Chapter 12.5 Flashcards
Distribution intensity
The number of intermediaries or outlets through which a manufacturer distributes it’s goods.
Store atmospherics
The physical characteristics of a store and it’s amenities, to influence consumer perceptions of the shopping experience.
Intensive distribution
Involves placing a firms products in nearly every available outlet.
Generally for low priced goods like milk, newspaper, soft drinks.
Selective distribution
Market-coverage strategy in which a manufacturer selects only a limited number of retailers to distribute its product lines.
Exclusive distribution
Limits market coverage in a specific geographical region.
Suits relatively expensive specialty products such as Omega watches.
Supply chain
Complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final customers.
Supply chains begin when raw materials used in production are delivered to the producer and continue production to finish the product.
Logistics
The process of coordinating the flow of goods, services, and information among members of the supply chain.
Radio-frequency identification (RFID)
Technology relies on a computer chip implanted somewhere on a product or it’s packaging that emits a low frequency radio signal identifying the item.
Warehousing
Is the physical distribution activity that involves the storage of products.
Materials handling
Is moving items within factories, warehouses, transportation terminals, and stores.
Order processing
Includes preparing orders for shipment and receiving orders when shipments arrive.
Vendor-managed inventory
In which the producer and the retailer agree that the producer (or wholesaler) will determine how much of a product a buyer needs and automatically ship new supplies when needed.
Customer service standards
Measures the quality of service a firm provides for it’s customers.
Warranties
Firms promises to repair a defective product, refund money paid, or replace a product if it proves unsatisfactory.
