook other factors that are important to the overall research.

36. Tiny bits of data stored on Internet users' computers that reveal what consumers are buying and which web sites they are visiting are called

A. databases. C. biscuits. B. temporary files. D. cookies.

37. One reason why marketing-information managers often monitor their competitors' web sites is toA. analyze regional economic factors. C. review current sales records.B. identify inventory turnover rates. D. obtain data about new products.

38. One of the slowest items to change in fashion isA. fashion look. C. color. B. texture. D. silhouette.

39. Marketing research can affect the shoe store's marketing mix by providing information about various locations that will influence the store's __________ decision.

A. price C. place B. promotion D. product

40. The customer characteristic that reflects where customers fit in the day-to-day buying routine is known asA. personal belief. C. origin or heritage. B. social or economic status. D. life stage.

41. Which of the following is an example of a marketing strategy that a clothing store might develop to achieve an objective outlined in its marketing plan:

A. Lowering prices by 5% C. Increasing profits by 10%B. Obtaining $1 million in sales D. Reducing operating costs

42. Which of the following is an example of a situation analysis aid:A. Environmental scanning C. DiversificationB. Market penetration D. Vertical integration

43. Why do bridal salons usually prepare short-term sales forecasts?A. The shorter the forecast, the more accurate the prediction. B. Forecasting methods are only appropriate for one year.C. Salons know that market conditions will remain the same for a year. D. Salons can obtain the results from longitudinal studies conducted during the year.

44. It is important for individual team members to be __________ the team's goals.A. committed to C. curious about B. indifferent to D. undecided about

45. One way in which you can show empathy is byA. asking few questions. C. limiting contacts.B. offering critical advice. D. listening carefully.

46. What kind of customer would make the following statement: "I just don't know which of these my girlfriend would like best. I had better come back at another time."

A. Suspicious C. DisagreeableB. Slow/Methodical D. Dishonest


47. How many weeks will it take to complete a planned project that requires 455 hours of work if the accessory shop has two part-time employees who each work 20 hours a week, and one part-time employee who works 25 hours a week?

A. 7 C. 8B. 6 D. 9

48. Employees who are responsible for paying a menswear store's bills can help the store to control its expenses by

A. asking vendors to negotiate dating terms. C. paying bills within the discount period. B. controlling the store's trade credit. D. paying all bills as soon as they are received.

49. Lack of exercise, sleep, and adequate relaxation are factors that are likely to have a direct effect on an individual's ability to

A. perform job expectations. C. socialize with coworkers.B. enter training programs. D. learn of new opportunities.

50. A person of honesty and integrity who cannot pay a debt when it is due shouldA. ask to have the bill reduced. C. explain the situation to the creditor.B. wait for a call from the creditor. D. consult a collection agency.

51. Workers who demonstrate initiative usually receive good recommendations from previous employers which benefits the workers by

A. helping them qualify for benefits. C. increasing the minimum wage.B. increasing their employability. D. eliminating the need for a résumé.

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

53. To transform or make something different means toA. produce. C. create.B. substitute. D. change.

54. Setting suitable goals for yourself helps you to achieve self-A. understanding. C. importance. B. centeredness. D. consciousness.

55. Which of the following is a source of career information that would best help people who are currently employed identify better paying careers that suit their skills:

A. Career centers C. School guidance officesB. Temporary employment agencies D. Occupational Outlook Handbook

56. Training, working on displays, buying merchandise, and interacting with customers are examples of activities that are part of

A. boosting apparel retail sales. C. climbing the corporate ladder.B. developing yourself as a manager. D. apparel retailing careers.

57. What type of information is it acceptable to leave out of a job application?A. Educational background C. Personal dataB. Salary requirements D. Professional experience

58. What do clothing stores often do depending on the circumstances they face in the marketplace at any one time?

A. Adjust prices C. Increase salesB. Reduce expenses D. Offer discounts


59. Why are Universal Product Codes (UPCs) often preprinted on products before the accessory manufacturer ships the products to the stores?

A. To reduce the possibility of theft C. To simplify the price-marking functionB. To increase the product turnover rate D. To improve the transportation system

60. Which of the following factors related to a sportswear store's objectives and strategies affects its pricing:A. Product mix C. SupplyB. Channel members D. Fixed costs

61. Apparel manufacturers use different marketing strategies from one stage of the product's __________ to another.

A. test-marketing C. life cycle B. research studies D. feasibility analysis

62. In the late 18th century, many women began wearing loose, flowing, muslin dresses patterned after classical Greek garments. The wearing of these dresses lead women to begin

A. wearing sandals. C. carrying purses.B. wearing crinolines. D. carrying umbrellas.

63. Displaying American flags on apparel sold at the Olympics is an example of which type of influence?A. Psychographic C. SocialB. Demographic D. Political

64. Which of the following styles of clothing would most likely feature diagonal lines:A. Men's casual shirts C. High-fashion evening gowns B. Women's business suits D. Dress shirts or blouses

65. American Eagle plans to offer a popular sweater in six colors this season. Promotional efforts include ads featuring young people wearing the sweaters during the day and evening, at work, and at play. Production has been geared up to put large quantities of the sweater into American Eagle stores. In which stage of the fashion cycle is the sweater?

A. Culmination C. PeakB. Introduction D. Rise

66. An example of an ethical issue that a product/service manager might face is deciding whether the company should

A. include nutrition information on a food label. C. use the packaging as a means of promotion.B. use color on the label. D. use environmentally friendly packaging.

67. L.L.Bean promises "100% satisfaction in every way" to those who buy its goods. Items can be returned for refund or credit. This is an example of a(n)

A. conditional guarantee. C. unconditional warranty.B. unconditional guarantee. D. conditional warranty.

68. After having a credit application denied, the consumer requested a written explanation of the denial. S/He can do this under the provisions of the

A. Consumer Credit Protection Act of 1968. C. Fair Debt Collection Act of 1980.B. Equal Credit Opportunity Act of 1975. D. Federal Trade Commission Act of 1914.

69. When a watch manufacturer changes a watch's package to give the watch a new, more attractive, or updated look, the product-mix strategy being utilized is called

A. trading-up. C. alteration. B. expansion. D. positioning.


70. Calculate open-to-buy based on the following information:

Planned sales $125,000Planned reductions $112,500Goods still on order $37,000Goods already received $18,000Beginning of month inventory $97,000End of month inventory $105,000

A. $70,000 C. $92,500B. $57,500 D. $167,000

71. Promotion is the only element of the marketing mix that is considered when positioning an apparel item.A. True, promotion influences the consumers directly.B. True, promotion is the least expensive way to position an apparel item. C. False, all elements of the marketing mix should complement the intended position.D. False, the apparel item is the most important element of the mix considered in positioning.

72. Evaluating new apparel items to see whether they will meet your customers' needs and support the dress shop's image should be part of preparing a shop's

A. past sales records. C. perpetual inventory records.B. merchandising plan. D. merchandise classifications.

73. If a shoe store's planned monthly sales for June are $16,950, and planned reductions are 5%, how much are planned reductions?

