MKG 300 Ch's 10, 11, and 12 - Flashcards

Q: The difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

\"Discrepancies of quantity\" means:

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Can dramatically change the competition in a product-market. Marketing managers need to develop strategies, each with its own ________ arrangements. There may not be one ______ arrangement that is best.

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What is true about Place?

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Place

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Because of long-run effects, decisions about one of the four Ps are often harder to change than the others. This P is:

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If a firm is in _______ with its customers, it is more aware of changes in customer attitudes.

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A direct-to-customer channel

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E-commerce systems can efficiently handle B2B orders once relationships are established. The internet makes direct distribution easier.

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Business products tend to be sold direct to customers because compared to consumer products:

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An intermediary can serve customer needs better and at lower cost.

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Throughout the world, Sony sells its televisions through retailers. Which of the following is probably a reason for using this indirect distribution strategy?

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When a company serves multiple target markets, it may choose to sell _____ and through intermediaries. For example: Autolite uses _____ channels to sell its spark plugs to automakers like Ford and to consumers through intermediaries like Pep Boys.

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A company may be inclined to use both direct and indirect channels of distribution

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Want to control the whole marketing job, can serve target customers at a lower cost or can do the work more effectively than intermediaries. The Internet makes ______ easier.

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Many firms prefer to distribute directly to the final customer or consumer because they

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A firm may have to go ______ if suitable intermediaries are not available or will not cooperate

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Direct Channel Systems

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Involving direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling

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Direct marketing is

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Customers often have established buying patterns, a company has limited financial resources, the product is a consumer product, and retailers are conveniently located where consumers shop

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Indirect channels are probably a better choice than direct channels when:

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May further reduce a producer's need for working capital by buying the producer's output and carrying it in inventory until it's sold. A wholesaler who knows local customers can help reduce credit risks. __________ may also reduce a producer's need for market research.

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Benefits that an intermediary is likely to provide for producer-suppliers?

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_______ are often located far from their customers and may not know how best to reach and serve them. Specialists develop to adjust these discrepancies of quantity and assortment

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Choosing an indirect channel probably will be better than a direct channel if a producer wants to:

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Their distribution costs can be very low, as there is often no physical good to distribute. Even without a physical form, distribution remains an important marketing strategy decision for forms with digital products.

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Since music, movies, books, and TV programs now exist in digital form, such products:

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The difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

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"Discrepancies of quantity" means:

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Discrepancy of quantity

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ESPN cable television offers numerous sports programs. What type of discrepancy does this create for sports fans who want to watch only a few of the programs?

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Discrepancy of quantity

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The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

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The difference between the lines a typical producer makes and the assortment final consumers or users want

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"Discrepancies of assortment" means

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Discrepancy of assortment

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Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this __________.

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The assortment and quantity of products customers want may be different from the assortment and quantity of products companies produce leading to discrepancies of assortment and quantity.

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A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows

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Accumulating, bulk-breaking, sorting, and assorting.

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What are the four "regrouping activities"?

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Involves collecting products from many small producers. " " the small products into larger quantities is a way of getting the lowest transporting rate and making it more convenient to handle.

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Accumulating

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Accumulating

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Yakima Valley Produce, Inc. buys artichokes from many small farmers, assembles them into larger quantities and ships in carload quantities to a central market where they are sold to large food processors. This "regrouping activity" is called:

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Accumulating

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When Amazon.com collects products from many small producers, the company is involved in ________.

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Accumulating

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AsianArt4U.com brings together the art produced by many different Asian painters and sculptors-and offers them for sale on its website. This is an example of

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Involves dividing larger quantities into smaller quantities as products get closer to the final market

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Bulk-breaking

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Bulk-breaking

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InterContinental Hardware Co. buys carload quantites of bolts screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesales and retail chains. This "regrouping activity" is called

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Bulk-breaking

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When an online intermediary like Hulu scans all of the episodes of NCIS and then offers them to its customers one episode at a time, this is an example of:

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Sorting

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Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogenous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This "regrouping activity" is called:

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Sorting

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When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

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Means separating products into grades and qualities desired by different target markets

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Sorting

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Means putting together a variety of products to give a target market what it wants

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Assorting

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Assorting

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Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

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All members focus on the same target market at the end of the channel and share the various marketing functions in appropriate ways. The whole channel is competing with other channel systems.

