AM 101 Lecture 27: AM 101-chapter 19
16 Nov 2016
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Document Summary
Merchandising policies: maximize a pro t, attract target group of customers, establish goals. Average 5 % increase in ytd sales: adjust to current trends, adjust to marketplace needs. 6 most important stores merchandising policies: stage of fashion cycle being emphasized, level of quality to maintain, price rage, depth and breadth of merchandising assortment, brand policies, exclusivity. Fashion cycle: every store uses cycle to establish its image, emphasis on one phase of the cycle, emphasis style in. Intermediate- high quality and workmanship with concern for price. Serviceable- fairly low level of materials and workmanship with low price. No direct correlation between price and quality. Low quality may carry high price with designer name or introduction to fashion cycle. Retailers attempt to connect price range with quality standards. Ineffective pricing can effect customer trust and hurt pro t. Retailers stress value pricing policies- private label. Few styles- many sizes and colors: broad and shallow.
