Distribution Levels Rolex watches: Rolex deploys an exclusive distribution strategy. Its high pricing is part of its appeal, given that wearing a Rolex signifies one's economic status. Rolexes can be bought at high-end jewelers, department stores, and select shopping areas which high-income consumers are likely to patronize. Coach purses: Coach similarly has an exclusive distribution strategy. They are expensive items of clothing, usually sold at select Coach retailers. These stores are often

For instance, in the movies James Bond wears a Rolex (Rolex, December 14, 2007); but so in real life did Pope John Paul II (Watchuseek Rolex Forum, November 16, 2006). As Liebskind (Fall/Winter 2004) also explains, a key factor in Rolex's sustained success in high-end watch manufacturing is that it has always eschewed trends or fads in watch making in favor of careful but innovative craftsmanship and top quality (What

This will present a substantial cost savings to the company and increase efficiency in bringing products to market. Because of the efficiency and the large expected availability of cargo space on the flights to Indianapolis, there are no expected bottlenecks or delays in this distribution chain. Regular and rapid responses to inventory demands and retail sales will be available, and short-notice shipping as well as standard long-term contracts with regular

Swatch and the Global Watch Industry Until the 1970s, Switzerland was the global leader in the watch industry. However, as technology advanced, digital watches were introduced and quickly began replacing the quality analog pieces that had been made for centuries, by the craftsmen of Switzerland. Digital watches were cheaper to manufacture. They also had the added value of mass production, which the handcrafted Swiss pieces simply could not produce. For the

Because the Sephora flagship store is located in New York, customers often expect to come in and out quickly, and if the product is not there, they may not patronize the store again, because of the availability of other retailers only a few stores away. This is why keeping detailed information about its inventory is essential. Inventory strategists closely monitor the numbers flow of various products throughout the store.

Consumption and Mass Media What is conspicuous consumption? How does conspicuous consumption influence purchasing decisions? Think about a high-priced item (Rolex) that you would like to buy. To what extent could conspicuous consumption affect your decision? Conspicuous consumption is consumption for the sake of impressing observers. Most consumers buy Rolex watches not because of Rolex's quality, but because the brand signifies that the purchaser is wealthy enough to afford a Rolex. Although