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Exam 12: Buying Merchandise

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Question 21

Multiple Choice

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

A) generic brand.
B) private-label brand.
C) exclusive brand.
D) premium private label.
E) copycat brand.

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Question 22

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What is the outcome when a retailer sells counterfeit merchandise?

A) It can be heavily fined through the rulings of the Robinson-Patman Act.
B) The retailer will lose money once the customers discover the truth.
C) It can destroy the relationship with the vendor of the legitimate brand.
D) The retailer gains a low profit margin by selling counterfeit goods.
E) It is known as the gray market.

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Question 23

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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 were moving in this direction, he decided to discuss it with his senior buyers to see if these retro colors would suit the Daisy's market. Randolph is in the ________ phase of building strategic relationships.

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

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

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

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

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 ignored them because of the exorbitant price. She thought her affluent customers would appreciate the look, so she decided to talk with the sales representative to learn more about the possibility of a trial in only a few of her top stores. Isabel is in the ________ phase of building strategic relationships.

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

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

Wholesale markets for retail buyers include only annual trade shows.

National brands

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 her clothes. Months later, the shipment arrived in New York and, the seams on all of the blouses were sewn incorrectly. This mishap is an issue of

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

National brands are also called

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

Violations of human rights are avoided by

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

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

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 negotiate during the buyer-vendor meetings. Therefore, Yves works for a