SC VOCAB QUIZ 8
QUIZ 8 WORDS
Terms
undefined, object
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- merchant wholesaler
- A firm primarily in wholesaling activity.
- buy-back clause
- A part of a contract where Buyer is provided assurances Seller will repurchase slowing moving or dead inventory on some predetermined basis.
- arbitration
- The process by which parties to a dispute submit their differences to the judgment of an impartial third person or group selected by mutual consent.
- category manager
- A retail employee selected to lead a category in the retail store.
- profit pass-over arrangement
- Reseller A reimburses Reseller B for all products sold into Reseller B's defined territory.
- pooling
- The Sherman Act made this practice of an industry dividing up its output illegal.
- area of primary responsibility
- A part of an intermediary's contract that establishes a principle area of responsibility but does not prohibit the intermediary from selling anywhere else in the world.
- categorizing
- The act of putting merchandise into various definitions like "shoe styles".
- Retail Life Cycle
- A theory of competition which states that retailing institutions, like the products they distribute, pass through an identifiable cycleof (1) innovation, (2) accelerated development, (3) maturity, and (4) decline.
- caveat emptor
- This Latin phrase loosely translates to "let the buyer beware".
- nonstandard product
- Any custom, unboxed, or other product that can not be handled by the standard infrastructure for that industry.
- Foreign Corrupt Practices Act [FCPA]
- Addresses participation in the corruption of foreign governments by U.S. multinational corporations. This law makes it illegal to bribe a foreign government official in order to obtain or maintain business over which that foreign official has authority.
- caveat venditor
- This Latin phrase loosely translates to "let the seller beware".
- Retail Accordion
- A theory of institutional change contending retailers go from outlets with wide assortments to specialized narrow line store merchants and then back again to the more general wide assortment institution.
- predatory negotiating strategy
- The outcome of this type of negotiations is usually win-lose.
- designated product policies
- A company can use this to allow certain types of resellers to specific products or product lines.
- category advisor
- This is where a supplier functions as the retailer's category manager.
- administered VMS
- A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.
- retail category management
- This involves the merchandising strategy, promotional efforts, and other elements of the retail mix within the category based on the firm's goals, the environment, and consumer behavior.
- resale restriction
- This prohibits one from limiting the territory for sale of a reseller.
- gray market
- This type of market features the importing and trading of goods by firms for which the importer has not been appointed by the manufacturer as official distributors of the product generally below manufacturer's existing national price schedule.
- resident buyer
- A purchasing agent representing several retailers that resides in the central market area for a line of merchandise.
- category captain
- The single supplier retailers tend to rely on only one supplier to assist them.
- reward power
- This type of influence comes from Party A providing additional benefits to Party B if B meets or exceeds expectations.
- absolute confinement
- A part of an intermediary's contract that prohibits the intermediary from selling anywhere outside its defined territory.
- SPM
- The strategic profit model [SPM] financial tool basically looks at the relationships of net profit to total assets and net profit to net worth.
- bulky product
- Any product that can not be handled with the customary material handling equipment used in that industry.
- scrambled merchandising
- A response to "one-stop shopping" where retailers add dissimilar product lines attempting to increase sales, profits, and loyalty.
- cartel
- A group of independent entities which regulates production, pricing, and marketing by members to maximize market power and limit competition.
- tariff
- A comprehensive list or 'schedule' of merchandise with applicable duty rates to be paid or charged for each listed article together with the governing rules and regulations of their application.
- location clause
- The part of an intermediary's agreement that defines the primary site of business. It could also include the natural market area, but that is oftentimes found in the territory clause.
- RONW
- The return on net worth [RONW] financial management tool basically looks at the relationship of net profit to net worth.
- tying clause
- This sometimes illegal practice exists where a buyer can only buy product B if they buy product A.
- transfer pricing
- This is a method of setting intra-company pricing that reflects arms-length, most favored customer, and tax implications that are consistent with governmental guidelines.
- corporate VMS
- A VMS that combines successive stages of production and distribution under single ownership assuring channel leadership and control.
- supercenter / hypermarket
- Combines discount and grocery stores with many tens of thousands of products in an attempt to provide one-stop shopping.
- standardization and grading
- The process of sorting products according to size and quality.
- the Colgate Doctrine
- This predecessor of the Robinson-Patman Act established the seller's right to sell, or not sell, to whomever it chooses.
- category team
- All members of the retail channel working together to deliver the Efficient Consumer Response [ECR] concept to an entire category of merchandise.
- Wheel of Retailing
- This hypothesis describes how retailers usually begin at the bottom of the wheel with low prices, profits and prestige and then gradually work their way up to increased prices, profits and prestige.