Week 13 - Buying Merchandise

Question 1

Goods and services can be bought from national based brand in many ways.

Answer 1

Buying National based Merchandise

Question 2

Most successful and promptly used market are-

• Meeting national based vendors.
• Wholesale Market centres
• Trade shows

Answer 2

Buying National based Merchandise

Question 3

Generally retailers meet at market weeks or in trade shows with vendors, take appointment and discuss about the transactional factors.

Answer 3

National Brand Buying process

Question 4

Sometimes they do not negotiate rather place orders and reviews from different source about factors and take managerial decisions.

Answer 4

National Brand Buying process

Question 5

The most important thing for negotiation is “_____________________”.

Answer 5

KNOWLEDGE IS POWER

Question 6

Negotiation issues:
* Prices and gross margins
* Additional mark-up
* Terms of purchase
* Exclusivity
* Advertising allowance
* Transportation

Answer 6

Negotiation with vendors AND issues

Question 7

Tips for effective negotiation (9)

Answer 7

• Choose a good place to negotiate
• Be aware of real deadlines
• Separate the people from
  problems
• Insist on objective information
• Invent option for mutual gain
• Let them do talking
• Know how far to go
• Don’t burn bridges
• Don’t assume

Question 8

emerges when a retailers and vendors committed to build long term relationship, investing opportunities profitable for both parties.

Answer 8

STRATEGIC RELATIONSHIP

Question 9

• Mutual trust
• Common goals
• Open communication
• Credible commitments
• Awareness

is example of _________________

Answer 9

Maintaining relationship

Question 10

the law passed on terms and condition that vendors can not offer different to different retailers for same quality and features products.

Answer 10

Terms and condition of purchase

Question 11

is illegal in merchandising to influence the buying decision of retailers by offering something valuable.

Answer 11

Commercial Bribery

Question 12

deducting owe money by retailers to vendors when the time of payment missed. It is unethical in merchandising.

Answer 12

chargeback

Question 13

is system that gives favors to vendors by buying back and sniffing space allowance rather than competitors or buying back of products which slow moving in store. It’s unethical.

Answer 13

Buybacks

Question 14

• includes goods made without the permission of the owner of a trademark or a copyright. Copyright is an intellectual property. Counterfeit merchandise is an illegal

Answer 14

Counterfeit merchandise

Question 15

_____________ goods, also known as parallel imports, involve the flow of
merchandise channels, usually across the international borders.

Answer 15

Gray-Market Merchandise

Question 16

• It is similar to gray-market merchandise except there need not be distribution across international borders.

Answer 16

Diverted merchandise

Question 17

It occurs when consumer goods are scarce, such as water or gasoline after a natural disaster; heavily taxed such as cigarettes or alcohol; or illegal, such as drugs or arms.

Answer 17

Black Market Merchandise

Question 18

Legal and ethical issues to Buying
merchandise (8)

Answer 18

1. Terms and condition of purchase
2. Commercial Bribery
3. Chargeback
4. buybacks
5. Counterfeit merchandise
6. Gray-Market Merchandise
7. Diverted merchandise
8. Black Market Merchandise