Chapter 9 - Place Decisions and Customer Convenience
79 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What primarily defines industrial supply chains?

  • The retail of finished goods to consumers.
  • The return of defective merchandise from consumers.
  • The companies involved in acquiring raw materials. (correct)
  • The distribution of goods through marketing intermediaries.

What is the main function of wholesalers in retail supply chains?

  • To produce goods directly for consumers.
  • To acquire goods from producers and distribute them. (correct)
  • To handle the return of defective merchandise.
  • To conduct marketing for the final consumers.

Which term describes the flow of goods and information in supply chains?

  • Logistics network.
  • Demand chain.
  • Supply chain. (correct)
  • Production flow.

What is a characteristic of drop shipping?

<p>Orders are fulfilled directly from suppliers. (D)</p> Signup and view all the answers

What is one purpose of reverse supply chains?

<p>To manage the return of merchandise to producers. (B)</p> Signup and view all the answers

Which statement is true regarding the restocking fees charged by retailers?

<p>They typically average between 15% and 20% of the price of an item. (A)</p> Signup and view all the answers

How do intermediaries enhance value in supply chains for consumers?

<p>Through their specialized expertise in distribution logistics. (B)</p> Signup and view all the answers

What resource flows back up the supply chain similar to the flow of goods?

<p>Money. (B)</p> Signup and view all the answers

What characterizes drop servicing within supply chains?

<p>It involves the resale of services performed by another company. (C)</p> Signup and view all the answers

What typically complicates the return process for retailers?

<p>Returns without original packaging. (B)</p> Signup and view all the answers

What is a disadvantage of direct supply chains for consumers?

<p>They do not provide savings through intermediaries. (C)</p> Signup and view all the answers

What purpose do promotional efforts serve within supply chains?

<p>To assist supply chain members in selling more effectively. (A)</p> Signup and view all the answers

Which intermediary in retail supply chains directly sells to the final consumer?

<p>Retailers. (A)</p> Signup and view all the answers

What is a common issue faced by retailers regarding merchandise returns?

<p>Excessive returns complicate inventory management. (A)</p> Signup and view all the answers

Which of the following is a direct supply chain method?

<p>Owning and operating retail outlets. (D)</p> Signup and view all the answers

What does the retailer fit concept primarily depend on?

<p>Retailer reach, retailer type, and retailer image (C)</p> Signup and view all the answers

What is a primary advantage of catalog or online sales for producers?

<p>It can be less expensive than running physical stores. (A)</p> Signup and view all the answers

When would using wholesalers in a retail supply chain be most beneficial?

<p>When wholesalers provide a better access to retailers. (D)</p> Signup and view all the answers

Which strategy attempts to create demand directly among consumers to influence retailers?

<p>Pull strategy (D)</p> Signup and view all the answers

Which of the following best defines distribution intensity?

<p>The level of availability and accessibility of a product. (D)</p> Signup and view all the answers

What has the shift in power within supply chains primarily favored in recent decades?

<p>Retailers (D)</p> Signup and view all the answers

What characterizes an exclusive distribution strategy?

<p>Only few outlets are selected to sell the products. (A)</p> Signup and view all the answers

What is a source of conflict in supply chains?

<p>Conflicting marketplace perceptions (B)</p> Signup and view all the answers

What is retailer reach primarily concerned with?

<p>Attracting consumers in the producer's target market. (D)</p> Signup and view all the answers

What approach is anchored at one end of the continuum of exchanges in supply chains?

<p>Discrete transaction approach (C)</p> Signup and view all the answers

How do mass merchandisers primarily attract consumers?

<p>Through their wide range of products and low prices. (A)</p> Signup and view all the answers

Which type of vertical marketing system is characterized by formal agreements between members?

<p>Contractual VMS (A)</p> Signup and view all the answers

What is a drawback of a direct supply chain using retail outlets?

<p>Higher operational and investment costs. (D)</p> Signup and view all the answers

What is a push strategy focused on in terms of retailing?

<p>Convincing retailers to carry a product (A)</p> Signup and view all the answers

Which situation would likely favor using an indirect supply chain?

<p>Producers with limited funds for retail growth. (D)</p> Signup and view all the answers

Which of the following is NOT a dimension of retailer fit?

