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MGT- Chapter 17


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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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
That part of the distribution process concerned with storing goods.
Intermediaries who sell products to other businesses, which in turn resell them to the end-users.

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