Question 1

________ are imposed by governments to shield domestic manufacturers from foreign competition.

Accepted Answer

A)  Chargebacks 
B)  Country of origin costs 
C)  Slotting fees 
D)  Import tariffs 
E)  Obligation fees 
A)  Chargebacks 
B)  Country of origin costs 
C)  Slotting fees 
D)  Import tariffs 
E)  Obligation fees D

Question 2

What are the major issues that a buyer discusses during a meeting with a vendor?

Accepted Answer

(1) Buyers will discuss price and gross margin where they will want the lowest price so they can have the higher gross margin. (2) The buyer will discuss additional markup opportunities where the buyer will need to consider taking excess merchandise, but will also need to consider the image of the store. (3) Terms of the purchase are discussed where the buyer will prefer a long time period in which to pay for the merchandise to assist the company's cash flow, accounts payable, and its interest expense. (4) The buyer will discuss delivery and exclusivity where the buyer will want to be the only retailer in a market carrying the merchandise, and the buyer will also want the merchandise as early as possible in the season. (5) The buyer might ask for sharing the cost of advertising. (6) The buyer will want to discuss the costs of transporting the merchandise as this can be a large expense.

Question 3

How does a national retailer benefit from selling private-label brands?

Accepted Answer

A)  The retailer spends less on advertising private-label brands and therefore saves money. 
B)  Since the retailer carries the cost of advertising of a private-label brand, the costs are covered by the consumer. 
C)  Since nationwide stores carry the private-label brands, it gives little choice to the consumer about assortments. 
D)  Since it is a national retailer, customers will naturally know the private-label brand. 
E)  By selling private-label brands, a national retailer can differentiate its assortments. 
A)  The retailer spends less on advertising private-label brands and therefore saves money. 
B)  Since the retailer carries the cost of advertising of a private-label brand, the costs are covered by the consumer. 
C)  Since nationwide stores carry the private-label brands, it gives little choice to the consumer about assortments. 
D)  Since it is a national retailer, customers will naturally know the private-label brand. 
E)  By selling private-label brands, a national retailer can differentiate its assortments. E

Question 4

When a swimwear buyer negotiates for delivery and exclusivity with a vendor, what would a buyer typically want?

Accepted Answer

A)  A buyer would want the swimwear to arrive late in the season to avoid markdowns. 
B)  A buyer would ask to have merchandise at competing stores so the only competition factor is price. 
C)  A buyer would want unique swimwear to arrive early in the season to get the most sales at the original price. 
D)  A buyer would ask for last season's swimwear as well as the latest swimwear to be able to offer a price differentiation. 
E)  A buyer would ask for parallel merchandise to be able to offer more variety in assortments. 
A)  A buyer would want the swimwear to arrive late in the season to avoid markdowns. 
B)  A buyer would ask to have merchandise at competing stores so the only competition factor is price. 
C)  A buyer would want unique swimwear to arrive early in the season to get the most sales at the original price. 
D)  A buyer would ask for last season's swimwear as well as the latest swimwear to be able to offer a price differentiation. 
E)  A buyer would ask for parallel merchandise to be able to offer more variety in assortments.

Question 5

Retailers proactively engage in enforcing the labor practices of their suppliers because

Accepted Answer

A)  they want to maintain their reputations of providing quality merchandise. 
B)  they want to build strategic partnerships with developing countries. 
C)  they want to work toward collaborative merchandising. 
D)  they require smaller shipments at frequent intervals. 
E)  they want to ensure a safe and healthy work environment for laborers. 
A)  they want to maintain their reputations of providing quality merchandise. 
B)  they want to build strategic partnerships with developing countries. 
C)  they want to work toward collaborative merchandising. 
D)  they require smaller shipments at frequent intervals. 
E)  they want to ensure a safe and healthy work environment for laborers.

Question 6

Tide detergent, Ralph Lauren polo shirts, and Hewlett-Packard printers are all examples of

Accepted Answer

A)  private-label brands. 
B)  national brands. 
C)  general brands. 
D)  generic brands. 
E)  licensed brands. 
A)  private-label brands. 
B)  national brands. 
C)  general brands. 
D)  generic brands. 
E)  licensed brands.

Question 7

Which of the following is True of store brands?

Accepted Answer

A)  Store brands are limited in variety when compared to national brands. 
B)  These products are sold to competing retailers. 
C)  They are labeled only with the commodity name and have no distinguishing brand names. 
D)  Retailers develop the design for these products in most cases. 
E)  National brand vendors are not involved in the development of these products. 
A)  Store brands are limited in variety when compared to national brands. 
B)  These products are sold to competing retailers. 
C)  They are labeled only with the commodity name and have no distinguishing brand names. 
D)  Retailers develop the design for these products in most cases. 
E)  National brand vendors are not involved in the development of these products.

