Tide detergent, ralph lauren polo shirts, and hewlett-packard printers are all examples of

Chapter 13 practice

Copycat brands imitate the manufacturer's brand in appearance and packing, generally are perceived as lower quality, and are offered at lower prices.

The availability of national brands can affect a customer's image of the retailer.

Wholesale markets for retail buyers include only annual trade shows.

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

In a Dutch auction, the retail buyer provides a specification for what they would like to be produced for their private-label products, and then manufacturers bid on the opportunity to be the supplier

Bonuses are funds vendors give retailers to cover lost gross margin dollars due to markdowns needed to sell unpopular merchandise.

Slotting allowances are charges imposed by a retailer to stock a new item.

Credible commitments are tangible investments in the strategic relationship and involve spending money to improve the supplier's products or services provided to the customer.

Diverted and gray-market goods go through distribution channels that are not authorized or intended by the manufacturer.

A buyer asking or receiving something of value that influences purchasing decisions occurs in the black market.

National brands are also called _____.

Techno Comp is a well-known national brand of computer and electronic products and accessories. Their tablet would be considered a(n) _____.

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

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

All of the following are terms for products developed by retailers EXCEPT _____.

_____ are products developed by retailers.

Which of the following is true of store brands?

Retailers develop the design for these products in most cases.

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

A(n) _____ developed by a retailer is comparable with national brands on quality rather than price.

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) _____.

A(n) _____ is a brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold solely by the retailer.

_____ are private-label products produced by the retailer that imitate the national brand in both appearance and packaging, but are often offered at a lower price.

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

The only retailer that offers Fresh Sun organic food products is Daily Needs. Therefore, Fresh Sun is an example of a(n):

Popular national brands are placed next to a manufacturer's brands in a store and look like them. This kind of brand is called a(n) _____.

_____ target a price-sensitive segment by offering a no-frills product at a discount price.

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

How does a national retailer benefit from selling private-labels?

By selling private-labels, a national retailer can differentiate its assortments.

The premium option in the multiple price tiers created for store brands offers:

consumers quality that is comparable to that of national brands.

can limit a retailer's flexibility.

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

Private-label brands yield higher profits to retailers.

What is an advantage of selling private-label brands for a national retailer?

Customers can't compare prices for private-label products because of their exclusivity.

Which of the following is a drawback for a retailer offering national brands?

Retailers have to discount some national brands in order to attract customers to their stores because customers compare prices for these brands across stores.

Which of the following is a drawback of selling private-label merchandise?

Significant investment is needed to develop, manage, and market private-label brands.

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

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

Which of the following is NOT descriptive of a trade show?

Trade shows are often associated with wholesale market centers.

At FN Platform, vendors display their fashion footwear in designated areas at the Las Vegas convention center and have sales representatives available to talk with buyers as they walk through the exhibit area. This exhibition is an example of a _____.

_____ are taxes collected by a government on imported merchandise.

When contemplating sourcing products internationally, which of the following would NOT be an additional cost associated with global sourcing?

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

Which of the following is a subjective issue associated with global sourcing?

Why are inventory carrying costs higher for retailers who source internationally?

Lead times are longer, and there is a need to maintain higher levels of safety stocks.

Linda is a fashion designer who sourced out to a manufacturer in India in order to assemble her fall line. She assumed the patterns for the clothes were simple, and she deemed it unnecessary to personally visit the factory and supervise the workers sewing

Which of the following is true of collaborative supply chain management?

It is difficult to implement these strategies when sourcing globally.

Violations of human rights are avoided by _____.

enforcing core labor practices

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

they want to ensure a safe and healthy work environment for laborers.

Yves, an English speaking Frenchman, meets with buyers from the United States when they visit Paris. Once in Paris, the buyers rely on Yves to make appointments with French vendors to save time and penetrate the market. Yves works to help interpret and ne

Louise runs a successful shop in Chicago featuring unique dolls from Western Europe. Louise speaks German and a little Dutch, but no Italian, French or Spanish. Which of the following is the best way for Louise to procure dolls from all western European c

She can utilize a resident buying office when she visits Europe to buy.

Which of the following does NOT describe an approach for buying national brand merchandise?

Buyers using reverse auctions to procure seasonal merchandise

Which of the following is not true of reverse auctions?

The retailer chooses the lowest bidder regardless of other factors.

Retailers use _____ to get quality private-label merchandise at low prices.

As a vendor, Melissa works well with a buyer she's known for years at Dream Toys. This year, Melissa's line of toys had a few products that sold poorly, and it is now time to show the Dream Toys' buyer the next holiday season's product line. Melissa knows

_____ refers to funds vendors give retailers to cover lost gross margin dollars.

_____ are charges imposed by a retailer to stock a new item.

Fantasy and Stanley's are popular apparel stores. A Fantasy vendor has offered a Stanley's buyer an attractive discount on merchandise that had been returned to Fantasy by a different retailer. The Stanley's buyer realizes the high gross margin opportunit

The buyer wants to preserve Stanley's image as a fashion leader by not selling returned merchandise that could be out of season.

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

A buyer would want unique swimwear to arrive early in the season to get the most sales at the original price.

Which of the following is a negotiation issue that is often used in fashion merchandise categories?

When negotiating with a vendor, the best outcome for a retailer would be to:

Isabel works as a senior jewelry buyer for a department store chain. On a recent visit to a trade show, she noticed a new vendor selling unique earrings, necklaces, and bracelets made of glass. She had seen such pieces in trade magazines, but initially ig

Randolph is the divisional merchandise manager for home products for Daisy's, a supermarket. At a recent trade show, he noticed small kitchen appliances being shown in retro colors like pistachio, eggplant, and cotton candy. Knowing the kitchen designs we

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

A function of retailers is to provide assortments, so they must deal with a variety of suppliers.

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

By sharing common goals, buyers and vendors:

can pool their strengths and abilities to exploit potential opportunities.

What is the outcome when a retailer sells counterfeit merchandise?

It can destroy the relationship with the vendor of the legitimate brand.

_____ involve the flow of merchandise through distribution channels, usually across international borders, other than those authorized or intended by the manufacturer or producer.

Which of the following prohibits vendors offering different retailers different prices and purchase order terms for the same merchandise and quantity?

Janine buys swimwear for a chain of apparel stores. At a recent trade show, she took the opportunity to meet with a few vendors. During a meeting with the vendor that she normally purchased from each season, he proposed a weekend in the Cayman Islands to

She must inform her divisional merchandise manager of the proposal.

Steve buys men's dress shirts for Martin's, a clothing retailer. At a recent trade show, he took the opportunity to see a few new vendors. During one meeting, a vendor proposed a ticket to a coveted college football game. Steve graciously declined because

_____, also known as stocklifts or lift-outs, are activities engaged in by vendors with retailers to get their products into retail stores.

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.

A vendor's recent shipment at the retailer's distribution center was on time, but the boxes were mislabeled along with other infractions against the retailer's mandated shipment policies. What should the retailer do?

_____ is a socially responsible movement that ensures that producers receive adequate prices for their products.

Companies are practicing _____, which is the 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.