Chapter 16 Definitions

Question 1

Channel of distribution

Answer 1

A sequence of marketing organizations that directs a product from he producer to the ultimate user.

Question 2

Middleman

Answer 2

A marketing organization that links a producer and user within a marketing channel

Question 3

Merchant middleman

Answer 3

A middleman that actually takes title to products by buying them.

Question 4

Functional middleman

Answer 4

A middleman that helps in the transfer of ownership of products but does not take title to the products.

Question 5

Retailer

Answer 5

A middleman that buys from producers or other middlemen and sells to consumers.

Question 6

Wholesaler

Answer 6

A middleman that sells products to other firms.

Question 7

Intensive distribution

Answer 7

The use of all available outlets for a product.

Question 8

Selective distribution

Answer 8

The use of only a portion of the available outlets for a product in each geographic area.

Question 9

Exclusive distribution

Answer 9

The use of only a single retail outlet for a product in a large geographic area.

Question 10

Supply-chain management

Answer 10

Long-term partnership among channel members working together to create a distribution system that reduces ininefficiencies, costs and redundancies while creating a competitive advantage and satisfying customers.

Question 11

Vertical channel integration

Answer 11

The combining of two or more stages of a distribution channel under a single firm’s management.

Question 12

Vertical marketing system

Answer 12

A centrally managed distribution channel resulting from vertical channel integration.

Question 13

Merchant wholesaler

Answer 13

A middleman that purchases goods in large quantities and then sells them to other wholesales or retailers and to institutional, farm, government, professional, or industrial users.

Question 14

Full-service wholesaler

Answer 14

A middleman that performs the entire range of wholesaler functions.

Question 15

General-merchandise wholesaler

Answer 15

A middleman that deals in a wide variety of products.

Question 16

Limited-line wholesaler

Answer 16

A middleman that stocks only a few product lines but carries numerous product items within each line.

Question 17

Specialty-line wholesaler

Answer 17

A middleman that carries a select group of products within a single line.

Question 18

Limited-service wholesaler

Answer 18

A middleman that assumes responsibility for a few wholesale services only.

Question 19

Commission merchant

Answer 19

A middleman that carries merchandise and negotiates sales for manufacturers.

Question 20

Agent

Answer 20

A middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis.

Question 21

Broker

Answer 21

A middleman that specializes in a particular commodity, represents either a buyer or a seller and is likely to be hired on a temporary basis.

Question 22

Manufaturer’s sales branch

Answer 22

Essentially a merchant wholesaler that is owned by a manufacturer.

Question 23

Manufacturer’s sales office

Answer 23

Essentially a sales agent owned by a manufacturer.

Question 24

Independent retailer

Answer 24

A firm that operates only one retail outlet.

Question 25

Chain retailer

Answer 25

A company that operates more than one retail outlet.

Question 26

Department store

Answer 26

A retail store that employes 25 or more persons and sells at least home furnishings, appliances, family apparel and household linens and dry goods, each in different part of the store.

Question 27

Discount store

Answer 27

A self-service general-merchandise outlet that sells products at lower-than-usual prices.

Question 28

Catalog showroom

Answer 28

A retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store.

Question 29

Warehouse showroom

Answer 29

A retail facility in a large, low-cost building with a large on-premises inventory and minimal service.

Question 30

Convenience store

Answer 30

A small food store that sells a limited variety of products but remains open well beyond normal business hours.

Question 31

Supermarket

Answer 31

A large self-service store that sells primarily food and household products.

Question 32

Superstore

Answer 32

A large retail store that carries not only food and nonfood prodcuts ordinarily found in supermarkets, but also additional product lines.

Question 33

Warehouse club

Answer 33

A large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing.

Question 34

Traditional specialty store

Answer 34

A store that carries a narrow product mix with deep product lines.

Question 35

Off-price retailer

Answer 35

A store that buys manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts.

Question 36

Category killer

Answer 36

A very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability.

Question 37

Nonstore retailing

Answer 37

A type of retailing whereby consumers purchase products without visiting a store.

Question 38

Direct selling

Answer 38

The marketing of products to customers through face-to-face sales presentations at home or in the workplace.

Question 39

Direct marketing

Answer 39

The use of the telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone or the internet.