MKT320 Chapter 12 Guidepost Questions

E. manuracturer's; private-label; house

Coca-Cola, Planters, and Purina One are _____________ brands. Big K (sold by Kroger), Archer Farms (sold by Target), and Ol' Roy (sold by Walmart) are ____________ brands, also sometimes called ___________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. house; national; private-label B. private-label; gray-market; generic C. step-down; generic; gray-market D. generic; knockoff; national E. manuracturer's; private-label; house

A. national; private-label; house

Coca-Cola, Planters, and Purina One are _____________ brands. Big K (sold by Kroger), Archer Farms (sold by Target), and Ol' Roy (sold by Walmart) are ____________ brands, also sometimes called ___________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. national; private-label; house B. house; national; private-label C. private-label; gray-market; generic D. step-down; generic; gray-market E. generic; knockoff; national

D. gray-market merchandise

Even though they do not have authorization from manufacturers, distributors will sometimes divert products from low-price markets to sell them in high-price markets. For example, a consumer in the U.S. who is shopping for a new Japanese-built Yamaha grand piano may find one for $27,500 and another very similar one for $14,000. The difference is that the $27,500 Yamaha piano was built for the U.S. market; the $14,000 Yamaha piano was built for the southeast Asia market and was intended to be sold at a list price of $8,500 in that market. Through unauthorized redirection into the U.S., some distributor (which has not been authorized by the Yamaha Corporation) makes additional money, even though the consumer pays less. (The consumer may actually be ripped off, though, because the wooden parts of the piano have been carefully selected and treated for optimal performance in the humidity of southeast Asia; those parts may crack or wear out prematurely from becoming excessively dry in some areas of the U.S.) This scenario is an example of __________. A. black-market merchandise B. counterfeit merchandise C. chumping D. gray-market merchandise E. dumping

D. Provide markdown money.

As a vendor, Allie McNally works very well with Nordstrom's women's advanced modern sportswear buyer, Mollie Holley. The working relationship has been mutually satisfactory for several years. This past year, Allie's line of sportswear has included a few SKUs that sold poorly. It's now time to show Nordstrom (i.e., Mollie) the next season's product line. Allie expects that this time, Mollie will be a tougher negotiator than before. What should Allie be prepared to do? A. Remind Mollie that retailing is not an exact science; the best you can hope for is to win more often than you lose. B. Provide Mollie with a three-day trip to the Cayman Islands. C. Advise Mollie that Nordstrom can sell the products at lower prices, and reassure her that she will not be making a similar suggestion to Nordstrom's competitors - especially not Neiman Marcus or Bloomingdale's. D. Provide markdown money. E. Suggest pulling her product line out of Nordstrom for one season, in order to strategize and reinvent.

C. diverted

Last week, Jolene Moline went shopping for bargain-priced clothing and shoes at Overstock.com. Jolene was thrilled to find a pair of Alfani boots (in her size!) for $51.99. As Jolene was finalizing her order, she said to herself, "I don't think I've seen this brand anywhere but Macy's before." Indeed, Jolene is correct. Alfani is one of Macy's private-label brands. The authors of your textbook would describe Jolene's new boots as __________ merchandise. A. counterfeit B. generic-branded C. diverted D. gray-market E. copycat

A. tying agreement

Levi Strauss, a national manufacturer of apparel, will supply JCPenney with its most-popular styles of jeans only if JCPenney also carries other, lesser-known Levi's products, as well as the Dockers line of apparel and accessories. Levi Strauss is enforcing a(n) __________ in its relationship with JCPenney. A. tying agreement B. dual-distribution agreement C. one-way exclusive dealing agreement D. implied warranty E. two-way exclusive dealing agreement

E. A concentrated area where vendors are permanently located; here, they show new merchandise during certain times of the year.

Polly-Esther Cotton is a buyer for a national women's wear chain. Yesterday, Polly-Esther told her significant other that she is "going to market" and she will be away for a week and a half. In this context, what does "market" mean? A. Anywhere the retailer's customers are located - Polly-Esther will be conducting focus groups and/or depth interviews with as many of them as possible. B. All of the retailers locations - Polly-Esther will be checking in on each one of them, in person. C. A shopping center where the retailer is opening a new store. C. The geographic area where the highest concentration of the retailer's customers are located. E. A concentrated area where vendors are permanently located; here, they show new merchandise during certain times of the year.

