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

Everyday­low pricing is a pricing strategy that is consistent with a goal of achieving long­term profitability through volume.

Goal­Shotz Inc. is a sports goods store. Its regular prices are higher than those at discount stores, but it always has some products on sale that are outstanding bargains. Goal­Shotz uses:

When comparing the advantages of trucks as a mode of transportation, a key advantage of trucks is that they _____.

Some producers sell their products directly to consumers through a direct channel.

Costco's everyday­low pricing strategy continued to work well for the company even during the recession.

Alpine Shop is a store that specializes in selling equipment for camping and other outdoor activities. The store has many employees who love to camp, hike, hunt, and fish. These employees often go out of their way to provid honest and helpful advice to customers about the pros and cons of the products they sell. The efforts of these employees create _____ utility.

_____ connect buyers and sellers and facilitate transactions in exchange for commissions but do not take legal ownership of the goods they distribute.

Physical distribution strategy is primarily concerned with determining how the product will flow from producer to consumer.

Mary is considering to set up an online women's apparel website. If she is like most online retailers, Mary is likely to find that her top challenges in attracting customers away from store retailers will include:

What is the goal of a distribution strategy? Name and describe the key elements. Explain the difference between using a direct channel and using channel intermediaries.

Costs that fluctuate based on production levels achieved are called _____ costs.

Assume that a product is priced at $10.00. The variable cost per unit is currently $5.00, and fixed costs are $10,000. What is the breakeven point for the product?

Costco sells discounted fine wine, low­priced rotisserie chickens, fresh king crab legs, and high­end electronics. After years of healthy growth, Costco began to see sales soften on non­food items, suggesting that _____ may be most effective for less­upscale products.

Assume the price of your product is $10.00. The variable cost per unit is currently $5.00 and fixed costs are $15,000 per month. Assume that the company can invest in some equipment that will reduce variable costs to $3.00 each, but the cost of financing the new equipment will increase fixed costs to $17,500 per month. Compare the breakeven points for these two different options. Assuming the firm believes it can sell 2,800 units of its product at the $10.00 price, which is the better choice?

_____ aims to price a handful of items temporarily below cost to drive in­ store traffic.

Independent wholesalers are independent distributors who represent a number of different producers and distribute their goods to a range of customers.

Which of the following would most likely be classified as a variable cost in a breakeven analysis for a furniture manufacturer?

Costco's everyday­low pricing (EDLP) strategy to attract upscale audiences with an eclectic and higher­end upscale product mix aims to:

Firms that produce items for which customers are not willing to make special trips or travel long distances to buy, normally use an intensive distribution strategy.

Logistics focuses primarily on the tactics involved in moving products along the supply chain.