QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Electronic Data Interchange (EDI) Systems. Answer: The
electronic interchange of business information using a standardized
format; a process which allows one company to send information to
another company electronically rather than with paper.
◉ Trading Partners. Answer: Business entities conducting business
electronically.
◉ Streamline. Answer: Make (an organization or system) more
efficient and effective by employing faster or simpler working
methods.
◉ Slotting Allowances / Slotting Fee. Answer: A fee charged to
produce companies or manufacturers by supermarket distributors
(retailers) in order to have their product placed on their shelves.
Known as Pay-to-Stay.
, ◉ Consumer Choice. Answer: The range of competing products and
services from which a consumer can choose.
◉ Tariff. Answer: A tax or duty to be paid on a particular class of
imports or exports. OR. Fix the price of (something) according to a
tariff.
◉ Horizontal Conflict. Answer: Refers to a disagreement among two
or more channel members at the same level. For example, suppose a
toy manufacturer has deals with two wholesalers, each contracted to
sell products to retailers in different regions. If one wholesaler
decides to branch its operations into the other wholesaler's region, a
conflict will result.
◉ Vertical Conflict. Answer: A disagreement between two channel
members on consecutive levels. For example, if the toy manufacturer
discovers its products are arriving at retail stores later than
scheduled, a conflict might develop between the manufacturer and
the wholesaler responsible for shipping to retailers.
◉ Chargeback. Answer: A demand by a credit-card provider for a
retailer to make good the loss on a fraudulent or disputed
transaction.