Exam 16: Managing Retailing, Wholesaling, and Logistics

When retailers do study the economics of buying and selling individual products, they typically find that a third of their square footage is being tied up by products that do not make a

Inventory-carrying costs represent substantial dollars for manufacturers. These inventory-carrying costs include storage charges, cost of capital, taxes and insurance, and depreciation and obsolescence. Carrying costs might run as high as ________ of the value of the inventory.

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

The ________ marketing sales system works by recruiting independent businesspeople who act as distributors.

Maximum customer service implies larger inventories, premium transportation, and multiple warehouses, all of which raise market-logistics costs. Market-logistics costs interact with marketing strategy and are often ________ related.

In which of the following functions that wholesalers perform do sales forces help manufacturers reach small business customers at a relatively low cost?

Every surface in a SonyStyle store is designed to be

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.

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.

The wholesaling industry is vulnerable to the trend toward vertical integration.

The wholesaling industry remains vulnerable to one of the most enduring trends-fierce resistance to price increases and the winnowing out of suppliers based on cost and quality.

Explain the concept of "generics".

Your company's order-to-payment cycle is 50 days. The average for your industry is 45 days. Your boss has asked you to reduce this cycle to the industry's average. To accomplish this goal, you begin to outline the "processes" in the order-to-payment cycle to find out where improvements can be made. List the "processes" that make up the order-to-payment cycle.

Wholesalers-distributors have not faced the pressures in recent years from new sources of competition, demanding customers, new technologies, and more direct-buying programs.

Shippers are increasingly combining two or more transportation modes, thanks to containerization.

Companies are reducing inventory costs by treating inventory items differently. Critical items defined as high risk, high opportunity and commodities defined as low risk, high opportunity. Recently, your company has introduced a product that is considered by the distributor a "bottleneck" item. What is the risk/reward relationship for "bottleneck" items?

The most successful wholesaler-distributors adapted their services to meet their suppliers' and target customers' changing needs by adding value to the channel.

Retailers develop their own "store brands" to differentiate themselves from other retailers and the national branded merchandise.

A EDLP pricing strategy for a retailer could lead to lower advertising costs, greater pricing stability, ________, and higher retail profits.

Besides the growing power of store brands, other factors weakening national brands include the fact that