Marketing Final
industrial distributor
Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) ____ in a distribution channel.
retailing
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration
limited-line wholesaler
Arjun operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Arjun's business is a
department stores
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.
home shopping
Cleveland accesses Overstock.com's site on the internet and purchases a business laptop case. This is an example of
pictures of the exterior and interior of the planes
Cole is in charge of designing a promotion campaign for Wings, a private jet service company that has a high level of service quality. In an effort to make the service more tangible to potential consumers, the ad Cole is creating will feature
multichannel distribution
Companies are increasingly using _______ to respond to changing consumer preferences to be able to buy a product wherever and whenever they desire.
exclusive distribution; intensive distribution
Companies that sell products with high profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______.
multichannel distribution.
Dell makes its computers available through its own stores, its website, and some major retailers. This is an example of
conflict
Firestone allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Firestone dealers.
trucks
Granite Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Granite Springs should use ____ as its transportation mode.
supplementary
If Ramada Inn bundles its rooms with services such as free local phone calls, cable television, wireless internet access, and complimentary breakfast, these services are known as ____ services.
outsourcing.
If a firm decides to contract its logistics functions to third parties that have no managerial authority within the marketing channel, it is using
direct-response marketing
In the Sunday paper, Mary sees a flyer for a collector's edition Nativity set that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of
full-service and limited-service
Merchant wholesalers can be divided into two basic categories:
inseparability
Production and consumption of services must simultaneously occur due to the ____ characteristic of services
peak demand
Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called
human labor
The more ____ involved with delivering a service, the greater the degree of heterogeneity.
responsiveness
The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called
search; credence
Wendy had to get braces for her crooked teeth. She picked out the color bands she liked best, and her orthodontist put the braces on. For several days afterward, Wendy's mouth was sore. She was not sure if this was normal or not. She figures that different people probably have different experiences. Despite not knowing, she has a lot of faith in her orthodontist as he has a great reputation and has never steered her wrong before. Wendy was able to evaluate the bands used for her braces using ____________ qualities. She evaluates the doctor's expertise and service based on _____________ qualities.
off-peak demand
When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of
single-line retailer
Wild Birds Unlimited is a chain of small stores that sell a wide variety of bird feeders, wild bird food, and related backyard wildlife enjoyment products. Wild Birds Unlimited would best be described as a(n)
channel captain
a single leader who controls and organizes the marketing channel
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers.
multichannel distribution
the use of a variety of marketing channels to ensure maximum distribution.
opportunity cost
the value of the benefit that is given up by selecting one alternative rather than another
intangibility
when consumers may have a problem evaluating service offerings
selling agent
A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product
store image
A functional and psychological picture in the consumer's mind of a retail store is called
cycle time
A goal of logistics is to reduce ____ or how long it takes to complete a process.
superstore
A large retailer selling food and most routinely purchased consumer products
exclusive dealing
A local petroleum dealer made an agreement to purchase petroleum from only one supplier. The petroleum dealer was forced into the agreement because the petroleum supplier refused to do business with the dealer unless he agreed to source petroleum solely from that supplier. This is an example of
general-merchandise retailer
A retail establishment that offers a variety of product lines that are stocked in significant depth is best classified as a
category management
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers
superior ability to demonstrate the product
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of
supplementary services
A service is usually offered as part of a bundled package of services with a core service and one or more
online retailing
A significant factor in the rise of multichannel retailing
convenience store
A small self-service store that is open long hours and carries a shallow product mix in convenient locations
Specialty Retailers
A store that offers a wide variety of shoes for men, women, and children
agents
Adam Marker is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products
atmospherics
Adara owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Adara is focusing on
a party plan
Adrienne asks ten of her friends over to her home to learn about exciting new kitchen products. A salesperson from Pampered Chef makes a presentation and takes the women's orders. This is an example of
functional middlemen
Agents and brokers that facilitate and negotiate purchases but do not actually take title to products
search; experience
Alan is planning a trip to Playacar for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Alan is using before his trip are called _______ and those he uses during the trip are called _____.
