Exam 1 Visual Merchandising

According to Maslow’s hierarchy, which of the following is the highest level of human needs?

Self-Actualization

Which of the following is an example of impulse buying?

Buying a sweater on clearance

Normative consumption refers to behavior considered acceptable within a culture.

True

Which step is NOT part of the Consumer Decision Model?

Brand Personality

Which group makes up about 2% of the buying public and adopts a trend earliest?

Innovators

Which type of consumer typically buys in the mass acceptance phase, values practicality, and makes up 34% of the population?

Late Majority

Which group buys near the decline of a trend and often has financial constraints?

Laggards

The word “brand” comes from the Norse word “brandr,” meaning:

To burn

Brands reduce consumer risk and are built on the premise of:

Differentiation

A brand can be considered a trademark legally, but financially it is considered:

An asset

What is the main goal of a brand?

To keep loyal customers by living up to expectations and staying relevant

Which of the following is NOT typically part of brand essence?

Discounts

Positioning is how the company proposes a brand should be perceived. Image is:

How consumers actually perceive the brand

Which of the following is TRUE about innovation in branding?

It responds to customer needs, keeps brands relevant, and creates opportunities

Without consistency in branding, what is lost?

Customer loyalty

Luxury brands are built on creativity, craftsmanship, quality, and:

Service at a premium price

Which of the following is an example of haute couture?

Made-to-order garments for a small clientele

What are private labels?

Brands produced by retailers; profitable due to high margins but with limited distribution

One advantage of branding is the ability to demand:

Price Premiums

Luxury brand “star” characteristics include all EXCEPT:

Price-based convenience

Mass-market brands are usually:

Mass-produced, price-driven, trend-following

Premium brands (New Luxe, like Coach) are based on:

Consumer emotion, better quality and creativity, but not promoted as elite

Private label brands can be classified into four types. Which is NOT one of them?

Fast Fashion Outsiders

Which of the following is a challenge for private labels?

Their success depends on the retailer’s success

In retail brands, products are tangible. Services are:

Intangible, experiential, and often higher risk

Which of the following is NOT a type of fashion retailer?

Corporate Bank

What are the three dimensions of merchandise assortment?

Variety, Breadth, Depth

Pricing above competition to signal prestige is an example of:

Prestige Pricing

Which of the following is an illegal pricing strategy?

Bait and Switch Pricing

Consumers with discretionary income are spending:

Income left over after taxes and necessities

Psychographic segmentation profiles consumers by:

Activities, Interests, and Opinions (AIOs)

Demographic segmentation includes which of the following?

All of the above

Baby Boomers are known for which consumption philosophy?

Spending and borrowing to accommodate lifestyle

Generation X is known as:

The first technologically comfortable generation

Millennials (Gen Y) consumption philosophy is:

Finance the lifestyle they grew up on with credit

Generation Z’s consumption philosophy is:

Share and compare to spend least

Which consumer trend shows integration of online and offline shopping channels?

Omnichannel Retailing

Interactive screens, mobile integration, and virtual try-ons are examples of:

Digital Integration in Retail

True or False: Consumers are 90% more likely to purchase from a retailer with omnichannel marketing strategies.

True

Which of the following retailers filed for bankruptcy in 2025 due to tariffs and declining home goods sales?

At Home

What is the primary challenge of omnichannel retailing?

Creating seamless experiences while balancing privacy vs. personalization

Gen Z’s shopping preferences are strongly influenced by:

Social media platforms, influencers, and interactive technology

What does “visual merchandising attracts within five seconds” mean?

It creates immediate association or emotion to draw customers in

Which of the following is NOT part of the product mix?

Motivation

Customer service, loyalty clubs, and warranties are examples of:

Services offered by a brand

What is vertical integration?

Company controls multiple stages of production and distribution

What is horizontal integration?

Expanding at the same level (e.g., a store buying another store)

A brand extension is:

Increasing product lines under the same brand umbrella

A reposition strategy usually involves:

Redefining market position, target customer, and strategy

Brand amnesia occurs when:

A brand forgets its identity and alienates loyal customers

Which type of brand failure happens when a company overestimates its power and ignores competitors?

Brand Ego

Which type of brand failure occurs when a brand does not evolve with customers?

Brand Irrelevance

Which of the following is an example of co-branding?

Nike creating Air Jordans with Michael Jordan

What is licensing in branding?

Legal agreement allowing another party to use the brand name in exchange for royalties

Which of the following is NOT an advantage of licensing?

Requires no monitoring

Which is the most common royalty percentage range for fashion ready-to-wear licensing?

6–8%

What is the main difference between publicity and public relations?

Publicity is non-paid/unbiased media coverage; PR is managed company activities to shape image

What is the key difference between luxury and mass-market brand communication?

Luxury emphasizes lifestyle and exclusivity; mass-market emphasizes price, convenience, and value

Which of the following best defines brand identity?

The mix of visual and physical symbols representing the soul of the brand

Logos often work better internationally than names because:

They are less language-dependent and easier to recognize

Which of the following is an example of psychographic segmentation in fashion marketing?

Using VALS to group consumers by lifestyle preferences