Exam 13: Pricing, Promoting, and Distributing Products

Water carriers are the cheapest and slowest method of transportation and are used primarily for large quantities of bulky material.

Why is Wal-Mart an example of retail distribution? Because it is so important on the Canadian retail scene Because it buys products directly from manufacturers Because it employs more retail employees than any other firm Because it uses sales agents only for its sporting goods department Because many industrial buyers shop there

Compare the six basic forms of transportation and identify the types of products that each carries.

What is the fundamental difference between retailers and wholesalers?

Frisell says: The most important online threat facing us today is identity theft. Consumers have to rely on online shopping today more than ever, and they are exposed to all kinds of dangers by people gaining access to credit cards, bank information, and Social Security numbers. Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield responds: Consumers have suffered from online theft, but the most far-reaching danger to people today from the internet is viruses and malware. These have the capacity to take down entire networks, affecting both businesses and consumers. It's not clear that anti-virus measures will ever be able to keep up with all of the threats that are out there. Which of the following statements would Scofield most likely agree with? Anti-virus software ought to be continually improved. There are not enough networks to support current web traffic. Most computer users use anti-virus software of some form or another. Consumers should not be particularly worried about identity theft. Malware mostly comes in the form of Trojan horses.

A silverware company would be smart to advertise in bridal magazines.

All of the following are advantages of advertising for internet sellers except relationship building. reduced expenses. feedback. flexibility. convenience.

Price lining is the practice of pricing goods slightly under a whole dollar amount .

Personal Devices Inc. is a manufacturer of premium cell phones. Most of the company's handsets are equipped with high-end features such as large internal memory, sophisticated texting, camera and music functionalities, and data transfer capabilities. The company is planning to enter the Indian market. One of the senior managers argues that a stripped-down, low-priced model without any extras could be the starting point. The company can sell additional features added to the base model at higher price points. Which of the following, if true, would most strengthen the senior manager's argument? Research suggests that consumers are looking for more variety in this product category. The majority of India's consumer market is located at the bottom of the pyramid. Few competitors in the market offer basic cell phones because of increasing customer sophistication. The company will face charges of dumping if it sells the phones at a price lower than what it offers in the home country. Different companies already cater to the requirements of different market segments in India.

"Sears Good," "Sears Better," and "Sears Best" are examples of market pricing. price fixing. psychological pricing. price lining. price discounting.

Cost-oriented pricing of products takes into account the supply and demand for the product at various prices.

What is the formula for computing the break-even point?

List the three degrees of market coverage.

When McDonald's announces that there are 168 Ronald McDonald houses in 12 countries, this announcement fits best in the category of publicity. creative selling. personal selling. public relations. missionary selling.

A gas station offering a free car wash with a fill-up is an example of sales promotion. advertising. publicity. premiums. public relations.

Jim Bradley represents several producers and is paid a commission based on invoice values. Which of the following types of intermediaries is Jim? Wholesaler Sales office Sales branch Agent/broker Rack jobber

Brian works at the local grocery store. His supervisor asked him to use point-of-sale displays. Brian needs to set up a product display so it is located in an area to encourage consumers to buy the products. set up a display where consumers can pick out one item free when they purchase a specified product. pass out coupons to customers purchasing the targeted products as they are checking out. set up a table and give out free samples. interview customers as they are considering a purchase of the targeted products.

The use of the telephone to sell directly to consumers is called telemarketing. mail marketing. mail order. direct selling. electronic retailing.

How do wholesalers differ from agents/brokers? Explain the operation of each.

ValueNet Corporation sells electronic learning devices, consumer electronics products, and collectibles directly to consumers using a team of telemarketers. The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded ValueNet's phone system with return calls and messages. Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television (infomercials). Which of the following, if true, would weaken the argument for shifting to direct-response television marketing? Most customers perceive infomercial sales tactics to be loud, aggressive, and questionable. Some companies have found it difficult to adopt a direct-response television strategy. Consumer behavior is highly dependent on the state of the economy. New forms of direct marketing channels such as podcasting and iTV are experiencing exciting growth. ValueNet's products could successfully be sold using multiple direct marketing methods.