Exam 13: Pricing, Promoting, and Distributing Products

Identify three services provided by full-service merchant wholesalers.

The Limited is part of a(n) ____________, while IGA is part of a(n) ____________. corporate vertical marketing system; contractual vertical marketing system intensive distribution system; exclusive distribution system administrative vertical marketing system; corporate vertical marketing system exclusive distribution system; selective distribution system contractual vertical marketing system; corporate vertical marketing system

Promotion seeks to accomplish all of the following with potential customers except persuade them to purchase products. persuade them to dislike all other competitors' products. make them aware of products. make them knowledgeable about products. persuade them to like products.

List and briefly describe each of the five possible types of channel members.

Generally speaking, the most effective sales promotion tool is free samples.

A company which sets prices above the market rate plays on the consumer's belief that higher prices mean higher quality products.

Which of the following is correct with regard to breakeven analysis? Variable costs are really all that is important. Fixed costs are all that really is important. Some costs are unaffected by the number of units of product that are sold. Generally speaking, retailers should charge higher prices so that they will reach the breakeven point earlier. Breakeven analysis fails to take into account the slope of the demand curve.

What is the appeal of merchandise in a factory outlet? The outlet stores keep prices low by locating in a low rent area and operating on a cash only basis. The outlet is organized into different departments such as children's clothing, bedding, drapes, and men's clothing. The merchandise consists of many brand-name clothing, groceries, and appliances. Prices are lower because the outlet is owned by the manufacturer and bypasses intermediaries. Prices are lower because the outlet owners purchase the overstocked merchandise from manufacturers or large chains at a reduced price.

The two major aspects of physical distribution are warehousing and transportation.

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. Extensive analysis reveals that if Personal Devices offered Indian customers products at a number of different price points, the company would initially earn more profits but damage the brand in the long term. Which of the following, if true, would support the argument that Personal Devices should offer products at multiple price points? One of the core values of Personal Devices is to offer only the most advanced technology. Major stockholders of Personal Devices are primarily motivated by short-term profits. Competitors have adapted their products considerably for the Indian market. Indian customers are increasingly becoming selective about the brands they purchase. The huge Indian middle class is rapidly reaching a level where they can afford premium products.

Avon, Dell, and Tupperware use the __________ channel of distribution. direct distribution retail distribution wholesale distribution distribution by agents distribution by brokers

Searchmont Ski Resort was finding that spring was a particularly slow time for chalet rentals. In order to increase the occupancy rate, Searchmont implemented a(n) advertising campaign. seasonal discount. skimming pricing strategy. penetration pricing strategy. trade credit policy.

Due to an excellent transportation network in Canada, transportation costs are a minor factor when determining the method to be used to move goods from one location to another.

Pricing new products is usually a choice between skimming and penetration.

Internet advertising is more advantageous for buyers than for sellers.

Coupons, point-of-purchase displays, free samples, and trade shows are examples of advertising. sales promotions. publicity. personal selling. pricing.

All things considered, the direct distribution channel is usually the best one.

The most expensive promotional tool on a cost per contact basis is personal selling. direct mail. television. radio. magazines.

Eliminating intermediaries means that prices to consumers decline because the tasks performed by the intermediaries no longer need to be performed.

How are price lining and psychological pricing used to determine prices of products?