FM 206 Final Exam Questions With
Complete Answers
What are five criteria to consider when selecting vendors? - ANSWER 1.
Merchandise and Prices Offered
2. Vendors' Distribution Policies
3. Vendors' Reputation and Reliability
4. Terms Offered
5. Services Offered
What happens when vendors sell the product to only one retailer in a trading
area? - ANSWER Exclusive Distribution
What happens when vendors sell the product to some selected retailers in the
same trading area? - ANSWER Selective Distribution
What are the three key benefits of vendor-owned stores? - ANSWER 1. Ability to
Display Full Line
2. Create Environment According to Full Line Theme
3. Obtain Feedback from Customers on the Full Line, Rather than Pieces
What are three distinct problems with vendor-owned stores? - ANSWER 1.
Vendor Owned Store Merchandise is Being Dropped by Traditional Stores
2. Relying on Single Manufacturer May Create a Poor Product Mix
3. Buyers May Become Lazy in Search for New Ideas and Styles because of
Limited Choices
What is a city where a large number of key suppliers are located? - ANSWER
Central Market
What are the characteristics of good negotiators? - ANSWER - Creativity
- Active Listening Skills
- Excellent Organizational Skills
- Self-Confidence
- Flexible
What is the negotiation tactic that is deadlock and no time for negotiations? -
ANSWER Take It or Leave It
What is the negotiation tactic that is only authorized up to certain amount
without approval? - ANSWER Limited Authority
Complete Answers
What are five criteria to consider when selecting vendors? - ANSWER 1.
Merchandise and Prices Offered
2. Vendors' Distribution Policies
3. Vendors' Reputation and Reliability
4. Terms Offered
5. Services Offered
What happens when vendors sell the product to only one retailer in a trading
area? - ANSWER Exclusive Distribution
What happens when vendors sell the product to some selected retailers in the
same trading area? - ANSWER Selective Distribution
What are the three key benefits of vendor-owned stores? - ANSWER 1. Ability to
Display Full Line
2. Create Environment According to Full Line Theme
3. Obtain Feedback from Customers on the Full Line, Rather than Pieces
What are three distinct problems with vendor-owned stores? - ANSWER 1.
Vendor Owned Store Merchandise is Being Dropped by Traditional Stores
2. Relying on Single Manufacturer May Create a Poor Product Mix
3. Buyers May Become Lazy in Search for New Ideas and Styles because of
Limited Choices
What is a city where a large number of key suppliers are located? - ANSWER
Central Market
What are the characteristics of good negotiators? - ANSWER - Creativity
- Active Listening Skills
- Excellent Organizational Skills
- Self-Confidence
- Flexible
What is the negotiation tactic that is deadlock and no time for negotiations? -
ANSWER Take It or Leave It
What is the negotiation tactic that is only authorized up to certain amount
without approval? - ANSWER Limited Authority