A. $845.25 C. $829.50 B. $847.50 D. $850.50

74. When buyers for clothing stores are determining what merchandise to buy, they collect information from various sources within the business, including

A. vendor records. C. sales forecasts.B. sales records. D. shoplifting records.

75. An accessory store owner calculates the number of times ball caps are sold and replaced each year in order to determine the

A. stock turnover rate. C. equilibrium price.B. cost of production. D. gross domestic product.

76. One of the desired outcomes that promotion is intended to achieve is toA. communicate information. C. introduce new products.B. persuade customers to buy. D. develop ads for customers.

77. What type of promotion is being used by clothing stores that promote the "Just Say No" campaign to discourage students from using drugs?

A. Institutional public service C. Secondary productB. Primary product D. Institutional public relations

78. On a per contact basis, which of the following elements of the promotional mix is most expensive:A. Sales promotion C. Personal sellingB. Advertising D. Publicity

79. What is one way that bridal salons are using technology to promote their products?A. Electronic scheduling C. Digital processingB. Web-site advertising D. Online-media planning


80. The key to a successful print advertisement is that the headline, illustration, copy, and identification must be

A. endorsed. C. coordinated.B. company oriented. D. unique.

81. Which of the following is a direct advertising strategy:A. Syndicating C. TelemarketingB. Merchandising D. Broadcasting

82. From which of the following sources might a sportswear store buy a mailing list to use in advertising:A. Specialty magazine C. Government agencyB. Local competitor D. Television station

83. Which of the following is a reason why discount clothing stores often arrange novelty goods on interior displays near the checkout counters:

A. To use all available space C. To accommodate customersB. To encourage impulse buying D. To offer promotional discounts

84. What is one of the main reasons displays of clothing require maintenance on a daily basis?A. Customer handling C. Dusty shelvingB. Misplaced signage D. Poor lighting

85. Why do many discount shoe stores use a variety of self-service display fixtures?A. To stock small selections C. To reduce staffing needsB. To protect merchandise D. To decrease delivery time

86. Which of the following would a clothing store contact in order to arrange a trunk show:A. Designer C. WholesalerB. Manufacturer D. Distributor

87. In what location might a retailer with a limited promotional budget decide to hold a fashion show?A. Area restaurant C. Store departmentB. Civic auditorium D. Hotel ballroom

88. An example of coordinating a menswear store's promotional activities would beA. setting up displays of suits being promoted on TV. B. purchasing suits for resale at competitive prices. C. training salespeople hired for a special sale.D. ordering suits that will be promoted in radio spots.

89. The reason a sportswear store often plans a specific display theme to use throughout the store is to create a certain

A. layout. C. flow.B. pattern. D. mood.

90. Apparel manufacturers try to develop new or improved products in order to sell more thanA. their vendors need. C. the market demands.B. customers want. D. their competitors.

91. The primary reason that clothing store customers do not become repeat customers isA. poor location. C. lack of courtesy from salespeople.B. high prices. D. lack of assortment/selection.

92. One type of unethical behavior involves illegal activities. Which of the following demonstrates an illegal activity:

A. Withholding information C. Selling samples for income B. Exaggerating product benefits D. Practicing the hard sell


93. Selling regulations are often developed to protect consumers fromA. buying low-quality products. C. unethical sales practices. B. assertive salespeople. D. spending too much money.

94. What should clothing store salespeople do with the various types of information that they obtain about the products they sell?

A. Write a promotional brochure C. Organize a training seminarB. Prepare a feature-benefit chart D. Develop a sales catalog

95. What is used to reinforce and give shape to such areas of garments as collars, lapels, cuffs, pocket flaps, buttonhole strips, and necklines?

A. Interlining C. UnderliningB. Interfacing D. Lining

96. A customer wants an outfit that will look good on her and de-emphasize her waist. What outfit has a silhouette that will meet the customer's needs?

A. Collared shirt, slacks, and belt C. Gathered skirtB. Tailored business suit D. Flared pants and jacket

97. In order to determine the correct size half-slip for a customer, you would need to measure the customer'sA. bra size and hip size. C. waistline and bustline.B. bustline and dress length. D. waistline and dress length.

98. Which of the following jackets is lightweight, but warm, due to its contents of goose down or fuzzy material:

A. Parka C. SafariB. Mackinaw D. Slicker

99. Which of the following is a basic reason why many salespeople for apparel manufacturers prefer to use the traditional, step-by-step selling process:

A. It identifies buying motives. C. It meets customers' needs. B. It simplifies paperwork. D. It includes product demonstration.

100. Which of the following is a function of men's fashion accessories for customers:A. To promote current fads C. To accentuate sizeB. To dramatize an outfit D. To increase overall sales


1. BLow prices and self-service. Discount apparel retailing is a major segment of the industry that appeals to budget-minded customers who want low prices and expect to serve themselves. The alternatives are not characteristics of discount retailing.SOURCE: BA:061SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 54-55]. Upper Saddle River, NJ: Prentice Hall.

2. CObtain quantity discounts. Apparel and accessory buyers can use several types of buying strategies. A concentrated strategy utilizes only a few suppliers in the hope of gaining quantity discounts, lower transportation costs, and improved vendor relationships. A buyer has a better chance of negotiating a discount with a vendor if the buyer purchases large quantities of goods at one time. Using only a few suppliers means that a buyer will purchase more from each one than if the buyer purchased goods from many suppliers. A buyer who uses many suppliers encourages vendor competition and may be able to acquire a greater variety of goods and gain an increased selection.SOURCE: BA:005SOURCE: PU LAP 1—Purchasing

3. ABalance sheet. A balance sheet captures the financial condition of the clothing business at that particular moment. This financial report contains the company's assets: that which it owns such as merchandise inventory; liabilities: that which it owes such as accounts payable (the monies owed to vendors); and its net worth. By subtracting the liabilities from the assets, the net worth or equity is determined. The formula used in a balance sheet is Assets - Liabilities = Equity (or Capital). The profit-and-loss statement is a summary of business transactions that shows net profit before and after taxes by analyzing sales, purchases, cost of goods sold, and operating expenses for a specified period. Accounts payable are the monies that the company owes to its vendors and other creditors and are recorded in the accounts payable ledger. Accounts receivable are the monies that are owed to the company by its customers and are recorded in the accounts receivable journal.SOURCE: BA:018SOURCE: Longenecker, J.G., Moore, C.W., & Petty, J.W. (2003). Small business management:

An entrepreneurial emphasis (12th ed.) [p. 294]. Cincinnati: Thomson/South-Western.

4. BFollowing their financial plans. Budgets are financial maps. With a budget, apparel businesses are able to see at a glance what areas have overspent or underspent. Budgets chart how businesses have reached their financial plans for income and expenses and how they have fallen short. Businesses usually do not pay interest to customers or offer loans to employees. Budgets do not indicate if businesses receive specific discounts from vendors, although the total amount paid to vendors would be estimated in a budget.SOURCE: BA:024SOURCE: FI LAP 3—Money Tracks (Nature of Budgets)

5. BMore women are now working full time. More time at work means less time to spend shopping in a retail store. Thus, many women prefer the convenience of ordering from a catalog sent through the mail by a direct retailer such as Lands' End, Spiegel, and Marshall Field's. Full-color catalogs are expensive to produce, so it is impractical for direct retailers to send them out weekly to advertise sales. This practice is more typical of department and discount stores that advertise weekly sales through newspapers. Direct retailers receive inbound calls from customers who want to place an order. Customers who want to be contacted personally about the arrival of unique fashions would have better luck patronizing a boutique. Although e-tailing is growing at a rapid rate, most people prefer to shop over the telephone or in a store for many different reasons. For example, some people are skeptical about giving their credit-card information over the Internet.SOURCE: BA:077SOURCE: Diamond, J., & Diamond, E. (1997). The world of fashion (2nd ed.) [p. 439].

