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

The supply chain begins with the _____ and ends with the final consumer.

Describe and compare the roles of retailers and wholesalers in a distribution channel.

Logistics does not impact a company's ability to provide products and services to its customers.

Which of the following statements about cost­based pricing is most accurate?

_____ pricing aims to increase traffic in retail stores using special sales on a limited number of products and higher everyday prices on others.

Category killers dominate their category by offering a huge variety of one type of product.

_____ involves hiring independent contractors to sell products within personal networks and recruit salespeople in return for a percentage of commissions.

By transforming flour, sugar, and chocolate chips into cookies, Nabisco is adding value by providing _____ utility.

Angelica sells a line of designer handbags. She is planning to open a series of shops to sell her products. Each shop will be in a different area of the state. This type of distribution is known as exclusive distribution.

Logistics refers to the logical criteria used in the selection of the best mix of retail strategies for marketing a good to its final consumers.

McDonald's placement of stores in Walmart, gas stations, and hospitals is an example of exclusive distribution.

Define and describe the terms supply chain, supply chain management, and logistics as they relate to marketing.

TunZ, a local music and video retailer, spends $250 a month on advertising and inventory management. The business buys videos at a cost of $6.00 per unit and then sells each unit for $16.00. Assuming no other costs, TunZ would have to sell _____ in order to break even in any one month.

Physical distribution occurs as products actually travel along the distribution pathway.

The wheel of retailing helps explain the evolution of firms that enter a market on a shoestring budget and gain customers by offering lower prices. It suggests that once a customer base is established, the retailer begins offering higher­end products, more upscale facilities, and better service.

Smitty's Smoothies has fixed costs of $1,600 per month. The only variable costs Smitty incurs are for the ingredients and labor needed to produce smoothies. These costs are $1.50 per drink. Smitty' Smoothies sells its delicious concoctions for $3.50 each. Which of the following statements is correct?

_____ aims to use price to send consumers a message about the high quality and exclusivity of a product.

Distributors reduce the costs associated with moving goods from producers to consumers.

Valcon Inc., an automobile distributor, established an independent operation that offered the service of warehousing vehicles as well as delivering them but subcontracted the financing to another existing company. Valcon take legal ownership of the vehicles they distribute. In this scenario, Valcon Inc. is operating as a _____.

Sales above the breakeven point will lead to a loss.