Question 1

By sharing common goals,buyers and vendors _______.

Accepted Answer

Vendors and buyers should have common goals for a successful relationship to develop.

Question 2

Which of the following statements would be the best reason for a retailer to source products within North America?

Accepted Answer

Because of the shorter distance and not needing to transport products overseas,the lead times are shorter.

Question 3

A DKNY vendor has offered to a Dillard's buyer an attractive discount on merchandise that had been returned to DKNY by a different retailer.The Dillard's buyer realizes the high gross margin opportunity,but refuses the offer nevertheless.Why?

Accepted Answer

Buyers need to consider many different facets when dealing with additional mark-up opportunities.

Question 4

When a swimwear buyer negotiates for delivery and exclusivity with a vendor,what would a buyer typically want?

Accepted Answer

The buyer is hoping to differentiate the retailer from its competitors through an exclusive arrangement so that no other retailer can sell the same items.

Question 5

Which of the following prohibits vendors offering different retailers different prices and purchase order terms for the same merchandise,quantity and circumstances?

Accepted Answer

The Robinson-Patman Act restricts the prices and terms that vendors can offer to retailers.

Question 6

At FN Platform,vendors display their fashion footwear in designated areas at the Las Vegas convention center and have sales representatives available to talk with buyers as they walk through the exhibit area.This is an example of _______.

Accepted Answer

At a tradeshow,vendors display their merchandise in designated areas at a convention center and have sales representatives available to talk with buyers as they walk through the exhibit area.

Question 7

Yves,an English speaking Frenchman,meets with buyers from the United States when they visit Paris.Once in Paris,the buyers rely on Yves to make appointments with French vendors to save time and penetrate the market.Yves works to help interpret and negotiate during the buyer-vendor meetings.Yves must work for a/an __________.

Accepted Answer

Resident buying offices provide services to help retailers buy merchandise.

Question 8

As a vendor,Melissa works well with a buyer she's known for years at Toys 'R' Us.This past year,Melissa's line of toys experienced a few products that sold poorly,and it is now time to show the Toys 'R' Us buyer the next holiday season's product line.Melissa knows the Toys 'R' Us buyer will be a hard negotiator.What should Melissa be prepared to do?

Accepted Answer

Markdown money are funds vendors give retailers to cover lost gross margin dollars due to the markdowns needed to speed up slow selling merchandise.

Question 9

When Whitney took over her father's sporting goods store,she evaluated some of her father's vendor relationships.She found that Rodney's Exercise Wear wasn't particularly profitable for the store.Although committed,his products were expensive and he seemed inflexible.Whitney tried to work out a more amicable relationship with him by discussing her sales goals and new ideas for the coming year,but Rodney seemed uninterested.Which of the following is most likely lacking from the development of this relationship?

Accepted Answer

Open communications happens when vendors and retailers share information,develop sales forecasts together,and coordinate efforts in order to achieve common goals.This vendor is clearly not interested in this.

Question 10

The Macy's buyer is considering increasing selling space at their stores for one of many different vendors in her category.Which of the following would have the LEAST impact on the buyer's decision as to which vendor to grant the additional space to?

Accepted Answer

The offering of gifts and entertainment can sometimes be commercial bribery.Buyers should make their decision solely on the basis of the vendor's performance and what is best for the retailer.

Question 11

By producing her revolutionary scalp coolant shampoo in Canada,Rene will experience which of the following?

Accepted Answer

Because of the shorter distance and not needing to transport products overseas,the lead times are shorter.

Question 12

Isabel worked as a senior buyer for jewelry for a department store chain.On a recent visit to a trade show,she noticed a new vendor selling unique earrings,necklaces,and bracelets made of glass.She had seen such pieces in trade magazines before,but initially ignored them because of the exorbitant price.She thought her affluent customers would appreciate the look,so she decided to talk with the sales rep to learn more about the possibility of trying the jewelry out in only a few of her top stores.Which phase BEST describes Isabel's level of commitment?

Accepted Answer

In the exploration stage the buyer and vendor begin to explore the potential benefits and costs of partnership.

Question 13

Which of the following issues would NOT be appropriate for buyers to discuss with a vendor that has been performing well above their planned gross margin?

Accepted Answer

Markdown money are funds vendors give retailers to cover lost gross margin dollars due to the markdowns needed to speed up slow selling merchandise.Since the vendor has been performing well above their planned gross margin,there is no need to request markdown money.All of the other selections can aid in keeping the business doing well for this vendor.

Question 14

Violations of human rights and child labor are avoided by ______.

Accepted Answer

Self-policing potential violations of human rights and child-labor are concerns when sourcing products globally.

Question 15

_____ are charges imposed by a retailer to stock a new item.

Accepted Answer

Supermarkets most commonly are retailers that would impose a slotting allowance for new products to receive shelf space.

Question 16

Louise runs a successful shop in Chicago featuring one-of-a-kind dolls from Western Europe.Louise speaks German and a little Dutch,but no Italian,French or Spanish.How can she best buy dolls from all European nations,and maintain her unique assortments?

Accepted Answer

Resident buying offices provide services to help retailers buy merchandise.

Question 17

When negotiating with a vendor,the best outcome for a retailer would be _______.

Accepted Answer

A win-win situation is best for long term relationships between vendor and retailers.

Question 18

Randolph is the divisional merchandise manager for Home for Walmart.At a recent trade show he noticed small kitchen appliances being shown in retro colors like pistachio,eggplant and cotton candy.Knowing the kitchen designs were moving in this direction,he decided to discuss it with his senior buyers to see if these retro colors would suit the Walmart market.What phase BEST describes Randolph's level of commitment?

Accepted Answer

In the awareness stage the merchants are beginning to see new trends and merchandise that may or may not be suitable for their target customer.

Question 19

What is the best reason for retailers to develop and maintain relationships with multiple and sometimes competing suppliers?

Accepted Answer

It is difficult for retailer and vendor relations to be solely committed to one another as an important function of retailers is to provide a varied assortment of merchandise for their customers;therefore retailers must deal with multiple and sometimes competing vendors.

Question 20

Which of the following is a negotiation issue that is often used in fashion merchandise categories?

Accepted Answer

In fashion merchandise categories,being the first retailer in a market to carry certain products helps that retailer hold a fashion-leader image while achieving a differential advantage.

Quiz 13: Buying Merchandise