Lecture Notes on Buying Merchandise

These flashcards cover key concepts from the lecture on buying merchandise, including brand types, sourcing considerations, negotiation strategies, and ethical issues.

What are national brands often referred to as?

Manufacturer's brands.

What is the difference between store brands and generics?

Store brands are also known as private label brands, while generics typically refer to no-frills products with minimal branding.

What factors do retailers consider when sourcing store branded merchandise internationally?

Issues like labor costs, currency fluctuations, tariffs, quality control, and sociopolitical risks.

Where do buyers and sellers often meet to conduct business discussions?

At trade shows or conventions.

What is a reverse auction?

A process where vendors compete to offer the lowest price for goods or services needed by buyers.

What are some common negotiation issues for buyers?

Gross margins, slotting fees, payment terms, and exclusivity agreements.

How can retailers benefit from co-op advertising?

Both manufacturers and retailers can share advertising costs, making it more affordable for both parties.

What is the concept of win-win relationships between retailers and vendors?

A collaborative relationship focused on mutual benefits and long-term commitment.

What is a major legal issue related to buying merchandise?

Counterfeit merchandise and intellectual property theft.

What does corporate social responsibility entail for companies?

Voluntarily taking actions to address ethical, social, and environmental impacts of operations.

What does greenwashing refer to?

Pretending to be environmentally friendly when the practices are superficial.