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The desirability of a common "product-market commitment" is based on the idea that:

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Includes differing objectives, lack of communication, independent operations, and a lack of a channel captain. _______ and _______ in a channel system are united in the goal of selling to the same target customers.

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Which of the following is a common cause of conflict between producers and channel partners in a channel system?

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The amount of cooperation is little or none and control is maintained by none. An example would be a typical channel of independents.

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What is traditional channel systems?

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Channels decisions are place decisions and they often have long-run effects. They're usually harder to change than Product, Promotion, or Price decisions.

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Channels of distribution:

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Vertical conflicts

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Nature Fresh Cereal does not feel satisfied with the location and amount of shelf space it is given at Sunshine Health Food Markets. This creates a source of

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Vertical

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A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example ____________ conflict.

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Horizontal conflicts

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Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

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Horizontal

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A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of _________ conflict.

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Horizontal

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Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost. This is an example of (blank) conflict.

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Offers different products through each channel

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The marketing manger for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manger

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Be inevitable or even useful if that is what it takes for customers to receive better value. Some manufactures try to serve different market segments through each channel, while others may use a channel captain to avoid or solve channel conflicts.

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Some channel conflict may

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Any member of the channel who views the members of the channel as a unit. He helps to make the channel more efficient by reducing conflict.

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A "channel captain"

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Arranges for the necessary functions to be performed in the most effective way.

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The role of "channel captain"

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Arranges for the necessary functions to be performed in the most effective way within a channel.

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A good "channel captain" knows that

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Many marketing managers accept the view that a coordinated channel system focused on the same target market can help everyone in the channel. Such systems make sense, and are growing, because if the final customer doesn't buy the product, the whole channel suffers.

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The main reason that vertical marketing systems are becoming more common is:

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While _______ offer the greatest control and cooperation to marketers, they also are costly and challenging to manage. An __________ channel system offers many of the benefits of a ________ system without the cost and burden of management.

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A firm would prefer an administered channel system to a corporate channel system for all the following reasons except:

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Corporate channel systems

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A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:

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Corporate

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In _________ channel systems the amount of cooperation among members of the channel is very high.

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Stable sources of suppliers, better control of distribution and quality, greater buying power, and lower executive overhead.

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What is likely an advantage of vertical integration?

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Administered

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In _______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.

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Administered channel system

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A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of

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Administered channel system

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Rizzo sells through ______ channel system. Rizzo has informal agreements with its wholesales and retailers-they cooperate pretty well by placing orders, and sharing inventory and sales information over a computer network.

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By developing contractual channel systems firms can often gain the advantages of vertical integration yet retain some of the flexibility of a traditional channel system.

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When planning channels of distribution, a marketing manger should know that

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All responsible and suitable wholesalers or retailers who will stock or sell the product

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"Intensive distribution" means selling through:

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Commonly needed for convenience products and business supplies

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Intensive distribution is often very appropriate for:

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Only those intermediaries who will give the product special attention

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"Selective distribution" means selling through:

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Selective Distribution. Only the best intermediaries are used and the company is able to sell the product where it sells best.

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Which degree of market exposure would probably be most suitable for a heterogenous shopping product which has achieved brand preference and sells for about $300?

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May be suitable for all categories of products. A _________ use intermediaries that place orders which are too small. It also doesn't use intermediaries that have poor credit ratings. It is becoming more popular.

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Selective distribution

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Only one intermediary in a particular geographic area

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"Exclusive distribution" is selling through :

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Exclusive distribution to help control prices and the service offered in a channel.

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If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

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Exclusive

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Quiet Drive Mufflers are sold only through Car Parts Now retailers. This retailer has only one store in any given geographic area to minimize competition between stores. Quite Drive Mufflers uses ___________ distribution.

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Exclusive

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When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans, this is an example of ____________ distribution.

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Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been ruled illegal by the U.S. Supreme Court

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Legal concerns about channel of distribution arrangements are most likely to arise when:

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Safety problems; company error in completing an order; consumer error in purchasing a product; or consumer change-of-mind.

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The need for reverse channels may arise in all of the following situations

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Reverse Channels

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If a Universal computer monitor breaks while it is still under warranty, someone needs to get it to the repair center. In this case, Universal will need

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"Take back" law

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In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a:

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Means selling some of what the firm produces to foreign markets. Some firms start ______ just to get rid of surplus inventory; others do so to look for new opportunities.

