Which Statement Is a Reason Why Many Retailers Are Creating

question 35

Multiple Choice

Which statement is a reason why many retailers are creating and promoting their own captive brands?

• A) Captive brands carry evidence of a store's affiliation and are available everywhere.
• B) Captive brands are displayed separately from mainstream products in a store.
• C) A captive brand strategy allows retailers to ask a price similar or equal to manufacturers' brands.
• D) A captive brand strategy allows retailers to market private brands as inferior to manufacturers' brands.

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Definitions:

Prime Costs

The direct costs of production, typically consisting of direct materials and direct labor.

Indirect Labour

Workers in a manufacturing process whose activities are not directly related to the production of specific goods or services, such as maintenance staff and managers.

Cost of Goods Purchased

The total expense for raw materials and goods acquired for resale by a company during a specific period, excluding any indirect costs.

Transportation Inward

Costs incurred to bring materials to a business, often included as part of inventory costs.