Principles of Business, Marketing, and Finance (BMF) Unit 6 Answers PHS

(L1) Arrange the manufacturing strategies from least complex to most complex using the numbers 1-4. 1. __________ 2. __________ 3. __________ 4. __________

Arrange the manufacturing strategies from least complex to most complex using the numbers 1-4. 1. Mass Production 2. Make to Stock 3. Assemble to Order 4. Make to Order

(PT) _____ is the term for manufacturing an item quickly while customized to a certain extent.

Assemble to order

(L1) List three of the eight stages of the service process and what they mean. (AMV)

Case: The client presents the case, or desired need, to the service business. Proposal: The company will then make a proposal, or documentation outlining the scope of the project, including cost. If the client likes the terms, they will agree; if the client does not, they will renegotiate. Assigned: The case is assigned to the proper personnel, or those capable of effectively meeting the need. Solution Identified: The individual or team identifies a solution to meet the client's needs. Solution Executed: The individual or team completes the assignment. Delivery to Customer: The product is presented to the customer in an organized way. Feedback: The company seeks feedback from the customer to ensure full satisfaction. Close Case: If the customer is satisfied, the client is billed, and the case is closed

(L4) Define the terms. online retailer click-and-mortar retailers brick-and-mortar retailers

Define the terms. stores with no physical retail space but only operate in online sales stores that have both a physical and online retailing presence stores that only have a physical location and not an online presence

(L4) _____ is a consumer's willingness to pay a price for a specific good.

Demand

(Q2) _____ is a consumer's willingness to pay a price for a specific good.

Demand

(L3) Briefly describe why manufacturers of high-end electronics often require all retailers to charge the same price.

Manufacturers require all retailers to charge the same price to prevent price wars or unfair competition among retailers.

(L1) Match the definitions with the terms. manufacturing production strategies make to order wholesalers mass production assemble to order producer goods direct-to-consumer sellers make to stock retailers

Match the definitions with the terms. the ways in which businesses produce goods to meet consumer demands manufacturing an item only after the order is placed individuals or businesses that sell goods in large quantities, typically at lower prices than retailers the manufacturing of goods on a large-batch scale manufacturing an item quickly while customized to a certain extent semi-finished products used toward the production of another good manufacturers that sell goods directly to the consumer without the use of a retailer or wholesaler matching the manufacturing of goods with consumer demand forecasts individuals or businesses that sell goods directly to the consumer

(PT) Match the descriptions with the types of retailers. internet e-tailer discount retailers convenience retailers department and specialty stores warehouse retailers mobile retailer supermarkets and grocery stores

Match the descriptions with the types of retailers. shopping retail stores located on the internet retail store selling large selections of goods at highly discounted prices small stores targeting customers based on convenience larger stores specializing in specific kinds of merchandise warehouse-style facilities stocking items in bulk for sale to end users and businesses an online store tailored for smartphones from the ground up large "one stop shops" selling a vast variety of goods at mid- to low-level prices

(L2) Match the examples with the key variables in marketing products and services. Answers may be used more than once. deliverability relationships pricing strategy relationships deliverability pricing strategy

Match the examples with the key variables in marketing products and services. Answers may be used more than once. This is a way by which a good or service is yielded to the customer. This variable is far more important in the service industry. Quotes are important in this variable. Customer retention, or the ability to keep customers, depends on this. For purchased goods, this tends to be immediate. This is harder to calculate for services because there are no clear price tags on them.

(L5) Match the functions of wholesaling with the appropriate characteristics. Answers may be used more than once. storing processing receiving shipping shipping processing storing

Match the functions of wholesaling with the appropriate characteristics. Answers may be used more than once. This function occurs after bulk merchandise is purchased and received by the wholesaler's warehousing systems. This is the stage of sale in business in which a company will receive and assemble an order. This function involves purchasing, taking in, and sorting merchandise. This is the final stage in the wholesaler process. This function involves taking packaged orders, loading them, and shipping them via shipping vehicle to the retailer. At this stage in the wholesaler process, orders are arranged efficiently and accurately, usually on large pallets. This stage requires efficiency, or knowing exactly where specific kinds of goods are kept for easy access.

(Q1) _____ are semi-finished products used toward the production of another good.

Producer goods

(L3) Briefly describe why retailing is an effective component in the private enterprise system.

Retailers help manufacturers so they do not have to worry about the major effort to interact with the end user on the selling front.

(PT) The term for manufacturing an item only after the order is placed is _____.

