Ch. 9, 10, 11
Eskimo Joe's sells branded, ready-to-wear clothing, hats, drink ware, coasters, and other products directly to end consumers. Based upon this description, one could say that these product categories collectively represent the __________ of Eskimo Joe's product assortment.
breadth
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.
channel layer
A key element of Smashburger's pricing strategy is determining price steps between its quarter-pound, one-third pound, and half-pound hamburgers. The practice of setting prices for different products offered by a company within a single category is known as __________.
product-line pricing
Which technology could one day make the entire supply chain intelligent and automated?
radio frequency identification
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called ___________.
retail convergence
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
retailing
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting
In addition to selling food and drink through its restaurant and bar, Eskimo Joe's sells a variety of items that feature its popular Eskimo Joe logo. These products are sold directly to final consumers for their personal use. Based upon this description, Eskimo Joe's may be categorized as a __________.
Service retailer
Which type of business are you staying at when you stay at a hotel for a family vacation?
Service retailer
The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called _______.
Showrooming
You go to the local jewelry store to choose a birthday gift for a friend. Which type of retailer is the jewelry store?
Specialty Store
Which type of retailer carries a narrow product line with deep assortments within those lines?
Specialty stores
________ refers to setting price based on buyers' perception of value rather than on the seller's cost.
customer value-based pricing
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____.
disintermediation
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.
dynamic pricing
Carefully orchestrating the store's layout and displays, background music, colors, and smells is related to ________.
experiential retailing
The average Toyota car contains more than 10,000 moving parts, all manufactured by hundreds of independent suppliers that Toyota neither owns nor controls. The process by which Toyota identifies and ensures that parts arrive on time to its manufacturing facilities is known as __________.
inbound logistics
Toyota develops intimate relationships with many of its key suppliers, many of whom build distribution facilities in close proximity to Toyota's relay centers and assembly plants. For new car models, these suppliers often work together with Toyota engineers during the early stages of the design process and work collaboratively to come up with innovations that lower costs and improve the quality of its finished vehicles. This type of team approach is referred to as __________ logistics management.
integrated
Producers of convenience products typically use ______ distribution.
intensive
Toyota suppliers are required to adopt information and automated communication technologies that ensure that Toyota's relay centers and assembly plants have just the right amount of parts on hand to satisfy sales forecasts and the corresponding production schedule. This inventory management practice is described in the book and video as __________ logistics.
just-in-time
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
lower margins and higher sales volume
When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy.
market-skimming
Your favorite ice cream travels from the producer, who manufacturers the product, through several other organizations before arriving at the local grocery store, where you purchase the product. What is this set of organizations called?
marketing channel
Eskimo Joe's sells it merchandise through its on-site store, via an e-commerce website, and using a direct mail catalog. Based upon this description, Eskimo Joe's is a(n) __________.
omni-channel retailer
Smashburger is investigating adding a half-pound burger to the menu at a lower price point. It has performed market-pricing experiments, with the new burger listed at either $4.29 or $3.99. The company has found little change in sales at the lower price. Based upon this finding, one could say that demand for the new burger is ___________.
price inelastic
Which of the following channel structures would be best suited for a ballpoint ink pen?
producer-wholesaler-retailer-consumer
Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing.
product-bundle
Smashburger is seeking to attract customers who eat out at casual dining restaurants, like P.F. Chang's and Applebee's. The average ticket price for customers at these restaurants is $13. For these customers, $13 is a __________ in considering the relative value of Smashburger's offerings.
reference price
Toyota sources parts from suppliers globally, ships them to manufacturing plants all over the world for vehicle assembly, and sells the finished new automobiles to end consumers through an international network of franchised and company-owned dealerships. The process by which the company manages upstream and downstream value-added flows of materials, final goods, and related information is known as __________.
supply chain management
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
value-added pricing
One major objective associated with a market-penetration pricing strategy is to ________.
win a large market share
UPS charges different prices for shipping depending on an item's destination. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?
zone pricing
Many of Smashburger's competitors combine a burger, fries, and a drink offered at a reduced "combo" price. This practice is known as __________.
Product-bundle pricing
Stan and the staff at Eskimo Joe's believe that creating a fun, one-of-a-kind restaurant and store atmosphere for its target customers will move them to visit more often and buy Eskimo Joe branded products. In so doing, Eskimo Joe's exemplifies __________ retailing.
experiential
Sunoco is an example of which type of retailer?
Convenience store
In addition to Eskimo Joe's, Stan and his partners own two other restaurants: Joseppis' Italian Kitchen and Mexico Joe's. Which type of organizational approach to retailing does this represent?
Corporate chain
You paid 75 cents for a can of soda this morning. However, the seller's cost is only 50 cents. Which type of selling strategy is the soda company most likely using?
Cost-plus pricing
After segmenting and defining their target markets, what should retailers do next?
Decide how they will differentiate and position themselves in the market.
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations.
You have developed a new product and have created a website where customers can go to order the product. Which type of channel are you most likely utilizing?
Direct Channel
Offering just the right combination of quality and good service at a fair price is known as which type of strategy?
Good-value pricing
What are the four major functions of logistics?
Warehousing, inventory management, transportation, logistics information management
You have decided to open a retail store that offers many products. When choosing a wholesaler to work with, you need one that will provide financing and has stock available on short notice. Which type of wholesaler should you choose?
Wholesale merchant
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
corporate VMS
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
suppliers
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________________.
the responsibilities of channel members
One retail trend resulting from economic conditions is ________.
tighter consumer spending
Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business is an illegal practice called _______.
predatory pricing
Which of the following functions do intermediaries not perform?
Production
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
If a company wishes to sell the exact number of units to cover both its variable and fixed costs, what type of pricing strategy is it using?
Break-even pricing
After researching products similar to yours in the industry, you decide that your product has superior value. As such, you decide to price your product above the other products in the same industry. Which type of pricing strategy are you most likely using?
Competition-based pricing
As a marketer, you decide to focus not on the cost of producing the product, but rather on the customer's perception of the value of the product. Which type of pricing are you engaged in?
Customer value-based pricing
Which of the following statements is true regarding initiating price cuts?
Cutting prices in an industry loaded with excess capacity may lead to price wars
Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
While working at a grocery store, you notice a man who always works in the magazine area. He keeps the area clean, pulls outdated magazines, and restocks the shelves with the newest magazine editions. Which type of wholesaler does he most likely work for?
Rack jobber
Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as ________.
target costing
Why do producers use intermediaries?
to increase efficiency
Toyota works closely with its suppliers, distributors, and, ultimately, customers who collaborate with each other to improve overall channel performance. This intricate and evolving system of downstream and upstream partners can be described as a(n) __________.
value delivery network
According to the video, by offering an a la carte menu, premium ingredients, and gourmet side dishes, Smashburger is able to extract a price premium from its loyal customers. This type of pricing approach is referred to as __________ pricing.
value-added
