Walmart Merchandising and Pricing Strategy 3 — Questions and Answers
Question 1: A clearance item is marked down repeatedly over several weeks. What is the main reason for progressive markdowns?
- To sell remaining stock quickly and free up shelf space (Correct answer)
- To increase the item's perceived value
- To confuse customers
- To match supplier costs
Correct answer: To sell remaining stock quickly and free up shelf space
Progressive markdowns move slow or discontinued inventory before it ties up space.
Question 2: Which factor most directly drives 'seasonal' merchandising changes in a store?
- Holidays and changing customer demand throughout the year (Correct answer)
- The store manager's mood
- Random selection
- Fixed permanent layouts
Correct answer: Holidays and changing customer demand throughout the year
Seasonal resets align product offerings with holidays and seasonal demand.
Question 3: Why might a store place complementary products (like chips near salsa) together?
- Cross-merchandising encourages customers to buy related items together (Correct answer)
- To save shelf labels
- To reduce inventory counts
- To meet fire codes
Correct answer: Cross-merchandising encourages customers to buy related items together
Cross-merchandising pairs related items to lift basket size and total sales.
Question 4: What is the main benefit of Walmart's private-label (store-brand) products like Great Value?
- Lower prices for customers and higher margins for the store (Correct answer)
- Higher prices than national brands
- Limited availability
- Lower quality guarantees
Correct answer: Lower prices for customers and higher margins for the store
Private labels typically offer customers savings while giving the retailer better margins.
Question 5: An associate notices a shelf price tag doesn't match the register price. What is the correct first action?
- Report and correct the discrepancy promptly to ensure accurate pricing (Correct answer)
- Ignore it
- Charge the higher price always
- Remove the product from sale permanently
Correct answer: Report and correct the discrepancy promptly to ensure accurate pricing
Price integrity requires correcting mismatches so customers are charged accurately.
Question 6: What does 'eye-level is buy-level' mean in shelf merchandising?
- Products at eye level sell best and are prime placement spots (Correct answer)
- Products on the floor sell best
- Eye level is reserved for clearance
- Shelf height has no effect on sales
Correct answer: Products at eye level sell best and are prime placement spots
Items at eye level get the most attention, making it premium shelf space.
Question 7: How does loss-leader pricing work as a merchandising tactic?
- Selling a popular item at a low margin to draw shoppers who buy other items (Correct answer)
- Selling all items below cost
- Raising prices on popular items
- Removing popular items from shelves
Correct answer: Selling a popular item at a low margin to draw shoppers who buy other items
A loss leader is priced low to attract traffic that generates profit on other purchases.
Walmart Merchandising and Pricing Strategy 3
A clearance item is marked down repeatedly over several weeks.
What is the main reason for progressive markdowns?