25 Questions
What is the primary function of distribution channel members?
To overcome time, place, and possession barriers
What type of flow involves the movement of products from the company to the consumer?
Forward Flow
Which of the following is an example of a Zero-Level Channel?
Manufacturer sells directly to a customer through telemarketing
What is the term for the chain of intermediaries or processes through which products or services reach the end consumer?
Distribution Channel
Which of the following is an example of a Three-Level Channel?
Manufacturer sells to a wholesaler who sells to a small wholesaler who sells to a retailer
What is the primary goal of marketing channels?
To overcome time, place, and possession barriers
What is the primary objective of evaluating different channel alternatives in marketing?
To select the optimal channel for each target segment based on economic, control, and adaptive criteria
What is the key benefit of a Vertical Marketing System?
All businesses in the system act together as a unified system to maximize profit
What is the primary difference between multichannel marketing and omnichannel marketing?
Multichannel marketing uses multiple channels to reach one or more customer segments, while omnichannel marketing provides a seamless experience across all channels
What is the primary reason for conflict in a channel system?
One channel member is acting in a way that prevents another member from achieving its goals
What is Service Process Design in marketing?
Describing and prescribing the procedures to be followed in service delivery
What is the primary consideration in selecting channel members?
The years in business, growth and profit record, financial strength, service reputation, and cooperativeness of the channel member
What is the primary goal of managing variability within a service process?
To reduce the complexity of service delivery and increase efficiency
What is the primary determinant of service quality, according to the Service-Quality model?
Reliability
What is the primary focus of the 'People P' of the marketing mix?
Designing a pleasant and satisfactory service experience
What is the primary purpose of service recovery?
To mitigate decreased customer confidence and loyalty
What is the primary characteristic of 'Moments of Truth' in service encounters?
They are critical to customer loyalty and require superb handling
What is the primary goal of managing technology-supported interactions in service delivery?
To ensure that technology does not damage or become a barrier to interpersonal relationships
What is the primary function of physical evidence in a service experience?
To facilitate or hinder customer and employee activities
What model is often discussed in connection to store atmospherics?
Stimulus-Organism-Response (S-O-R) Model
Which of the following senses is NOT directly involved in perceiving the store atmosphere?
Taste
What is the primary goal of designing a store atmosphere?
To increase purchase propensity and other shopping responses
Which dimension of the store atmosphere is concerned with the softness, smoothness, and temperature of surfaces?
Tactile Dimension
What is the term for the process of designing buying environments to produce specific reactions in consumers?
Store Atmospherics
What is the term for the five basic tastes that can be influenced by the store atmosphere?
Sour, sweet, bitter, salty, and umami
Study Notes
Physical Evidence and Atmospherics
- Physical evidence refers to the surroundings or environment where a service takes place, including physical or tangible items supplied during the service experience.
- It provides a visual metaphor for an organization's total offering and can act as a facilitator or differentiator.
Store Atmospherics
- Store atmospherics involve designing buying environments to produce specific reactions in consumers, increasing purchase propensity and other shopping responses.
- The atmosphere is understood through the senses, including sight, sound, scent, touch, and taste, and can serve to attract attention, act as a message medium, and elicit emotions and cognitions.
Sensory Marketing
- Sensory marketing involves using the senses to create a specific atmosphere and influence consumer behavior.
- The four dimensions of sensory marketing are visual, auditory, olfactory, and tactile.
Distribution Channels
- A distribution channel is the chain of intermediaries or processes through which products or services reach the end consumer.
- Distribution channels can include wholesalers, retailers, distributors, self-service kiosks, email, call centers, direct sales forces, and digital platforms.
Channel Members
- Channel members play a crucial role in overcoming time, place, and possession barriers that separate products and services from consumers.
- The key functions of channel members include forward flow, backward flow, and bidirectional flow.
Channel Levels
- Channel levels refer to the number of intermediaries involved in the distribution process, including zero-level (direct sales), one-level (one intermediary), two-level (two intermediaries), and three-level (three intermediaries) channels.
Channel-Design Decisions
- Channel-design decisions involve analyzing customer needs and wants, establishing objectives, identifying major channel alternatives, evaluating alternatives, and selecting channel members.
- Marketers must consider factors such as lot size, waiting and delivery time, spatial convergence, product or service variety, and service back-ups when designing a distribution channel.
Service Process Design and Management
- Service process design involves describing and prescribing the procedures to be followed in service delivery.
- There are four core aspects to consider in service process design: the degree of technology used, the degree of visibility, the degree of customization, and the degree of accessibility.
Managing Variability
- Variability in service process design can be managed through accommodation, which allows variability in customer requests, and reduction, which reduces variability and gets the customer to accept this.
Service Quality
- Service quality is determined by five factors: reliability, responsiveness, assurance, empathy, and tangibles.
- The zone of tolerance refers to the range of customer perceptions of a service between desired and minimum acceptable standards.
Service Recovery
- Service recovery involves responding to service failures and taking actions to avoid or address the failure, mitigate decreased customer confidence and loyalty, and make the customer satisfied again.
People Management Challenges
- The People P of the marketing mix focuses on relationships and human interactions and should be designed to make the service experience pleasant and satisfactory.
- Moments of truth, which are critical to customer loyalty, require superb handling and customer-centric behavior from frontline employees.
Managing Technology-Supported Interactions
- Service encounters involve interactions between technology and humans, and managing these interactions is critical to ensure that technology does not damage or become a barrier to interpersonal relationships.
Training Service Personnel
- Training service personnel involves creating an environment where they can behave in accordance with the brand image of the service provider and provide authentic expressions and emotions.
Managing Physical Evidence and Experience Environment
- Managing physical evidence and experience environment involves creating an environment that is consistent with the brand image and provides a satisfactory service experience.
Test your knowledge on how businesses manage distribution channels, including intermediaries, wholesalers, retailers, distributors, and more. Understand the importance of distribution channels in reaching end consumers.
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