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Employee and customer discounts are some of the reasons for the difference between
initial and maintained markup.
Reductions should be included in a merchandise budget only when they exceed 5% of
sales.
During negotiations between buyer and seller, price and discount terms are seldom
negotiated, because they are set by the vendor and by law cannot be adjusted to
individual buyers.
When a retailer heavily advertises a high-demand item that is priced low in an effort to
attract consumers into a store, the retailer is using leader pricing.
When a consumer has a weak retailer preference and a strong brand preference he/she
typically engages in extended problem solving.
In a monopolistically competitive market, the retailer will be confronted with a
negatively sloping demand curve.
Supermarkets usually seek to highlight breadth in their inventories.
A supply chain is a set of institutions that moves goods from the point of production to
the point of consumption.
To be effective, a retail buyer should never take a markdown.
The rapid growth of chain stores occurred during the 1940's.
