Everything You Should Know About Marketing! Trivia Questions

Offering extra dating refers to extending the period of time in which buyers can pay for their purchases. By providing this incentive, buyers may be more inclined to purchase new merchandise because they have additional time to gather the necessary funds. This can help alleviate any financial constraints or immediate payment obligations that may deter buyers from making a purchase. Therefore, offering extra dating can encourage buyers to purchase new merchandise.

The statement is true because the three types of purchase situations mentioned (new task purchases, modified rebuy, and straight rebuy) are indeed valid categories in the field of purchasing. New task purchases refer to situations where a company is buying a product or service for the first time, modified rebuy occurs when a company wants to make some changes or modifications to an existing purchase, and straight rebuy refers to routine purchases of products or services that have been previously bought without any modifications.

A national chain engaging in centralized buying allows them to take advantage of economies of scale and negotiate better deals with suppliers, resulting in cost savings. Additionally, centralized buying ensures consistency in product quality and pricing across all locations, creating a unified image for customers.

A straight-rebuy is the correct answer because in this type of purchasing situation, the buyer regularly orders staple goods from a familiar vendor without any significant changes or modifications. Straight-rebuy is a routine purchasing decision where the buyer simply reorders products that have been purchased before, without much evaluation or consideration of alternatives. It is a low-risk, efficient purchasing method commonly used for staple goods that are regularly needed. This type of purchasing situation does not involve extensive decision-making or evaluation of different vendors or products.

The EOM stock figure refers to the amount of inventory that a store has at the end of the month. This figure is important for businesses to track their inventory levels and make informed decisions about ordering more stock or reducing inventory. It helps in evaluating the success of sales and inventory management strategies. Therefore, the EOM stock figure is the most relevant explanation for the given question.

To find the planned reduction amount for this year, we need to calculate 5 percent of last year's figure of $700. To do this, we multiply $700 by 0.05 (which represents 5 percent). The result is $35. We then subtract $35 from $700 to get the planned reduction amount for this year, which is $665.

Memorandum buying refers to a purchasing system where a supplier agrees to take back any unsold goods by a pre-established date. This arrangement allows the buyer to minimize the risk of holding excess inventory and reduces the need for storage space. It is a form of centralized buying where the supplier and buyer have a mutual agreement regarding the return of unsold goods.

The term "discounts" refers to any reductions from the quoted price. This means that when a customer receives a discount, they are paying less than the original price for a product or service. Discounts can be offered for various reasons, such as promotional purposes, bulk purchases, or customer loyalty. They are a common marketing strategy used by businesses to attract customers and increase sales.

A planned reduction refers to a deliberate decrease in the quantity or price of merchandise. This can be done to stimulate sales or to align inventory levels with demand. In this context, the loss of merchandise and revenue is likely a consequence of the planned reduction, as the reduced prices may result in lower revenues and the decreased quantity may lead to a loss of inventory. Theft may also contribute to the loss of merchandise and revenue.

Decentralized buying refers to the practice of making retail decisions at lower levels of the organization. This means that the authority and responsibility for purchasing decisions are distributed among different individuals or departments within the organization. Instead of a centralized buying process where all decisions are made by a single entity, decentralized buying allows for more flexibility and adaptability in responding to local market conditions and customer preferences. This approach empowers employees at various levels to make informed decisions based on their knowledge and expertise, ultimately leading to more efficient and effective retail operations.

The statement "A purchasing manager does not review the master production schedule" is false. Purchasing managers are responsible for managing the procurement of materials and resources needed for production. To effectively carry out this role, they need to review the master production schedule, which outlines the production plan and the timing of material requirements. By reviewing the schedule, purchasing managers can ensure that the necessary materials are ordered and delivered on time to support the production process.

Resellers do not evaluate want slips to determine if requests are warranted. Want slips are used by customers to indicate their desire for a particular product or service, and it is the responsibility of the reseller to fulfill those requests. The evaluation of whether a request is warranted or not typically falls under the purview of the reseller's management or procurement team. Therefore, the given statement is false.

Organizational buying refers to the process of purchasing goods or services for a business or organization's use. This type of buying is typically done on a larger scale and involves multiple individuals or departments within the organization. It may involve evaluating suppliers, negotiating contracts, and making purchasing decisions based on the needs and goals of the organization. Organizational buying is different from individual or consumer buying, as it focuses on meeting the specific requirements and objectives of the business rather than personal preferences.

Consignment buying refers to a business arrangement in which a supplier delivers goods to a retailer, who only pays for the goods after they are sold to the final customer. This allows the retailer to minimize risk by not having to pay for inventory upfront, and it provides the supplier with more control over the distribution and sales process. In consignment buying, the retailer acts as a middleman between the supplier and the customer, earning a profit by selling the goods at a higher price than the supplier's cost.

The correct answer is "purchasing manager" because a purchasing manager is responsible for procuring goods used in service and manufacturing businesses. They are in charge of negotiating discounts, managing the open-to-buy budget, and keeping track of the end-of-month (EOM) stock figure.

Consignment buying refers to a situation where a retailer is able to purchase goods without making an upfront payment. Instead, the retailer only pays for the goods once they are sold to the end customer. This means that the retailer does not need to use their own funds to purchase the goods, and therefore the amount of money they have left for buying goods after considering purchases is not affected.

Modified rebuy refers to a buying situation in which a buyer is required to investigate new vendors. In this scenario, the buyer is already familiar with the product or service being purchased, but they need to explore alternative vendors or suppliers. This could be due to various reasons such as dissatisfaction with the current vendor, seeking better prices or terms, or a desire to diversify their supplier base. The buyer may evaluate different vendors, compare their offerings, negotiate contracts, and make a decision based on the best fit for their needs.

Materials requirement planning for industrial markets is part of the overall business activity of production planning. Production planning involves determining the materials, resources, and processes needed to manufacture products efficiently and meet customer demand. Materials requirement planning specifically focuses on determining the quantity and timing of materials needed for production, ensuring that the right materials are available at the right time to avoid production delays or shortages. Therefore, materials requirement planning is a crucial component of production planning to ensure smooth and efficient operations.

The figure that serves as the basis for all other sales projection figures in a merchandise plan is the BOM (Beginning of Month) stock. This is the inventory level at the start of the month and is crucial in determining the amount of stock available for sale. By knowing the BOM stock, retailers can calculate planned reductions (sales), planned purchases, and overall sales projections for the month.