Retail Management 13

A(n) ____ ____ agreement occurs when a vendor restricts a retailer to carrying only its products and nothing from competing vendors

Exclusive Dealing

Identify the correct statement about negotiations between retailer buyers and vendors from the following.

Retail buyers should rely on objective information to resolve business issues.

Identify the true statement about retailers selling private-label brands.

Retailers are motivated to devote more resources toward selling store brands than they would for selling similar national brands

Identify an advantage for retailers selling national brands.

Retailers are not responsible for developing and producing national-brand merchandise

Identify the accurate statement about foreign suppliers from the following.

Retailers purchasing private-label merchandise from foreign suppliers are most likely to have a low inventory turnover.

Identify the statement about reverse auction from the following.

Reverse auctions are not popular with most manufacturing firms.

The ______ Act passed in 1936 makes it illegal for vendors to offer different terms and conditions to different retailers for the same merchandise and quantity.

Robinson-Patman

Reverse auctions

are mostly used to buy the products and services used in retail operations rather than merchandise for resale

Private-label brands

are store-brand products developed and sold exclusively by a retailer

In the _____ stage, no transactions take place between a retailer and a vendor.

awareness

Using foreign suppliers to purchase private-label merchandise

increases a retailer's inventory carrying costs

A(n) _____ brand is a brand that is developed by a national-brand vendor, often in conjuction with a retailer, and sold only by that retailer.

exclusive

T or F: The vendor of a national brand is for developing the merchandise, producing it with consistent quality, and undertaking a marketing program to establish an appealing brand image

True

Difference between sourcing global and sourcing domestically

When sourcing globally, it is harder to maintain consistent quality standards than it is when sourcing domestically.

Slotting fees are charges imposed by

a retailer to stock a new product in store

relationship emerges when a retailer and a vendor are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to both parties

strategic relationship

Buybacks are also known as _____________ or ________________

stocklifts; lift-outs

is a belief that a partner is honest and benevolent

trust

A(n) ____ ____ exists when a vendor requires that a retailer takes a product it doesn't necessarily desire to ensure hat it can buy a product it does desire.

tying contract

A family brand is also known as a(n) _____ brand

umbrella

A family brand is also known as a(n) _______ brand

umbrella

Arrange the phases in developing a strategic partnership in order to increasing levels of involvement

1. Awareness 2. Exploration 3. Expansion 4. Committment

Identify an example of a buyer in the awareness phase during the development of strategic relationships

A buyer browses through some interesting merchandise at a retailer market

Who among the following buyers is in the expansion phase during the development of strategic relationships?

A buyer develops joint promotional programs with a vendor

Who among the following buyers is in the exploration phase during the development of strategic relationships?

A buyer making small purchase from a vendor to rest the demand for new merchandise

Identify an example of a retailer in the commitment phase during the development of strategic relationship

A retailer develops a long-term perspective toward its collaboration with a vendor.

Identify an example of a retailer in the commitment phase during the development of strategic relationships.

A retailer develops a long-term perspective towards its collaborative with a vendor.

In the ______ stage, no transactions take place between a retailer and a vandor

Awareness

The first phase in building partnership relationships is

Awareness

occurs when a vendor or its agent offers or a buyer asks for "something of value" to influence purchase decisions

Commercial Bribery

Brands imitate the manufacturer's brand in appearance and packaging, generally are perceived as lower-quality, and are offered at lower prices.

Copycat

______ merchandise are goods made and sold without the permission of the owner of a trademark or copyright.

Counterfeit

involves spending money to improve products or services

Credible commitments

is similar to gray-market merchandise except there need not be distribution across international borders.

Diverted merchandise

is the disingenuous practice of marketing products or services as being environmentally friendly with the purpose of gaining public approval and sales rather than actually improving the environment.

Greenwashing

Identify the accurate statement about strategic relationships from the following

It is difficult for retailer-vendor relationships o be as committed as supplied-manufacturer relationships.

Identify the accurate statement about global sourcing from the following.

It is more difficult to perform supply chain activities when sourcing globally.

Which of the following statements is true about diverted merchandise?

It need not be distributed across international borders.

Identify the true statement about buying national-brand merchandise.

Meetings between buyers and vendors during a market week are typically more formal than meetings at trade shows.

are taxes collected by government on inpout

Tariffs

Identify a disadvantage for a retailer selling store brands.

The retailer has to assume the risk associated with uncertain sales of store brands

T or F: Buyers and vendors in a relationship need to understand what is dividing each other's business, their roles in the relationship, each firm's strategies, and any problems that arise over the course of the relationship.

True

T or F: Greenwashing is also known as doing a green whitewash

True

market for retail buyers is a concentration of vendors within a specific geographic location, perhaps even under one roof over the Internet

Wholesale market

A partner is said to be ____ if he is concerned about the other party's welfare.

benevolent

A(n) market occurs when consumer goods are scarce, heavily taxed, or illegal.

black market

A(n) ____ is a practice used by retailers in which they deduct money from the amount they owe a vendor

chargeback

To effectively negotiate with vendors, a retailer should

choose a good place to negotiate

Jerry, a retail buyer, has arranged a meeting with his vendors to discuss the negotiation terms before buying the merchandise. He should

choose a good place to negotiate where supervisory assistance is easily available

The program undertaken by a vendor in which the vendor agrees to pay for all or part of a pricing promotion of a retailer is also known as

co-op advertising

Gary, a retail buyer, is in the exploration if he

collects detailed information about the working style of a vendor

protects the original work or authors, painters, sculptors, musicians, and others who produce works of artistic intellectual merit.

copyright

Identify the characteristics that separate generic brands from other brands.

do not have a brand name distinguishing them

Typically, strategic relationships

encourage partners to develop and exploit joint opportunities

Typically, reverse auctions

have one buyer and many potential buyers

Typically, a generic brand

is neither a store brand nor national brand

The funds vendors give retailers to cover lost gross margin dollars due to the price reduction needed to sell unpopular merchandise is called ______ money

markdown

At specific times during the year, wholesale centers host _________ ______________ during which buyers make appointments to visit the various vendor show rooms

market weeks

Retailers often

negotiate with vendors for an exclusive arrangements to achieve a differential advantage

Gray-market goods are also known as ____ _____

parallel imports

store brands offer the consumer a private label that is comparable to a manufacturer's brand quality, sometimes with modest price savings.

premium

National brands are:

products designed, produced, and marketed by a vendor and sold to many different retailers

Organization located in major market centers that provide service to help retailers buy merchandise are known as ____ ______ offices

resident buying

Fair _____ refers to a socially responsible movement that ensures that producers receive fair prices for their products

trade

shows, vendors display their merchandise in designated areas and have sales representatives, company executives, and sometime even celebrities available to talk with buyers as they walk through their exhibit area.

trade