New York: Fairchild.

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio

Test 850 APPAREL AND ACCESSORIES (ASSOCIATE LEVEL) — KEY 11

6. ACreate a new revenue source. By selling its products from an additional location or source (the web site), the sportswear store creates an opportunity to reach more customers, which might result in more sales. Developing a web site does not necessarily reduce marketing expenses or lower taxes for the store. Product mix refers to the particular assortment of products that a store offers in order to meet the needs of its markets and its company goals.SOURCE: BA:030SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[pp. 140-142]. Upper Saddle River, NJ: Prentice Hall.

7. BDo calculations. Apparel manufacturers often use spreadsheet software to organize and prepare financial documents such as budgets and profit statements. One of the advantages of using spreadsheet software is its ability to do mathematical calculations. A manufacturer can input columns and rows of dollar amounts or percentages, and the software will complete the computations accurately and quickly. Also, manufacturers can change various figures to determine the effect a planned price increase would have on profit. Word-processing software is used to write brochures. Graphics software is used to create visuals. Database software is used to store information.SOURCE: BA:034SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to business (4th ed.)

[pp. 214-216] Cincinnati: South-Western Educational.

8. CPilferage. Pilferage is the theft of small sums of money or inexpensive items from a business. Shoplifting is the theft of goods by customers. Burglary is any illegal entry into a building to commit a theft. Robbery is theft that involves the use of force, violence, or fear.SOURCE: BA:041SOURCE: RM LAP 4—Security Precautions

9. DNo one is hiding in these areas. Employees should check dressing rooms and stockrooms to be sure no one is hiding in these areas. The purpose of checking these areas is to prevent someone from remaining in the store after closing in order to rob the store. Merchandise is removed from dressing rooms and returned to the sales floor during the day. Employees may clean the dressing rooms at the end of the day, but they would not clean the stockrooms. Dressing rooms are not stocked.SOURCE: BA:086SOURCE: Australia Dept. of Cons. & Empl. Protection. (n.d.). Cash handling and opening and closing

procedures. Retrieved October 12, 2005, from http://www.safetyline.wa.gov.au/pagebin/edcnwssm0145.htm

10. AEmployees. Under OSHA, both employers and employees have responsibilities to keep the work environment free of hazards. Employees are expected to follow the OSHA rules and standards that apply to their jobs, and to comply with the business's safety rules. Employees are expected to report dangerous work habits or unsafe conditions, and job-related injuries or illnesses. Following OSHA's regulations will help employees to maintain a safe workplace. Customers, suppliers, and builders are not responsible for keeping a business free of hazards.SOURCE: BA:046SOURCE: RM LAP 2—Following Safety Precautions

11. B$519,285. Bridal salons must pay sales tax to the state on all taxable sales. Sales that are exempt from sales tax can be subtracted from gross sales. In this situation, subtracting $29,925 from $549,210 leaves an amount due of $519,285 ($549,210 - $29,925 = $519,285).SOURCE: BA:096SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 134-137).

Cincinnati: South-Western Educational.


12. APrejudice. 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: CO:015SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [p. 50].

Cincinnati: South-Western College.

13. BListen with empathy. Empathy is the ability to put oneself in another person's place. Listening with empathy helps the listener to understand the speaker's point of view. You should stand a reasonable distance from the speaker. Standing too close may be interpreted as aggressiveness. If you are thinking about what you will say next, you may not hear everything that the speaker says. Background noise exists in all environments and cannot be eliminated.SOURCE: CO:017SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 258-259]. Cincinnati: South-Western.

14. DEnclosure notation. An enclosure notation often appears at the bottom of a business letter if additional items are included with the letter. The enclosure notation may indicate the number of additional items attached or list the type of item, such as sales brochure, check, contract, etc. The purpose of the enclosure notation is to help the writer and the recipient confirm that all enclosures are included when the letter is sent and received. The reference initials identify the person who typed the letter. The company signature is the typed name of the company. The writer's identification is the writer's name typed below the signature.SOURCE: CO:133SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 592-597].

Boston: Irwin/McGraw-Hill.

15. DProgress. Marketing personnel often prepare simple reports to keep managers informed of the progress and current status of activities and projects. These progress reports are short and contain only the information needed to keep managers and other staff informed. Proposal reports recommend trying new projects or activities. Employee reports concern staff performance. Abstract reports summarize complicated or lengthy material.SOURCE: CO:094SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 377-380].


16. DUnethical. Most large menswear stores gather a wide variety of information about their customers that often includes their financial status and credit rating. How stores use this information or provide it to others is a matter of ethics, which are the basic principles that govern behavior. Customers have the right to assume that the financial or private information they provide to a store will remain confidential. If a store violates that confidence and makes private financial information available to the public, it is behaving in an unethical manner. Although disclosing private financial information is unethical, it is not immoral or impersonal. Such practices are not illegal at present; however, legislation governing this type of behavior is possible for the future.SOURCE: CO:043SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [pp. 244-245].

Cincinnati: South-Western College.


17. DMarketing costs. Shoe manufacturers spend a significant amount of money on distribution in order to get their products to the consumer, because without distribution, they could not make sales. Sales volume is the total number of sales during a specific period of time. Gross profit is the money left after cost of merchandise expense is subtracted from total income. Operating funds are used to keep the business running by paying for such items as payroll, rent, utilities, and insurance.SOURCE: DS:001SOURCE: DS LAP 1—Distribution

18. DIntermediary. Intermediaries are channel members operating between the producer and the consumer or industrial user to help in the movement of goods and services. In this situation, the intermediary is a wholesaler. Producers are the growers, providers, or manufacturers of goods or services. Retailers are businesses that buy consumer goods or services and sell them to the ultimate consumer. Agents are intermediaries that assist in the sale and/or promotion of goods and services but do not take title to them.SOURCE: DS:055SOURCE: MB LAP 3—Channels of Distribution

19. BSaves time. The advantage of using new technology in the distribution function is that it saves time. The use of computerized inventory systems allows discount clothing stores to keep track of exactly how much inventory is in stock at any one time, and the use of electronic data processing allows stores to place orders electronically, which shortens the order cycles. The new technology allows stores to communicate instantly, place orders when needed, and receive the goods quickly. This reduces the amount of inventory they need to carry because they can quickly obtain whatever they need. The technology also helps to increase turnover by identifying excess inventory that should be marked down in order to sell. Increased overhead would be a disadvantage to stores.SOURCE: DS:054SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 442].

Woodland Hills, CA: Glencoe/McGraw-Hill.

20. ADrive independent retailers or distributors out of business. It is in violation of antitrust laws to utilize dual distribution if a T-shirt company does so solely to drive out competitors. It is not illegal for a 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: DS:058SOURCE: Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e)

[pp. 366-367]. Boston: Houghton Mifflin.

