Why do national brands often generate lower gross margins for retailers than private-label brands?
What will be an ideal response?
The same national brands offered by competing retailers can only be differentiated on price, which means retailers often have to offer significant discounts on some national brands to attract customers to their stores, further reducing their profitability. The potential profitability for exclusive store brands is stronger. Customers can't compare prices for these products because they are, in fact, exclusive to one retailer. Because the retailers are less likely to compete on price when selling exclusive brands, the profitability potential for exclusive store brands is higher and they are motivated to devote more resources toward selling them than they would for similar national brands.
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Under the indirect method, a loss on the sale of equipment should be:
A. a source of funds in the financing activities. B. a source of funds in the investing activities. C. added back to net income to arrive at cash flow from operating activities. D. subtracted from net income to arrive at cash flow from operating activities.
The extent of a company's in-country presence in a target market has no impact on perceived customer value
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Research shows that as a group grows, communication is more effective and stress between members decreases. 2. An increased number of meeting attendees decreases one’s willingness to participate. 3. The agenda of the meeting should communicate the what, why, when, and who regardless of the type of meeting. 4. Participants of most meetings need 5 working days to prepare.
Identify the spillover effect
What will be an ideal response?