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

A 20­ounce bottle of Coca­Cola and a 20­ounce bottle of Pepsi are the same price in your local convenience store and, therefore, you are forced to make a choice based on other factors, such as taste or brand preference. This pricing tactic is an example of matching the competition.

Which of the following statements is true of loss­leader pricing?

Starbucks converting coffee beans into iced coffees and espressos is known as service utility.

Your local video store charges $39.99 instead of $40.00 for a video game. This store is using a strategy known as penny­less pricing.

_____ utility provides customer satisfaction by converting inputs into finished products.

_lo_c_a_t_io snesl lw ai tshm laolnl gr ahnoguer so fa nedv eqruyidcaky c ahnedc kimouptu. lse products at easy­to­access

Describe the difference between penetration pricing and skimming pricing. Give an example of each to illustrate your answer.

Although prices for most goods at Treatz­a local grocery store, are higher than prices of goods at discount stores, it generally has some sel cted products on sale at very attractive prices. Treatz apparently has decided to use a _____ strategy.

The goal of _____ is to make it convenient for consumers to find and purchase products at many locations and in many ways.

Consumer perception of quality can be driven by price.

When Apple introduced the iPod, the company used _____ with the purpose of maximizing profitability by offering new products at a premium price.

Carter is the CEO of Bryne Gas Partners, a company that facilitates shipments of coal from the mines to the end user. The company takes legal title of the merchandise, but never physically processes it. Bryne Gas Partners is an example of a:

_____ is a subset of supply chain management that focuses on tactics rather than on strategy.

The DeBeers diamond cartel is especially adept at managing its supply chain to the point, where it not only controls its own interests with aplomb, but also enjoys a certain amount of leverage in the area of price control by carefully limiting the availability of jewelry­grade diamonds in the market. Which of the following does the cartel most likely focus on in order to get this kind of result?

Cost, speed, and dependability need to be considered when deciding upon modes of transportation.

Odd pricing refers to the practice of:

Convenience stores offer a wide variety of merchandise and superior service at multiple locations.

Profits may be increased either by increasing prices or by decreasing costs.

Providing credit, cashing checks, and delivering products are all examples of how distributors provide ownership utility.

_____ involves planning and coordinating the flow of goods from the raw materials to the final consumers.