21. BDamaged items. Damage to items in a shipment is a legitimate reason to send them back to the vendor. It is not acceptable to return items because they don't sell well or have been received earlier than expected. A short shipment is one that does not contain everything the buyer requested.SOURCE: DS:009SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 431].


22. AWill replace forward stock. Reserve stock is stock that is not needed immediately on the selling floor but will replace forward stock as that stock is sold. Shipments are checked as soon after delivery as possible. Stock that hasn't been delivered is stock on order. Items are held for customers in layaway or in a customer pickup area.SOURCE: DS:015SOURCE: Lewison, D.M. (1997). Retailing (6th ed.) [p. 445]. Upper Saddle River, NJ: Prentice Hall.


23. DTrain employees. Sportswear stores try to ensure the accuracy of the physical count by training and supervising the employees who are responsible for counting inventory. Stores make sure that the employees counting inventory understand what is expected of them and have the necessary forms to accurately complete the count. Hiring managers, dismantling displays, and planning schedules are not techniques used to ensure the accuracy of the physical inventory count.SOURCE: DS:025SOURCE: DS LAP 6—Counting Inventory

24. CDetermine a clothing store's net profit or net loss. Using a dollar inventory control system provides information for a store to determine amounts of purchases, sales, and dollar values of beginning and ending inventories. These amounts are used to calculate cost of goods sold, net sales, and net profit/loss. A unit inventory control system is used to determine how many items are in stock at a particular time and to track the needs and wants of customers. A manual count should be done at least annually.SOURCE: DS:019SOURCE: DS LAP 2—Inventory Control Systems

25. APhysical count. A physical count determines the precise amount of stock on hand at the time of the count by tallying each unit of stock. The business controls its stock by comparing the current count with the figures from previous counts. When using visual control, employees simply look over the stock from time to time to see what is in short supply. Tickler control is a rotating system of counting portions of stock at regular intervals, rather than counting all of the stock at once. Concentric control is a distractor.SOURCE: DS:022SOURCE: DS LAP 3—Unit Inventory Control Systems

26. DSKU. SKU stands for stockkeeping unit which is a classification of goods according to such characteristics as brand, material, price, size, color, supplier, or style. GDP is the acronym for gross domestic product. UPC stands for universal product code, the bar code printed on products. FOB, free on board, is a shipping term used to indicate whether the buyer or the seller pays the shipping costs.SOURCE: DS:091SOURCE: Ogden, J.R., & Ogden, D.T. (2005). Retailing: Integrated retail management (p. 264). Boston:

Houghton Mifflin.

27. BPromotion. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Because most menswear stores plan their promotional activities well in advance, they need to coordinate that effort with distribution. Problems may arise if advertising or special events are planned to promote goods that are not available on schedule. Stores should make sure that goods will be delivered on time to coordinate with promotional activities. Purchasing is a business activity rather than a marketing activity. Management is the process of coordinating resources in order to accomplish an organization's goals. Organizing is the management function of setting up the way the store's work will be done.SOURCE: DS:048SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 430-431]. Upper Saddle River,

NJ: Prentice Hall.


28. BVertical. Vertical conflict occurs among different levels of the same channel of distribution, such as between a manufacturer and its authorized retailers. If a shoe manufacturer begins to allow retailers other than those currently authorized to sell the brand-name shoes, the retailers may become upset because others now have the same products. Expanding the number of outlets for the shoes may be good for the manufacturer but detrimental to the retailers because they will have more competition. Horizontal conflict occurs among businesses at the same channel level, such as between the authorized businesses in the same city. Contractual and industrial are not types of channel conflict.SOURCE: DS:049SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [pp. 358-359].

Upper Saddle River, NJ: Prentice Hall.

29. DSpecialty. Specialty goods are consumer goods with special or unique characteristics consumers are willing to exert efforts to obtain. Examples of specialty goods include diamond rings, antiques, and oil paintings. Convenience goods are goods that are purchased quickly and without much thought or effort. Shopping goods are products purchased by customers after comparing goods and stores in order to get the best quality, price, and/or service. Industrial goods are used to make other products or consumed in the manufacturing process.SOURCE: EC:002SOURCE: EC LAP 10—Goods and Services

30. BRelative. One price compared to another, that is, the ratio between them, is the relative price. Whether prices go up or down, relative prices do not change if the ratio remains the same. For example, if all prices increased by 10%, the relative prices would remain the same. Market price is the actual price that prevails in a market at any particular moment. Equilibrium price is the point at which the quantity of a good that buyers want to buy and the quantity that sellers are willing to sell at a certain price are exactly equal.SOURCE: EC:006SOURCE: EC LAP 12—Price

31. DRisk. In a business venture, the outcome is uncertain, there is a chance of loss, and no one knows what may happen. This is risk. In some cases, the risk can be reduced by planning certain kinds of protection such as insurance, but not all risk is insurable. The incentive for going into business is the belief that it will succeed, and the reward will be profit.SOURCE: EC:010SOURCE: EC LAP 2—Risk Rewarded

32. COutput will increase by smaller and smaller increments. For example, as additional workers continue to be added to a production process—past a certain point—they need more space, access to equipment, etc. Since these factors are unchanged (space and equipment), the workers become less efficient in doing their jobs. Output overall does increase with additional workers, but it does so by smaller and smaller amounts. Output does not decrease, because more workers will always produce some increase in output, however small. Output will not increase proportionately to the additional resources dedicated to the project, since at some point, the workers will become less efficient. Output does not remain constant when additional workers are added to the production process.SOURCE: EC:023SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [pp. 162-163]. Cincinnati:

South-Western College.


33. AInstallment credit. Installment credit is a type of credit account set up to handle one total amount of credit which is to be paid off in regular installments. The credit user makes a down payment and signs an agreement to pay monthly installments, including interest, until the total is paid. Revolving credit limits the total amount of money that may be owed and charges interest on outstanding balances. A credit card is an identification card that permits the credit account holder to charge purchases to the credit account. Open-account credit allows credit users to buy at any time during a set period, usually 30 days.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance

34. BInternal. Marketing information is all the marketing-related data available from inside and outside the jewelry store. It is gathered by companies for use in marketing decision making. Internal sources are found within the store itself and also include budgets, past sales trends, sales quotas, stockturn, and cost figures. External sources of information provide insight into the economic environment in which the store is operating. External sources include libraries, trade journals, and market-research companies.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

35. CResearchers are involving participants without obtaining their consent. Placing researchers in public locations to observe consumer behavior is a controversial issue. Proponents of these activities claim that anyone who appears in a public place, such as a mall, is open for observation. However, there are others who believe that these activities invade people's privacy when they are not told they are being observed. Although some data derived from observation techniques are subjective or even inaccurate, it is not appropriate to conclude that most of the information is unreliable. Marketing researchers do not always pay for information; payment depends on the nature of the research and the source. For example, a business might gather volunteers for a focus group and not compensate them. Some researchers might overlook important factors while using observation techniques. However, it is not true of all researchers.SOURCE: IM:025SOURCE: Churchill, G. (2001). Basic marketing research (4th ed.) [pp. 61, 63]. Mason, OH:

South-Western.

