MAR2023 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
dual distribution
a manufacturer distributes a product through its own vertically integrated channel, while
competing with independent wholesalers or retailers that also sell its products
vertical integration
a producer uses either forward or backward integration to gain more control over the
channel
exclusive dealing
a producer tells an intermediary that it must sell only the producer's products
tying arrangements
a producer requires an intermediary to buy other goods to purchase products
fill-line forcing
kind of tying arrangement in which the producer requires an intermediary that wants to
carry one product to buy its entire line of products as well
refusal to deal
the producer refuses to deal with existing channel members to reduce competition
resale restrictions
a producer tries to stipulate where and to whom items may be resold
channel captain influences
,- economic influence
- expertise
- identification
- legitimate influence
breadth
number of departments (categories)
depth
number of brands it offers in each department
scrambled merchandising
offering several unrelated product lines in a single store
hypermarket
very large store (> 200,000 square feet) that offer consumers everything in a single
outlet, eliminating the need to shop at more than one location
intertype competition
competition between very dissimilar types of retail outlets
specialty outlets
limited-line or single-line stores that focus on just a small number of product lines (VS
PINK)
category killers
specialty discount stores that focus on selling one type of product at competitive prices
(Best BUy
discounters
, discount stores offer a broad, shallow selection of goods at a low price and with low
levels of service (Walmart and Target)
off-price retailers
positioning strategy of low-price leadership (TJ Maxx)
department stores
often called "anchor stores" offer a broad, average-to-deep selection of items at
moderate-to-high prices and they offer higher level of service than discount stores
(macys and Nordstrom)
specialty stores
offer a narrow, average-to-deep selection of items at higher prices, but with higher
levels of service. (GAP, foot locker, etc.)
power retailers (category killers)
offer a narrow, deep selection of items at low prices with variable levels of service
(Home Depot, Best Buy)
Macro factors
economic climate, demographic/psychographic profile, competition, business climate
economic climate
the attractiveness of locating a store in a particular area is affected by the economic
conditions in that area
Demographic/Psychographic profile
firms use census data to determine what the population in a given area is like, and they
use psychographics to determine the activities, interests, and opinions of the people
who live there
COMPLETE SOLUTIONS GRADED A++
dual distribution
a manufacturer distributes a product through its own vertically integrated channel, while
competing with independent wholesalers or retailers that also sell its products
vertical integration
a producer uses either forward or backward integration to gain more control over the
channel
exclusive dealing
a producer tells an intermediary that it must sell only the producer's products
tying arrangements
a producer requires an intermediary to buy other goods to purchase products
fill-line forcing
kind of tying arrangement in which the producer requires an intermediary that wants to
carry one product to buy its entire line of products as well
refusal to deal
the producer refuses to deal with existing channel members to reduce competition
resale restrictions
a producer tries to stipulate where and to whom items may be resold
channel captain influences
,- economic influence
- expertise
- identification
- legitimate influence
breadth
number of departments (categories)
depth
number of brands it offers in each department
scrambled merchandising
offering several unrelated product lines in a single store
hypermarket
very large store (> 200,000 square feet) that offer consumers everything in a single
outlet, eliminating the need to shop at more than one location
intertype competition
competition between very dissimilar types of retail outlets
specialty outlets
limited-line or single-line stores that focus on just a small number of product lines (VS
PINK)
category killers
specialty discount stores that focus on selling one type of product at competitive prices
(Best BUy
discounters
, discount stores offer a broad, shallow selection of goods at a low price and with low
levels of service (Walmart and Target)
off-price retailers
positioning strategy of low-price leadership (TJ Maxx)
department stores
often called "anchor stores" offer a broad, average-to-deep selection of items at
moderate-to-high prices and they offer higher level of service than discount stores
(macys and Nordstrom)
specialty stores
offer a narrow, average-to-deep selection of items at higher prices, but with higher
levels of service. (GAP, foot locker, etc.)
power retailers (category killers)
offer a narrow, deep selection of items at low prices with variable levels of service
(Home Depot, Best Buy)
Macro factors
economic climate, demographic/psychographic profile, competition, business climate
economic climate
the attractiveness of locating a store in a particular area is affected by the economic
conditions in that area
Demographic/Psychographic profile
firms use census data to determine what the population in a given area is like, and they
use psychographics to determine the activities, interests, and opinions of the people
who live there