E. Reverse auctions are more popular with vendors than with retailers.

Regarding reverse auctions, which of the following is not consistent with what the authors of the textbook say? [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a reverse auction, retailers provide a group of vendors with a specification for what they want. B. A reverse auction is a way for retailers to get quality private-label merchandise at reasonable cost. C. Reverse auctions are commonly used by retailers to source seasonal products. D. In a reverse auction, there is one buyer - the retailer - and many potential sellers (the manufacturing firms). E. Reverse auctions are more popular with vendors than with retailers.

E. Retailers use reverse auctions only to procure merchandise for resale. They never use them to buy store fixtures or furnishings, such as carpet, shelving, or lighting.

Regarding reverse auctions, which of the following is not consistent with what the authors of the textbook say? [This question has been randomly selected from a pool of 4 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. In a reverse auction, retailers provide a group of vendors with a specification for what they want. B. In a reverse auction, there is one buyer - the retailer - and many potential sellers (the manufacturing firms). C. A reverse auction is a way for retailers to get quality private-label merchandise at reasonable cost. D. Reverse auctions are commonly used by retailers to source seasonal products. E. Retailers use reverse auctions only to procure merchandise for resale. They never use them to buy store fixtures or furnishings, such as carpet, shelving, or lighting.

B. Vendors of products with low brand loyalty pay the highest slotting fees.

Regarding slotting fees, which of the following statements is consistent with the information in your textbook? [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. A "slotting fee" is a surcharge that television and radio stations charge advertisers when they broadcast cooperative advertising. B. Vendors of products with low brand loyalty pay the highest slotting fees. C. "Slotting fee" refers to the "rent" that vendors pay for booth space at a trade show. D. A slotting fee usually is billed to a vendor once every quarter for as long as a retailer carries the vendor's product. E. A "slotting fee" is a fee that some retailers charge customers who return an item. It typically amounts to 15 percent of the purchase price.

E. copycat

Scooter Tudor woke up with a cold this morning. As he struggled with his symptoms throughout the day, he became aware that he was probably going to get worse before he starts getting better. On the way home from the university, Scooter stops at Walgreens to buy Zyrtec. On the shelf, next to the green Zyrtec packages, Scooter notices similarly-colored packages of Wal-Zyr "all day allergy tablets" with the red Walgreens logo in small print. When Scooter examines both the Zyrtec package and the Wal-Zyr package, he sees that both medications have the same active ingredient: 10 mg Ceterizine Hydrochloride. Scooter sees that he can buy almost twice as many Wal-Zyr pills as he can Zyrtec pills for the same price. The authors of your textbook would classify Wal-Zyr as a(n) __________ brand. [This question has been randomly selected from a pool of 2 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. exclusive B. premium C. manufacturer's D. generic E. copycat

B. Robinson-Patman Act (1936)

Under federal law, a vendor cannot charge different prices on "goods of like grade and quality." Exceptions are allowed in the case of a retailer that is performing functions that lower the vendor's cost of doing businesses with that retailer. For example, a retailer that can receive one large shipment at its central distribution center - where other retailers require multiple small shipments to their individual stores - provides the vendor with money-saving efficiency in the loading and shipping process. Therefore, the vendor can legally offer that retailer a price that accurately reflects the lower cost of doing business with the retailer. The specific law that sets forth these provisions is the __________. A. Magnuson-Moss Act (1975) B. Robinson-Patman Act (1936) C. Wheeler-Lea Amendment to the Federal Trade Commission Act (1938) D. Taft-Hartley Act (1947) E. Clayton Antitrust Act (1914)

A. resident buying office

Vincent Laurent, an English-speaking Frenchman, meets with buyers from the United States when they visit Paris. Once in Paris, the buyers rely on Vincent to make appointments with French vendors, which saves the buyers time and helps them penetrate the market. During the buyers' meetings with vendors, Vincent serves as an interpreter and assists in negotiations. From this information, we can conclude that Vincent works for a(n) __________. A. resident buying office B. perpetual trade show C. mercantile exchange D. embassy E. import/export agent

D. private-label

Walmart's Great Value brand of groceries and its Equate brand of nonprescription pharmaceutical items are examples of __________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. manufacturer's B. gray market C. generic D. private-label E. national

E. store

Walmart's Great Value brand of groceries and its Equate brand of nonprescription pharmaceutical items are examples of __________ brands. [This question has been randomly selected from a pool of 15 questions. For optimal success in this class, repeat this chapter's questions until you are sure you are acquainted with all of the alternate versions of each question.] A. gray market B. manufacturer's C. national D. generic E. store

D. exclusive

When designer Vince Camuto created women's shoe brands Antonia Melani, Gianni Bini, Nurture, and Michelle D to be sold only at Dillard's, the retailer and the designer were teaming up to launch __________ private-label brands. A. generic B. copycat C. knockoff D. exclusive E. gray market