Exam 13: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Cash and carry wholesalers are full­service merchant wholesalers who specialize in selling to large retail chains.

Rolls Royce Motors is a company that represents the pinnacle of automotive excellence. Its cars deliver excellent quality and performance. The company prices its vehicles significantly higher than its competitors', as it believes that this communicates the quality and uniqueness of the vehicles. Which of the following pricing strategies is Rolls Royce using?

The goal of penetration pricing strategy is to:

Shadow, an art magazine, records salaries for reporters and photographers as recurring expenses no matter how many magazines are sold. They consider these expenses as fixed costs.

The two largest transportation modes in terms of volume of shipments are rail and truck.

Online retailing grew at a yearly rate of 25 percent in early 2000, but decreased to 1.6 percent in 2009. It bounced back to over 12 percent in 2011. Due to this, experts predict online retailing will continue to increase in double digits.

Companies that place their stores in as many locations as possible, are using a strategy called _____ distribution.

Variable costs are those expenses that change as the level of production changes.

_____ act as middlemen to help producers move their product more efficiently and effectively from factories to the consumers.

Multilevel marketing involves hiring independent contractors to sell products within personal networks of family and friends.

Despite good marks for customer service for Internet­only retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than Internet­only retailers.

One drawback of using distributors in a distribution channel is that the addition of these intermediaries increases the total number of transactions that must occur to get the good from the producer to the consumer.

_____ distribution is the actual movement of products along a channel of distribution.

Joanne works in the marketing department of a toy manufacturer. Her company plans to introduce a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar kinds of toys. The best strategy for achieving this goal would be:

Describe the four pricing strategies used to boost volume.

Walmart and Costco achieve long­term profitability through volume sales. They both use _____ pricing strategy.

Maqui wants to develop a free music download site that would be supported by ads. To get a better understanding of what hurdles need to be overcome before launching the site, Maqui would need to do a breakeven analysis.

Drop shippers are part of the distribution channel for bulky products such as timber and coal.