Chapter 14 and 15

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

Truck wholesalers

Victor knows that if he decides to buy a franchise, he will most likely have to supply

labor and daily operations.

What is a primary difference between an industrial distributor and a manufacturers' agent?

A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.

Outlet shopping centers

For which of the following products would exclusive distribution be most appropriate?

Rolls Royce automobile

Which of the following may include special attractions such as amusement parks or skating rinks?

Superregional shopping centers

Scenario 14.1 Use the following to answer the questions. ​ Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns. ​ Refer to Scenario 14.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium brands?

A short, direct channel

A single leader who controls and organizes a marketing channel is called a

channel captain.

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

dual distribution.

Vertical channel integration

is made possible by purchasing the operations of a link in the channel.

All of the following products are likely to use the producer-retailer-consumer marketing channel except for _____

U-Pick farm produce

Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is

a free-standing structure.

Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense.

airway

Laura and Marie own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.

cash-and-carry

In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ____ shopping center.

community

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called

exclusive dealing.

Category killers compete primarily on the basis of

low prices and enormous product availability.

A limited-line wholesaler would be expected to carry a ____ product mix.​

narrow and deep

Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define

physical distribution.

In contrast to industrial products, consumer products are often purchased because of

social influences.