A retailer seeks to maximize the profitability of its inventory assortment through ________.
A) efficient consumer response
B) category management
C) optimal space planning
D) everyday low pricing

Question

Quizplus · Accepted Answer

Category management is the process in which a retailer manages its product categories as individual business units and seeks to optimize the profitability of each category by understanding consumer behavior, market trends, and supplier capabilities. This approach helps retailers to identify and stock the right products in the right quantities, which ultimately maximizes profitability. While efficient consumer response, optimal space planning, and everyday low pricing are important strategies, they may not necessarily lead directly to maximizing profitability of the inventory assortment.

A Retailer Seeks to Maximize the Profitability of Its Inventory