Please enter something

Chapter 14 – Marketing Channels and Retailing

question

marketing channel (channel of distribution)
answer

a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
question

channel members
answer

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from manufacturer into the hands of the final consumer
question

form utility
answer

the elements of the composition and appearance of a product that make it desirable
question

time utility
answer

the increase in customer satisfaction gained by making a good or service available at the appropriate time
question

place utility
answer

the usefulness of a good or service as a function of the location at which it is made available
question

exchange utility
answer

the increased value of a product that is created as its ownership is transferred
question

retailer
answer

a channel intermediary that sells mainly to consumers
question

merchant wholesaler
answer

an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
question

agents and brokers
answer

wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
question

direct channel
answer

a distribution channel to which producers sell directly to consumers
question

dual distribution (multiple distribution)
answer

the use of two or more channels to distribute the same product to target markets
question

nontraditional channels
answer

non-physical (often electronic) channels that facilitate the unique market access of products and services
question

strategic channel alliance
answer

a cooperative agreement between business firms to use the other’s already established distribution channel
question

intensive distribution
answer

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
question

selective distribution
answer

a form of distribution achieved by screening dealers to eliminate all but a few in any single area
question

exclusive distribution
answer

a form of distribution that establishes one of a few dealers within a given area
question

arm’s-length relationship
answer

a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
question

cooperative relationship
answer

a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
question

integrated relationship
answer

a relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of turf and interfirm commitment
question

channel power
answer

the capacity of a particular marketing channel member to control or influence the behavior of other channel members
question

channel control
answer

a situation that occurs when one marketing channel member intentionally affects another member’s behavior
question

channel captain
answer

a member of a marketing channel that exercises authority and power over the activities of other channel members
question

channel conflict
answer

a clash of goals and methods between distribution channel members
question

horizontal conflict
answer

a channel conflict that occurs among channel members on the same level
question

vertical conflict
answer

a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer
question

channel partnering
answer

the joint effort of all channel members to create a channel that services customers and creates a competitive advantage
question

retailing
answer

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
question

independent retailer
answer

a retailer owned b a single person or partnership and not operated as part of a larger retail institution
question

chain store
answer

a store that is part of a group of the same stores owned and operated by a single organization
question

franchise
answer

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
question

gross margin
answer

the amount of money the retailer makes as a percentage of sales after the costs of goods sold is subtracted
question

scrambled merchandising
answer

the tendency to offer a wide variety of nontraditional goods and services under one roof
question

factory outlet
answer

an off-price retailer that is owned and operated by a manufacturer
question

non-store retailing
answer

shopping without visiting a store
question

automatic vending
answer

the use of machines to offer goods for sale
question

direct retailing
answer

the selling of products by representatives who work door-to-door, office-to-office, or at home sales partied
question

direct marketing (direct response marketing)
answer

techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
question

telemarketing
answer

the use of the telephone to sell directly to consumers
question

shop-at-home television network
answer

a specialized form of direct-response marketing where shows display merchandise for viewers to purchase over the telephone with a credit card
question

online retailing (e-tailing)
answer

a type of shopping available to consumers with personal computers and access to the internet
question

franchisor
answer

the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product
question

franchisee
answer

an individual or business that is granted the right to sell another party’s product
question

retailing mix
answer

a combination of the 6 P’s: product, place, promotion, price, presentation, and personnel; used to sell goods and services to the ultimate customer
question

destination store
answer

a store that consumers purposely plan to exit
question

atmosphere
answer

the overall impression conveyed by a store’s physical layout, décor, and surroundings
question

layout
answer

the internal design and configuration of a store’s fixtures and products
question

data mining
answer

the process of discovering patterns to large data sets for the purposes of extracting knowledge and understanding human behavior
question

m-commerce
answer

the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services