Automobile Parts Mechandising Paper 2 May/June 2015

Question 5

(a)        Define product sourcing.
(b)        State six reasons why the automobile parts seller engages in successful product sourcing.


This question was not properly responded to by the candidates who attempted it.  The required responses to both parts of the questions are:

(a)        Product sourcing:- is the process of finding and locating items to resell at a profit from domestic or international markets.


Product sourcing:- involves activities undertaken by a buyer to locate, evaluate and determine the supplier that meets his product need for resale.


(b)        Reasons why the automobile seller engages in successful product sourcing include:

-     to select items that buyers want to purchase;
-     to buy the items at low prices to make good profits;
-     to find quality items that will help to increase repeat purchase;
-     to offer his customers a good product range;
-     to compete effectively with other retailers prices;
-     to avoid stock out situations;
-     to increase the rate of turn over.