MKTG 361 Ch. 14

Question 1

Marketing Channel (channel of distribution)

Answer 1

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

Question 2

Channel Members

Answer 2

all parties in the marketing channel who negotiate with on another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

Question 3

Form Utility

Answer 3

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

Question 4

Time Utility

Answer 4

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

Question 5

Place Utility

Answer 5

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

Question 6

Exchange Utility

Answer 6

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

Question 7

Retailer

Answer 7

a channel intermediary that sells mainly to consumers

Question 8

Merchant Wholesaler

Answer 8

an institution that buys good from manufactures 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 9

Agents and Brokers

Answer 9

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 10

Direct Channel

Answer 10

producers sell directly to consumers

Question 11

Dual Distribution (multiple distribution)

Answer 11

the use of two or more channels to distribute the same product to target markets

Question 12

Nontraditional Channels

Answer 12

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

Question 13

Strategic Channel Alliance

Answer 13

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

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

Selective Distribution

Answer 15

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

Question 16

Exclusive Distribution

Answer 16

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

Question 17

Arm’s-Length Relationship

Answer 17

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 18

Cooperative Relationship

Answer 18

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 19

Integrated Relationship

Answer 19

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 20

Channel Power

Answer 20

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

Question 21

Channel Control

Answer 21

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

Question 22

Channel Captain

Answer 22

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

Question 23

Channel Conflicts

Answer 23

a clash of goals and methods between distribution channel members

Question 24

Horizontal Conflict

Answer 24

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

Question 25

Vertical Conflict

Answer 25

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 26

Channel Partnering

Answer 26

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

Question 27

Retailing

Answer 27

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

Question 28

Independent Retailer

Answer 28

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

Question 29

Chain Store

Answer 29

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

Question 30

Franchise

Answer 30

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchise

Question 31

Gross Margin

Answer 31

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

Question 32

Scrambled Merchandising

Answer 32

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

Question 33

Factory Outlet

Answer 33

an off-price retailer that is owned and operated by a manufacturer

Question 34

Nonstore Retailing

Answer 34

shopping without visiting a store

Question 35

Automatic Vending

Answer 35

the use of machines to offer goods for sale

Question 36

Direct Retailing

Answer 36

the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties

Question 37

Direct Marketing (Direct Response Marketing)

Answer 37

techniques used to get consumers to make a purchase from their home, office, or other non retail setting

Question 38

Telemarketing

Answer 38

the use of the telephone to sell directly to consumers

Question 39

Shop-at-home TV Network

Answer 39

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

Question 40

Online Retailing (e-tailing)

Answer 40

a type of shopping available to consumers with personal computers and access to the internet

Question 41

Franchisor

Answer 41

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

Question 42

Franchisee

Answer 42

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

Question 43

Retailing Mix

Answer 43

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

Question 44

Destination Store

Answer 44

a store that consumers purposely plan to visit

Question 45

Atmosphere

Answer 45

the overall impression conveyed by a store's physical layout, decor, and surroundings

Question 46

Layout

Answer 46

the internal design and configuration of a store's fixtures and products

Question 47

Data Mining

Answer 47

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

Question 48

m-commerce

Answer 48

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