Merchandising : Theory, Principles, and Practice, 2nd Edition

by Kunz, Grace I.

• ISBN13: 9781563673535
• ISBN10: 1563673533
• Edition: 2nd
• Format: Hardcover
• Copyright: 2005-05-31
• Publisher: Bloomsbury USA Academic

Summary

This book focuses on the process of merchandising and the principles applied to the planning, development and presentation of product lines in both the manufacturing and retailing sectors. It also relates the role of merchandising to other business fundamentals. Vignettes describe alternative merchandising strategies. Applications to other consumer goods are also discussed.

Table of Contents

Preface	xvii
SECTION ONE Merchandising Theory	1	(110)
Merchandising Concepts	2	(30)
Merchandising Processes	4	(1)
Learning Activity 1.1	5	(1)
Definitions of Merchandising	5	(1)
Case 1.1 Making a wholesale business click	6	(2)
Merchandising as a Business Function	8	(2)
Theoretical Foundations	8	(1)
Fundamental Constructs from Behavioral Theories of the Firm	9	(1)
Learning Activity 1.2	10	(1)
Behavioral Theory of the Apparel Firm	10	(2)
Relationships of Internal Constituencies of the Apparel Firm	11	(1)
External Coalitions and Environments	12	(1)
Learning Activity 1.3	12	(6)
The Marketing Concept as a Philosophy of the Firm	12	(2)
Constituencies of the Firm	14	(4)
Learning Activity 1.4	18	(2)
The Decision-Making Matrix According to Behavioral Theory of the Apparel Firm	18	(2)
Case 1.2 Nike laces up Converse deal	20	(4)
Learning Activity 1.5	24	(2)
Case 1.3 What will it take to get Sears back on track?	26	(2)
Summary of Relationships Among a Firm's Internal Constituencies	27	(1)
Fundamental Assumptions of Behavioral Theory of Apparel Firm	28	(1)
Summary	28	(1)
Key Concepts	29	(1)
Recommended Resources	29	(1)
References	30	(2)
Merchandising Technology	32	(44)
Overview of Merchandising Technology	33	(3)
Concept of Merchandising Technology	35	(1)
Learning Activity 2.1	36	(1)
Quick Response Business Systems	36	(3)
Fundamentals of Quick Response	37	(2)
Case 2.1 Wal-Mart will direct top 100 suppliers to use RFID by 2005	39	(1)
Learning Activity 2.2	40	(4)
Merchandising Issues	43	(1)
Case 2.2 Danskin introduces electronic B2B ordering with 7thOnline	44	(1)
Learning Activity 2.3	45	(1)
Theoretical Foundations of Technology Innovation	45	(4)
Theories of the Firm and Theories of Management Style	46	(1)
Organizational Learning	46	(2)
Theory of Diffusion of Innovations	48	(1)
Summary of Concepts of Quick Response and Technology Innovation	48	(1)
Case 2.3 A failure of merchandising technology innovation	49	(3)
Learning Activity 2.4	52	(1)
Decision Making in a QR Universe	53	(3)
Merchandising in a QR Universe	54	(2)
Learning Activity 2.5	56	(4)
Sources and Capabilities of Merchandising Technology	56	(3)
Overview of Potential Outcomes of QR	59	(1)
Merchandising Technology Theory	60	(1)
Summary	61	(1)
Key Concepts	61	(1)
Integrated Learning Activity 2.6.1	62	(1)
Integrated Learning Activity 2.6.2	63	(7)
Integrated Learning Activity 2.6.3	70	(3)
References	73	(3)
Merchandising Systems	76	(35)
Business-to-Business Relationships---Wholesaling	77	(1)
Business to Ultimate Consumer Transactions---Retailing	78	(3)
Case 3.1 Retailers reap rewards of selling goods online	81	(1)
Learning Activity 3.1	82	(6)
Merchandising in Multi-Channel Environments	83	(1)
Taxonomy of Apparel Merchandising Systems	84	(4)
Learning Activity 3.2	88	(4)
Learning Activity 3.3	92	(1)
Context of Merchandising	92	(5)
Income Statements	92	(3)
Relationships of Income Measurements, Income Modifications, and Associated Ratios	95	(2)
Learning Activity 3.4	97	(1)
Income Statements for Mike's Bikes	98	(1)
Company Profile 3.1 Mike's Bikes, Part 1, Financial Position	98	(3)
