Exam 16: Managing Retailing,wholesaling,and Logistics

Reynold's is a supermarket chain that has always catered to mid-market customers.However,the owner,Mal,has noticed that an influx of new residents are buying mostly the lower-cost products and products on discount.To attract customers,Mal decides to make a gradual switch to the discount store format,but to do this,he will have to cut costs wherever possible.Which of the following types of service should Mal avoid in order to lower costs?

In addition to its store brands and nationally well-known brands of detergents,Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names.They are often manufactured from lower-quality ingredients and save on packaging and advertising costs.These are known as ________.

What benefits do intermediaries receive from sponsoring their own private label brands?

Which of the following is true for franchisors?

If the shipper owns its own truck or air fleet,it becomes a ________.

Bill and Josh are considering opening a retail store.They have identified their target market and location and are finalizing the details of the merchandise they will carry.Since the neighborhood is rundown and the customers in the area are very price-conscious,Bill and Josh want to offer goods from well-known brands,but at lower rates than the full retail prices of the products.They choose to stock excess production from manufacturers or goods that have remained unsold at other retailers.This is a description of a(n)________ retailer.

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand.

Through ______________,wholesalers help retailers improve their operations by training sales clerks,helping with store layouts and displays,and setting up accounting and inventory-control systems.

Accepting telephone and mail orders is an example of the ancillary services that a retailer offers.

Supermarket chain Reynold's is considering stocking a number of private-label products in order to offer customers the lowest possible prices.Explain how this strategy could benefit the company.

Why do retailers prefer to deal with wholesalers rather than directly with manufacturers?

Reynold's,a supermarket chain,carries the K-Nine range of dog food manufactured by JGB.However,the chain does not interact directly with JGB,but obtains stocks from wholesalers.It has been suggested that Reynold's save costs by sourcing products directly from JGB.However,Mal,the CEO of the Reynold's,insists that wholesalers are the most hassle-free option for Reynold's.What can Mal say to justify this?

Wholesalers exclude manufacturers and farmers because they are engaged primarily in production,but include retailers,as they are selling to the end consumer.

________ offer standard or lower quality at a price that may be as much as 20-40 percent lower than nationally advertised brands and 10-20 percent lower than retailer private label brands.

The trucking firm hired by your transportation manager provides a trucking service between the city of Bangkok and the surrounding towns on a regular schedule and at fixed prices.The trucking firm saves transportation costs by transporting the goods using trains as well as trucks,instead of trucks alone.Your transportation manager has hired a(n)________.

The order-processing cost per unit increases with the number of units ordered because the order costs are spread over more units.

Sandy's Stores is a small chain of grocery stores located in a few neighboring towns.The stores have always been largely self-service,but the company is considering making a switch to full-service stores.What can Sandy's do to justify this move?

Which of the following is true for the retail industry?

Which of the following is an example of direct marketing?

A superstore is a storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership.