DECA Retail Merchandising Practice Exam

What is the primary goal of developing supplier relationships?

1. To minimize product variety

2. To ensure product availability and quality

3. To occupy prime retail space

4. To lower advertising costs

The correct answer is: To ensure product availability and quality

The primary goal of developing supplier relationships is to ensure product availability and quality. Strong supplier relationships are essential for retailers to maintain consistent stock levels and to provide customers with high-quality products. When retailers foster good relationships with their suppliers, they can negotiate better terms, anticipate supply chain issues, and gain access to products that meet their quality standards. This partnership leads to an efficient restocking process and enhances customer satisfaction, as consumers are likely to receive the products they expect when they shop. Minimizing product variety can limit options for consumers and isn't a goal of building supplier relationships. Occupying prime retail space is more about location strategy than supplier negotiation and can be influenced by other factors such as market trends. While lowering advertising costs can be beneficial, it does not relate directly to supplier relationships, which primarily focus on the procurement and consistency of products.