DECA Buying and Merchandising Practice Exam 2025 - Free DECA Exam Practice Questions and Study Guide

Question: 1 / 400

What can be a result of effective market research for a retailer?

Inability to compete with larger companies

Misinterpretation of customer trends

Better inventory decisions based on consumer preferences

Effective market research provides retailers with valuable insights into consumer preferences and market trends, enabling them to make informed inventory decisions. When a retailer understands what their customers want and need, they can stock products that are more likely to sell. This not only leads to better customer satisfaction and loyalty but also minimizes the risk of overstocking undesirable items, ultimately optimizing inventory levels and reducing costs related to unsold stock.

Having this deep understanding allows retailers to align their merchandise with consumer demand, ensuring that they carry the right products in the right quantities. This strategic alignment can substantially enhance the retailer's competitiveness in the market by allowing them to respond effectively to trends and changes in consumer behavior, paving the way for increased sales and profitability.

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Increased manufacturing costs

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