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Exporting

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Exporting

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The lowest cost and lowest risk way to enter a foreign market is through

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Does not require any permanent relationships with partners.

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What is true about Exporting?

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Means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

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Licensing, in international marketing,

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Does most of the marketing strategy planning for the markets it is licensed to serve

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In a licensing agreement, the license

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Licensing

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If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using

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Since the foreign market takes most of the risk, it is often an easy way to enter international markets

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Which of the following is the easiest way for a firm to enter foreign markets?

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Management contracting

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In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

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Management contracting

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Worldwide Drilling, Inc. of Forth Worth, Texas, operates an oil well in Russia for its owners

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Management contracting

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When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco use the _____________ approach to enter international markets.

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It would require to send people to foreign countires

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If a producer agrees to enter into a management contracting agreement with a zinc mining operation in Chile,

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A domestic firm enters into a partnership with a foreign firm

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A joint venture is

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Joint venture

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Oceanside tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firms will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:

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Direct Investment

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Midwest Tools, Inc. of Indianapolis, Indiana owns a plant in Poland for manufacturing and selling machine tools in Europe. This type of international involvement is called:

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The United States and Europe

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In which of the following places would logistics costs be most likely to run between 9 and 15 percent of GDP?

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30

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As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?

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Transporting, storing, and handling goods in ways that match target customers' needs with a firm's marketing mix. Physical distribution (PD) is another common name for _________. "Prices to charge for delivery" is a Price decision.

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Logistics decisions include

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It is another common name for logistics

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Physical distribution differs from logistics in that

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Very important to both companies and consumers

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Logistics costs

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How rapidly and dependably a firm can deliver what the customers want

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The physical distribution customer service level concerns

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_______ think in terms of how rapidly and dependably a firm can deliver what the customers want

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Which of the following questions is likely to be MOST important to a customer concerning a company's physical distribution practices?

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Most consumers in the United States don't think much about physical distribution. It is invisible to them. Most companies experiences losses during the introduction stage because they spend so much money for product, place, and promotion development

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Physical distribution

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Involves _______ between costs, the customer service level, and sales.

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Which of the following statements concerning physical distribution trade-offs is true?

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First, a firm should decide what service level to offer based on customer expectations and needs. Then, it should try to minimize the cost of distribution for that level.

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The right physical distribution system should be based primarily on

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Can sometimes improve service levels and cut costs at the same time

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Information technology helps physical distribution in what ways?

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All transporting, storing, and product-handling activities of a business should be coordinated as one system. Design products would not be included.

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Under the physical distribution concept, what is coordinated as one system?

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The possible costs of lost sales due to a lower customer service level may also be considered

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What is the total cost approach?

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The total cost approach

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After evaluating all of its alternatives and the costs of each, Vegpro Kenya decided the most efficient way to quickly get its fresh vegetables from Nairobi to European cities was to use air freight. What approach did it use in making this decision?

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Product, Promotion, and Price decisions

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Physical distribution decisions interact with which other marketing mix decisions?

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Price

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How PD functions are shared will have the greatest effect on which of the other three Ps?

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Supply chain

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A jewelry marker's suppliers of gold, platinum and silver, the warehouses that stores its finished goods, and the trucks that deliver the products to retailers are all part of a:

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A ______ includes all firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers. A ___________ testing firm might be included in the __________ of ___________, but it would not be part of the distribution channel.

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Which of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer?

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A key advantage of ________ for business customers is that it reduces their PD costs

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Just-in-time (JIT) delivery

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Decisions will continue to improve as more firms are able to have their computers "talk to each other" directly as websites help managers get access to up-to-date information whenever they need it. Consulting services are also available from outside experts.

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What is true about supply chains?

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Most international transportation firms rely on _______ links with their customers

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What is true about electronic data interchange?

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Sand and gravel products

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As a percentage of selling price, transportation costs would most likely be highest for which of the following?

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Make products available when and where they need to be at a cost; it can help achieve economies of scale in production and make exchange easier

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Transportation helps to

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Transporting costs limit the target markets a marketing manager can serve. Without low-cost transportation, there would be no mass distribution. Transport costs add little to the cost of products that are valuable relative to their size and weight, but are large part of the total cost for heavy products of low value

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Good marketing strategy planners know that

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Railroads

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More freight is carried more miles ________ than any other mode of transportation.

