When Making a Good Markdown Decision, a Retailer Should

question 55

Multiple Choice

When making a good markdown decision, a retailer should

• A) work closely with its vendors and share the financial burden of the markdowns.
• B) only trust its own tastes and intuitions when stocking merchandise.
• C) rely exclusively on computer software designed for optimal pricing.
• D) consider only the rules-based approach because it has proven its reliability.
• E) look to limit markdowns as they hinder customer loyalty.

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Definitions:

Cohen's D

A measure of the size of an effect or difference between two group means, expressed in standard deviation units.

Variance

A measure of how much values in a data set differ from the mean of the set.

Cohen's D

Cohen's d is a statistic used to quantify the difference between two means, measured in standard deviations.

Cohen's D

A measure of effect size indicating the standardized difference between two means.