Question 8

Due to an increase in the production of private-label brands, resident buying offices have become increasingly more significant and important.

Accepted Answer

A) True 
 B)False

Question 9

Home Day is a large supermarket. It recently launched its own brand of cereals called Fast Bites, equivalent to most national brands and also priced slightly lower. Therefore, Fast Bites is an example of a(n)

Accepted Answer

A)  premium store brand. 
B)  generic brand. 
C)  copycat brand. 
D)  parallel import. 
E)  licensed brand. 
A)  premium store brand. 
B)  generic brand. 
C)  copycat brand. 
D)  parallel import. 
E)  licensed brand.

Question 10

When Whitney took over her father's sporting goods store, she evaluated some of her father's vendor relationships. She found that Rodney's Exercise Wear wasn't particularly profitable for the store. Although committed, his products were expensive, and he seemed inflexible. Whitney tried to work out a more amicable relationship with him by discussing her sales goals and new ideas for the coming year, but Rodney seemed uninterested. Which of the following elements crucial for maintaining strategic relationships is absent in the given example?

Accepted Answer

A)  Long-term gains 
B)  Poor leadership 
C)  Fulfilled obligations 
D)  Open communication 
E)  Credible commitments 
A)  Long-term gains 
B)  Poor leadership 
C)  Fulfilled obligations 
D)  Open communication 
E)  Credible commitments

Question 11

One way for a buyer to become familiar with products and styles is to

Accepted Answer

A)  interact with retail exchanges. 
B)  attend trade shows. 
C)  become acquainted with diverted merchandise. 
D)  insist on objective information. 
E)  have and maintain a common goal with vendors. 
A)  interact with retail exchanges. 
B)  attend trade shows. 
C)  become acquainted with diverted merchandise. 
D)  insist on objective information. 
E)  have and maintain a common goal with vendors.

Question 12

What is the best reason for retailers to develop and maintain relationships with multiple and sometimes competing suppliers?

Accepted Answer

A)  A more efficient supply chain occurs when multiple vendors are involved. 
B)  A function of retailers is to provide assortments, so they must deal with a variety of suppliers. 
C)  By working with multiple suppliers, retailers tend to make better negotiators. 
D)  A variety of vendors assures more profit. 
E)  It would be unethical for a buyer to solely work with one supplier. 
A)  A more efficient supply chain occurs when multiple vendors are involved. 
B)  A function of retailers is to provide assortments, so they must deal with a variety of suppliers. 
C)  By working with multiple suppliers, retailers tend to make better negotiators. 
D)  A variety of vendors assures more profit. 
E)  It would be unethical for a buyer to solely work with one supplier.

Question 13

A(n) ________ exists when a vendor and a retailer enter into an agreement that requires the retailer to take a product it doesn't necessarily desire to ensure that it can buy a product that it does desire.

Accepted Answer

A)  exclusive dealing agreement 
B)  functional discount 
C)  competition 
D)  buyback 
E)  tying contract 
A)  exclusive dealing agreement 
B)  functional discount 
C)  competition 
D)  buyback 
E)  tying contract

Question 14

If there are so many advantages to selling national brands, why do retailers still carry private-label brands?

Accepted Answer

A)  Private-label brands yield higher profits to retailers. 
B)  Private-label brands require less investment for a retailer from design to display. 
C)  Customers have loyalty to national brands. 
D)  National brands have better quality overall than private-label brands. 
E)  National brands offer a retailer more flexibility on how merchandise is displayed and advertised. 
A)  Private-label brands yield higher profits to retailers. 
B)  Private-label brands require less investment for a retailer from design to display. 
C)  Customers have loyalty to national brands. 
D)  National brands have better quality overall than private-label brands. 
E)  National brands offer a retailer more flexibility on how merchandise is displayed and advertised.

Question 15

When a grocery retailer develops its own high-quality private-label organic food product, this would be a(n)

Accepted Answer

A)  premium brand. 
B)  copycat brand. 
C)  umbrella brand. 
D)  exploratory brand. 
E)  superbrand. 
A)  premium brand. 
B)  copycat brand. 
C)  umbrella brand. 
D)  exploratory brand. 
E)  superbrand.