<p>Retailer loyalty (D)</p> Signup and view all the answers

What is a crucial factor for retailers in attracting target consumers?

<p>Retailers' geographical location. (B)</p> Signup and view all the answers

What constitutes a disadvantage of selective distribution?

<p>It limits product availability to many consumers. (D)</p> Signup and view all the answers

What drives the need for a producer to invest in online sales technology?

<p>To effectively attract consumers to purchase from them. (D)</p> Signup and view all the answers

What role do wholesalers play in retail supply chains?

<p>They provide access to a larger pool of retailers. (C)</p> Signup and view all the answers

What is a supply chain?

<p>The total series of companies, exchanges, and transactions that produce and deliver goods to consumers. (D)</p> Signup and view all the answers

What is the primary distinction between industrial and retail supply chains?

<p>Industrial supply chains involve getting materials to the producer, whereas retail supply chains handle the distribution to consumers. (C)</p> Signup and view all the answers

Which term describes the practice of placing a brand in as many retail outlets as possible?

<p>Intensive Distribution (C)</p> Signup and view all the answers

What characterizes a convenience store?

<p>They offer narrow assortments of common items with convenience as a priority. (D)</p> Signup and view all the answers

What is the main focus of relationship marketing?

<p>Customer satisfaction, loyalty, and engagement over time. (C)</p> Signup and view all the answers

Which of the following is NOT a type of vertical marketing system (VMS)?

<p>Indirect VMS (B)</p> Signup and view all the answers

What does a drop shipping model typically involve?

<p>Utilizing e-commerce retailers to fulfill customer orders via suppliers. (A)</p> Signup and view all the answers

What is coercive power in the context of supply chains?

<p>Threatening one party to enforce compliance. (B)</p> Signup and view all the answers

What does selective distribution mean?

<p>Available in many but not all possible retail outlets. (C)</p> Signup and view all the answers

Which of the following describes a category killer?

<p>A large retailer that specializes in a specific product category. (A)</p> Signup and view all the answers

How does a pull strategy operate?

<p>By generating consumer demand, prompting retailers to stock products. (C)</p> Signup and view all the answers

Which of the following is an example of reverse supply chains?

<p>Products returning from consumers to producers. (C)</p> Signup and view all the answers

What are distribution logistics concerned with?

<p>The efficient movement and storage of merchandise. (A)</p> Signup and view all the answers

What is a franchise agreement within a vertical marketing system?

<p>An arrangement where independent retailers follow brand guidelines. (D)</p> Signup and view all the answers

What does restocking fees relate to?

<p>Fees associated with consumers returning products to producers. (B)</p> Signup and view all the answers

Which type of retailer typically emphasizes convenience over price?

<p>Convenience stores (D)</p> Signup and view all the answers

What distinguishes mass merchandisers from department stores?

<p>Department stores carry a broader assortment of products. (A)</p> Signup and view all the answers

What strategy involves convincing retailers to carry a producer's products through sales force efforts?

<p>Push strategy (A)</p> Signup and view all the answers

Which of the following is an example of a category killer?

<p>Home Depot (A)</p> Signup and view all the answers

Which type of store would likely carry narrow and deep inventories with high levels of customer service?

<p>Specialty stores (A)</p> Signup and view all the answers

In the context of power in supply chains, what is coercive power?

<p>Gaining compliance through threats (D)</p> Signup and view all the answers

What is a key reason why retailers have gained power in modern supply chains?

<p>They possess well-known, respected brands. (D)</p> Signup and view all the answers

What common conflict arises between supply chain members?

<p>Differing goals for profit maximization (D)</p> Signup and view all the answers

Which of the following captures the essence of a pull strategy in retailing?

<p>Consumers requesting products from retailers (D)</p> Signup and view all the answers

What factor primarily determines how conflicts are resolved among supply chain members?

<p>Power dynamics (C)</p> Signup and view all the answers

Retailers assert their power by using which of the following capabilities?

<p>Analyzing consumer data (A)</p> Signup and view all the answers

Which of the following is NOT typically a characteristic of warehouse clubs?

<p>High-priced products (B)</p> Signup and view all the answers

What defines the conflict between supply chain members regarding responsibilities?