36. DCookies. Cookies are bits of data stored on an Internet user's computer. Cookies reveal what a consumer is buying and what web sites s/he is visiting. Cookies allow marketers to design personalized web pages geared to individual consumer's preferences and buying patterns. This type of data is not known as biscuits, temporary files, or databases.SOURCE: IM:183SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 185-186].


37. DObtain data about new products. A business's web site contains volumes of information designed to attract customers and encourage them to buy. However, this information is also available to competitors. Consequently, marketing-information managers often monitor their competitors' web sites to obtain data about new products that competitors might be selling. This data might indicate the characteristics and features of the products as well as pricing information. Businesses might use this information to develop similar products or to update existing products. Although businesses post a lot of information on their web sites, they usually do not include information about inventory turnover rates, current sales records, or regional economic factors.SOURCE: IM:184SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 229].



38. DSilhouette. The silhouette is the shape of a fashion. It is slow to change because consumers want to be able to wear last year's fashion purchases and not feel outdated. The other alternatives represent aspects of fashion that change more rapidly.SOURCE: IM:006SOURCE: IM LAP 1—Fashion Trends

39. CPlace. Marketing research can tell the shoe store the advantages and disadvantages of various locations so that the store can choose the location that would get its products in the right place at the right time. The price decision involves deciding the amount of money marketers will ask in exchange for their products; the product decision involves deciding what goods, services, or ideas to sell; and the promotion decision involves selecting the type of communications that will be used to inform, persuade, or remind customers of their products.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research

40. DLife stage. Though social/economic status, origin/heritage, and personal belief all affect customer purchases, it is life stage (where the customer is in his or her life) that determines how s/he fits into the day-to-day buying routine.SOURCE: IM:196SOURCE: IM LAP 9—Have We Met?

41. ALowering prices by 5%. Marketing strategies are plans of action for achieving marketing goals and objectives. To be effective, marketing strategies need to specify how a clothing store will achieve it goals. For example, lowering prices by 5% is an action a store can take to attract more customers which is the purpose of the marketing plan. Obtaining $1 million in sales, increasing profits by 10%, and reducing operating costs are examples of marketing objectives. To achieve those objectives, the store identifies marketing strategies such as lowering prices by 5%.SOURCE: IM:197SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [pp. 45-46]. Mason, OH: South-Western.

42. AEnvironmental scanning. Environmental scanning involves obtaining and compiling information about those environmental forces that might be relevant to the company's strategic planners. Market penetration involves taking steps to boost sales of present products. Diversification is a strategy of expanding into related market segments. Vertical integration involves owning or controlling the inputs to the firm's processes.SOURCE: IM:140SOURCE: Dessler, G. (1998). Management: Leading people and organizations in the 21st century

(3rd ed.) [pp. 182-183, 186]. Upper Saddle River, NJ: Prentice Hall.

43. AThe shorter the forecast, the more accurate the prediction. Forecasts that project sales beyond one year are less accurate than short-term forecasts due to unpredictable changes that can occur over a longer period of time. Market conditions can vary at any time; therefore, bridal salons cannot be assured that conditions will remain the same for a year. Longitudinal studies are research efforts that measure certain factors repeatedly over a long period of time. Forecasting methods can be appropriate for periods longer than one year depending on the objectives of the forecast, the business's resources, the purpose(s) of the forecast, and the conditions of the market.SOURCE: IM:003SOURCE: IM LAP 3—Nature of Sales Forecasts


44. ACommitted to. Team members must believe in the team's goals and be committed to working toward achieving them. They may even have to set aside their personal goals temporarily in order to focus on the team's goals. Team members should not be curious about the team's goals but thoroughly familiar with them. They should not be indifferent to or undecided about the goals.SOURCE: IS:004SOURCE: HR LAP 26—Teamwork

45. DListening carefully. Listening to others without interrupting is a sign of respect. It shows that you are interested in what they have to say. It also shows you are trying to understand them, and that is an aspect of empathy. Asking few questions would indicate a lack of interest in others. Being critical is negative and directly opposed to empathy. Limiting your contacts with others is avoidance behavior that provides little opportunity for empathy.SOURCE: IS:009SOURCE: HR LAP 17—Empathy

46. BSlow/Methodical. Slow/Methodical customers require a lot of time to make a purchase because of shyness or difficulty in making a choice or buying decision. Disagreeable customers are unpleasant and hard to help because they are argumentative, complaining, irritable/moody, insulting, impatient, and/or have a leave-me-alone attitude. Dishonest customers intentionally attempt to avoid paying part or all of the cost of a good or service. Suspicious customers question everything and may want facts and proof before being convinced that something is true.SOURCE: IS:013SOURCE: EI LAP 1—Making Mad Glad

47. A7. An important part of developing a project plan involves determining how long it will take employees to complete the project. Once an accessory shop calculates the total number of required hours, it must factor in the amount of time that employees have to work on the project. If the employees are part-time, it will take them longer to complete a project because they do not put in 40 hours a week. To calculate how many weeks it will take the three part-time employees to complete a 455-hour project, first determine the total number of hours they work each week (20 hours x 2 employees = 40 hours a week, plus one employee at 25 hours a week = 65 hours a week). Then, divide the number of hours needed to complete the project by the weekly hours (455 ÷ 65= 7).SOURCE: MN:153SOURCE: Loy, G. (n.d.). To do project plan. Retrieved October 12, 2005, from

http://www.cc.gatech.edu/classes/cs3302_97_spring/projects/team2/project-plan.html

48. CPaying bills within the discount period. Most suppliers grant discounts to menswear stores that pay their bills within a certain period of time. Employees who are responsible for paying the store's bills should make sure that payment is made on time so that the store saves the amount of the discount. Paying all bills as soon as they are received would not help to control expenses since some bills have an extended payment period of 60 or 90 days. The store can use its money in other ways during the extended payment period. Buyers try to negotiate the most favorable dating terms with vendors at the time of purchase, not when the bills are due. Trade credit is credit granted by suppliers when they allow stores an extended period of time in which to pay for goods.SOURCE: MN:016SOURCE: MN LAP 56—Employee Role in Expense Control


49. APerform job expectations. The ability to perform job expectations and duties may be directly affected by the lack of exercise, sleep, and adequate relaxation. Employees might not be able to sustain the energy levels required for many job duties if they are tired, out-of-shape physically, or tense. Lack of exercise, sleep, or adequate relaxation do not necessarily affect an individual's ability to socialize with coworkers, enter training programs, or learn of new opportunities.SOURCE: PD:002SOURCE: PD LAP 5—Brand ME!