The term for manufacturing an item only after the order is placed is _____.

(L1) ___ are all business establishments that engage in the selling and trading of merchandise.

Trade industries

(L2) Services are intangible and mostly require man-hour input; goods are tangible and require raw materials.

True

(L5) Describe how wholesaling solves the problem of how to offer numerous products in a single retail space. (AMV)

Wholesalers are companies that sell goods in large quantities at low prices, typically to retailers. Wholesalers store their stock of goods in warehousing units. Efficiency is key for warehousing to be profitable, so management must always know where specific kinds of goods are stored and how to easily access them.

(PT) Which of the following is NOT a retailer priority?

[greater concern with secondary sellers than end users]

(Q3) What is a broker?

a business intermediary that works to connect retail buyers with wholesale sellers

(Q3) What is a specialty wholesaler?

a business that receives, stocks, assembles, and distributes goods related to a specific industry or market

(Q3) What is a mail order wholesaler?

a business that works primarily through the internet to facilitate bulk orders and transactions for retailers

(PT) An agricultural or raw material product is _____.

a commodity

(Q2) What is an agricultural or raw material product?

a commodity

(PT) What is demand?

a consumer's willingness to pay a price for a specific good

(L5) What is a warehouse?

a large building in which raw materials or manufactured goods are temporarily stored for export or sale

(L3) What is the retail supply chain?

a system of parties responsible for taking raw materials, converting them into products, and getting them into the hands of the end user

(Q1) What are trade industries?

all business establishments that engage in the selling and trading of merchandise

(L4) What is a commodity?

an agricultural or raw material product

(PT) In business, what is a developer?

an individual who transforms real estate into profit-making property

(Q2) What is the term for when businesses sell large quantities of inventory to a single buyer for the sake of increasing economic return?

bulk sale

(L1) What are developers?

companies or individuals who specialize in transforming land into usable property

(L4) What is the term in marketing referring to the ease by which a product can be accessed and purchased?

convenience

(Q1) What is the term for individuals who specialize in transforming land into usable property?

developers

(Q1) Manufacturers that skip retailers and sell directly to the consumer are called _____.

direct-to-consumer sellers

(Q1) What is pricing strategy?

establishing product prices based on segments, consumers' ability to pay, market conditions, and competitor actions

(L2) What is the price of a good or service as determined by the free market system?

fair market value

(PT) What is the price of a good or service as determined by the free market system.

fair market value

(Q3) What is the term for a business specializing in selling and distributing a wide range of products, generally to supermarkets and other large retailers?

general merchandise wholesaler

(Q2) Which of the following is NOT a retailer priority?

greater concern with secondary sellers than end users

(L5) What is the term for the rate at which a specific kind of merchandise is received and then sold?

inventory turnover

(PT) What is the rate at which a specific kind of merchandise is received and then sold?

inventory turnover

(Q1) What is the term for manufacturing an item only after the order is placed?

make to order

(PT) _____ is the term for matching the manufacturing of goods with consumer demand forecasts.

make to stock

(Q1) What is the term for matching the manufacturing of goods with consumer demand forecasts?

make to stock

(L3) What is the term for the price of a good the manufacturer recommends the retailer charge for the product?

manufacturer's suggested retail price

(PT) What is mass production?

manufacturing of goods on a large-batch scale.

(Q1) What is the term for the manufacturing of goods on a large-batch scale?

mass production

(PT) What is a system of parties responsible for taking raw materials, converting them into products, and getting them into the hands of the end user?

none of these

(L3) Which of the following is NOT a retailer priority?

package and ship products in bulk

(L2) What is the term for establishing product prices based on segments, consumers' ability to pay, market conditions, and competitor actions?

pricing strategy

(PT) What is the term for establishing product prices based on segments, consumers' ability to pay, market conditions, and competitor actions?

pricing strategy

(PT) Individuals or businesses that sell goods directly to the consumer are called _____.

retailers

(Q1) Individuals or businesses that sell goods directly to the consumer are called _____.

retailers

(L3) What is the term for the selling of goods to an end consumer?

retailing

(PT) What is the term for selling goods to end consumers?

retailing

(Q3) What is receiving?

the business process that involves purchasing, taking in, and sorting merchandise

(Q2) In marketing, what is convenience?

the ease by which a product can be accessed and purchased

(Q1) What is meant by the fair market value of a good or service?

the price of a good or service as determined by the free market system

(PT) The manufacturer's suggested retail price is _____.

the price of a good the manufacturer recommends the retailer charge for the product

