Exam 16: Managing Retailing, Wholesaling, and Logistics

Total costs per unit increase with more orders and inventory-carrying costs per unit increase with more orders, the cost per unit for order-processing ________ per unit as a result.

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

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

As part of your internship with a marketing research firm, you have been asked to evaluate the relationship between high traffic and high rents for a retailer client who is thinking about moving his location. What methods for evaluating this relationship are available to you?

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 that 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)

Kodak launched a national advertising campaign for a new instant camera before it had delivered enough cameras to the stores. Explain how better supply chain management could have prevented this situation.

Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use.

Market-logistics strategies must be derived from ________, rather than solely from cost considerations.

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

Paco Underhill, managing director of the retail consultant Envirosell Inc., suggests that retailers, to increase sales volume, and make their shoppers hunt for the merchandise. His logic is this: while "hunting" the shopper will be exposed to more and more products, thus the likelihood increases that the shopper will purchase "impulse" items, thus increasing their overall purchase total.

Some intermediaries use strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and

Market logistics can amount to 30 to 40 percent of the product's total cost. Even though the cost of market logistics can be high, a well-planned program can be a(n) ________ tool in competitive marketing.

Describe the four steps in market logistics planning.

You have ideas of owning a Subway after graduation. In owning a Subway location, you are entering a ________ agreement.

An independent retailer using a central buying organization and joint promotion efforts is known as a

The retailer's product assortment does not need to match the target market's shopping expectations.

Which of the following retailers could be considered a category killer?

Although the overwhelming bulk (97 percent) of goods and services are sold through stores, nonstore retailing has been growing much faster than store retailing. Nonstore retailing falls into four major categories. List and briefly define what is included in each category.

The storage function (warehousing) helps smooth discrepancies between production and quantities desired by the market. Companies must decide on the ________ of inventory stocking locations.

Order-processing costs must be compared with inventory-carrying costs because as the amount of stock carried increases, the higher the inventory-carrying costs.