distribution

Question 1

intermediaries

Answer 1

bridge the gaps between manufacturers and consumers to increase efficiency and reduce costs

Question 2

intermediary task: breaking bulk

Answer 2

break the large quantities of manufacturers into smaller quantities for retail and individual consumption

Question 3

intermediary task: assortment

Answer 3

consolidate products from various manufacturers, allowing consumers to access diverse products in one place

Question 4

intermediary task: timing

Answer 4

stock products so that they are available when consumers need them

Question 5

intermediary efficiency: specialization of labor

Answer 5

manufacturers can focus on production while intermediaries handle distribution

Question 6

intermediary focus: economies of scale

Answer 6

wholesalers distribute products from multiple manufacturers to multiple retailers, reducing delivery and handling costs

Question 7

intermediary focus: customer convenience

Answer 7

self-service models shift some tasks to consumers, lowering costs

Question 8

direct-to-consumer channel structure

Answer 8

suitable for high-value, custom or bulky products

Question 9

wholesaler to retailer channel structure

Answer 9

common for goods that need consolidation

Question 10

multi-layer wholesaling channel structure

Answer 10

products may go through multiple wholesalers before reaching retailers, particularly in complex supply chains

Question 11

parallel distribution (multi channel) structures advantages

Answer 11

broader market reach and customer convenience

Question 12

parallel distribution (multi channel) marketing challenges

Answer 12

disrupts relationships with traditional retailers who compete with the manufacturer’s direct sales

Question 13

parallel distribution structures: traditional channel

Answer 13

manufacturer > wholesaler > retailer > consumer

Question 14

parallel distribution structures: large retail chains

Answer 14

direct purchase from manufacturers

Question 15

parallel distribution structures: factory outlets

Answer 15

sell excess or lower-quality goods at discounted prices

Question 16

parallel distribution structures: direct to customer channels

Answer 16

e-commerce or company-operated stores

Question 17

factory outlet stores purpose

Answer 17

sell excess inventory, irregular merchandise or goods made specifically for outlet stores

Question 18

factory outlet: advantages

Answer 18

increase total sales, serve as channel to liquidate unsold goods

Question 19

factory outlet: risks

Answer 19

may devalue brand and alienate full-service retailers who lose sales

Question 20

factory outlet store strategy

Answer 20

placing locations in remote areas to minimize competition with traditional retail

Question 21

company store purpose

Answer 21

offer direct customer service, enhance brand prestige, create exclusivity

Question 22

company store: advantage

Answer 22

strengthen brand value through personalized service, improve customer experience

Question 23

company store: risks

Answer 23

higher operating costs and potential resentment from retailers

Question 24

online competition impact: increased competition

Answer 24

online price transperancy and convenience, causing retailers to lose small percentage of sales volume

Question 25

brick-and-mortar adaptation strategies

Answer 25

integrate online channels to offer “bricks and clicks” or charge higher prices online for low-margin goods to encourage in-store visits

Question 26

online competition long-term trends

Answer 26

failure of specialty stores and “category killers” with malls and physical stores losing foot traffic