A problem facing show store managers is that many shoes eventually must be sold at markdown prices. This prompts a manufacturer to conduct a mail survey of shoe store managers in which we ask, "What methods have you found most successful for reducing the problem of high markdowns?" We are interesting in extracting as much information as possible from these answers to better understand the full range of strategies that store managers use. Establish what you think are category sets to code 500 responses similar to the 14 given here. Try to develop an integrated set of categories that reflects your theory or markdown management. After developing the set, use it to code the 14 responses.

-Have not found the answer. As long as we buy style shoes, we will

have markdowns. We use PMs on slow merchandise, but it does not

eliminate markdowns. (PM stands for "push-money"special cash

bonuses for selling a particular brand and style of shoe.)

-Using PMs before too old. Also reducing price during season. Holding

meetings with salespeople indicating which shoes to push.

-By putting PMs on any slow-selling items and promoting same. More

careful check of shoes purchased.

-Keep a close watch on your stock, and mark down when you have to

that is, rather than wait, take a small markdown on a shoe that is not

moving at the time.

-Using the PM method.

-Less advance buyingmore dependence on in-stock shoes.

-Salescatch bad guys before it's too late and close out.

-Buy as much good merchandise as you can at special prices to help

make up some markdowns.

-Reducing opening buys and depending on fill-in service.

-Buy more frequently, better buying, PMs on slow-moving merchandise.

-Careful buying at lowest prices. Cash on the buying line. Buying

closeouts, FDs, overstock, "cancellations." (FD stands for "factorydiscontinued"

style.)

-By buying less "changeable" shoes. Buy only what you need, watch

sizes, don't go overboard on new fads.

-Buying more staple merchandise. Buying more from fewer lines.

Sticking with better nationally advertised merchandise.

-No successful method with the current style situation. Manufacturers

are experimenting, the retailer takes the markdownscuts gross profit

by about 3 percentkeep your stock at lowest level without losing

sales.