vertical channel integration
Alibaba is a Chinese e-commerce firm similar to Amazon.com. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payments industries so it would have more control over the entire process. Alibaba's acquisitions are an example of
emphasizing tangible cues in promoting the service
Allstate Insurance uses a logo with a stylized pair of hands to communicate stability and security to consumers-"You're in good hands with Allstate." This is Allstate's attempt to help customers better understand its services by
the customer's perceptions
Amber, a waitress at the City Grill, is angry that a customer complained that his soup was cold because of her slow service. City Grill owner Marc Devereaux reminds her that she must focus on service quality as defined by
full-service wholesaler.
AmerisourceBergen provides a wide assortment of pharmaceutical products to health-care institutions such as hospitals. It also provides technical advice, equipment, and support for health-care institutions throughout the United States. AmerisourceBergen is best classified as a
demand-based
An American Airlines flight from Dallas to Houston was nearly full, and the tickets were more expensive than the almost-empty American Airlines flight from Chicago to Phoenix. This is an example of what kind of service pricing?
cycle time
An important goal of logistics is maintaining or reducing costs while reducing
an increase in lost sales
An inventory stockout results in
lifestyle shopping center
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a
category management
Ann is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on consumers to determine how much of different competing products she should order for her store and how much shelf space to give to each of the competing brands. Ann is working on
order processing
Archer Tractor & Fence Supply is trying to optimize its method of getting products to customers. It has added electronic ordering systems for customers and improved the training process for workers in the warehouse who make the products ready for shipment. The improvements Archer has made are to its
outsourcing
As her internet quilt and bed linen business grew, Carrie could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Carrie is using ____ for logistics for her business.
it allows you to customize your services to match the specific needs of individual customers
As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because
online retailing
At lunchtime, Gwyn uses an app on her phone to select and pay for items from Target. After work, she drives to a nearby Target store, where an employee loads the items into her car. This best illustrates
higher warehouse costs
At the annual managers' planning conference, Deanna Riker asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85% to 90%. She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.
inventory management
Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called
pure goods
Because practically all marketers provide some services, ____ typically do not exist in today's business environment.
safety stock
Benjamin is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Benjamin is keeping
radio frequency identification
Bethlehem Steel wants to install technology into its logistics management system that will enable it to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. Bethlehem Steel is most likely using
catalog marketing; television home shopping
Bling is a manufacturer of fashion jewelry that is expanding its use of direct marketing. Management has narrowed the options down to two but has not decided whether to use ____ where it would mail potential customers brochures featuring the company's entire product line or _____ where it would feature a handful of products on QVC or the Home Shopping Network.
customer contact
By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the number of personnel. This results in a decrease in
low prices and enormous product availability
Category killers compete primarily on the basis of
making the intangible aspects of the gym more tangible
Chad saw an advertisement for a local gym on television. During the ad, there were images of the gym, its equipment, and its staff. This ad was most likely designed with the goal of
they involve long-term commitments and affect customer accessibility
Channel decisions are important to marketers mostly because
services are very difficult to evaluate
Consumers look closely at service quality when comparing competing services because
products are available in locations where consumers want to buy them.
Consumers receive the benefits of place utility when
intensive distribution.
Convenience products typically use
broker
Cosima has been a buyer for Harvest Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Cosima wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a
manufacturers' agent
Dawkins Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion decisions. It should most likely hire a
heterogeneity
Deanna asks Beverly what housecleaning service she would recommend in Oakview. Beverly responds that Pristine Cleaning is great if you can be assured that Tasha will be the person assigned to your house. Beverly's recommendation addresses which of the following service features?
credence
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.
demand-based pricing
During periods of high demand, Uber pricing will often go up, a practice it terms "surge pricing." On the other hand, when times are slow, the prices of rides will often go down. This is to encourage passengers to use Uber during periods of slow demand. This pricing strategy is an example of
warehouse club
Eva went shopping at a local store called Threadgill's but found out that if she wanted to take advantage of its low prices, she would have to become a member. Threadgill's is an example of a
exclusive distribution.