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Perishable items

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As a mode of transportation, railroad freight would be least suited for ________

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Compete for high-value items

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Trucks

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Trucks are good for speed, frequency, dependability, and the number of locations served. Motor truck, rail, by air (be in containers), and water(containers as well)-strengths and weaknesses. Modes of transportation. Pipeline is mostly for liquid. Iron oare should not be moved in the air.

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Regarding alternative transporting modes:

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Water

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Which of the following transportation modes is "best" at handling a variety of goods?

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Grain and gravel

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It is usually most economical to ship bulky, nonperishable items, such as coal and iron ore,

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Water

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Considering weight, which one of the following transporting modes usually has the LOWEST cost?

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Water

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Products that require a high frequency of scheduled shipments would be least suited to travel by

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Inland waterways

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Alex has to transport iron ore from New Orleans to Memphis. Which mode of transport is he more likely to use?

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Airplanes may help a firm reduce inventory costs by eliminating outlying warehouses

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Regarding airfreight, which of the following statements is true?

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May help a firm reduce inventory costs by eliminating outlying warehouses

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Airefreight

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Airfreight rates on average three times higher than trucking rates.

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Regarding transportation modes, which is true?

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Air

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Jackie works in transportation for a company that ships expensive, high quality fish all across the US. Ther perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode?

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Water transportation is usually the lowest-cost way of shipping heavy freight. The fastest cargo transporting mode is airplane. Pipelines are used primarily to move oil and natural gas. Trucks can travel on almost any road and serve the most locations of any mode

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Regarding alternative transporting modes, which of the following is true?

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Japanese firms, like Sony, ship stereos by boat. When they arrive at the dock, they are loaded on trains and sent across the country and are delivered to a wholesaler by truck or rail. Loading and unloading goods several times used to be a real problem and many of these problems are reduced with ______________

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Contrainerization

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Contrainerization

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A major benefit of _________ is that it protects the products and simplifies handling during shipping

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Loading trailers on railcars to provide both speed and flexibility

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Piggyback service means

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Piggyback service

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Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. louis. There they are delivered by truck to local dealers. This transportation process is:

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The amount of goods being stored

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Inventory refers to

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Manufacturers who choose to produce a single type or size of item at one time in large quantities, and store the unsold items, rather than producing small quantities for immediate sale.

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A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

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Necessary when production of goods doesn't match consumption

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Storing

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Cost of damage to products while in inventory, costs of risks such as theft and fire, costs of inventory becoming obsolete, and handling costs contribute to total inventory cost.

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What contributes to total inventory cost?

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A company might choose _______________ if it doesn't have a regular need for space and pays for the space only when it is used

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Private warehouses

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May not always be conveniently available or adequate for current product line

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Public warehouses

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Public warehouse

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There are big shifts in demand from season to season for the lawn mowers produced by GreenVision Co.--and its need for storage facilities also varies. GreenVision should think about using:

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Eliminate the need for elevators and permit the use of power--operated lift trucks, electric hoists, and hydraulic ramps

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Modern warehouses typically

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Make it easy for computers to monitor inventory, order needed stock, track storing and shipping costs, and transmit detailed information about the content of a carton.

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Radio frequency can

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Sorted into groups and retrieved from groups before being stacked on pallets and loaded for shipping. _________ do not provide long-term storage.

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What activities are most likely to be performed on goods arriving at a distribution center?

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Speed the flow of goods and avoid unnecessary storing costs. Many products buzz through a distribution center without ever tarring on a shelf; outgoing loading dock and the vehicle that will take them to their next stop. Products may be regrouped or sorted by not stored at these facilities.

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What types of activities is likely to occur at distribution center?

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While _______ recently added clothing, handbags, housewares, and beauty supplies to its product assortment, its core product line remains shoes. ________ wide product line includes more than 150,000 styles and 1,4000 brands--including many styles in well-known brands like Nike, Timberland, and Bandolino. *Scenario and in the introduction of chapter. Expand to have related items with shoes.

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What best describes the Product decisions used by Zappos.com?

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Advertising, customer service, and discounting

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What is not considered product decisions?

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__________ have a self-service design that encourages customers to select and try on shoes with the help of a salesperson. Even though each stores carries an average of 500 styles and 6,700 pairs of shoes--including dress, casual, boots, and athletic--for men, women, and children. ________ product line is relatively narrow for a shoe retailer and includes mostly lesser-know brands. __________ advertising in local newspapers emphasizes value and usually promotes its low prices.

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What is contributed to the success of Payless ShoeSource?

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Covers all of the activities involved in the sale of products to final consumers. Retailers range from large chains of specialized stores to individual merchants.

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What is retailing?

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In the US, about three-fourths.

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The percentage of new retailing ventures which fail during their first year is

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They must consider its target customers' economic, social, and emotional needs

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A good marketing manager for a retailer knows that:

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Most conventional retailers today are single-line or limited-line stores--stores that specialize in certain lines of related products rather than a wide assortment. Many specialize not only in a single line, such as clothing, but also in a limited line within the broader line. Within the clothing line a retailer might carry only shoes, formal wear, or even neckties but offer depth in that limited line.

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The product line of a limited line retailer would best be described as:

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Stores that specialize in certain lines of related products rather than a wide assortment

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A limited-line store is to a single-line store as

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Most conventional retailers are (blank) or (blank) with a "by low and sell high" philosophy; they are small with high expenses relative to sales; they face the costly problem of having to stock some slow-moving items in order to statisfy their target markets

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What is true about single- and limited-line stores?

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Specialize in certain lines of related products rather than a wide assortment

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Limited-line stores

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Speciality shops

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A (blank) aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service

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Speciality shop

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The "Fashion Place" carries a carefully selected and distinctive assortment of traditional women's business clothing and accessories for upper-class executives in Boston. It emphasizes customer service with its well-trained salesclerks. The store is probably a:

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Department

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_______________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help

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States that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets

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The "mass-merchandising" concept

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Supermarkets are large stores specialized in groceries with self-service and wide assortments. Net profits in supermarkets usually run a thin 1 percent of sales or less

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Expanded assortment and/or reduced margins and service are characteristic of

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Net profits in ________ usually run a thin 1 percent of sales or less

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Regarding supermarkets, which of the following statements is true?

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Large stores specializing in groceries with self-service and wide assortments

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Supermarkets are

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_______ __________ offered hard goods with lower margins to get faster turnover; they sold at 20 to 30 percent off the list price of conventional retailers; they began to offer wider assortments and many of them turned respectable by moving to better locations and offering more services and guarantees

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Regarding discount houses, which of the following statements is true?

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Large self-service stores that emphasize soft goods and staples. They emphasize lower margins to get faster turnover

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Mass-merchandisers:

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Tries to meet all the customer's routine needs at a low price

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A "supercenter":

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Food, drug items, goods and services that the consumer purchases routinely. They try to meet all the customer's routine needs

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What is likely to be sold by a supercenter?

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Homogeneous shopping items and charge customers an annaul membership fee to shop in these large, no-frills facilities. Their growth has been fueled by sales to small-business customers.

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Warehouse clubs such as Sam's Club and Costco

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Simple-line mass-merchandisers attract large n.umbers of customers with their large assortments and low prices. They've been very successful; it's hard for less specialized retailers to compete against them

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Regarding retailing, which of the following is true?

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Offer convenience, and not assortment; they often change prices 10 to 20 percent higher than nearby supermarkets.

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Convenience (food) stores:

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Standard hotels uses poolisde _______________ _____________ to sell bathing suties

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*Vending machine

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Started in the pioneer days; it meets some consumers' need for convenient personal attention. While gaining popularity in some international markets, it now accounts for less than 1 percent of retail sales in the US

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Door-to-door selling at consumers' homes

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Refers to a salesperson going directly to the consumer's home. While gaining popularity in some international markets like China, it now accounts for less than 1 percent of retail sales in the US. In many cases, no one is home during the day.

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In recent years, changes in the social and cultural environment have had a significant effect on door-to-door selling. Which of the following is MOST likely given the changes that have occurred?

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Both provide customer convenience by have narrow assortments

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Identify the characteristics of vending machines and door-to-door retailing.

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Catalog showrooms

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Which of the following reached market maturity over a 15-year period starting in 1970?

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A consumer shopping on the internet

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*Expanded assortment, reduced margins, and more information are characteristics of

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Each of these is a reason for changes in retail except that the emergence of automatic vending occurred decades ago and its emergence is no longer a major influence on retail

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What is a true explanation for why retailers continue to evolve and change?

