Management and Organizational Studies 2320A/B Chapter Notes - Chapter 13: Payless Shoesource, Internet Channel, Warehouse Club

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Channel structure: level of difficulty a manufacturer has in getting retailers to purchase products is determined by. Degree to which the channel is vertically integrated. Degree to which the manufacturer has a strong brand or is otherwise desirable in the market. Relative power of the manufacturer and retailer. Channel member characteristics: the larger and more sophisticated the channel member, the less likely it will use supply chain intermediaries. General merchandise retailers: discount stores, specialty stores, category specialists, department stores, drugstores, off-price retailers, or extreme-value retailers; may sell through multiple channels, such as the internet and catalogues. Discount store: offers broad variety of merchandise, limited service, and low prices, ex. Specialty stores: concentrate on a limited number of complementary merchandise categories in a relatively small store, tailor their retail strategy toward very specific market segments by offering deep but narrow assortment and sales associate expertise, ex. Category specialists: offers a narrow variety but a deep assortment of merchandise, ex.

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