CRS: Exam 5 Study Guide with Complete Solutions

CRS: Exam 5 Study Guide with Complete Solutions sellers prefer to produce... - Answer️️ -large quantities of limited goods buyers prefer... - Answer️️ -smaller quantities of a wider variety of goods distribution deals with... - Answer️️ -realigning discrepancies between quants and selections breaking bulk - Answer️️ -making goods available in smaller batches distribution channel - Answer️️ -network of interdependent companies through which a product passes from producer to end user Distribution Channel Activities: - Answer️️ -- customer oriented: ordering, handling, shipping - product oriented: storage & display - marketing-centric: promotion - financial-oriented - logistics tension in channels can be created by... - Answer️️ -the contribution of each channel member • Do they provide more benefit than they cost? ©SOPHIABENNETT@ Saturday, August 24, 2024 8:52 AM 2 • Should we do this activity ourselves or have a channel member do it for us? suppliers - Answer️️ -upstream actors (supply chain management) wholesaler -- manufacturer channel member - Answer️️ -downstream actors that help a company reach consumers wholesaler-- retailer-- consumer determine distribution intensity - Answer️️ -how many intermediaries will be used? intensive distribution - Answer️️ -Intensive distribution usually goes with heavy promotion, lower prices and average or lower-quality products widely distributed - convenience goods ex: drugstores **pull strategy selective - Answer️️ -less widely distributed usually for complex/expensive products that require assistance - shopping goods - manufacturer has more control due to fewer relationships to manage ©SOPHIABENNETT@ Saturday, August 24, 2024 8:52 AM 3 ex: cars ** push strategy exclusive - Answer️️ -Exclusive distribution usually goes with exclusive promotional efforts, higher prices, and higher quality products extreme case of selectivity - specialty goods **manufactures have most control (may become monopolistic) conflict can arise when channel partners... - Answer️️ -differ in their opinions conflict may motivate parties... - Answer️️ -to find alternative solutions power is defined by - Answer️️ -size & effectiveness Types of Power - Answer️️ -legitimate, reward, coercive, information, referent CRILR coercive power - Answer️️ -The ability to take away benefits or inflict punishment on another party information power - Answer️️ -having info other party seeks ©SOPHIABENNETT@ Saturday, August 24, 2024 8:52 AM 4 legitimate power - Answer️️ -using size or expertise to encourage other party referent power - Answer️️ -one party seeks an affiliation with other reward power - Answer️️ -power that comes from the ability to provide rewards or favors how to deal with conflict... - Answer️️ -- effective communication - ensure parties are being heard/ understood - remind members of mutual goal: CUSTOMER SATISFACTION if conflict cannot be resolved there are 2 possible action... - Answer️️ -- mediation - arbitration Mediation - Answer️️ -negotiation to resolve differences conducted by some impartial party Arbitration - Answer️️ -the 3rd makes a binding decision for the two Transactional cost analysis (TCA) - Answer️️ -a model that considers channel members production costs and governance costs (both