The GAP Company purchases swimwear in bulk from several manufacturers and places its brand name on the products in what is termed ________.
A. Co-branding
B. Bulk purchase branding
C. Private branding
D. Collective branding
E. Partnership branding
Answer: C - The GAP Company purchases swimwear in bulk from several manufacturers and places its brand name on the products in what is termed private branding. Private branding is when a large distribution or outlet company (such as a retailer) purchases goods in bulk and applies its brand. The manufacturer from which it purchases the products has no expectation of co-branding or acknowledgment of its production. The advantages of private branding are that the retailer purchases goods in large volumes and can have flexibility in pricing. The retailer also has a higher margin of profit, as the manufacturer does not have to promote the products.