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A business structure of interdependent organizations, reaching from the point of product origin to the consumer, is a:

Marketing Channel or Channel of Distribution

Marketing channels can achieve economies of scale through:

Specialization and division of labor

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following type discrepancies EXCEPT:


The Cedarburg Dairy purchases milk in 100,000-gallon truckloads from several dairy farms. The dairy packages the milk into pint, quart, half-gallon, and gallon containers and sells these containers by the case to grocery stores. The Cedarburg Dairy has aided the grocery stores by overcoming the discrepancy of:


If a retail outlet does not offer all the items necessary in order to use or to receive full satisfaction from a product that it sells, there is a:

Discrepancy of Assortment

A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to purchase it.


Chevrolet Corvettes are only manufactured in Bowling Green, Kentucky, yet potential customers are spread out all over the country. Local Chevrolet dealerships across the United States help to overcome a(n) _____ discrepancy.


Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:

Contact Efficiency

Roundy's is an organization that buys grocery products from manufacturers, stores these products in one of its three warehouses, and then ships them to grocery stores and convenience stores around the Southwest. Roundy's is an example of a(n):


A(n) ______ is an institution that buys goods from manufacturers, takes title to these goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers.

Merchant Wholesaler

Which of the intermediaries do not take title to merchandise?

Agents and Brokers

_____ includes managing the movement of raw materials and parts from their sources to production sites, managing the movement of materials, semi-finished, and finished products within and among plants, warehouses, and distribution centers, as well as the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers.


Market factors have _____ distribution. A form of distribution aimed at having a product available in every outlet.


Product factors have ______ distribution. A form of distribution achieved by screening dealers to eliminate all but a few in any single area.


Producer factors have ______ distribution. A form of distribution that established one or a few dealers within a given area.


Transactional Functions

Involve contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages and benefits.

Facilitating Functions

Includes research and financing the channel.

Heinz is a leading global food manufacturer. It manufactures and markets Farley's (baby food), Jack Daniel's sauces, and Weight Watcher's diet/slimming meals and supplements. The use of these brand names instead of the Heinz name is an
example of a(n) _____ branding strategy.


A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like it's home brewed. In which stage of the product life cycle is Gold Peak iced tea?


Joaquin didn't buy a netbook computer when they first came out, but he did purchase one a year after they were introduced to the market. He is very active in his church and local arts council, and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Joaquin is best described as a(n):

Early Adopter

Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even though he has an incision, he really has no way of knowing if the service was actually performed even after it was allegedly performed. That is because medical services such as this exhibit _____ qualities.


Starbucks management has been trying to refocus on the things that originally made the company so successful. For example, Starbucks stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure you can smell the fresh ground coffee aroma when you enter the store. However, when questioned, consumers tend to focus on the need for pricing incentives such as a frequent purchasing program. According to the _____, there may be a difference between what customers want and what Starbucks management thinks customers want.

Gap Model of Service Quality

James recently went to a new health clinic because he had a sore throat that wouldn't go away. He was not familiar with this clinic and was a bit surprised when the doctor came in and was wearing blue jeans, a flannel shirt, and tennis shoes. The doctor and nurse took proper care of James, but it seemed strange to him that the doctor was dressed that way. Which component of service quality does this illustrate?


A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of:


Emily's nephew is on the autism spectrum, and she has read stories on the Internet about how vaccines supposedly cause autism. Though Emily knows this theory has been debunked and that vaccines are safe, she is surprised that she feels a bit worried when she takes her own child into the pediatrician for her shots. Emily is glad her pediatrician does not think her fears are silly and will answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Emily most likely to rate her pediatrician?


_____ are stores that consumers purposely plan to visit. They are often built as free-standing stores.

Destination Stores

James wants to open a small store that caters to the model railroad hobbyist. The store would sell model trains, scenery, accessories, and books on the subject of model railroading. Which of the following types of stores would most likely support an effective launch of his business idea?

Specialty Store

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