Chapter 14

Question 1

form utility

Answer 1

elements of the composition and appearance of a product that make it desirable

Question 2

time utility

Answer 2

increase in customer satisfaction gained by making a good or service available at the appropriate time

Question 3

place utility

Answer 3

usefulness of a good or service as a function of the location at which it is made available

Question 4

exchange

Answer 4

utility the increased value of a product that is created as its ownership is transferred

Question 5

retailer

Answer 5

a channel intermediary that sells mainly to consumers

Question 6

merchant

Answer 6

wholesaler an institution that buys goods from manufacturers and resells them to businesses government agencies and other wholesalers or retailers and that receives and takes title to goods stores them in its own warehouses and later ships them

Question 7

agents

Answer 7

broers wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers wholesalers or manufacturers

Question 8

direct channel

Answer 8

a distribution channel in which producers sell directly to consumers

Question 9

dual distribution

Answer 9

(multiple distribution) the use of two or more channels to distribute the same product to target markets

Question 10

nontraditional

Answer 10

channels non- physical (often electronic) channels that facilitate the unique market access of products and services

Question 11

strategic channel

Answer 11

alliance a cooperative agreement between business firms to use the other’s already established distribution channel

Question 12

exclusive distribution

Answer 12

a form of distribution that establishes one or a few dealers within a given area

Question 13

selective distribution

Answer 13

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

Question 14

intensive distribution

Answer 14

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Question 15

arm’s- length

Answer 15

relationship a relationship between companies that is loose characterized by low relational investment and trust and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service

Question 16

cooperative

Answer 16

relationship a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals

Question 17

integrated

Answer 17

relationship a relationship between companies that is tightly connected with linked processes across and between firm boundaries and high levels of trust and interfirm commitment

Question 18

channel power

Answer 18

the capacity of a particular marketing channel member to control or influence the behavior of other channel members

Question 19

channel control

Answer 19

a situation that occurs when one marketing channel member intentionally affects another member’s behavior

Question 20

channel captain

Answer 20

a member of a marketing channel that exercises authority and power over the activities of other channel members

Question 21

channel conflict

Answer 21

a clash of goals and methods between distribution channel members

Question 22

horizontal conflict

Answer 22

a channel conflict that occurs among channel members on the same level

Question 23

vertical conflict

Answer 23

a channel conflict that occurs between different levels in a marketing channel most typically between the manufacturer and wholesaler or between the manufacturer and retailer

Question 24

channel

Answer 24

partnering the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage

Question 25

retailing

Answer 25

all the activities directly related to the sale of goods and services to the ultimate consumer for personal nonbusiness use

Question 26

gross margin

Answer 26

amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

Question 27

franchise a relationship

Answer 27

in which the business rights to operate and sell a product are granted by the franchisor to the franchisee.

Question 28

chain store

Answer 28

a store that is part of a group of the same stores owned and operated by a single organization

Question 29

independent

Answer 29

retailer a retailer owned by a single person or partnership and not operated as part of a larger retail institution

Question 30

scrambled

Answer 30

merchandising the tendency to offer a wide variety of nontraditional goods and services under one roof

Question 31

direct mareting

Answer 31

(direct response mareting) techniques used to get consumers to make a purchase from their home office or other nonretail setting

Question 32

direct retailing

Answer 32

the selling of products by representatives who work door- to- door office- to- office orat home sales parties

Question 33

automatic vending

Answer 33

the use of machines to offer goods for sale

Question 34

nonstore

Answer 34

retailing shopping without visiting a store

Question 35

factory outlet an off-

Answer 35

price retailer that is owned and operated by a manufacturer

Question 36

franchisee

Answer 36

individual or business that is granted the right to sell another party’s product

Question 37

franchisor

Answer 37

originator of a trade name product methods of operation and the like that grants operating rights to another party to sell its product

Question 38

online retailing

Answer 38

(e- tailing) a type of shopping available to consumers with personal computers and access to the Internet

Question 39

shop-at-home

Answer 39

television networ a specialized form of direct-response marketing where shows display merchandise for viewers to purchase over the telephone with a credit card

Question 40

telemareting

Answer 40

use of the telephone to sell directly to consumers

Question 41

retailing mix

Answer 41

a combination of the six Ps— product place promotion price presentation and personnel— to sell goods and services to the ultimate consumer

Question 42

destination store

Answer 42

a store that consumers purposely plan to visit

Question 43

atmosphere

Answer 43

the overall impression conveyed by a store’s physical layout décor and surroundings

Question 44

layout the internal design

Answer 44

and configuration of a store’s fixtures and products

Question 45

data mining

Answer 45

the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

Question 46

m- commerce

Answer 46

ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services

Question 47

communication

Answer 47

the process by which we exchange or share meaning through a common set of symbols

Question 48

competitive

Answer 48

advantage one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors

Question 49

promotional strategy

Answer 49

a plan for the optimal use of the elements of promotion: advertising public relations personal selling sales promotion and social media

Question 50

promotion communication

Answer 50

by marketers that informs persuades and reminds potential buyers of a product in order to influence an opinion or elicit a response