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With just the click of a mouse, an online shopper has access to product descriptions and specifications, photos and videos, and reviews posted by other consumers

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Retailing on the internet

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__________ has access to wider product assortments with product descriptions and specifications, photos, videos, reviews etc. However, for _________________, being able to inspect the product before purchase and use it immediately after purchase are definite advantages

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Some difference between online and in-store customers indlue

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Showrooming

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When consumers go to a brick-and-mortar store to inspect a product and then purchase from an online retailer, this practice is called ________________.

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Cookies (small data files place on a customer's computer) can even tell

answer

What is true about retailers and big data?

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The basic idea for supermarkets developed during the 1930s Depression. Department stores, supermarkets, and mass-merchandisers went through the cycle explained in the wheel of __________________

answer

The wheel of retailing concept

question

Retailers carrying any product lines that can sell profitably.

answer

"Scrambled merchandising" refers to

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Any product lines they can sell profitably

answer

Scrambled merchandising is carrying

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Scrambled merchandising refers to retailers carrying any product lines they can sell profitably; this includes selling products that offer them higher margins or faster turnover.

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The idea that retailers will start to sell a new product that offers a profit margin higher than what they achieve on their traditional product line is consistent with

question

Some retailers (especially conventional retailers) have higher prices than consumers want to pay. If other retailers can sell the same products at a lower price and still make a profit, they will

answer

The trend toward scrambled merchandising can be explained by

question

Scrambled merchandising refers to carrying and product lines the modern retailers think they can sell profitably

answer

Which of the following is best illustrated by a supermarket that carries Nintendo video games?

question

The ____________ develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.

answer

Which of the following is true about franchise operation?

question

Less then 15 percent of the retail stores account for almost 75 percent of all retail sales

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Regarding retailer size and sales volume in the US:

question

A firm that owns and manages more than one store and often it's many.

answer

A corporate chain is defined as

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Have grown rapidly and account for about half of all retail sales; they develop their own efficient distribution centers; they have their own dealer brand. They may spread promotion, management costs etc. to many stores. Large chains use central buying for different stores. May spread promotion, information technology, and managements costs to many stores; they continue to grow and take business from independent stores

answer

Corporate chains

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Retailer-sponsored groups that are formed by independent retailers that run their own buying organizations and conduct joint promotion efforts

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Cooperative chains

question

Wholesaler-sponsored groups that work with independent retailers

answer

Voluntary cahins

question

Voluntary chains

answer

A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a:

question

_________ holders' sales account for about a third of all retail sales

answer

Franchise operations

question

New _______ approaches that succeed in one part of the world are often quickly adapted to other countries

answer

Which of the following is true about retailing in different nations?

question

Nepal

answer

In which of the following countries would retailers be most likely to sell products in small quantities, to small numbers of consumers?

question

______________ is concerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to finals consumers

answer

Which of the following accurately describes a wholesaler of digital records in the entertainment industry?

question

Wholesaling

answer

Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users-but which do not sell in large amounts to final consumers?

question

Progressive wholesalers need to be efficient; they may have high costs. The higher operating expenses result from the strategies they select, including the special services they offer to some customers

answer

Regarding the future of wholesalers, which of the following statements is true?

question

A single-line wholesaler, which is also a type of a merchant wholesaler

answer

Each of the following businesses is likely to have costs under 5 percent of sales EXCEPT:

question

One reason _______ per branch are so high is that the _________ are usually placed in the best market areas

answer

-A good share of total US wholesales are made by manufacturers' sales branches because

question

Own the products they sell; they often specialize by certain types of products or customers and take title to the products they are selling for some period before selling to customers. Almost 85% of the wholesaling establishments in the US are _____________________.

answer

Merchant wholesalers

question

The three types of service are general merchandise, single-line or general-line, and speciality

answer

Which of the following is a type of service wholesaler?

