Exam 16: Managing Retailing, wholesaling, and Logistics

Nonstore retailing falls into four major categories.Which of the following is NOT one of the four nonstore retailing categories?

Explain what is meant by the term "store atmosphere" and why it is important for retailers to have a distinctive atmosphere.

Manufacturers typically do not sell directly to retailers or final consumers.They choose to use wholesalers because wholesalers are more efficient at certain functions.What functions are these?

Integrated logistics systems (ILS)involves materials management,________,and physical distribution,aided by information technology.

Franchising accounts for more than $1 trillion of annual U.S.sales and nearly one-third of all retail transactions.Franchises are distinguished by three characteristics,which are: (1)The franchisee pays for the right to be part of the system: (2)the franchisor provides its franchisees with a system for doing business;and (3)________.

In your restaurant you offer a wide variety of dishes and are open for breakfast,lunch,and dinner.In terms of product assortment,you can claim that your restaurant has a product assortment that has ________.

In deciding on the method or means of transportation,shippers consider such criteria as speed,frequency,________,capability,availability,traceability,and costs.

The order-to-payment cycle is the elapsed time between an order's receipt,delivery,and payment by the customer.

The company that you work for has outlined the following to its customers: Our on-time deliveries will be set at 95%;ordering and billing accuracy will be at a minimum of 98%;and we will establish four warehouses to serve the United States.These policies relate to ________.

You are interviewing for a job after graduation with a wholesaler.In your preparation for the interview,you discover that the wholesaler carries over 10,000 stockkeeping units,maintains a sales force,makes store door deliveries,and provides management and research assistance to retailers.You are interviewing with a ________ wholesaler.

Choosing a market-logistics system calls for examining the total cost (M)associated with different proposed systems and selecting the system that minimizes it,where T (total freight costs)+ FW (total fixed warehouse cost)+ VW (total variable warehouse costs)is expressed as M = T + FW + VW.

Retailers are facing increasing competition from other manufacturer-to-consumer distribution channels.A retailer must develop a product-differentiation strategy.The author suggests seven product-differentiation strategies.List and explain these seven.

Retailers can assess a particular store's sales effectiveness by looking at (1)the number of people passing by on an average day; (2)the _________; (3)the percentage of those entering who buy;and (4)the average amount spent per sale.

Integrated logistics systems involves materials management,material flow systems,and electronic distribution.

The services mix afforded to retailers is a key tool for differentiating one store from another.Briefly explain the three services mixes available to retailers.

At some stock level point,management must reorder product to refill the inventory to an acceptable level.This point is called the ________.

In a franchising system,individual franchisees are ________.

Retailers are generally eager to stock new products,making it difficult for manufacturers to keep older,but proven brands on the shelves.

________ cost increases at an accelerating rate as the customer-service level approaches 100%.

Wal-Mart's Ol'Roy dog food has surpassed Nestlé's Purina brand as the top-selling dog chow.Ol'Roy is an example of a ________.