Learning Activity 3.5	101	(1)
Case 3.3 Nordstrom unveils plan for revamping	102	(1)
Benchmarks of a Firm's Success	103	(1)
Learning Activity 3.6	103	(1)
Summary	103	(3)
Key Concepts	106	(1)
Integrated Learning Activity 3.7.1	107	(1)
Integrated Learning Activity 3.7.2	108	(1)
Recommended Resources	109	(1)
References	109	(2)
SECTION TWO Merchandise Planning	111	(202)
Fundamentals of Merchandise Planning	112	(52)
Traditional Line Planning	113	(2)
Phases of Traditional Line Planning	114	(1)
Contemporary Line Planning	115	(4)
Contemporary Integrated Planning	117	(1)
Phases of Contemporary Line Plans	118	(1)
Learning Activity 4.1	119	(1)
Case 4.1 Federated to supply goods for Bon-Ton	119	(2)
Learning Activity 4.2	121	(1)
Dimensions of Planning Product Lines	121	(3)
Pricing Dimensions	121	(1)
Assortment Dimensions	122	(2)
Company Profile 4.1 Mike's Bikes, Part 2, Merchandise Mix	124	(2)
Learning Activity 4.3	126	(3)
Learning Activity 4.4	129	(8)
Styling--Dimensions of Product Change	129	(5)
Assessment of Product Change and Length of Selling Periods	134	(3)
Learning Activity 4.5	137	(6)
Timing--Merchandising Calendars	137	(6)
Learning Activity 4.6	143	(1)
Forecast-Based Merchandise Plans	143	(3)
Regional and Local Economic and Cultural Influences	144	(1)
During-the-Period Trend Analysis	145	(1)
End-of-Period Trend Analysis	145	(1)
Case 4.2 Merchandise planning with Accurate Response	146	(4)
Learning Activity 4.7	150	(2)
Category Management	151	(1)
Case 4.3 Applying category management to SKU intensive, low turn merchandise	152	(1)
Learning Activity 4.8	153	(1)
Summary	154	(1)
Key Concepts	155	(1)
Integrated Learning Activity 4.9.1	156	(1)
Integrated Learning Activity 4.9.2	156	(3)
Integrated Learning Activity 4.9.3	159	(1)
Case 4.4 Second-hand items, first-rate bargains	159	(2)
Recommended Resources	161	(1)
References	162	(2)
Merchandising Perspectives on Pricing	164	(50)
Pricing Relationships in the Trade Matrix	166	(1)
Control of Price	167	(1)
Case 5.1 States settle CD price-fixing case	167	(1)
Learning Activity 5.1	168	(1)
A Language of Price	169	(1)
Learning Activity 5.2	169	(6)
Perceptions of Price	173	(2)
Learning Activity 5.3	175	(1)
Company Profile 5.1 Mike's Bikes, Part 3, Pricing Policy	175	(1)
Learning Activity 5.4	176	(1)
Pricing Mechanics	176	(4)
Retail Pricing Policies	178	(2)
First Price	180	(1)
Learning Activity 5.5	180	(5)
Markups	180	(2)
Markdowns	182	(1)
Pricing in Relation to the Merchandising Calendar	183	(2)
Learning Activity 5.6	185	(1)
Strategic Pricing	186	(4)
Strategic Pricing Fundamentals	187	(3)
Case 5.2 Slowdown in retail sales creates overstock glut	190	(2)
Learning Activity 5.7	192	(6)
Components of Pricing Strategies	193	(5)
Learning Activity 5.8	198	(5)
Types of Pricing Strategies	198	(5)
Learning Activity 5.9	203	(4)
Understanding the Pricing Game/Application of Pricing Mechanics to Pricing Strategies	203	(4)
Learning Activity 5.10	207	(1)
Summary	207	(1)
Key Concepts	208	(1)
Integrated Learning Activity 5.11.1	209	(1)
Integrated Learning Activity 5.11.2	210	(2)
Recommended Resources	212	(1)
References	212	(2)
Planning and Controlling Merchandise Budgets	214	(52)
Components of Merchandise Budgets	215	(2)
Learning Activity 6.1	217	(3)
Mechanics of Merchandise Budgets	220	(1)
Company Profile 6.1 Mike's Bikes, Part 4, Merchandise Budgets	221	(5)
Planning Sales	222	(4)
Learning Activity 6.2	226	(1)
Planned Sales for Selling Periods, Months, Weeks, or Days	226	(1)
Learning Activity 6.3	227	(5)
Planning Sales Based on Space Productivity	229	(3)
Learning Activity 6.4	232	(3)
Planning Reductions	232	(3)
Learning Activity 6.5	235	(2)
Planning Merchandise to Receive	235	(2)
Learning Activity 6.6	237	(3)
Planning First Price, Allowable Cost, and Number of Units to Receive	237	(3)
Learning Activity 6.7	240	(10)
Developing an Expanded Merchandise Budget	241	(1)
Planning Inventory and Purchases During the Selling Period	241	(9)
Learning Activity 6.8	250	(5)
Planning Purchases, Merchandise On Order, and Open-to-Buy	250	(4)
Planning Initial Markup	254	(1)
Learning Activity 6.9	255	(1)
Summary	256	(1)
Key Concepts	256	(1)
Integrated Learning Activity 6.10.1	257	(1)
Integrated Learning Activity 6.10.2	258	(2)
Integrated Learning Activity 6.10.3	260	(1)
Case 6.1 Manage that inventory!	261	(4)
Recommended Resources	265	(1)
References	265	(1)
Planning and Controlling Merchandise Assortments	266	(47)
In-Store Shopping Behavior	268	(4)
Situational Factors	269	(3)
Learning Activity 7.1	272	(1)
Case 7.1 Wal-Mart eyes BMW crowd	273	(5)
Shopper's Intentions	274	(1)
Stock Situations	275	(1)
Purchase Decisions	275	(2)
Implications for Merchandising Strategy	277	(1)
Learning Activity 7.2	278	(1)
Language of Assortment Planning	278	(3)
Traditional Dimensions of Assortments	279	(2)
Learning Activity 7.3	281	(1)
Company Profile 7.1 Mike's Bikes, Part 5, Merchandise Assortments	281	(4)
Measurable Assortment Dimensions	283	(2)
Learning Activity 7.4	285	(1)
Case 7.2 Famous Footwear is winning the battle of widths	286	(3)
Integration of Assortment Dimensions into Assortment Plans	287	(2)
Learning Activity 7.5	289	(3)
Learning Activity 7.6	292	(2)
The Concept of Assortment Diversity	294	(4)
The Relationship of VSA to Financial Productivity	296	(2)
Learning Activity 7.7	298	(4)
Learning Activity 7.8	302	(1)
Integrated Merchandise Plans	303	(1)
Summary	303	(2)
Key Concepts	305	(1)
Integrated Learning Activity 7.9.1	305	(1)
Integrated Learning Activity 7.9.2	306	(2)
Integrated Learning Activity 7.9.3	308	(1)
Case 7.3 Tommy Jeans makes major line changes	308	(2)
Recommended Resources	310	(1)
References	310	(3)
SECTION THREE Developing and Presenting Product Lines	313	(156)
Developing Product Lines	314	(34)
Fundamental Methods of Line Development	315	(5)
Purchase of Finished Goods	316	(4)
Case 8.1 To sell goods to Wal-Mart, get on the net	320	(1)
Learning Activity 8.1	321	(2)
Product Development as a Means of Line Development	321	(2)
Learning Activity 8.2	323	(4)
Case 8.2 Target-Mossimo sales generate $700M---and designer copies	327	(1)
Learning Activity 8.3	328	(2)
Learning Activity 8.4	330	(1)
Negotiating with Vendors	330	(7)
Manufacturer's Wholesale Price and Cost Structures	332	(5)
Learning Activity 8.5	337	(1)
Case 8.3 Negotiating with Your Vendors	338	(4)
Summary	342	(1)
Key Concepts	343	(1)
Integrated Learning Activity 8.6.1	343	(1)
Integrated Learning Activity 8.6.2	344	(1)
Case 8.4 Solving the special-size puzzle	344	(2)
Recommended Resources	346	(1)
References	346	(2)
Presenting Product Lines	348	(42)
Concepts of Merchandise Presentation	349	(2)
Offering Merchandise for Consideration	350	(1)
Case 9.1 Lifting store sales: Value-added gives a leg up to U.S. hosiery sector	351	(2)
Learning Activity 9.1	353	(1)
Case 9.2 The art of store layout: Enhancing retail presentation	354	(2)
Learning Activity 9.2	356	(1)
Case 9.3 Fashion first when it comes to space in Midwest	357	(2)
Learning Activity 9.3	359	(1)
Merchandise Replenishment	359	(7)
Merchandise Replenishment Model	360	(6)
Case 9.4 Nike's LeBron James sneaker makes rapid strides in sales	366	(1)
Learning Activity 9.4	366	(4)
Merchandise Replenishment in Relation to BTAF	367	(1)
Merchandise Replenishment Technology	367	(3)
Multiple Delivery Strategies in Relation to Merchandise Planning	370	(7)
The Value of Product Velocity	373	(2)