Question 16

________ are taxes collected by a government on imported merchandise.

Accepted Answer

A)  Chargebacks 
B)  Country of origin costs 
C)  Slotting fees 
D)  Duties 
E)  Obligation fees 
A)  Chargebacks 
B)  Country of origin costs 
C)  Slotting fees 
D)  Duties 
E)  Obligation fees

Question 17

If there are so many advantages to carrying private brands, why do retailers even bother to sell national brands?

Accepted Answer

Many customers have developed loyalty to

Question 18

Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name Clean Homes. Therefore, Clean Homes is a(n)

Accepted Answer

A)  premium brand. 
B)  copycat brand. 
C)  umbrella brand. 
D)  exclusive brand. 
E)  subbrand. 
A)  premium brand. 
B)  copycat brand. 
C)  umbrella brand. 
D)  exclusive brand. 
E)  subbrand.

Question 19

When identifying national brands, vendors use a(n) ________ associated with their company.

Accepted Answer

A)  premium brand 
B)  copycat brand 
C)  umbrella brand 
D)  exclusive brand 
E)  subbrand 
A)  premium brand 
B)  copycat brand 
C)  umbrella brand 
D)  exclusive brand 
E)  subbrand

Question 20

Which of the following is neither a store brand nor a national brand?

Accepted Answer

A)  Premium brand 
B)  Exclusive brand 
C)  Generic brand 
D)  Copycat brand 
E)  Private-label brand 
A)  Premium brand 
B)  Exclusive brand 
C)  Generic brand 
D)  Copycat brand 
E)  Private-label brand

________ are imposed by governments to shield domestic manufacturers from foreign competition.

What are the major issues that a buyer discusses during a meeting with a vendor?

How does a national retailer benefit from selling private-label brands?

When a swimwear buyer negotiates for delivery and exclusivity with a vendor, what would a buyer typically want?

Retailers proactively engage in enforcing the labor practices of their suppliers because

Tide detergent, Ralph Lauren polo shirts, and Hewlett-Packard printers are all examples of

Which of the following is True of store brands?

Due to an increase in the production of private-label brands, resident buying offices have become increasingly more significant and important.

Home Day is a large supermarket. It recently launched its own brand of cereals called Fast Bites, equivalent to most national brands and also priced slightly lower. Therefore, Fast Bites is an example of a(n)

One way for a buyer to become familiar with products and styles is to

What is the best reason for retailers to develop and maintain relationships with multiple and sometimes competing suppliers?

A(n) ________ exists when a vendor and a retailer enter into an agreement that requires the retailer to take a product it doesn't necessarily desire to ensure that it can buy a product that it does desire.

If there are so many advantages to selling national brands, why do retailers still carry private-label brands?

When a grocery retailer develops its own high-quality private-label organic food product, this would be a(n)

________ are taxes collected by a government on imported merchandise.

If there are so many advantages to carrying private brands, why do retailers even bother to sell national brands?

Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name Clean Homes. Therefore, Clean Homes is a(n)

When identifying national brands, vendors use a(n) ________ associated with their company.

Which of the following is neither a store brand nor a national brand?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 12: Buying Merchandise

________ are imposed by governments to shield domestic manufacturers from foreign competition.

What are the major issues that a buyer discusses during a meeting with a vendor?

How does a national retailer benefit from selling private-label brands?

When a swimwear buyer negotiates for delivery and exclusivity with a vendor, what would a buyer typically want?

Retailers proactively engage in enforcing the labor practices of their suppliers because

Tide detergent, Ralph Lauren polo shirts, and Hewlett-Packard printers are all examples of

Which of the following is True of store brands?

Due to an increase in the production of private-label brands, resident buying offices have become increasingly more significant and important.

Home Day is a large supermarket. It recently launched its own brand of cereals called Fast Bites, equivalent to most national brands and also priced slightly lower. Therefore, Fast Bites is an example of a(n)

One way for a buyer to become familiar with products and styles is to

What is the best reason for retailers to develop and maintain relationships with multiple and sometimes competing suppliers?

A(n) ________ exists when a vendor and a retailer enter into an agreement that requires the retailer to take a product it doesn't necessarily desire to ensure that it can buy a product that it does desire.

If there are so many advantages to selling national brands, why do retailers still carry private-label brands?

When a grocery retailer develops its own high-quality private-label organic food product, this would be a(n)

________ are taxes collected by a government on imported merchandise.

If there are so many advantages to carrying private brands, why do retailers even bother to sell national brands?

Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name Clean Homes. Therefore, Clean Homes is a(n)

When identifying national brands, vendors use a(n) ________ associated with their company.

Which of the following is neither a store brand nor a national brand?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters