Exam 11: Marketing Channels

Scenario In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store.Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who are intrigued with the lifestyle of Shipshewana's largest population-the Amish. en and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills.Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty.But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items.No other shop offers the same. ary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles per customer request.In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, the town's busiest tourist days, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. Shipshewana is full of specialty shops," Mary Miller stated."People don't come here to buy things made in China or Taiwan.They want real, Amish-made goods." Why might Indiana Wood be classified as a full-service retailer?

In Canada, online growth rates are __________. decreasing rapidly decreasing modestly increasing at a double-digit rate every year increasing very modestly not changing

A representative of a buyer who does not take title to goods is a(n) _______. retailer agent broker manufacturer rack jobber

Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain. RFID PRM VMS IT 3PL

Canadians and Americans have different shopping patterns related to price, convenience, and reward programs.

Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers.

A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals. added value chain complex behavioural system corporate marketing system vertical marketing system multichannel system

Which of the following is most likely the greatest factor in the increasingly short life cycle of new retail forms? changes in technology economic swings import and export regulations stagnating retail convergence global expansion of major retailers

A channel structure that has one dominant player in the system that coordinates successive stages of production, distribution, and retailing is called a(n) _________. administered vertical marketing system corporate vertical marketing system contractual vertical marketing system corporate vertical ecosystem horizontal marketing system

To a producer of goods, a greater number of channel levels means ________ and greater channel complexity. less distance between producer and end consumer less control more potential ideas higher taxes fewer channel members

Retail stores can be classified in terms of several characteristics.Name four of these.

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. Merchant wholesalers Discount stores Full-service retailers Limited-service retailers Factory outlets

With the success of the Internet, few producers sell through intermediaries today.

Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices.Last week the owners opened up a walk-in discounted consumer produce outlet.Always is now using a multichannel distribution system.

Today, fewer companies outsource their logistics to third-party logistics (3PL) providers.

Full-service retailers, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information.

A discount store buys at less than regular wholesale prices and charges consumers less than retail.

Describe four of the eight key functions that members of the marketing channel perform.

When a company determines the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. multichannel selective international direct extensive

What types of services are provided by a 3PL?