Product Velocity at Mike's Bikes	375	(2)
Case 9.5 The Bermuda Triangle of profits	377	(1)
Learning Activity 9.5	378	(1)
Developing Merchandise Delivery Plans	379	(4)
Learning Activity 9.6	383	(1)
Summary	383	(1)
Key Concepts	384	(1)
Integrated Learning Activity 9.7.1	384	(1)
Integrated Learning Activity 9.7.2	385	(1)
Integrated Learning Activity 9.7.3	385	(1)
Case 9.6 Flexsteel finds niches in embattled industry	386	(1)
Recommended Resources	387	(1)
References	388	(2)
Global Sourcing	390	(46)
The Concept of Globalization	391	(3)
Regulation of Trade	392	(2)
Learning Activity 10.1	394	(1)
Case 10.1 Wal-Mart puts on pajamas, lies down in king-size mess	395	(4)
The Americas	396	(3)
Case 10.2 U.S. firms a force in Canadian apparel market	399	(1)
Learning Activity 10.2	400	(1)
Case 10.3 U.S. firms exporting to Europe	401	(4)
Europe	402	(3)
Case 10.4 U.S. government ends ``Banana War'' with European Union	405	(1)
Case 10.5 Textiles and apparel in the United Kingdom	406	(1)
Learning Activity 10.3	407	(2)
Asia	407	(2)
Case 10.6 For Chinese retailers, entry into WTO is not risk-free	409	(2)
Learning Activity 10.4	411	(1)
Globalization of Apparel Sourcing	411	(5)
Learning Activity 10.5	416	(1)
The Sourcing Process	417	(2)
Full Package Sourcing	417	(1)
Cut, Make, Trim (CMT)	418	(1)
Learning Activity 10.6	419	(7)
Sourcing Decisions	420	(4)
Labor Availability and Cost	424	(2)
Case 10.7 Kids trade sweatshops for school	426	(2)
Case 10.8 Who's making the clothes?	428	(1)
Learning Activity 10.7	429	(1)
Summary	430	(1)
Key Concepts	430	(1)
Integrated Learning Activity 10.8.1	431	(1)
Case 10.9 Time is money	431	(2)
Recommended Resources	433	(1)
References	434	(2)
Customer/Vendor Relationships	436	(33)
The Concept of Customer Service	437	(5)
Levels of Customer Service	438	(4)
Role of Personal Selling Services	442	(1)
Case 11.1 Keys to customer service at Nordstrom	443	(1)
Learning Activity 11.1	444	(1)
Why Customers Buy	445	(1)
The Personal Selling Process	446	(12)
Prospecting	447	(2)
Greeting and Approaching Customers	449	(1)
Determining Customers' Needs and Wants	450	(1)
Presenting the Merchandise/Providing Selection Assistance	451	(1)
Handling Objections	452	(2)
Closing the Sale	454	(1)
Enlarging the Sale	455	(1)
Follow-Up	456	(2)
Learning Activity 11.2	458	(1)
Case 11.2 The art of haggling	458	(2)
Learning Activity 11.3	460	(1)
Improving Customer/Vendor Relationships	460	(3)
Case 11.4 Partnering, finally more than a buzzword	463	(1)
Summary	464	(1)
Key Concepts	465	(1)
Integrated Learning Activity 11.4.1	465	(1)
Recommended Resources	466	(1)
References	466	(3)
SECTION FOUR Career Opportunities	469	(37)
Merchandising-Related Career Development	470	(36)
The Concept of Career Development	471	(3)
Learning Activity 12.1	474	(2)
Career Development in Relation to the Firm	474	(2)
Learning Activity 12.2	476	(1)
Merchandising-Related Careers	476	(1)
Case 12.1 E-talent: A tangled search process	477	(10)
Taxonomy of Merchandising Careers	478	(9)
Learning Activity 12.3	487	(1)
Career Advancement	487	(5)
Management Development	489	(2)
Computers and the Merchandising Environment	491	(1)
Case 12.2 Ashford.com names Cheryl Holland vice president of merchandising	492	(3)
Keys to Career Advancement	493	(2)
Learning Activity 12.4	495	(1)
Selecting an Employer	495	(4)
Environments for Merchandising-Related Careers	495	(4)
Case 12.3 The making of Under Armour	499	(1)
Learning Activity 12.5	500	(3)
Recruiting for Merchandising Positions	501	(2)
Summary	503	(1)
Key Concepts	504	(1)
Integrated Learning Activity 12.6.1	504	(1)
Case 12.4 L.L.Bean streamlines hiring process	504	(2)
Integrated Learning Activity 12.6.2	506	(1)
Recommended Resources	506	(1)
References	506