Chapter 14

Question 1

Insourcing

Answer 1

companies’ contract with a specialist who services their supply chains (UPS)

Question 2

Outsourcing

Answer 2

company delegates non-essential tasks to

subcontractors

Question 3

Direct channel

Answer 3

producer –> consumer – e.g. buying strawberries at the farm where they’re grown

Question 4

Indirect channel

Answer 4

includes multiple channel intermediaries = firms/people that help move the product

Question 5

Breaking bulk

Answer 5

wholesalers/retailers purchase large quantities, but sell only a few at the time

Question 6

Assortments

Answer 6

reducing number of transactions – e.g. variety of products in one location

Question 7

Agents or brokers

Answer 7

provide services in exchange for commissions

Question 8

Hybrid marketing system

Answer 8

companies adding new channels; direct sales, distributors, direct mail

Question 9

Conventional

Answer 9

multi-level distribution channel, members work independently

Question 10

Intensive

Answer 10

maximize market coverage, selling through as many wholesalers/retailers – milk

Question 11

Exclusive

Answer 11

limiting distribution to a single outlet in a particular region – high priced products

Question 12

Selective

Answer 12

in between intensive and exclusive – shopping products; household appliances

Question 13

Merchandise breadth (or variety)

Answer 13

variety, number of different product lines available – narrow/broad

Question 14

Merchandise depth

Answer 14

variety of choices available for each specific product – shallow/deep