Which of the following statements describes an advantage to retailers associated with developing their own brands?
A) Dealers must market the brand, thus cutting into the gross margin.
B) Higher profit margins are available on private brands.
C) Private brands, particularly those owned by discounters, are perceived to be of a higher quality.
D) Dealers often buy in large quantities and thus always have a ready supply.
E) Private brands are normally delivered more promptly by the manufacturer.

Question

Quizplus · Accepted Answer

Private brands carry higher margins because manufacturers do not need to promote them.See Exhibit 10.2.

Which of the Following Statements Describes an Advantage to Retailers