MGT- Chapter 17
Terms
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- bargain retailers
- Retail outlets that emphasize low prices as a means of attracting consumers.
- break-even analysis
- An assessment of how many units must be sold at a given price before the company begins to make a profit.
- break-even point
- The number of units that must be sold at a given price before the company covers all of its variable and fixed costs.
- cash discount
- A form of discount in which customers paying cash, rather than buying on credit, pay lower prices
- catalogue showroom:
- A bargain retail store in which customers place orders for items described in a catalogue and pick up those items from an on-premises warehouse.
- category killers
- Retailers who carry a deep selection of goods in a narrow product line.
- channel captain
- The channel member that is the most powerful in determining the roles and rewards of organizations involved in a given channel of distribution.
- channel conflict
- Conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive.
- common carriers
- Transportation companies that transport goods for any firm or individual wishing to make a shipment
- containerization
- The use of standardized heavy-duty containers in which many items are sealed at the point of shipment and opened only at the final destination.
- contract carriers:
- Independent transporters who contract to serve as transporters for industrial customers only.
- convenience stores
- Retail stores that offer high accessibility, extended hours, and fast service on selected items.
- cybermalls
- Collections of virtual storefronts representing diverse products.
- department stores
- Large retail stores that offer a wide variety of high-quality items divided into specialized departments.
- direct channel:
- distribution channel in which the product travels from the producer to the consumer without passing through any intermediary.
- direct selling
- Form of non-store retailing typified by door-to-door sales.
- direct-response retailing
- A type of retailing in which firms make direct contact with customers both to inform them about products and to receive sales orders.
- discount houses
- Bargain retail stores that offer major items such as televisions and large appliances at discount prices.
- distribution centre
- A warehouse used to provide storage of goods for only short periods before they are shipped to retail stores.
- distribution channel
- The path a product follows from the producer to the end-user.
- distribution mix
- The combination of distribution channels a firm selects to get a product to end-users.
- drop shipper
- A type of wholesaler that does not carry inventory or handle the product.
- e-intermediaries
- Internet-based distribution-channel members that collect information about sellers and present it in convenient form to consumers and/or help deliver internet products to consumers.
- ecatalogues:
- Non-store retailing that uses the internet to display products and services for both retail shoppers and business customers.
- electronic retailing
- Non-store retailing in which information about the seller's products and services is connected to consumers' computers, allowing consumers to receive the information and purchase the products in the home.
- electronic storefront
- A seller's website in which consumers collect information about products and buying opportunities, place sales orders, and pay for their purchases.
- exclusive distribution:
- A distribution strategy in which a product's distribution is limited to only one wholesaler or retailer in a given geographic area.
- factory outlets
- Bargain retail stores that are owned by the manufacturers whose products they sell.
- fixed costs
- Those costs unaffected by the number of goods or services produced or sold.
- full-service merchant wholesaler
- A merchant wholesaler that provides storage and delivery in addition to wholesaling services.
- hub
- Central distribution outlet that controls all or most of a firm's distribution activities
- industrial (business) distribution
- The network of channel members involved in the flow of manufactured goods to industrial customers.
- intensive distribution
- distribution strategy in which a product is distributed in nearly every possible outlet, using many channels and channel members.
- interactive marketing
- Selling products and services by allowing customers to interact with multimedia websites using voice, graphics, animation, film clips, and access to live human advice.
- intermediary
- Any individual or firm other than the producer who participates in a product's distribution.
- intermodal transportation
- The combined use of different modes of transportation.
- inventory control
- The part of warehouse operations that keeps track of what is on hand and ensures adequate supplies of products in stock at all times.
- limited-function merchant wholesaler
- An independent wholesaler that provides only wholesaling–not warehousing or transportation–services.
- mail order (catalogue marketing):
- form of non-store retailing in which customers place orders for merchandise shown in catalogues and receive their orders via mail.
- market share
- A company's percentage of the total market sales for a specific product.
- materials handling
- The transportation and arrangement of goods within a warehouse and orderly retrieval of goods from inventory.
- merchant wholesaler
- An independent wholesaler that buys and takes legal possession of goods before selling them to customers.
- multilevel marketing
- A system in which a salesperson earns a commission on their own sales and on the sales of any other salespeople they recruit.
- odd-even psychological pricing
- A form of psychological pricing in which prices are not stated in even dollar amounts.
- order fulfillment
- All activities involved in completing a sales transaction, beginning with making the sale and ending with on-time delivery to the customer.
- penetration-pricing strategy
- The decision to price a new product very low to sell the most units possible and to build customer loyalty.
- physical distribution
- Those activities needed to move a product from the manufacturer to the end consumer.
- price leadership
- The dominant firm in the industry establishes product prices and other companies follow suit.
- price lining
- The practice of offering all items in certain categories at a limited number of predetermined price points.
- price-skimming strategy
- The decision to price a new product as high as possible to earn the maximum profit on each unit sold.
- pricing objectives
- Goals that producers hope to attain in pricing products for sale.
- pricing:
- Deciding what the company will receive in exchange for its product.
- private carriers
- Transportation systems owned by the shipper
- private warehouse
- A warehouse owned and used by just one company.
- psychological pricing
- The practice of setting prices to take advantage of the nonlogical reactions of consumers to certain types of prices.
- public warehouse
- An independently owned and operated warehouse that stores the goods of many firms.
- quantity discount
- A form of discount in which customers buying large amounts of a product pay lower prices.
- rack jobber
- A full-function merchant wholesaler specializing in non-food merchandise that sets up and maintains display racks of some products in retail stores.
- retailers
- Intermediaries who sell products to end-users.
- sales agent (or broker):
- An independent business person who represents a business and receives a commission in return, but never takes legal possession of the product.
- sales offices
- Offices maintained by sellers of industrial goods to provide points of contact with their customers.
- seasonal discount
- : A form of discount in which lower prices are offered to customers making a purchase at a time of year when sales are traditionally slow.
- selective distribution
- A distribution strategy that falls between intensive and exclusive distribution, calling for the use of a limited number of outlets for a product.
- shopping agent (e-agent):
- A type of intermediary that helps internet consumers by gathering and sorting information they need to make purchases.
- specialty stores:
- Small retail stores that carry one line of related products.
- storage warehouse
- A warehouse used to provide storage of goods for extended periods of time.
- supermarkets:
- Large retail stores that offer a variety of food and food-related items divided into specialized departments.
- syndicated selling
- Occurs when a website offers other websites a commission for referring customers.
- telemarketing:
- Use of the telephone to sell directly to consumers.
- trade discount
- A discount given to firms involved in a product's distribution.
- variable costs
- Those costs that change with the number of goods or services produced or sold.
- vertical marketing system (VMS):
- A system in which there is a high degree of coordination among all the units in the distribution channel so that a product moves efficiently from manufacturer to consumer.
- video marketing
- Selling to consumers by showing products on television that consumers can buy by telephone or mail.
- warehouse club (wholesale club)
- Huge, membership-only, combined retail-wholesale operations that sell brand-name merchandise.
- warehousing:
- That part of the distribution process concerned with storing goods.
- wholesalers:
- Intermediaries who sell products to other businesses, which in turn resell them to the end-users.