A small chain of supermarkets in the western United States sells only manufacturers' brands.Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturers' brands?
A) A well-known manufacturers' brand will not enhance the chain's image.
B) Manufacturers rarely spend money advertising the brand name to consumers.
C) Manufacturers typically offer a lower gross margin than could be earned on private label brands.
D) Manufacturers force the chain to carry a large in-store inventory.
E) Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.

Question

Quizplus · Accepted Answer

The dealer will get a higher gross margin on a private brand.See Exhibit 10.5.

A Small Chain of Supermarkets in the Western United States