Exam 13: Pricing, Promoting, and Distributing Products

Mega Computer, a computer manufacturer, is using direct mail to send 10 percent off coupons to its list of potential customers. This strategy is called a ________ strategy. pull product position push place

All of the following are advantages of plane transportation except reduced shipping costs. speed. reduced inventory carrying costs. reduced handling costs. reduced costs in packing.

List the advantages of planes as a mode of transportation.

When Carbonite Inc. started its new online backup service, it charged "one flat low price no matter how much you need to back up your PC files." This is an example of price skimming.

Explain the three classifications of retailers.

If Louisa's Craft Supply Store uses odd-even psychological pricing, then it would likely price its yarn at $4.50 per ball. $4 per ball. $5 per ball. $4.95 per ball. $6 per ball.

What are the two general values to be gained from any promotional campaign?

What is the difference between fixed and dynamic pricing?

A ________ strategy is a promotional strategy designed to encourage wholesalers and retailers to market those products to the consumer. push position product pull place

Most large and successful companies do not have a department to manage their relations with the public since they already have a positive company image.

Which term describes a vertical marketing system (VMS) where all stages in the channel are under single ownership? Administered VMS Contractual VMS Consolidated VMS Proprietary VMS Corporate VMS

The owner of Fiama Electric overheard the manager of a competing firm discussing his new exclusive distribution strategy. You explain to him that this strategy entails distributing the product through as many warehouses and retailers as possible, thereby excluding no one. distributing through the use of a limited number of outlets for a product. only one trucking firm being given the exclusive transportation contract to deliver the products. a firm selecting only those wholesalers and retailers who will give exclusive attention to their product. the manufacturer granting the right to distribute and sell the product to only one wholesaler or retailer in an area.

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 is the point at issue between Frisell and Scofield? Whether malicious online activities continue to pose a major threat to computer users Whether most computer users are sufficiently conscious of the online threats that are present Whether identity theft or viruses are the bigger online threat Whether businesses are significantly affected by online fraud Whether consumers are significantly affected by online fraud

Which of the following intermediaries usually receive commissions based on the prices of the goods they sell? Produce markets Wholesalers Retailers Agents All of these

All things considered, trucks are the best method of transportation.

If total fixed costs are $200 000, the product is sold for $30, and the variable cost is $16, the breakeven point is 14 286 units.

What are the advantages and disadvantages of word-of-mouth advertising?

What information is provided to the manager by performing a break-even analysis? The break-even point identifies the total costs. The break-even point identifies the point where variable costs equal fixed costs. Sales volume above the break-even point makes a profit for the firm. The break-even point identifies the amount of markup. The break-even point identifies the intersection of the demand and supply curves.

Intermediaries are not necessary when people sell things on websites like eBay.

Two major objectives of pricing are maximization of profit and achieving market share.