Chapter 14: Wholesaling, Retailing, and Physical Distribution

Question 1

Ch 14

catalog marketing

Answer 1

a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or internet

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Ch 14

neighborhood shopping center

Answer 1

a planned shopping center consisting of several small convenience and specialty stores

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Ch 14

agent

Answer 1

a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis

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Ch 14

vertical marketing system (VMS)

Answer 1

a centrally managed distribution channel resulting from vertical channel integration

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Ch 14

administered VMS

Answer 1

type of VMS where one of the channel members dominates the other members; channel members collaborate of production and distribution; control rests with individual channel members

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Ch 14

corporate VMS

Answer 1

type of VMS where production and distribution are joined by actual ownership

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Ch 14

carrier

Answer 1

a firm that offers transportation services

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Ch 14

limited-line wholesaler

Answer 1

a middleman that stocks only a few product lines but carries numerous product items within each line

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Ch 14

department store

Answer 1

a retail store that 1) employs 25 or more persons and 2) sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store

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Ch 14

full-service wholesaler

Answer 1

a middleman that performs the entire range of wholesaler functions

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Ch 14

traditional specialty store

Answer 1

a store that carries a narrow product mix with deep product lines

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Ch 14

functional middleman

Answer 1

a middleman that helps in the transfer of ownership of products but does not take title to the products

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Ch 14

direct channel

Answer 1

channel of distribution without marketing intermediaries

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Ch 14

warehousing

Answer 1

the set of activities involved in receiving and storing goods and preparing them for reshipment

Question 4

Ch 14

direct-response marketing

Answer 4

a type of marketing in which a seller advertises a product and makes it available, usually for a short time period, through mail, telephone, or online orders

Question 5

Ch 14

commission merchant

Answer 5

a middleman that carries merchandise and negotiates sales or manufacturers

Question 7

Ch 14

warehouse club

Answer 7

a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing

Question 7

Ch 14

manufacturer’s sales branch

Answer 7

essentially a merchant wholesaler that is owned by a manufacturer

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Ch 14

order processing

Answer 8

activities involved in receiving and filling customers’ purchase orders

Question 9

Ch 14

television home shopping

Answer 9

a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

Question 11

Ch 14

transportation

Answer 11

the shipment of products to customers

Question 12

Ch 14

Category management

Answer 12

A phenomenon that is becoming common for mass merchandisers, supermarkets, and convenience stores where the retailer ask a supplier how to stock the shelves; retailers and suppliers claim this process delivers maximum efficiency

Question 13

Ch 14

exclusive distribution

Answer 13

the use of only a single retail outlet for a product in a large geographic area

Question 14

Ch 14

materials handling

Answer 14

the actual physical handling of goods, in warehouses as well as during transportation

Question 15

# Ch 14 chain retailer

Answer 15

a company that operates more than one retail outlet

Question 16

# Ch 14 regional shopping center

Answer 16

a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

Question 17

# Ch 14 manufacturer's sales office

Answer 17

essentially a sales agent owned by a manufacturer

Question 18

# Ch 14 supply-chain management

Answer 18

long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers

Question 20

# Ch 14 warehouse showroom

Answer 20

a retail facility in a large, low-cost building with a large on-premises inventory and minimal service

Question 21

# Ch 14 broker

Answer 21

a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis

Question 23

# Ch 14 discount store

Answer 23

a self-service general-merchandise outlet that sells products at lower-than-usual prices

Question 24

# Ch 14 traditional channel

Answer 24

channel where products go from the producer to wholesaler to retailer to consumer

Question 25

# Ch 14 retailer

Answer 25

a middleman that buys from producers or other middlemen and sells to consumers

Question 26

# Ch 14 inventory management

Answer 26

the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

Question 27

# Ch 14 selective distribution

Answer 27

the use of only a portion of the available outlets for a product in each geographic area

Question 29

# Ch 14 community shopping center

Answer 29

a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores

Question 31

# Ch 14 convenience store

Answer 31

a large self-service store that sells primarily food and household products

Question 32

# Ch 14 automatic vending

Answer 32

the use of machines to dispense products

Question 34

# Ch 14 specialty-line wholesaler

Answer 34

a middleman that carries a select group of products within a single line

Question 35

# Ch 14 lifestyle shopping center

Answer 35

an open-air-environment shopping center with upscale chain specialty stores

Question 36

# Ch 14 direct selling

Answer 36

the marketing of products to customers through face-to-face sales presentations at home or in the workplace

Question 37

# Ch 14 superstore

Answer 37

a large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines

Question 38

# Ch 14 intensive distribution

Answer 38

the use of all available outlets for products

Question 40

# Ch 14 off-price retailer

Answer 40

a store that buys manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Question 42

# Ch 14 nonstore retailing

Answer 42

a type of retailing whereby consumers purchase products without visiting a store

Question 43

# Ch 14 contractual VMS

Answer 43

type of VMS where contracts or other legal measures define cooperative arrangements and the rights and obligations of channel members

Question 45

# Ch 14 independent retailer

Answer 45

a firm that operates only one retail outlet

Question 46

# Ch 14 catalog showroom

Answer 46

a retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store

Question 48

# Ch 14 telemarketing

Answer 48

the performance of marketing-related activities by telephone

Question 49

# Ch 14 physical distribution

Answer 49

all the activities concerned with the efficient movement of products from the producer to the ultimate user

Question 50

# Ch 14 online retailing

Answer 50

retailing that makes products available to buyers through computer connections

Question 52

# Ch 14 direct marketing

Answer 52

the use the telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or internet

Question 53

# Ch 14 vertical channel integration

Answer 53

the combining of two or more stages of a distribution channel under a single firm's management

Question 54

# Ch 14 category killer

Answer 54

a very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability

Question 55

# Ch 14 wholesaler

Answer 55

a middleman that sells products to other firms

Question 56

# Ch 14 merchant middleman

Answer 56

a middleman that actually takes title to products by buying them