(Q2) What is the manufacturer's suggested retail price?

the price of a good the manufacturer recommends the retailer charge for the product

(Q3) What is inventory turnover?

the rate at which a specific kind of merchandise is received and then sold

(Q2) What is a system of parties responsible for taking raw materials, converting them into products, and getting them into the hands of the end user?

the retail supply chain

(L3) Arrange the parties in the retail supply chain from start to completion of a good, using the numbers 1-4. 1. __________ 2. __________ 3. __________ 4. __________

Arrange the parties in the retail supply chain from start to completion of a good, using the numbers 1-4. 1. manufacturers 2. wholesalers 3. retailers 4. consumers

(Q2) Arrange the parties in the retail supply chain from start to completion of a good, using the numbers 1-4. 1. __________ 2. __________ 3. __________ 4. __________

Arrange the parties in the retail supply chain from start to completion of a good, using the numbers 1-4. 1. manufacturers 2. wholesalers 3. retailers 4. consumers

(Q1) Choose Deliverability, Pricing Strategy, or Relationships. Pricing Strategy Relationships Pricing Strategy Relationships Deliverability

Choose Deliverability, Pricing Strategy, or Relationships. For goods, this is easier to determine because comparisons can be easily made. This variable is less important in the goods industry. Quotes are important in this variable. For services, this tends to take longer to complete. This is the final stage in the goods/services process.

(Q3) Choose Processing, Receiving, Shipping, or Storing. Receiving Processing Storing Processing Shipping Receiving Storing Shipping

Choose Processing, Receiving, Shipping, or Storing. This stage of the wholesaler process involves the usage of shipping companies to take in goods from manufacturers. This stage in the wholesaler process involves arranging orders for the retailer. The second phase in the warehousing process occurs after goods have been received from a manufacturer. This is the stage of sale in business in which a company will receive and assemble an order. This stage of the wholesaler process involves the usage of shipping companies to send goods to retailers. The first function of a warehouse involves taking in shipments from manufacturers. This stage requires efficiency, so knowing exactly where specific kinds of good are kept for easy access. This stage in the wholesaler process is when goods are finally sent out to retailers.

(L4) Choose True and False. True True

Choose True and False. Internet e-tailers can actually have both physical and online stores. Walmart is a good example of a click-and-mortar retailer.

(Q1) Choose True or False. False False

Choose True or False. Even though some services are more complex than others, only large, contract based projects can fit within the service process framework. Goods are intangible and mostly require man-hour input; services are tangible and require raw materials.

(L6) Choose True or False. True True

Choose True or False. Large supermarket retailers like Walmart and Target are often their own warehousing companies for the sake of cost effectiveness. Low prices for retailers indicate efficient supply chains.

(Q3) Choose True or False. False True

Choose True or False. Large supermarket retailers like Walmart and Target rarely have their own warehousing systems. Shipping is the last function in the wholesaler's process.

(L1) Choose True or False. True True

Choose True or False. With the increase in online selling, manufacturers can actually now "cut out the middle man" by selling to consumers through the internet. Even though some services are more complex than others, remarkably, each can fit within the service process framework, whether it is a haircut or the construction of a skyscraper.

(Q2) Choose True or False. True True True False. False. False.

Choose True or False. Without the manufacturer, end consumers would literally have to travel to the place of retailing for every product they wanted. The party in the retail supply chain responsible for purchasing finished goods from manufacturers and distributing them to retailers is the wholesaler. The party in the retail supply chain responsible for taking raw materials and producing consumable goods is known as the manufacturer. The party in the retail supply chain responsible for selling goods in small quantities to end consumers is known as the wholesaler. Internet e-tailers are strictly online and cannot have physical stores. Etsy.com is a good example of a click-and-mortar retailer.

(L3) Choose True or False. True True False True

Choose True or False. Without the retailer, end consumers would literally have to travel to the place of manufacturing for every product they wanted. The party in the retail supply chain responsible for purchasing finished goods from manufacturers and distributing them to retailers is the wholesaler. The party in the retail supply chain responsible for taking raw materials and producing consumable goods is known as the consumer. The party in the retail supply chain responsible for selling goods in small quantities to end consumers is known as the retailer

(Q1) What is the term for manufacturing an item quickly while customized to a certain extent?

assemble to order

(Q1) _____ are the ways in which businesses produce goods to meet consumer demands.

Manufacturing production

(L2) Explain why pricing goods is easier than pricing services.