50. CExplain the situation to the creditor. Honest people pay what they owe when it is due. If some unexpected event makes it impossible for them to do so, they contact the creditor to explain. Often, some extended payment system can be arranged. This prevents the business from turning the debt over to a collection agency to be collected. Waiting for a call from the creditor indicates a lack of interest in paying the debt.SOURCE: PD:006SOURCE: HR LAP 19—Honesty and Integrity

51. BIncreasing their employability. Workers who take initiative may be more employable because of the recommendations they receive from previous employers and their records as good workers. They will still need to have a résumé to outline their skills and experience. Initiative does not help workers qualify for benefits or affect the minimum wage, which is set by federal law.SOURCE: PD:010SOURCE: HR LAP 14—Initiative

52. BAchievement. 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: PD:014SOURCE: HR LAP 12—Self-Esteem

53. DChange. Change transforms or makes things different. To create means to originate something new. To produce means to bring forth or to manufacture. To substitute means to put one thing or person in the place of another.SOURCE: PD:016SOURCE: HR LAP 8—Adjusting to Change

54. AUnderstanding. In order to set goals for yourself, you must have a clear understanding of what your skills and abilities are. Your goals will not be appropriate unless you know who you are, what you want to achieve, and what you are capable of doing. Self-centeredness is a form of selfishness. Self-consciousness is excessive focus on yourself. Self-importance is pride.SOURCE: PD:018SOURCE: HR LAP 6—Goal Setting

55. DOccupational Outlook Handbook. This publication is available in most libraries and provides up-to-date information about the number of openings, advancement potential, and pay rates for a wide range of careers. It is revised regularly by the U.S. Department of Labor based on current job statistics. Career centers and school guidance offices are helpful sources of information for people who are still in school or ready to graduate. Temporary jobs can provide experience but are limited in scope and probably would not be helpful to people who are currently employed.SOURCE: PD:022SOURCE: Kimbrell, G., & Vineyard, B.S. (1998). Succeeding in the world of work: Teacher's

wraparound edition (6th ed.) [pp. 52-53]. New York: Glencoe/McGraw-Hill.


56. DApparel retailing careers. Many are drawn to careers in apparel retailing because of the variety and opportunities that exist. There are two broad possibilities—owning a business or working for an employer—and many who make their careers in apparel retailing open their own retail businesses after they've gained experience as employees. Training, working on displays, buying merchandise, and interacting with customers are just a few examples of activities that are part of retailing careers. These activities are not necessarily a part of climbing the corporate ladder, nor do they describe a management development program. However, those learning to be managers, or more effective managers, often spend time learning and experiencing as many different kinds of retail job functions as possible. Having sales, special promotions and events, and offering special merchandise would all be examples of activities that can help boost sales.SOURCE: PD:038SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[p. A1]. Upper Saddle River, NJ: Prentice Hall.

57. BSalary requirements. It is not necessary for applicants to specify their salary requirements on a job application. Applicants usually want to have the opportunity to discuss salary in person rather than run the risk of asking for too much or too little before obtaining an interview. Educational background, personal data, and professional experience are examples of the types of information that should be included in a job application.SOURCE: PD:027SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [p. 47].

Mason, OH: South-Western.

58. AAdjust prices. Because pricing is a tug-of-war, clothing stores will need to be willing to adjust their prices. These adjustments can be increases or decreases, depending on the circumstances faced by the store. For example, when economic conditions are good, stores might increase prices because customers are more willing to spend. Stores are not always able to reduce expenses because many expenses are fixed. The goal of business is to increase sales, but that often depends on the state of the economy which is beyond the control of the business. Not all stores offer discounts, which are reductions from the price of goods.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

59. CTo simplify the price-marking function. The Universal Product Code (UPC) label is encoded with product information such as price, brand, size, etc., to be read by an electronic scanner. Technology allows accessory manufacturers to preprint this data on packages before shipping them to stores. The preprinted data simplify the price-marking function because the store does not need to mark a price on each product. The UPC data contain the necessary pricing information. Preprinting UPCs on products does not increase the product turnover rate, reduce the possibility of theft, or improve the transportation system.SOURCE: PI:016SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 432].


60. AProduct mix. The size of a sportswear store's product mix affects a store's pricing objectives. A store with a large product mix does not have to rely on any one unit for its income. However, in a store with a small product mix, the price of each product has more effect on the firm's total income. Channel members, fixed costs, and supply are factors to be considered when setting selling prices, but they are not factors of a store's objectives and strategies.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price


61. CLife cycle. The course that a product follows in the market, including the stages of introduction, growth, maturity, and decline, is known as the product life cycle. After being introduced on the market, all products move through the life-cycle stages at different rates, requiring different marketing strategies. Apparel manufacturers should plan marketing strategies that will be most effective for the product at each stage of its life cycle. Research studies are often used to aid product/service management in order to gather information concerning consumer needs and preferences. Test-marketing is the process of introducing a new product to a limited market to determine what its acceptance will be. Feasibility analysis is examining such factors as demand, costs, competition, capital investment required, and potential profit of a good or service to determine how it will fit into the company's product mix.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning

62. CCarrying purses. These dresses had no room for pockets, so women began carrying purses. Sandals are not mentioned in connection with these garments. Crinolines were worn in the mid-nineteenth century when dresses were full-skirted. There is also no mention of umbrellas at this time.SOURCE: PM:044SOURCE: Weber, J. (1997). Clothing: Fashion, fabrics & construction (3rd ed.) [p. 99].

New York: Glencoe/McGraw-Hill.

63. DPolitical. Displaying American flags on apparel sold at the Olympics is an example of political influences. Wearers of the apparel want others to know they are proud of their country. Certain apparel being worn by specific age groups is an example of demographic influences. Apparel items being worn by people attempting to fit in is an example of social influences. Apparel worn based on psychographic influences gives the wearer higher self-esteem such as wearing the logo of one of the world's best fashion designers.SOURCE: PM:046SOURCE: Diamond, J., & Diamond, E. (1997). The world of fashion (2nd ed.) [pp. 93-101].

New York: Fairchild.

64. CHigh-fashion evening gowns. Diagonal lines are typically seen in high-fashion clothes and sportswear, as their nature is trendy and more dramatic. Straight lines have a crisp look and are used in conservative styles such as women's business suits and dress shirts or blouses. Curved lines create a more casual look such as one you might find in men's casual shirts.SOURCE: PM:048SOURCE: Weber, J. (1997). Clothing: Fashion, fabrics & construction (3rd ed.) [pp. 172-173].


65. DRise. During this stage of the fashion cycle, promotional efforts focus on increasing consumer desire for the product and motivating them to buy and wear the items. Retailers stock the product in large quantities. The introduction stage features new styles or colors in small quantities. The peak, also known as the culmination stage, features fashions at the height of popularity. The product would be available at almost all retail stores at affordable prices.SOURCE: PM:050SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 37). Chicago: Goodheart-Willcox.


66. DUse environmentally friendly packaging. One of the ethical issues that product/service managers face is that of being environmentally friendly. Many businesses have altered their packaging after being pressured to do so by consumers. Ethics are principles that govern behavior and do not involve the use of color on the label or using the packaging for promotion. Including nutrition information is not an ethical decision because it is required by law.SOURCE: PM:040SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 577].


