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

_____ is the method used to determine the number of units a firm must sell at a specific price to cover all costs.

Distributors can create time and place utility due to the nature of the utilities' functions, but not information or service utility.

_____ offer goods to customers who are too small to merit a sales call from the distributor's representative.

Fixed costs are those costs companies incur regardless of the number of units sold.

Grocery stores and department stores often use high/low pricing.

Discuss the role of retailing in a distribution channel. Include a description of the two main categories of retailers, and explain how they differ from each other. Give two examples of key types of retailers for each major category. Do the two main categories have to be mutually exclusive? Explain your answer.

Amto prere ssuecnct,e scso.mpanies that prefer competition to collaboration experience

tchuastt ocommerpsl eims kennot wthne iars b foodrym s uhtaipliety. .This method of delivering value to your

Freshbake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Alabama. In addition to delivering the baked goods, Freshbake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves. Freshbake is an example of a:

Bob's Bakery sells gourmet cupcakes for $5.00. The variable cost per cupcake is currently $3.00 and fixed costs are $10,000. What is your breakeven point?

Online selling, direct response retailing, and vending machines are all examples of:

Walmart and Costco offer discounts to achieve long­term profitability through volume. These companies use everyday­low pricing to sustain their customer base.

Skimming pricing is an especially effective pricing technique in highly competitive markets with many firms offering similar products.

_____ pricing is the most popular method of fixed margin pricing.

_____ sell a complete selection of food and general merchandise at a steep discount in a single enormous location.

The advent of the National Do Not Call list has resulted in a serious decline in all forms of direct selling.

Though Newton Coal Supply actually takes possession of coal from local mining companies, it never stores a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton is a drop shipper.

Producers use channel intermediaries to move products more efficiently and effectively from factories to consumers.

Define EDLP (everyday­low pricing) and describe how Walmart and Costco apply the pricing strategy differently.

Merchant wholesalers are independent distributors who take legal possession, or title, of the goods distributed.