Expensive, high-quality products that are purchased infrequently often reach consumers through
intangibility
Felicity recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Felicity was trying to overcome the ____ aspect of services.
truck
Felix works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he has on any given day. Felix's operation is which type of wholesaler?
corporate vertical marketing system.
H&M, which produces and retails clothing products in a coordinated channel, is an example of a(n)
exercising channel power.
If Iams forced Meijer's grocery chain to place all of its pet products in the stores' most favorable locations, it would be
upstream firms; downstream firms
In an efficient supply chain, ______ provide direct or indirect input to make the product, and ______ are responsible for delivery of the product and after-market services to ultimate customers.
degree of tangibility
In general, differences between goods and services are determined by the
transparency
Information technology enhances the ______ of the supply chain, allowing all marketing channel members to track the movement of items throughout the supply chain and improve customer service.
merchant wholesaler
Jim owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Jim is a
warehouse showroom
Levitz Furniture locates in huge, low-cost buildings; maintains large, on-premises inventories; and offers minimum service. Levitz is a
convenient location is an essential customer service element
Location is important to a retailer because
franchise
Luis operates a store called Fleet Feet Sports, which sells running apparel, shoes, and accessories. Luis enjoys operating Fleet Feet Sports, especially because he has ready access to management expertise and promotional support. He was able to open Fleet Feet Sports with limited capital. However, there are disadvantages Luis faces as well. For him, one of the biggest disadvantages is that he does not have complete control over his operation. Fleet Feet Sports is most likely a
credence qualities
Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called
reliability
Maya has been using the same hairdresser for years. What has kept Maya loyal is the fact that she knows her hairdresser is going to consistently do a great job. Maya places great importance on _____ when evaluating her hairdresser
social marketing
Mikhail works on developing press releases for a nonprofit organization looking for new ways to encourage recycling among consumers and businesses. Mikhail is engaging in
department stores
Nordstrom, Macy's, and JCPenney are all considered
deep discounts, few customer services, and central checkouts
Off-price retailers feature
digital distribution
Pandora and Spotify allow users to listen to music through the internet or other device. Pandora and Spotify are engaging in
inseperability
Personal trainers cannot complete their work without their clients present because of the ____ feature of services.
wholesailer; retailer
Peter works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Peter's company then repackages them and sells them to vending companies that have vending machines at government institutions. Peter most likely works for a(n) _____,while the vending machine company is a(n) _____.
the application of human or mechanical efforts
Services are usually provided through ____ directed at people or objects
heterogeneity
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
search
Tatiana finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many ____ qualities
inseparability
Wayo was interested in taking classes to become a certified yoga instructor. In order to earn the certification, he found out he would need to take 200 hours of training. He would have to be present in the training classes with a trainer for all 200 hours. The fact that he would have to attend the classes with a trainer reflects the _____ quality of services.
your facilities and your employees
You run a services business and you are constantly looking for ways to project an image of quality to your current and potential customers. You recognize there are very few tangible elements customers can view before making a services purchase. If you want to improve these elements of your business, then you should focus on improving _________________.
rack jobber
Your firm is a full-service, specialty-line wholesaler, and you own display shelves in discount stores. Your firm is a
location
Zoe is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
transportation
____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used
a public warehouse
a business that leases storage space and related facilities for logistics to other firms.
rack jobber
a company or trader that has an agreement with a retailer to display and sell products in a store
marketing channel
a group of individuals and organizations that directs the flow of products from producers to consumers
nonprofit marketing
activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit
- be more environmentally friendly - reduce waste time - reduce wasted energy - reduce wasted materials
channel cooperation can
merchant wholesaler
does not take title or possession of goods but facilitates exchanges between any parties.
- pharmaceutical drugs - Amazon Kindle Fire - designer wedding gowns - microbrew beers
likely to use the producer-retailer-consumer marketing channel
Heterogeneity and intangibility
makes word-of-mouth communication particularly important in service promotion