question

A wholesaler

answer

Sierra Plumbing, Inc. buys plumbing supplies, pipes, and tools from different manufacturers and resells them to construction companies. Sierra is MOST LIKELY:

question

General

answer

(Blank) wholesalers are service wholesalers that carry a wider variety of nonperishable items

question

Single-line wholesalers

answer

A full-service wholesaler in Santa Fe takes title to the products it stocks-a full line of home repair products for independent hardware stores. This wholesaler is a:

question

Carry a narrower line of merchandise than general merchandise wholesalers

answer

General-line wholesalers are wholesalers that

question

Speciality wholesalers

answer

Identify the wholesaler type that carries a very narrow range of products, but offers more information and service than other service wholesalers

question

Speciality wholesalers

answer

A full-service wholesaler in Madrid takes title to the "oriental foods" she sells to supermarkets, gourmet shops, and restaurants. This wholesales is a:

question

Include truck wholesalers, rack jobbers, drop-shippers, and catalog wholesalers

answer

Which of the following is a limited function merchant wholesaler?

question

Drop-shippers

answer

(blank) are type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them.

question

Own or take title to the products they sell, but they do not actually handle, stock or deliver them. Commonly sell bulky products like lumber

answer

Drop-shippers

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Bulky products

answer

Which of the following products is most likely to be sold by a drop-shipper ?

question

Drop-shipper

answer

Andy Cole sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a

question

They promptly deliver perishable products that regular wholesalers prefer not to carry

answer

-What is the biggest advantage of this limited-function wholesaler?

question

Include cash-and-carry wholesalers, drop-shippers, truck wholesalers, rack jobbers, and catalog wholesalers

answer

Which of the following is a limited-function merchant wholesaler?

question

Specialize in hard-to-handle assortments of products that a retailer doesn't want to manage; they display the products on their own wire racks. Know which titles sell in the local area and apply that knowledge in many stores

answer

Rack jobbers

question

Rack jobber

answer

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a

question

Rack jobber

answer

Will Bishop sells a wider assortment (in small quantities) of "emergency" home reparis items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, and displays them for his customers. Bishop is a:

question

Rack jobber

answer

A grocery store chain has decided to sell a small assortment of fast moving auto repair items-but is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain should probably get help from a

question

Cash-and-carry operators do not grant credit to small businesses. Truck wholesalers deliver perishable products that regular wholesalers prefer not to carry. Rack jobbers specialize in hard-to-handle assortments of products. Catalog wholesalers sell out of catalogs to smaller industrial customers or retailers; they sell hardware, jewelry, sporting goods, and computers

answer

-Which of the following statements about limited-function wholesalers is true?

question

Include manufacturers' agents, brokers, selling agents, and auction companies. A drop-shipper is a limited-function merchant wholesaler

answer

Which of the following is true about an agent wholesaler?

question

Sells similar products for several noncompeting producers, for a commission on sales. A manufacturers' agent is used by small producers when their sales volumes are small. When sales rise, a produce may think the rate is high and being using its own sales resp

answer

A manufacturers' agent

question

Small producers and agents-they can be useful for introducing new products

answer

*Which of the following wholesalers would be most helpful to a small manufacturer of computer components who wants to obtain distribution in several major markets and still retain control of the marketing of its products?

question

Can be especially useful for introduction new products. For this service, they may earn 10 to 15 percent commission

answer

Manufacturers' agents

question

A manufacturer's agent

answer

Dolly Westin calls on the many gift shops in Savannah and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that she represents. The store owners can order from Dolly rather than from the three different producers she represents. Apparently, Dolly is a

question

Export or import agents

answer

_____________ are basically manufacturers' agents who specialize in international trade; they operate in every country

question

Usually have a temporary relationship with the buyer and seller while a particular deal is negotitate

answer

Brokers

question

Brokers

answer

Until recently, Triad Equipment, Inc. took trade-ins when it sold new equipment quickly to the best available buyer. He should look for

question

Selling agent

answer

Sandi Barefoot sells the entire output of several small companies based in Silicon Valley. Each of the companies designs and produces remote control devices. Sandi has almost complete control of pricing and selling-because the engineers who started the companies are mainly interested in inventing things. In addition, Sandi often provides working capital to the producers, who have very limited financial resources. Sandi is paid a substantial commission on all sales. Sandi is a

question

Export or import _________ are basically manufacturers' agents who specialize in international trade.

answer

Agent Wholesalers

question

__________ are important in certain lines such as livestock, antique furniture, fur, tobacco, and used cars where demand and supply conditions change rapidly

answer

Traditionally, auction companies would MOST likely be used for

question

Merchant wholesalers tend to have the highest

answer

-Based on average, which of the following businesses is likely to have the highest costs as a percent sales?

MKG 300 Ch’s 10, 11, and 12 – Flashcards

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