<p>Different perspectives on market strategies (C)</p> Signup and view all the answers

Which option best describes the product focus of grocery stores like Kroger?

<p>Primarily grocery items (B)</p> Signup and view all the answers

What is the primary focus of relationship marketing in supply chains?

<p>Customer satisfaction and long-term engagement (B)</p> Signup and view all the answers

Which type of Vertical Marketing System (VMS) involves formal agreements binding the parties together?

<p>Contractual VMS (B)</p> Signup and view all the answers

What can minimize uncertainty and reduce costs in supply chains?

<p>Trustworthy business relationships (D)</p> Signup and view all the answers

What are the two key questions managers should ask when analyzing supply chain conflict?

<p>How important is the outcome and the relationship? (D)</p> Signup and view all the answers

Which approach is preferable for building long-term relationships with supply chain partners?

<p>Engaging in relational exchanges (A)</p> Signup and view all the answers

What type of supply chain provides full control over product marketing to consumers?

<p>Direct supply chain (B)</p> Signup and view all the answers

How can effective supply chains benefit consumers?

<p>By optimizing product selection and marketplace information (B)</p> Signup and view all the answers

Which of these is an example of an Administered VMS?

<p>An informal collaboration between suppliers and retailers without formal contracts (A)</p> Signup and view all the answers

What is a potential outcome of not sharing information within a supply chain?

<p>Missed opportunities for profitable products (C)</p> Signup and view all the answers

What might make searching for new suppliers or retailers expensive for a business?

<p>The time and money required for establishing new relationships (D)</p> Signup and view all the answers

What characterizes a reverse supply chain?

<p>Flow of products back from consumers to suppliers (C)</p> Signup and view all the answers

What is one benefit of cooperative supply chain relationships?

<p>Reduced oversight and management needs (D)</p> Signup and view all the answers

What distinguishes relational exchanges from discrete transactions?

<p>Information sharing versus limited communication (A)</p> Signup and view all the answers

Which statement about supply chains is true?

<p>Supply chains consist of companies and transactions that deliver goods to consumers. (B)</p> Signup and view all the answers

What is the primary downside of conflict in supply chains?

<p>Lost opportunities and increased costs (D)</p> Signup and view all the answers

Flashcards

Supply Chain

The complete network of companies, exchanges, and transactions involved in making goods available to consumers. It includes all steps from raw materials to the final customer.

Industrial Supply Chain

The network of companies that supply raw materials and components to manufacturers.

Retail Supply Chain

The companies and exchanges involved in moving goods from the producer to the final consumer.

Marketing Intermediaries

Companies that connect the producer with the customer, providing essential services like distribution, promotion, or finance.

Signup and view all the flashcards

Wholesalers

Intermediaries who buy goods from producers and sell them to retailers or other wholesalers.

Signup and view all the flashcards

Retailers

Intermediaries who sell merchandise directly to final consumers.

Signup and view all the flashcards

Indirect Supply Chain

A supply chain that uses one or more marketing intermediaries to connect the producer and consumer.

Signup and view all the flashcards

Direct Retail Supply Chain

A supply chain where producers sell directly to consumers without using any intermediaries.

Signup and view all the flashcards

Reverse Supply Chains

Supply chains where products flow back from consumers to producers, often for recycling or returns.

Signup and view all the flashcards

Restocking Fees

Fees charged in reverse supply chains when consumers return products to producers.

Signup and view all the flashcards

Distribution Logistics

Efficiently managing the storage, sorting, combining, and movement of merchandise.

Signup and view all the flashcards

Distribution Intensity

The number of retail outlets where a product is available to consumers.

Signup and view all the flashcards

Intensive Distribution

Placing a product in as many retail outlets as possible, aiming for maximum reach.

Signup and view all the flashcards

Selective Distribution

Placing a product in many outlets, but not all, carefully choosing locations to maximize sales.

Signup and view all the flashcards

Exclusive Distribution

Limiting product availability to a few select outlets to create a sense of exclusivity and desirability.

Signup and view all the flashcards

Drop Shipping

An indirect channel where retailers take orders from customers and place them with suppliers.

Signup and view all the flashcards

Drop Servicing

An indirect model where retailers sell services performed by a supplier directly to customers.

Signup and view all the flashcards

Value of Supply Chains to Consumers

Supply chains make goods accessible, convenient, and affordable for consumers.

