Question 1

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

Accepted Answer

As retailers have become larger and more sophisticated, they have set up their own buying offices and staff in other countries making the use of resident buying offices less needed.

Question 2

Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name Clean Homes. Therefore, Clean Homes is a(n)
A) premium brand.
B) copycat brand.
C) umbrella brand.
D) exclusive brand.
E) subbrand.

Accepted Answer

In some cases, vendors use an umbrella or family brand associated with their company and a subbrand associated with the product, such as Kellogg's (family brand) Raisin Brand (subbrand) or Ford (family brand) F-Series trucks (subbrand).

Question 3

________ are products developed by retailers.
A) Copycat brands
B) National brands
C) Exclusive brands
D) Store brands
E) Parallel imports

Accepted Answer

In many cases, retailers develop the design and specifications for their store-brand products, and then contract with manufacturers to produce those products.

Question 4

When identifying national brands, vendors use a(n) ________ associated with their company.
A) premium brand
B) copycat brand
C) umbrella brand
D) exclusive brand
E) subbrand

Accepted Answer

Vendors use an umbrella or family brand associated with their company and a subbrand associated with the product.

Question 5

Techno Comp is a well-known national brand of computer and electronic products and accessories. Their tablet would be considered a(n)
A) premium brand.
B) copycat brand.
C) umbrella brand.
D) exclusive brand.
E) subbrand.

Accepted Answer

A subbrand is a brand of products that is under a family or umbrella brand.

Question 6

Tide detergent, Ralph Lauren polo shirts, and Hewlett-Packard printers are all examples of
A) private-label brands.
B) national brands.
C) general brands.
D) generic brands.
E) licensed brands.

Accepted Answer

National or manufacturer's brands are designed, produced, and marketed by a vendor and sold to many different retailers.

Question 7

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

Accepted Answer

Copycat brands are private-label products produced by the retailer that imitate the national brand in both appearance and packaging, but are priced cheaper. Copycat brands abound in drugstores and grocery stores.

Question 8

All of the following are terms for products developed by retailers except
A) store brands.
B) private-label brands.
C) house brands.
D) own brands.
E) manufacturer's brands.

Accepted Answer

Manufacturer's brands are designed, produced, and marketed by a vendor and sold to many different retailers.

Question 9

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

Accepted Answer

Many customers have developed loyalty to specific national brands. They only patronize retailers selling these national-brand merchandise. In addition, the availability of national brands can affect a customer's image of the retailer.

Question 10

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

Accepted Answer

Supermarket buyers often negotiate slotting fees. Slotting fees, or slotting allowances, are charges imposed by a retailer to stock a new item.

Question 11

Which of the following is True of store brands?
A) Store brands are limited in variety when compared to national brands.
B) These products are sold to competing retailers.
C) They are labeled only with the commodity name and have no distinguishing brand names.
D) Retailers develop the design for these products in most cases.
E) National brand vendors are not involved in the development of these products.

Accepted Answer

In many cases, retailers develop the design and specifications for their store-brand products and then contract with manufacturers to produce those products.

Question 12

A(n) ________ developed by a retailer is comparable with national brands on quality rather than price.
A) premium brand
B) copycat brand
C) umbrella brand
D) exclusive brand
E) subbrand

Accepted Answer

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

Question 13

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.

Accepted Answer

When both parties continue to find the relationship mutually beneficial, the relationship moves into the commitment stage where they continue to make significant investments in the relationship. 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.

Question 14

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.

Accepted Answer

In a reverse auction, the retail buyer provides a specification for what it wants to a group of potential vendors.

Question 15

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

Accepted Answer

Gray-market goods, also known as parallel imports, involve the flow of merchandise through distribution channels, usually across international borders, other than those authorized or intended by the manufacturer or producer. Diverted merchandise is similar to gray-market merchandise except there need not be distribution across international borders.

Question 16

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) premium store brand.
B) generic brand.
C) copycat brand.
D) parallel import.
E) licensed brand.

Accepted Answer

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

Question 17

Wholesale markets for retail buyers include only annual trade shows.

Accepted Answer

Wholesale markets may be permanent wholesale market centers, annual trade shows, or trade fairs.

Question 18

National brands are also called
A) generic brands.
B) private-label brands.
C) exclusive brands.
D) manufacturer's brands.
E) distributor's brands.

Accepted Answer

National or manufacturer's brands are designed, produced, and marketed by a vendor and sold to many different retailers.

Question 19

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

Accepted Answer

Commercial bribery occurs when a vendor or its agent offers or a buyer asks for "something of value" to influence purchase decisions. The offering of gifts and entertainment can sometimes be commercial bribery. Retailers want their buyers to decide on purchases solely on the basis of what is best for the retailer.

Question 20

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

Accepted Answer

Markdown money refers to funds vendors give retailers to cover lost gross margin dollars due to the markdowns needed to sell unpopular merchandise.

Quiz 12: Buying Merchandise

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

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

________ are products developed by retailers.

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

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

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

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

All of the following are terms for products developed by retailers except

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

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

Which of the following is True of store brands?

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