Which of the Following Is Not Recommended as a Merchandise

question 34

Multiple Choice

Which of the following is not recommended as a merchandise location practice?

• A) Retailers should strategically place impulse and demand/destination merchandise throughout the store, so they can increase the chances that a customer will shop the entire store and focus on the merchandise with a high GMROI.
• B) Retailers should place merchandise with a high GMROI at or close to the store entrance to attract customers' attentions and sell fast.
• C) Retailers should display some of their most compelling merchandise in the strike zone to create a desirable first impression of the store.
• D) Retailers should display high GMROI products at the right-hand side of the store.
• E) A retailer should strategically cluster complementary products together to facilitate multiple purchases.

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Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and generate profit.

Incremental Annual Net Cash Inflows

The additional cash flow a company receives from undertaking a project, after accounting for direct costs and revenue changes.

Donut Maker

A kitchen appliance used specifically for making donuts.

Simple Rate

A basic, uncomplicated rate often used in calculations that do not require detailed financial complexity.