Bus 346 Quiz 16

Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.
Heartland Plantation should use exclusive distribution, both to match its limited production capacity and to grant it the control it wants.

The correct answer is: exclusive

Which of the following strategies is designed to place products in as many outlets as possible?
Intensive distribution is designed to have as many products in as many outlets as possible.

The correct answer is: intensive distribution

In multichannel retailing, what visible element must often be adjusted because of competition faced in different channels?
Retailers with stores in multiple markets often set different prices for the same merchandise to compete better with local stores. However, customers expect pricing consistency for the same item across channels.

The correct answer is: pricing

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.
Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices.

The correct answer is: Extreme value retailers

Sophia could not afford expensive furnishings, but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Sophia likely responding to?
Consumers desire a seamless experience when interacting with multichannel retailers. Therefore, retailers need to provide a consistent brand image across all channels.

The correct answer is: brand image consistency

One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is
Store-based retailers have limitations in terms of the amount of merchandise they can carry in the space available. Websites are limited only by the size of their distribution centers, combined with their suppliers’ ability to ship goods quickly.

The correct answer is: the amount of merchandise that can be carried in a physical store.

Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie’s first consideration?
Store-based retailers have limitations in terms of the amount of merchandise they can carry in the space available. Websites are limited only by the size of their distribution centers, combined with their suppliers’ ability to ship goods quickly.

The correct answer is: the amount of merchandise that can be carried in a physical store.

How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?
In choosing retail partners, Natalie must first assess how likely it is for certain retailers to carry the product.

The correct answer is: How likely is it for certain retailers to carry this product?

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods and groceries, as well as health and beauty aids.
Retail distribution centers (DCs) supporting a store channel are designed to ship many cartons of merchandise to stores. In contrast, the DCs supporting a catalog and Internet channel are designed to ship a few items to individual customers.

The correct answer is: in quantity of items shipped

Unusual and exciting displays like Bass Pro Shops’ climbing wall and stocked aquarium are examples of
Unique and unusual aspects of the store like lighting, furniture, scents, music, and special displays attract customers to a store and make the shopping experience more enjoyable.

The correct answer is: in-store promotions.

Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT
Retailing today is changing, both in the United States and around the world. Manufacturers no longer rule many supply chains, as they once did. Retailers like Walmart, Home Depot, and Kroger dictate to their suppliers what should be made, how it should be configured, when it should be delivered, and, to some extent, what it should cost. They do not, however, dictate which competitors their suppliers should collaborate with.

The correct answer is: which competitors they should collaborate with.

Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
Retailers buy in quantity from manufacturers and then sell single items to consumers, thus providing a storage function.

The correct answer is: storage.

Paul’s family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major, and he has recommended that his family’s business should
Emphasizing fresh, locally sourced perishables is a successful strategy conventional supermarkets use to compete against intrusions by other food retailing formats.

The correct answer is: emphasize fresh, locally sourced perishables.

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.
Selective distribution intensity, in which a few sellers in a given area are permitted to sell a product, is a good strategy for maintaining an image and controlling the flow of merchandise without resorting to the more extreme solution, exclusive distribution.

The correct answer is: Selective

Benefits of the traditional retail store as a channel includes the ability to
Personalizing product information and service, particularly when purchasing a complicated product, is a benefit of a traditional retail store.

The correct answer is: provide personalized and meaningful product information.

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, whereas manufacturers need to know
Manufacturers must know where their target customers expect to find their products, or they will not know which retailers to consider as partners.

The correct answer is: where their target customers expect to find their products.

One advantage of a retail store that is NOT shared with an Internet channel is
Stores are the only channel that accepts cash payments. Some customers prefer to pay with cash because it is easy, resolves the transaction immediately, and does not result in potential interest payments.

The correct answer is: accepting cash payments.

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company’s overall strategy, it will choose __________ distribution.
Intensive distribution refers to getting a product into as many outlets as possible.

The correct answer is: intensive

Bertone’s Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Bertone’s is adopting:
A multichannel strategy is when a company uses multiple sales channels, such as stores, catalogs and the Internet.

The correct answer is: a multichannel strategy.

Today, __________ dominate supply chains.
Large retailers like Walmart have become so powerful that today they dominate their supply chains.

The correct answer is: large retailers

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing
CRM databases collect information on customers, which can be used to identify the best customers and to increase customer loyalty.

The correct answer is: increased customer loyalty.

Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, retailers should consider augmenting or even replacing the sales and customer service functions with
In some situations, technology can be used to augment or replace sales or customer service personnel—as with self-checkout lanes in grocery stores.

The correct answer is: in-store kiosks or self-checkout lanes.

Chandra owns a pet sitting service. He recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of
M-commerce (or mobile commerce) refers to the ability to purchase products through a mobile phone.

The correct answer is: M-commerce.

Wholesalers sell to all of the following EXCEPT
Wholesalers connect channel members together, including businesses and manufacturers, but they do not sell to consumers.

The correct answer is: consumers.