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

Retailers buy products from producers and sell them to businesses, while wholesalers sell products directly to final consumers.

_____ involves determining how a product will flow through the distribution channel from producer to consumer.

When Peter's Pickles rolled out its new line of exotic pickles, the managers sat down to do a breakeven analysis. They quickly realized that they need to make a change if the new line was to be profitable in the first year. What did they talk about?

Costco, a warehouse club, is considered a channel intermediary because it buys chocolate from Hershey's and sells it to customers.

Which of the following statements about channel intermediaries is true?

The Creamy Cow is a brand of gourmet ice cream. The company uses _____ to sell its products by using different venues, including grocery stores, online stores, and mail order.

_____ is the difference between the price of an item and the cost of making the item on a per­product basis, and it is usually expressed as a percent.

Best Buy, PetSmart, and Staples offer a huge variety of one type of product. These companies are examples of outlet stores.

Examples of the services provided by full­service merchant wholesalers include extension of credit, promotional assistance, product repairs, and warehousing.

Credit Stock Inc. provides check cashing services and short­term loans to customers. The company provides _____ utility making it easier for customers to possess goods and services.

Ben Arrington is an agent. This means that he assumes a significant risk of loss because he takes legal title to the products he helps distribute.

Outline the pros and cons of using an odd pricing strategy.

The specific categories of limited­service wholesalers include drop shippers, cash and carry wholesalers, and truck jobbers.

Which of the following is a disadvantage of online retailing?

The prices quoted on the menu of an upscale restaurant all end in zeros. Using this approach, the restaurant can signal to its customers that the food it serves is a real bargain.

Cost­based pricing is a popular method of fixed margin pricing.

The goal of the distribution strategy is to:

The breakeven analysis formula requires knowledge of fixed costs and variable costs.

Rolex watches, Mont Blanc pens, and Bentley cars use prestige pricing to reinforce their image of high quality and exclusivity.

Mstraanteyg my.edium­priced and high­priced products use a selective distribution