Assessment Tool

Written Response Tasks

Name: Jon Bryan N. Montejo Course code & descriptive title: MMPC 7 Retail Management
Course & Year: BSBA-MM, 3rd year Module No. & Inclusive week/s: Final Exam
Date Submitted: May 21, 2021 Grading Period: Final Exer No. _____

Test 1.

1.) Supply Chain- is the network of all the individuals, organizations, resources, activities and
technology involved in the creation and sale of a product.
2.) Logistics Inventory- is the detailed coordination of a complex operation involving many
people, facilities, or supplies.
3.) Primary marketing institutions- manufacturers, wholesalers, and retailers are part of PMI.
4.) Merchandising- is the activity of promoting the sale of goods, especially by their presentation
in retail outlets.
5.) Merchandise budget- is a document that will outline how much the company expects to sell in
the new season as well as how many goods it plans to purchase.
6.) Retail inventories- is an accounting method used to estimate the value of a store's
merchandise.
7.) Yield management- is the process of making frequent adjustments in the price of a product in
response to certain market factors, such as demand or competition.
8.) Profit maximization- is the short run or long run process by which a firm may determine the
price, input and output levels that lead to the highest profit.
9.) Customary pricing- Is a technique used to determine the price for a product and/or service
based.

10.) Target return objective- is a pricing model that prices a business based on what an investor
would want to make from any capital invested in the company.
Test 2.

1. What factors should a retailer consider when establishing pricing objectives and policies?
 The first thing that retailer should consider is the Cost. First and foremost you need to
be financially informed. Second is Customers. Know what your customers want from
your products and services. Third is Positioning. Once you understand your customer,
you need to look at your positioning. Fourth is Competitors and lastly is the profit.

1.1. How does a store's location affect the price it can charge?
 The store's location can affect the price it can charge because if the retailer chose a
spot or a store that has high monthly amortization, she or he will really get it from the
prices she is selling and if the amortization of the store is expensive, the price of the
product she is selling will really be affected.

1.2. is pricing really an interactive decision? Provide an example of how pricing should interact
with the service offered by the retailer.
 Yes, pricing is an interactive decision and if it’s done unilaterally, it is bound to be high,
leading to low demand or Low, leading to opportunity losses. prices really depends on
the supply and demand so if the supply is high and the demand is low the price will
really not much that expensive but if the supply is low and the demand is high, there will
be a huge increase in the price.

2. Why is a merchandise budget so important in retail planning, and how is a merchandise budget
prepared?
 A merchandise budget is so important in retailing planning because merchandise
budget is used by retailers to determine how much money to allocate in each month on
a particular merchandise category, considering the firm's sales forecast, inventory
turnover and profit margins. Merchandising budget are made for one season and then
broken down into shorter periods like monthly & weekly plans. In an effective
merchandise Budget Plan, a retailer forecasts and plans about five fundamental
variables, namely, sales level, stock levels, purchases, reductions (markdowns) and
gross margin.
1.1. It cost money to carry inventory, retro tailors must carry an amount of inventory in excess of
plant sales for an upcoming period. Why?
  It cost money to carry inventory yet retailers must carry an amount inventor in excess of
plants sales for an upcoming period because Cash is used to purchase inventory and
pay expenses. When inventory is sold it is converted to either cash or receivables,
which eventually turns to cash. The faster this cycle turns, the more efficient and
expedient is your use of your investment.

1.2. Why should a retailer be allowed to change its merchandise budget after the start of the
season? A changes can be made, what would cause such changes?
 Retailers set the allowed to change its merchandise budget after the start of a season
because every business works within the confines of a budget, which indicates how
much it can spend on various things. Retailers analyze data to create merchandise
budgets that are affordable and put the business in the best position to make a profit.

3. What is the retailer's role as a member of the largest supply chain?

1.1. Musta retailer be involved in performing all the marketing? If it can rely on other members of
the Chanel, what functions can be performed and which member can perform them?
 A retailer performs the dual functions of buying and assembling of goods. The
responsibility of a retailer is to identify the most economical source for obtaining the
goods from the suppliers and passing on the advantages to the consumer. The retailers
perform the functions of warehousing and storing so a retailer should not be involved in
performing all the marketing functions.

1.2. Facilitating marketing institutions, since they don't take title to the goods, add no value to a
supply chain, agree or disagree with this statement and explain your reasoning.
 I don’t agree with this statement because consumers benefit from retailing is that,
retailers perform marketing functions that makes it possible for customers to have
access to a broad variety of products and services. Retailing also helps to create place,
time and possession utilities. A retailer's service also helps to enhance a product's
image.