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

Which of the following statements is true of cost-based pricing?

Which of the following statements best defines a channel of distribution?

In the context of a supply chain, which of the following statements is true of the different modes of transportation?

The _________ is a classic distribution theory which suggests that retail firms and retail categories become more upscale as they go through their life cycles.

Plateus Inc., a warehouse club, is considered a channel intermediary because it purchases chocolates from Chocodelight chocolatiers and sells it to customers.

Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?

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goods, First Bake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves.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

In the context of physical distribution, discuss the considerations that need to be taken into account while making key management decisions.

Joanne works in the marketing department of a toy manufacturing company. Her company offers discounts for soft toys but sells electronic toys at a price higher than that of its competitors. In this scenario, Joanne's company is adopting the strategy of:

Which of the following is a disadvantage of online retailing?

Drop shippers do not take legal title of the goods they help distribute; instead, they merely provide delivery services for other wholesalers.

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

Sending products by _________ is the least expensive option available to producers.

_____ means establishing only one retail outlet in a given area.

Pentogreen, a company that manufactures soda, offers its latest products at very low prices. Pentogreen's strategy is based on the assumption that more customers will be willing to buy its products if they're offered at lower prices. Pentogreen has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Pentogreen has implemented the _____ strategy.

In the context of nonstore retailers, vending machines are a key element of multilevel marketing.

Rancone Technologies, a laptop manufacturer, released a new laptop model that was priced at $800 to attract customers who could afford to pay a higher price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Rancone Technologies has used the _____ strategy.

Breakeven analysis is a relatively simple process that determines the number of units a firm must sell to cover all costs.

Infomercials and telemarketing are examples of direct response retailing.

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?