Buying Syllabus

Course Code: BBR503

Course Title: Buying (2 Credits)




Course Contents


Unit 1: Buying Function in Retail: Introduction, Objectives, Buying Environment in Retail, Managing the Buying Function, Role and Responsibilities of a Buyer, Factors affecting the role of a buyer, Role of an assistant buyer, Changing role of a buyer, Difference between the Buyer and Merchandise Manager, Evaluating the Buyer’s Performance


Unit 2: Buying for Different Retail Formats: Introduction, Objectives, Buying Different Types of Products, Assortment of products, Buying at Different Retail Store Formats, Departmental stores, Discount stores, Specialty stores, Supermarkets, Outlet stores, Chain stores, Sole proprietorship stores or independent stores, Organisational Structure and the Buying Function, Centralised buying, Decentralised buying, Consignment Buying


Unit 3: Buying Decision Making: Introduction, Objectives, Market Research for Buying Decisions, Buying Decision Making, Types of Data Required for Market Research, Internal Sources of Data Collection, Store records, Top management, Sales executives, External Sources of Data Collection, Customers, Magazines and trade publications Vendors, Competitors, Syndicates, The Internet, Buying Offices, Services offered by buying offices, Types of buying offices, Selecting the buying offices, Factors affecting buying offices


Unit 4: Understanding the Customer: Introduction, Objectives, Analysing Consumer Markets, Consumer buying behavior, Demographic factors, Cultural factors, Lifestyle trends, Social factors, Identifying Consumers’ Buying Motives, Rational buying motives, Emotional buying motives, Patronage buying motives


Unit 5: Selecting Vendors and Developing Relationships in Domestic Markets: Introduction, Objectives, Definition of a Vendor, Types of Vendors, Manufacturers, Wholesalers, Manufacturer’s representative/broker, Rack jobbers, Contacting Potential Vendors, Criteria for Vendor Selection, Merchandise and prices offered, Vendor’s distribution policies, Vendor’s goodwill, Services offered, Vendor’s performance, Ability to meet specifications, standards and quality, Uniqueness and competitive advantage, Financial stability and credit strength, Developing Strong Buyer-Vendor Relationships


Unit 6: Locating Sources in Foreign Markets: Introduction, Objectives, Analysing the Foreign Markets, Locating Foreign Sources, Individual buying trips, Using intermediaries, Buying from Foreign Sources, Reasons for buying from foreign sources, Drawbacks of buying from foreign sources, Taking decisions for buying from foreign sources.


Unit 7: Market Visits and Negotiating with Vendors: Introduction, Objectives, Types of Markets, Purpose and Frequency of Market Visits, Planning for Market Visits, Visiting vendors and factories, Visiting buying offices, Online visit, Preparing for Negotiation, Objectives of negotiation, Identifying the seller’s position, Analysing the buyer’s position, Developing negotiation skills, Negotiation and Terms of Sale, Price, Discounts, Transportation, Allowances, Return privileges, Stages of Negotiation, Developing a Negotiation Strategy, Personality traits in negotiation, Negotiation checklist, Bargaining, Outcomes of negotiation


Unit 8: Making the Purchase Structure:  Introduction, Objectives, Special Buying Conditions, Buying for private brands, Specification buying, Promotional buying, Job lots, Seconds and irregulars, Placing the Purchase Order, Types of purchase orders, Elements of purchase orders, Follow-up of purchase orders, Taxes for Interstate Transfer of Products