Signup and view all the flashcards

Importance of Money Flow

Money flows back up the supply chain, from consumers to producers, through transactions.

Signup and view all the flashcards

Importance of Information Flow

Information about consumer purchases flows through the supply chain, helping with decision making and improvements.

Signup and view all the flashcards

When to Use Direct Supply Chains?

Direct supply chains are suitable when the producer has control over branding, pre-purchase inspection is less important, or the producer has online sales capabilities.

Signup and view all the flashcards

When to Use Indirect Supply Chains?

Indirect supply chains are beneficial when wholesalers have better access to retailers, or small retailers need wider product selection.

Signup and view all the flashcards

Retailer Fit

A product's suitability for a specific retail outlet based on its reach, type, and image.

Signup and view all the flashcards

Push Strategy

A marketing strategy where producers directly persuade retailers to carry their products.

Signup and view all the flashcards

Pull Strategy

A marketing strategy where producers create consumer demand through advertising and promotions, leading consumers to ask for their products at retail outlets.

Signup and view all the flashcards

Power in Supply Chains

The influence a company has to control activities in the chain, often through reward or coercion.

Signup and view all the flashcards

Conflict in Supply Chains

Disagreement between companies in a supply chain about its operations, stemming from conflicting goals, responsibilities, or marketplace perceptions.

Signup and view all the flashcards

Retailer Fit

The extent to which a retailer aligns with a brand's target market, image, and distribution strategy.

Signup and view all the flashcards

Discrete Transaction Approach

A supply chain relationship characterized by individual, separate exchanges with no ongoing commitment or collaboration.

Signup and view all the flashcards

Retailer Reach

The ability of a retailer to attract consumers in a producer's target market, considering both store location and customer demographics.

Signup and view all the flashcards

Relational Exchange

A supply chain relationship based on ongoing collaboration, trust, and shared goals.

Signup and view all the flashcards

Retailer Type

The category of retailer, such as mass merchandisers, discount stores, specialty stores, or online retailers, that aligns with the brand's distribution strategy.

Signup and view all the flashcards

Retailer Image

The overall perception of a retailer based on its brand, pricing, customer service, and product offerings.

Signup and view all the flashcards

Vertical Marketing System (VMS)

A collaborative and coordinated approach to supply chain management where all members work together towards common goals.

Signup and view all the flashcards

Mass Merchandisers

Large retail stores that sell a wide variety of products at low prices, emphasizing volume over service or exclusivity.

Signup and view all the flashcards

Discount Stores

Similar to mass merchandisers but with even lower prices and often limited selection.

Signup and view all the flashcards

Category Killers

Retailers specializing in a specific product category and offering large, deep assortments at low prices. They dominate their niche by offering extensive choices.

Signup and view all the flashcards

Specialty Stores

Retailers offering a narrow but deep selection of products in a specific category. They provide expert customer service and focus on niche markets.

Signup and view all the flashcards

Convenience Stores

Small retailers offering a limited selection of common goods with an emphasis on location and accessibility. They prioritize convenience over price.

Signup and view all the flashcards

Coercive Power

Exercising power by threats or negative consequences to achieve compliance.

Signup and view all the flashcards

Reward Power

Exercising power by offering positive incentives to gain compliance.

Signup and view all the flashcards

Power Shift to Retailers

Retailers have gained more power in recent decades due to the growth of large chains and access to consumer data.

Signup and view all the flashcards

Profit Conflict in Supply Chains

One supply chain member's profit often comes at the expense of another member, creating potential for conflict.

Signup and view all the flashcards

Relationship Marketing

A long-term approach focusing on customer satisfaction, loyalty, and engagement, building trust and strong connections between sellers and buyers.

Signup and view all the flashcards

Discrete Transaction

A one-time business exchange with no expectation of future interactions. Limited information sharing and potential distrust are common.

Signup and view all the flashcards

Benefits of Relationship Marketing

Relationship marketing can reduce costs, uncertainties, and improve returns on investment by fostering trust and collaboration within the supply chain.

Signup and view all the flashcards

Administered VMS

A VMS where members cooperate closely but have no formal agreements. They choose to work together because it benefits their individual interests.

