Use the Following Information to Answer Question That Refer to the Jewel

question 90

Multiple Choice

Use the following information to answer question that refer to the Jewel Craft case. Jewel Craft, Inc. is a leading producer in the United States' women's costume jewelry and accessories market. Its brands are well known and are sold by department stores and better women's stores. Several stores in a city may carry Jewel Craft's brands because most of Jewel Craft's customers will not consider any other brand.
Jewel Craft's sales force calls on one wholesaler in each state. Gemco, Inc., of Boston, Massachusetts, is the Jewel Craft distributor in that state. Gemco stocks and sells women's accessories (noncompeting lines) for several manufacturers like Jewel Craft. Wholesalers are allowed a 20 percent markup by Jewel Craft-but pay the freight charges to their warehouses. Jewel Craft's policy of using one wholesaler per state comes from its desire to control its distribution. Jewel Craft uses national magazine advertising and also supports a cooperative ad program with retailers.
Jewel Craft's prices allow for a 40 percent retail markup-an attractive percent when one considers that Jewel Craft's products require little in-store selling because of their well-established reputation.
Recently, Jewel Craft was approached by a watch producer with the idea of expanding to watches under the Jewel Craft name. It was argued that although national watch sales have leveled off, Jewel Craft could enjoy growing sales for several years because of the fine reputation the company has achieved. If watches are added, Jewel Craft will use its present policies regarding distribution, pricing, and advertising. Further, it will offer the wholesalers and retailers an attractive "package" deal as an incentive to carry Jewel Craft watches. Intermediaries will be required to carry the watches if they wish to handle the jewelry and accessories.
Jewel Craft's distribution policy-at the wholesale level-is:

• A) selective distribution.
• B) direct distribution.
• C) exclusive distribution.
• D) intensive distribution.
• E) for the wholesaler to be the channel captain.

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Definitions:

Communism

A political and economic ideology advocating for a classless society and the abolition of private property, where goods and services are shared by the community.

Industrial Working Class

Refers to employees who work in industrial sectors such as manufacturing, mining, and construction, often recognized for labor-intensive jobs.

European Industries

Sectors of economy involved in the manufacturing and production of goods in European countries, known for their innovation and competitiveness.

Anti-Communist Rhetoric

Speech or writing that opposes communism, often associated with the Cold War era when the US and its allies sought to contain the spread of communism.