The effectiveness of the buyer-vendor relationship depends on the:
a. final negotiated prices.
b. negotiation skills of the buyer and the economic power of the firms involved.
c. profitability of the line for the retailer.
d. method of shipment.
e. markdown money.
Question 2Retailers should concentrate all of their customer-service programs around pretransaction elements.
Indicate whether the statement is true or false
Question 3Cameron Brody wants 15 percent of an average dollar invested in the assets of his bookstore to be returned in profit. Cameron is setting a(n) _____ financial objective.
a. gross margin return on sales
b. return on inventory
c. return on net worth
d. operating profit margin
e. return on assets
Question 4The logistics network consists of all firms that are involved in moving physical inventory from initial source to the retail store.
Indicate whether the statement is true or false
Question 5The price-quality effect can help startup and discount firms overcome the advantages of a well-established brand.
Indicate whether the statement is true or false
Question 6The _____ provides a three-year financial summary as well as the names, titles, and negotiating points of all the vendor's sales staff.
a. black book
b. vendor classification book
c. vendor profitability book
d. buyer's guide
e. confidential vendor analysis
Question 7Profitable retailers must be able to differentiate themselves by meeting the needs of their customers better than the competition.
Indicate whether the statement is true or false
Question 8If a retailer has a return on assets of 15 percent and a net profit margin of 3 percent, then its rate of asset turnover is:
a. .20 times.
b. 5.0 times.
c. 15.0 times.
d. 30.0 times.
e. 60.0 times.
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