Specialty goods typically have a high gross margin because they are unique, high-value items for which consumers are willing to pay a premium. They are not usually purchased frequently, so the emphasis is on the high value and uniqueness rather than on volume sales, leading to higher gross margins for the sellers.

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Specialty Goods

Question 27

Multiple Choice

Specialty goods:

A) have a high stock turnover.
B) have a high gross margin.
C) usually require the buyer to engage in some comparison shopping.
D) often use point-of-purchase displays.
E) require very little time be spent on planning the purchase.

Correct Answer: