Exam 27: Marketing Channels and Retailing

Redbox Movie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Video stores that distribute DVDs usually also sell popcorn,candy,soft drinks,and entertainment publications.Basically,they overcome discrepancies of quantity and assortment by combining products into collections or assortment that consumers want available in one place.Which channel function does this describe?

Which of the following intermediaries sell mainly to consumers?

Horizontal channel conflict occurs most often when manufacturers practice:

Supercenters are more than just larger versions of traditional "markets." In addition to foodstuffs,supercenters have pharmacies,dry cleaners,portrait studies,photo finishing,hair salons,and restaurants.

Walmart Walmart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold. -Refer to Walmart.Which type of pricing strategy describes Walmart's commitment to offer consistently lower prices?

Chewing gum and soft drinks are sold in grocery stores,service stations,convenience stores,drugstores,discount stores,and motel vending machines.This is a an example of a(n)_____ distribution strategy.

Honda uses just-in-time manufacturing to build its Odyssey minivans.Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama.This relocation in order to provide efficient delivery of goods indicates that Honda is a:

One of the earliest,largest,and most famous examples of vertical integration was the Carnegie Steel Company.The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted,the coal mines that supplied the coal,the ships that transported the iron ore,and the railroads that transported the coal to the factory.Carnegie Steel had a(n)_____ channel relationship.

All of the following are factors in creating a store's atmosphere EXCEPT:

This summer,college student Pat is planning on selling kites at Panama City Beach.He has found some suppliers and has preordered all of the kites he thinks he can sell this summer.What type of a distribution channel relationship does Pat have with his suppliers?

Redbox Movie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros., and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Walmart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Warner Bros.,Blockbuster,Redbox,Walmart,and third-party DVD distributors are part of a:

_____ uses complex mathematical models to help retailers make better product mix decisions.

Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web.Kayak does not make bookings but rather provides recommendations for the best travel plans.Travel providers pay Kayak a commission when customers click through to their sites.Kayak.com,travelers,the airlines,and the hotels are all part of a:

Apple Stores Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several freestanding stores, which they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka. The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside, they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic, and the signs are all backlit. All stores have a Genius Bar where customers can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theater for workshops, product training sessions, and special presentations. Apple introduced the handheld Easy Pay system where customers don't have to wait in line to purchase products. With a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come. Apple also has its online store. At its Web site, a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news. -Refer to Apple Stores.Of the major types of retail operations,Apple stores are:

The Halloween Super Store is only open from September until November,usually in an otherwise vacant store.This is an example of a:

Many regard vertical conflict as healthy competition.

DeBeers sells most of the diamonds it produces to industry.The company controls over 90 percent of the market and has great power over its distributors.In its marketing channel,DeBeers would be considered a:

Transactional functions include contacting potential customers and assuming the risk of owning inventory.

Marketers who use nonstore retailing no longer have to worry about the "place" element of the four Ps.

Housing several departments under one roof,a _____ carries a wide variety of shopping and specialty goods,including apparel,cosmetics,housewares,electronics,and sometimes furniture.