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What are the advantages of retail exchanges?

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The advantages are that exchanges provid...

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Why would a retailer want to buy from vendors of manufacturer brands?

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Buying from vendors of manufac...

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Helen is planning to open a boutique in Victoria, specializing in large women's sizes. What is her best option for merchandising her store on her limited budget?


A) Convince vendors to visit her store
B) Use a resident buying office to buy in Montreal and Hong Kong
C) Buy at similar shops going out of business
D) Interact electronically with vendors on a retail exchange
E) Visit trade shows in Toronto once a year

F) A) and E)
G) B) and E)

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What are some of the drawbacks of using private-label brands?

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Some of the drawbacks of offering privat...

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What is diverted merchandise?

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Merchandise diverted from its ...

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Parallel branding:


A) targets a price-sensitive consumer
B) abounds in the fragrance market
C) is frequently referred to as the house brand
D) can be used to bolster private-label sales
E) imitates the manufacturer brand and is perceived as lower quality

F) A) and B)
G) D) and E)

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D

Which of the following statements about tariffs is true?


A) Retailers want to raise them
B) Tariffs have never been used as a government fund raiser
C) The World Trade Organization is responsible for the increase in the tariff rate
D) Import tariffs have been used to shield domestic manufacturers from foreign competition
E) Tariffs lower the cost of imported merchandise

F) A) and B)
G) C) and D)

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A German manufacturer has developed the next generation of hand held computers, and retailers in Europe have enjoyed its success with minimal promotion. The manufacturer wants to market it in North America, but the tariffs are too high. Which of the following would be the German company's best option?


A) Supply only the markets in Europe
B) Wait until NAFTA has reduced tariffs
C) Concentrate on selling globally in duty-free shops
D) Sell to Asian markets
E) Seek a free trade zone in Central America to assemble the item

F) A) and B)
G) C) and E)

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Why is it important for retailers to develop and maintain relationships with multiple, and sometimes competing suppliers?

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It is important for retailers to develop...

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Paul ran a chain of discount sporting goods stores which struggled for years when Walmart opened in the surrounding area. Walmart carried the same brands as Paul's shops, but Paul couldn't compete with the giant's pricing, so merchandise in his shops didn't sell. Which of the following would have been Paul's best chance for surviving?


A) Paul should consider going out of business
B) Paul should sell other discount sporting brands other than the brands Walmart carries
C) Paul should consider partnering with Walmart's sportswear buyers
D) Paul should advertise more and extend his hours
E) Paul should consider developing a private label for his stores

F) A) and D)
G) C) and D)

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The problems with selling private-label merchandise are most severe with:


A) high-fashion merchandise
B) housewares
C) power and hand-held tools
D) outdoor wear
E) canned foods

F) A) and B)
G) A) and C)

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How is parallel branding a leveraging strategy used to bolster a retailer's private-label sales?

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Parallel brands attempt to produce a pro...

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Why is collaboration possibly the most important benefit of retail exchanges?

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Collaboration shorte...

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Which of the following type of brands would a retailer normally expect to get the lowest gross margin?


A) Exclusive brands
B) Unique brands
C) Private-label brands
D) Generic brands
E) National brands

F) A) and D)
G) A) and C)

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Denise is a small scale fashion designer who sourced out to a manufacturer in India to assemble her new fall line. She assumed the patterns for the clothes were simple and obvious, so she thought it unnecessary to personally visit the factory and supervise the workers sewing her clothes. Months later, the shipment arrived in Montreal, and much to her surprise, the seams on all of the blouses were sewn incorrectly. This mishap is an Issue of:


A) limited foreign vendors
B) tariff restrictions
C) quality control
D) global trends
E) poor marketing

F) A) and E)
G) C) and D)

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By sharing common goals, buyers and vendors:


A) can pool their strengths and abilities to exploit potential opportunities
B) can conclude that the long-term results of the relationship are insignificant
C) can avoid sharing each firm's most strategic information
D) do not have to coordinate systems for the partnership to succeed
E) commonly miscalculate the cost of merchandise

F) A) and C)
G) A) and D)

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A

When given a choice between a national brand of jeans and a private-label brand, the buyer for a chain of mall specialty stores might choose the private-label brand:


A) to increase its sales expenses
B) to prevent its customers from comparison shopping
C) to limit its store traffic to qualified buyers
D) to increase its merchandising flexibility
E) for all of these reasons

F) B) and C)
G) A) and E)

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Retailers often say they are "going to market." What does "market" mean in this context?


A) The intention to price merchandise at whatever the "going rate" happens to be in a particular location
B) A shopping center in which the firm plans to open a new store
C) A geographic location where the retailer anticipates remarkably good prospects for above-average levels of sales
D) The place where a large number of vendors are concentrated
E) The target consumers at whom a line of merchandise will be aimed

F) B) and C)
G) A) and D)

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The North American Free Trade Agreement (NAFTA) :


A) has 12 member countries
B) provides manufacturers with ready access to relatively low-cost and abundant Mexican labour
C) has member countries from Canada to Chile
D) has assisted Europe in the development of the Euro
E) is supervised by the World Trade Organization (WTO)

F) A) and C)
G) B) and D)

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B

Which of the following is an important retail exchange function?


A) Supervision
B) Quality control
C) Pricing
D) Advertising
E) Distributing

F) D) and E)
G) All of the above

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Showing 1 - 20 of 89

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