Exam 14: Managing Retailing, Wholesaling, and Logistics

Reynold's is a grocery 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?

Inventory cost increases at an accelerating rate as the customer-service level approaches 100 percent.

A ________ is a retail firm owned by its customers.Members contribute money to open their own store,vote on its policies,elect a group to manage it,and receive dividends.

In ________ retailing,salespeople are ready to assist in every phase of the "locate-compare-select" process.

Low prices on some items serve as traffic builders or loss leaders for retailers.

Which of the following is an example of direct marketing?

________ costs for a manufacturer consist of setup costs and running costs.

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

List and explain the four service levels offered by retailers.

Electronic shopping is a type of ________.

The lower price of generics is made possible by lower-cost labeling and packaging and minimal advertising,and sometimes lower-quality ingredients.

The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento 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)________.

A stock order point of 10 means ordering the product ________.

Which of the following is a prepurchase service offered by retailers?

Firms are increasingly recognizing the importance of influencing consumers at the point of purchase.

________ serve bulk industries such as coal,lumber,and heavy equipment,assuming title and risk from the time an order is accepted to its delivery.

E&OE is trying to minimize its inventory costs,which are extremely high.The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered.Which of the following will be true for E&OE?

Mass merchandisers and discount stores typically fall into the ________ group with respect to margins and volume.

Full-service retailers generally have the lowest costs of all retail types.

Because shelf space is scarce,many supermarkets now charge a ________ for accepting a new brand,to cover the cost of listing and stocking it.