67. BUnconditional guarantee. With an unconditional guarantee, there are no conditions that the customer must meet in order for the guarantee to be in effect. With a conditional guarantee, the customer must meet certain conditions before money can be refunded. 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.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

68. BEqual Credit Opportunity Act of 1975. This law was passed to prevent businesses from discriminating against consumers who apply for credit. The law also protects consumers by entitling them to a written explanation of the reasons for the denial. The Federal Trade Commission Act of 1914 established the Federal Trade Commission. The Consumer Credit Protection Act of 1968 requires businesses to state the annual rate of interest charged on credit purchases. The Fair Debt Collection Act of 1980 prevents businesses from harassing or abusing their bad-debt customers in order to collect from them.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning

69. CAlteration. Alteration is a product-mix strategy in which a business makes changes to its products or product lines. New packaging would be an example of alteration. Expansion is a product-mix strategy in which a business expands its product mix by adding product items or product lines. Trading-up is a product-mix strategy in which a business adds a higher priced product or product line to its product mix. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

70. A$70,000. The formula for computing open-to-buy is goods received plus goods ordered subtracted from planned sales. In this example, combine goods received and goods ordered ($18,000 + $37,000 = $55,000) and subtract that figure from planned sales ($125,000 - $55,000 = $70,000). Planned reductions, beginning of month inventory, and end of month inventory are used in determining planned sales.SOURCE: PM:058SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 414].


71. CFalse, all elements of the marketing mix should complement the intended position. One or two elements of the marketing mix may be primary, but all need to be coordinated for successful product/service positioning.SOURCE: PM:042SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 167-169].

Boston: Irwin.


72. BMerchandising plan. In order for a dress shop to be successful, it must offer goods that meet its customers' needs and support its image. A merchandising plan defines the market the shop wants to serve, the kinds of apparel items it plans to carry, and the image it wants to create. These goals provide guidelines for the merchandise budget. Merchandise classifications are the categories into which products are divided, e.g., color or style. Past sales records show what the dress shop has sold in the past. Perpetual inventory records are an ongoing record of all inventory transactions.SOURCE: PM:061SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


73. B$847.50. To calculate the dollar amount of planned reductions for June, multiply the percent of planned reductions by the planned monthly sales figure (5% or .05 x $16,950 = $847.50).SOURCE: PM:063SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


74. BSales records. Records of past sales reveal customers' preferences and are usually studied by buyers. Vendor records are useful in selecting vendors from whom to purchase. Sales forecasts are predictions of future sales levels over a specific period of time. Shoplifting records might give indications of desirable items but would not be used in making purchasing decisions.SOURCE: PM:120SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 420].


75. AStock turnover rate. An accessory store owner needs to know how often goods sell in order to determine when to buy more. The stock turnover rate provides this information. Cost of production is the total amount of money spent on materials, labor, taxes, etc., to manufacture economic goods and services. Equilibrium price is the price at which the quantity of a good that buyers want to buy and the quantity that sellers are willing to sell are exactly equal. Gross domestic product is the final total value of all goods and services produced within a country's geographic boundaries within a year's time.SOURCE: PM:122SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


76. BPersuade customers to buy. Promotion is the communication of information about goods, services, images, and/or ideas to achieve a desired outcome. One of the desired outcomes is to persuade customers to buy. Promotion is often used to introduce new products in the hope that customers will buy. Ads are developed to communicate information.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

77. AInstitutional public service. This type of promotion informs consumers of noncontroversial issues which are in the public's best interest. They often build goodwill for the firm. In this specific example, the clothing store is depicted as a friend of the community. Primary product promotion focuses on creating consumer demand for an entire class of goods or services. Secondary product promotion attempts to create demand for a specific brand. Institutional public-relations promotions inform consumers of controversial issues that are in the public's best interest as well as being related to the company or its products. These promotions may improve a negative image or establish a positive one.SOURCE: PR:002SOURCE: PR LAP 4—Types of Promotion


78. CPersonal selling. The average cost of an industrial sales call is estimated to be more than $225. Trends indicate that this cost will continue to rise. While the cost of an advertisement may be high, advertising costs less on a per contact basis. Sales promotion includes promotional activities other than advertising, personal selling, and publicity which stimulate consumer purchases. Examples include coupons, fashion shows, and displays. Publicity is free.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix

79. BWeb-site advertising. The World Wide Web (WWW) is a vast collection of interconnected sites and files accessible through the Internet. Many bridal salons have sites on the Web and use these sites as a way of advertising and promoting their products to customers. Some bridal salons buy advertising on related web sites and set up the ads in such a way that users can be transported to the businesses' home pages by clicking on the ad. Online-media planning, electronic scheduling, and digital processing are not ways that bridal salons use technology to promote their products.SOURCE: PR:100SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [pp. 515-517].


80. CCoordinated. The elements of an advertisement (headline, illustration, copy, and identification) must be coordinated to produce the effect desired for the advertisement as a whole. All of the parts must be in harmony and work together. The elements do not need to be unique or endorsed, and this would not be possible for some advertisements. Ads should be customer oriented rather than company oriented.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

81. CTelemarketing. Telemarketing is a promotional medium grouped with "other media" that utilizes telephone service to promote a product either by phoning prospective customers or providing a number for them to call. Telemarketing is considered a direct advertising strategy because it provides direct contact between the business and the customer. Many businesses use telemarketing to inform customers of new goods and services and encourage them to buy. Broadcasting is a promotional media that uses radio waves to reach consumers. Merchandising is the process of having the right goods in the right place at the right time in order to make a profit. Syndicating is not a direct advertising strategy.SOURCE: PR:089SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)


82. ASpecialty magazine. Sportswear stores want to obtain mailing lists of individuals who have an interest in their products and are potential customers. One source of such lists is a specialty magazine that focuses on one main subject, such as tennis or golf. Subscribers to that magazine are interested in the subject and are potential customers of sportswear stores that sell related goods and services. Many specialty magazines sell their subscription lists to stores. Local competitors, government agencies, and television stations usually do not sell mailing lists.SOURCE: PR:091SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2000). Advertising principles and practice (5th ed.)



83. BTo encourage impulse buying. Encouraging impulse buying is an example of how visual merchandising and merchandising work together to achieve sales. Displaying novelty goods near checkout counters promotes the sale of those items to customers who are waiting in line to check out and often are enticed into buying the items on impulse. The visual display makes goods available at the right time and at the right place. Discount clothing stores want to use all available space, but that is not the primary consideration in displaying novelty goods near checkout counters. Stores display goods near checkout counters primarily to encourage buying rather than to accommodate customers or to offer promotional discounts.SOURCE: PR:026SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)


84. ACustomer handling. The items in a display of clothing are often handled by customers who are searching for a certain size or color. As a result, the display becomes disorganized and may no longer be attractive. Therefore, displays require maintenance on a daily basis, or even several times a day, so the merchandise can be rearranged and presented in an orderly manner. Poor lighting might be corrected when the display is installed or sometime later if bulbs burn out. However, this is not a daily occurrence. Signage usually is not misplaced on a daily basis. Display maintenance might involve dusting shelves on a regular basis, such as weekly rather than daily because shelves usually do not collect a lot of dust in one day.SOURCE: PR:052SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 330].


85. CTo reduce staffing needs. Most discount shoe stores keep only a few employees on duty at a time. Therefore, the use of self-service display fixtures reduces the need for hiring additional staff to assist customers. The fixtures allow customers to quickly serve themselves and purchase the items they want without the help of a store employee. Self-service display fixtures are open, which makes the merchandise easily accessible rather than protected. Most discount shoe stores stock large selections. Using self-service display fixtures does not decrease delivery time.SOURCE: PR:031SOURCE: Colborne, R. (1996). Visual merchandising: The business of merchandise presentation

(p. 170). Albany, NY: Delmar.

86. BManufacturer. A clothing store would contact an apparel manufacturer to arrange a trunk show. The purpose of the trunk show is to show a complete collection of one manufacturer's fashions to customers. During the show, customers are able to place orders for any item in the line. The advantage to stores of having a trunk show is that they can sell apparel items without buying the items before customers order them. This eliminates the risk of purchasing and inventorying items that customers do not want. Designers, wholesalers, and distributors are not responsible for arranging trunk shows.SOURCE: PR:063SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (p. 210).

Chicago: Goodheart-Willcox.

87. CStore department. A specific department of a store often is the location of a fashion show. Because these shows are easy to organize and fairly inexpensive, they are often used by retailers who have limited promotional budgets. A retailer usually clears the merchandise from one department and arranges chairs to form a makeshift runway. Hotel ballrooms, civic auditoriums, and area restaurants are more expensive locations for fashion shows because the retailer must lease the space.SOURCE: PR:064SOURCE: Wolfe, M.G. (1998). The world of fashion merchandising (pp. 421-422).

Chicago: Goodheart-Willcox.


88. ASetting up displays of suits being promoted on TV. Displays are part of visual merchandising, a form of promotion. Using displays to help sell items that are being promoted on television is a way to coordinate the two promotional activities. All of the other alternatives are activities that would help to sell products, but they are not examples of coordinating promotional activities.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.

89. DMood. One reason for planning specific display themes is to create a certain mood, or atmosphere, throughout the store. The theme of the store-wide display often refers to a particular concept or activity. For example, a sportswear store might plan displays that relate to a recreational theme or a summer vacation theme. All the displays throughout the store reflect that theme and help to create a mood that puts customers in the frame of mind to buy. The layout is the physical arrangement of the store. The pattern is the way that customer traffic is directed to flow through the store.SOURCE: PR:077SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)

[p. 463]. Upper Saddle River, NJ: Prentice Hall.

90. DTheir competitors. All apparel manufacturers compete for scarce customer dollars. Manufacturers continue to develop new or improved products in order to attract customers and to make more sales than their competitors. The manufacturers that can sell the most products will succeed. Manufacturers cannot sell more than their customers want, the market demands, or their vendors need.SOURCE: SE:017SOURCE: SE LAP 117—Selling

91. CLack of courtesy from salespeople. Salespeople must be courteous to customers in order to build customer loyalty. High prices, poor location, and lack of assortment/selection may be other reasons why customers don't make additional purchases, but the number-one reason is lack of courtesy.SOURCE: SE:828SOURCE: SE LAP 115—Building Clientele

92. CSelling samples for income. This is an example of misusing company assets and is illegal because the samples are intended to be given away free of charge. Exaggerating product benefits and withholding information are both deceptive practices. Practicing the hard sell is noncustomer-oriented behavior. These activities maybe unethical, but they are not illegal, as is selling samples for income.SOURCE: SE:106SOURCE: Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker, C.H., & Williams, M.R. (2001).

Professional selling: A trust-based approach (p. 75). Mason, OH: South-Western.

93. CUnethical sales practices. Selling regulations are often developed by various levels of government to protect consumers from unethical sales practices such as misrepresentation or price discrimination. Some regulations also give consumers an opportunity to cancel a contract within a certain period of time. The intent is to protect consumers from being tricked or coerced into buying products that are not what they seem to be, or buying products they do not want. Selling regulations are not developed to protect consumers from assertive salespeople, from buying low-quality products, or spending too much money. Effective salespeople usually are assertive. Consumers have the right to buy low-quality products as long as they know the products are of low quality. Consumers also have the right to spend too much money.SOURCE: SE:108SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [94-95].



94. BPrepare a feature-benefit chart. A feature-benefit chart is a list that may be arranged alphabetically to show product features and corresponding benefits. Once clothing store salespeople have obtained important product information, they should arrange the information in a chart that will help them explain it to customers. Preparing such a chart will help salespeople remember the features and benefits and should aid them in developing meaningful selling sentences. Salespeople do not usually develop catalogs, write brochures, or organize training. However, reading sales catalogs and promotional brochures and attending training seminars are ways that salespeople can obtain product information.SOURCE: SE:109SOURCE: SE LAP 113—Feature-Benefit Selling

95. BInterfacing. Interfacings are shaped pieces of material cut from interfacing fabrics of varying stiffness and used to reinforce parts of a garment. Lining hides the garment's inner construction. Interlinings are added to garments to provide extra warmth. Underlinings are linings cut from the same pattern pieces as the garment and stitched to each individual section of the garment before it is assembled.SOURCE: SE:122SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [p. 446]. Chicago: Goodheart-Willcox.

96. BTailored business suit. This represents the tubular shape, is rectangular with vertical emphasis, and the waistline is usually not defined. A collared shirt with slacks and belt represents the natural shape, one that follows the body's outline. Flared pants and jacket combine vertical and horizontal lines into a bell shape. A gathered skirt represents the full shape and has more horizontal and curved lines than other shapes.SOURCE: SE:124SOURCE: Weber, J. (1997). Clothing: Fashion, fabrics & construction (3rd ed.) [p. 175].


97. DWaistline and dress length. Half-slips hang from the waistline. They come in short, average, tall, and extra-tall lengths. The correct size half-slip would fit comfortably around the customer's waistline and should be whatever length would not hang below her skirt. The bustline and bra sizes do not affect the sizing of a half-slip since the slip does not cover the upper portion of the body. Hip size is not generally a factor in fitting a half-slip.SOURCE: SE:126SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [p. 278]. Chicago: Goodheart-Willcox.

98. AParka. A parka is a warm jacket with a hood. The outside of a parka is often a synthetic or a blend. A layer of fiberfill, goose down, feathers, or other fuzzy material is inserted between the outer fabric and the parka's lining. This holds in body heat without making the jacket heavy. A mackinaw is a three-quarter length, sporty coat made in plaid fabric. A safari jacket is a lightweight, khaki-colored jacket approximately hip length. A slicker is a jacket made of rubber-coated or vinyl-coated fabric which is waterproof.SOURCE: SE:128SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 48, 451]. Chicago: Goodheart-Willcox.

99. CIt meets customers' needs. A basic reason for adopting the selling process as the preferred sales approach is to ensure that customers' needs are met. While there are salespeople for apparel manufacturers who can be successful without following a set of logical steps in the selling process, a step-by-step method has been considered the traditional road to effective selling. Following the selling process does not necessarily simplify paperwork. Demonstrating products and identifying customers' buying motives through questioning are steps in the selling process, but not reasons why salespeople use the process.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process


100. BTo dramatize an outfit. Men's accessories should dramatize or accentuate an outfit. Well-chosen, appropriate accessories enhance a man's appearance and create a more fashionable look. Men's accessories include items such as belts, ties, suspenders, hats, handkerchiefs, gloves, and jewelry. Men's accessories are not intended to promote current fads or to accentuate size. Stores that sell accessories often increase their sales, but that is a function of men's accessories for the business.SOURCE: SE:070SOURCE: Wolfe, M.G. (1998). Fashion! (3rd ed.) [pp. 243-247]. Chicago: Goodheart-Willcox.

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