Walmart Merchandising and Pricing Strategy 2

Question 1

What does Walmart's 'Everyday Low Price' (EDLP) strategy primarily aim to avoid?

Accepted Answer

Frequent high-low promotional pricing swings

Answer

EDLP keeps prices consistently low rather than relying on temporary sales and promotions.

Question 2

A customer asks why an endcap display is used near a store aisle. What is the main merchandising purpose of an endcap?

Accepted Answer

To highlight featured or promotional items for higher visibility

Answer

Endcaps draw attention to featured products and drive impulse purchases.

Question 3

When a product's shelf tag shows a 'rollback' price, what does it indicate?

Accepted Answer

A temporary reduction below the regular price

Answer

A rollback is a temporary lowering of an item's price for a limited time.

Question 4

Why is keeping shelves fully stocked ('zoning' and facing) important to merchandising?

Accepted Answer

It improves product availability and presentation, increasing sales

Answer

Well-faced, stocked shelves make products easy to find and look appealing, boosting sales.

Question 5

What is the primary goal of placing high-margin impulse items near checkout lanes?

Accepted Answer

To encourage last-minute add-on purchases

Answer

Checkout placement leverages waiting time to prompt small impulse buys.

Walmart Practice Test