Final answer:
Preferred vendor status gives a supplier assurance of a significant share of a buyer's business and priority for new opportunities. Factors such as offering quality guarantees, maintaining a strong brand, and competitive pricing help in achieving this status.
Step-by-step explanation:
In general, preferred vendor status means the vendor is assured of a large percentage of the buyer's business and will get the first opportunity to earn new business. This status may be influenced by various factors such as offering a money-back guarantee, which serves as a promise of quality and boosts consumer confidence, particularly important in scenarios where goods are sold through mail-order catalogs or over the web. A vendor might also earn this status through a well-respected brand name built up over years or an industry reputation for competitive pricing strategies in response to new market entrants.