Exam 27: Marketing Channels and Retailing

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.Some shoppers purposely plan to visit the Apple store on Fifth Avenue in New York City,which is characteristic of:

When Irvin went into Lowe's to buy his wife a small tool set she said she wanted,the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw.In this example,the sales clerk engaged in:

The newest generation of shopping centers is the:

Which of the following statements about specialty stores is true?

A _____ is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.

Which of the following statements about a retailer's promotion strategy is true?

When discussing customer-oriented service industries,you will often hear channel members discussing the need to minimize wait times.

Around the world,most retailers are _____,operating one or a few stores in their community,owned by a single person or partnership and not operated as part of a larger retail institution.

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.In terms of ownership,Walmart would be classified as a(n):

Metallurgical Designs makes gold and silver charms for necklaces and bracelets.It markets its charms to a few retailers in any one region and promotes them intensively to those retailers.This is an example of intensive distribution.

Nontraditional channel arrangements:

What are the three factors affecting channel choice? Briefly discuss how each factor might influence a company to implement a direct channel of distribution.

The direct channel is used more often in consumer markets than in business and industrial markets.

Which of the following statements concerning how market factors affect channel decisions is true?