Exam 13: Buying Merchandise

A) Walmart wanted to maintain quality merchandise despite its discount reputation.
B) Walmart was working to build strategic partnerships within Asia.
C) Walmart was working towards collaborative merchandising.
D) Walmart was developing a "Made in America" campaign.
E) Walmart wanted to ensure supplier compliance of core labor standards.

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A) to dismiss the negotiation if there's no agreement and ultimately cancel the vendor relationship
B) to leave the negotiations with an advantage over the vendor
C) to have mutual gain
D) to give the vendor the advantage in the negotiation only to use it in your favor for the following season
E) to agree to disagree on performance thresholds

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A) Retail buyers provide a group of potential vendors with a specification for what they want.
B) There is one buyer,the retailer,and many potential sellers,the manufacturing firms.
C) Retailers use it to get quality private-label merchandise at low prices.
D) Reverse auctions are common among commodities and seasonal products.
E) The retailer chooses the lowest bidder regardless of other factors.

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Some of the drawbacks of offering privat...

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A) creating the planograms
B) creating the advertising and promotional calendar
C) shopping the competition
D) procuring the merchandise
E) budgeting for employee labor

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A) Retailers do not have to concern themselves with human rights and child labor violations.
B) Retailers do not have to concern themselves with building strategic partnerships.
C) Lead times are shorter.
D) Quality control is no longer an issue for retailers because the labor is better educated.
E) Domestic sources of merchandise are superior to what is found globally.

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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.

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A) There is less steps and supply chain resources needed to develop private label product.
B) The retailer saves costs as it does not need to market private label products.
C) There is less risk involved with selling private label brands.
D) Private label brands have more clout than national brands.
E) Private label brands can fill assortment voids that are not being met by national brands.

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A) National brands are far superior to private labels.
B) National brands are produced with better quality.
C) Significant investment is needed to develop,manage and market private labels.
D) Gross margins are lower with private labels than with national brands.
E) Private label merchandise is only possible for department store retailers.

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Retailers carry national brands because ...

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A) shorter lead times
B) commercial bribery
C) child labor infractions
D) noncompliance with basic labor standards
E) delayed merchandise production

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A) Louise can visit wholesale market centers throughout the year.
B) Louise can attend trade shows in the United States and meet vendors there.
C) Louise can establish a time for vendors to visit her in her own office.
D) Louise can buy from local artists of European descent.
E) Louise can utilize a resident buying office when she visits Europe to buy.

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A) quality control
B) tariff ramifications
C) poor strategy
D) global market satiation
E) global trends

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

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

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A) a shopping center in which the firm plans to open a new store
B) a concentrated area where vendors are permanently located and show new merchandise during certain times of the year
C) a geographic location where the retailer anticipates remarkably good prospects for above average levels of sales
D) the target consumers at whom a line of merchandise will be aimed
E) the intention to price merchandise at whatever the "going rate" happens to be in a particular location

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A) Lead times are longer so there is a need to maintain higher levels of safety stocks.
B) There is no way to predict the extra tariffs that will be levied by importing countries.
C) Labels of origin are typically put on products and need to be removed upon arrival.
D) Changes in fixed costs result in additional inventory.
E) Foreign distribution centers charge higher storage fees.

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