Chapter 13 Flashcards
Premium Store Brand
Comparable to manufactures brand quality, sometimes with modest price savings
Bargain brand
Targets a price-sensitive segment by offering a no frills product at a discount price
Exclusive brands
Developed by a national brand vendor, often in conjunction with a retailer
Copycats brands
Imitates the manufacturer brand in appearance and trade dress
Parallel brands
Closely imitate the trade dress and product attributes of leading manufacturer brands, but clearly articulate “invitation to compare”
Use of Reverse Auctions
Many sellers with one retail buyer
Chargebacks
A practice used by retailer in which they deduct money from the amount they owe a vendor
Two reasons:
Merchandise isn’t selling
Vendor mistakes
Slotting allowances
Fees paid by a vendor for space in a retail store
- retailers argue that they are a reasonable method for ensuring that their valuable space is used efficiently
- manufacturers view them as extortion
Buy backs (scenarios)
Retailers allows a vendor to create space for its good by “buying back” a competitors inventory and removing it from a retailers system
Retaiker forces a vendor to buyback slow moving merchandise
Gray market merchandise
Possesses a valid u.s registered trademark and is made by a foreign manufacturer but is imported into the u.s without permission of the u.s trademark owner
Not counterfeit
Is legal if the foreign manufacturer and domestic trademark owner fall common umbrella
Diverted merchandise
Similar to gray market except no need distribution internationally
Typing contracts
An agreement that requires the retailer to take a product it doesn’t necessarily desire to ensure that it can buy a product it does desire
Refusals to deal
Suppliers and retailers have the right to deal or refuse to deal with anyone they choose
Legal except when it lessens a competition