Many find pricing goods far easier than pricing services because the fair market value of goods is easily observed.

(L6) Match the characteristics with the wholesaler types. Answers may be used more than once. mail order wholesaler brokers general merchandise wholesaler mail order wholesaler specialty wholesaler specialty wholesaler general merchandise wholesaler brokers

Match the characteristics with the wholesaler types. Answers may be used more than once. wholesalers that are common for small- to mid-size retailers needing smaller, less frequent shipments of bulk items business intermediaries that work to connect retail buyers with wholesale sellers a business specializing in selling and distributing a wide range of products, generally to supermarkets and other large retailers a business that works primarily through the internet to facilitate bulk orders and transactions for retailers wholesalers whose warehouse equipment and systems depend on the specific kinds of products they distribute a business that receives, stocks, assembles, and distributes goods related to a specific industry or market wholesalers that typically have a wide network of extremely large warehousing systems designed to supply mid- to large-sized retailers that experience high rates of merchandise turnover experts in knowing which wholesalers will work best for a retailer given the industry within which they are conducting business

(Q3) Match the characteristics with the wholesaler types. Answers may be used more than once. brokers brokers specialty wholesaler general merchandise wholesaler general merchandise wholesaler specialty wholesaler mail order wholesaler specialty wholesaler mail order wholesaler

Match the characteristics with the wholesaler types. Answers may be used more than once. These are wholesaler experts. Business intermediaries work to connect retail buyers with wholesale sellers. This business receives, stocks, assembles, and distributes goods related to a specific industry or market. These wholesalers sell a wide range of items for general use. These wholesalers are generally large with several networked throughout a country. These are primarily internet-based wholesalers. The warehouses of this wholesaler must match the specific needs of only a few product types. These wholesalers are common for small- to mid-size retailers through the use of the internet.

(PT) Match the characteristics with the wholesaler types. Answers may be used more than once. mail order wholesaler specialty wholesaler general merchandise wholesaler specialty wholesaler mail order wholesaler general merchandise wholesaler general merchandise wholesaler brokers

Match the characteristics with the wholesaler types. Answers may be used more than once. These wholesalers make smaller sales via mail shipping companies.These wholesalers make smaller sales via mail shipping companies. A wholesaler receives and distributes goods only within a specific kind of industry. These are business intermediaries with the greatest knowledge of a country's warehousing systems. The warehouses of this wholesaler must match the specific needs of only a few product types. These wholesalers are common for small- to mid-size retailers through the use of the internet. These are wholesalers who sell a wide range of items for general use. These wholesalers are generally large with several networked throughout a country. These individuals assist retailers in finding the right wholesalers.

(Q2) Match the descriptions with the types of retailers. mobile retailer discount retailers department and specialty stores warehouse retailers convenience retailers internet e-tailer supermarkets and grocery stores

Match the descriptions with the types of retailers. These retailers utilized various cellphone technologies like location-based advertising. Dollar General is an example of this type of retailer. A shoe store would be an example of this type of retailer. Warehouse-style facilities stock items in bulk for sale to end users and businesses. Consumers shop here because they are typically already shopping for something else, like gasoline. These retail stores are based online. These stores sell the largest variety of goods of all retailers.

(L4) Match the descriptions with the types of retailers. internet e-tailer discount retailers warehouse retailers convenience retailers supermarkets and grocery stores mobile retailer department and specialty stores

Match the descriptions with the types of retailers. shopping retail stores located on the internet retail store selling large selections of goods at highly discounted prices warehouse-style facilities stocking items in bulk for sale to end users and businesses small stores targeting customers based on convenience and usually looking for other products like gasoline large "one-stop shops" selling a vast variety of goods at mid- to low-level prices an online store tailored for smartphones from the ground up larger stores specializing in specific kinds of merchandise

(Q2) What is retailing?

the selling of goods to end consumers

(PT) What is bulk sale?

the term for when businesses sell large quantities of inventory to a single buyer for the sake of increasing economic return

(PT) Business establishments that engage in the selling and trading of merchandise are called _____.

trade industries

(PT) A _____ is a large building in which raw materials or manufactured goods are temporarily stored for export or scale.

warehouse

(Q3) What is the term for a large building in which raw materials or manufactured goods are temporarily stored for export or sale?

warehouse

(L3) What is a bulk sale?

when businesses sell large quantities of inventory to a single buyer for the sake of increasing economic return

(Q1) Individuals or businesses that sell goods in bulk at lower prices to retailers are called _____.

wholesalers