Signup and view all the flashcards

Contractual VMS

A VMS where companies sign contracts defining responsibilities and rewards for their relationships.

Signup and view all the flashcards

Franchise Agreement

A contractual VMS where a franchisor (producer) licenses a franchisee (retailer) to sell their products.

Signup and view all the flashcards

Corporate VMS

A VMS where all supply chain levels are under common ownership, acting as a single entity.

Signup and view all the flashcards

Study Notes

Supply Chain Decisions and Customer Convenience

  • Supply Chains: The series of companies, exchanges, and transactions that produce and make goods available to consumers.
  • Reverse Supply Chains: Supply chains where merchandise flows backward from consumers to producers (e.g., returns, repairs).
  • Industrial Supply Chains: Companies involved in getting materials to producers (raw materials suppliers, component makers).
  • Retail Supply Chains: Companies involved in getting goods from producers to consumers (wholesalers, retailers).
  • Marketing Intermediaries: Companies facilitating connections between client companies and customers (wholesalers, retailers).
  • Wholesalers: Intermediaries who buy from producers and sell to retailers.
  • Retailers: Intermediaries who buy from producers or wholesalers and sell to consumers.
  • Indirect Supply Chains: Use marketing intermediaries.
  • Drop Shipping: An indirect model where e-commerce retailers don't handle inventory.
  • Drop Servicing: When online retailers sell services performed by suppliers.
  • Direct Retail Supply Chains: No separate intermediaries; consumers buy directly from producers (e.g., online, catalogs).
  • Restocking Fees: Fees charged for returned merchandise (typically 15-20% of the cost).

Designing Retail Supply Chains

  • Supply Chain Length: The number of intermediaries.
    • Direct Supply Chains: Producers own retail stores or sell directly online.
    • Indirect Supply Chains: Use wholesalers and retailers.
  • Distribution Intensity: How widely available a product is.
    • Intensive Distribution: Place brands in many retail outlets.
    • Selective Distribution: Place brands in many but not all outlets.
    • Exclusive Distribution: Place brands in few outlets.
  • Retailer Selection: Criteria to choose retailers.
    • Retailer Reach: Ability to attract consumers in target markets.
  • Retailer Type: Types of retailers (mass merchandisers, discount, specialty, convenience).
  • Retailer Image: Retailers' perceived image and reputation.
  • Push Strategy: Producers persuade wholesalers and retailers to carry their products.
  • Pull Strategy: Producers try to build consumer demand, encouraging retailers to stock their products.

Power and Conflict in Supply Chains

  • Power: One party's ability to influence another party's actions.
  • Coercive Power: The ability to threaten another party to gain compliance.
  • Reward Power: The ability to offer incentives to gain compliance.
  • Power Shift: In recent decades, retailers have gained more power than producers.
  • Conflict: Disagreements among supply chain members.
  • Conflict Management: Cooperative relationships lead to better outcomes.

Relationship Marketing and Vertical Marketing Systems

  • Relationship Marketing: Focus on customer satisfaction, loyalty, and long-term customer engagement
  • Discrete Transactions: One-time business with no future expectations.
  • Relational Exchanges: Long-term relationships based on trust and information exchange.
  • Vertical Marketing Systems (VMS): Producers, wholesalers, and retailers work cooperatively.
    • Administered VMS: Cooperative relationships without formal agreements.
    • Contractual VMS: Relationships with contracts specifying responsibilities.
    • Franchise Agreement: A type of contractual VMS.
    • Corporate VMS: All supply chain levels under common ownership.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Like This

A Separate Peace - Chapter 9 Flashcards
28 questions

A Separate Peace - Chapter 9 Flashcards

EasygoingAgate6318 avatar
EasygoingAgate6318
Criminal Procedure Chapter 9
30 questions

Criminal Procedure Chapter 9

WholesomeVibrance avatar
WholesomeVibrance
Chapter 9: Facial Massage Flashcards
38 questions

Facial Massage Quiz & Flashcards: Chapter 9

LuxuriantOstrich avatar
LuxuriantOstrich
Earth Science Chapter 9: Plate Tectonics
16 questions

Earth Science Chapter 9: Plate Tectonics

ProfuseFife avatar
ProfuseFife
Use Quizgecko on...
Browser
Open
Browser
Browser