HST 210 Chapter Notes - Chapter 1: Break Bulk Cargo, Corporate Social Responsibility, Target Market
23 Apr 2016
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Retailers are offering entertaining and educational experiences to compete with nonstore retailers. 4 rights: right merchandise, right time, right quantity, right price. Distribution channel is the set of firms that facilitate the movement of products from production to retailer. Vertical integration: a firm performs more than one set of activities in the distribution channel. Backward integration: when a retailer performs some distribution and manufacturing activities. Forward integration: when a manufacturer undertakes retailing activities. Retailers provide assortments, break bulk, hold inventory, and provide service and services. Provide assortments: they function as destinations for a variety of products that, if housed separately, would be inconvenient to acquire (think about making a recipe if every company who owned an ingredient had a separate store) Break bulk: shipping is cheaper in bulk, and retailers break it down into individual samples (better for distributors and customers) Holding inventory: makes products available when consumers want them (reduces the consumer"s cost of storing products)
