Question 1

Why has channel 3 (wholesale distribution) gained in popularity?

Accepted Answer

The increased cost of retail s

Question 2

What is the difference between fixed costs and variable costs?

Accepted Answer

Fixed costs remain constant with varying

Question 3

The combination of distribution channels that a firm selects to get a product to its end users is its

Accepted Answer

A)  distribution mix. 
B)  distribution strategy. 
C)  distribution network. 
D)  channel selection. 
E)  channel intermediaries. 
A)  distribution mix. 
B)  distribution strategy. 
C)  distribution network. 
D)  channel selection. 
E)  channel intermediaries.

Question 4

Frisell says: The most important online threat facing us today is identity theft. Consumers have to rely on online shopping today more than ever, and they are exposed to all kinds of dangers by people gaining access to credit cards, bank information, and Social Security numbers. Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield responds: Consumers have suffered from online theft, but the most far-reaching danger to people today from the Internet is viruses and malware. These have the capacity to take down entire networks, affecting both businesses and consumers. It's not clear that anti-virus measures will ever be able to keep up with all of the threats that are out there.
Scofield's claim assumes which of the following?

Accepted Answer

A)  Viruses can be spread through various parts of a network. 
B)  Current anti-virus measures are adequate to deal with current threats. 
C)  Consumers are sufficiently aware of the importance of keeping their systems virus-free. 
D)  Businesses are sufficiently aware of the importance of keeping their systems virus-free. 
E)  Identity thieves do not use malware to steal consumers' identities. 
A)  Viruses can be spread through various parts of a network. 
B)  Current anti-virus measures are adequate to deal with current threats. 
C)  Consumers are sufficiently aware of the importance of keeping their systems virus-free. 
D)  Businesses are sufficiently aware of the importance of keeping their systems virus-free. 
E)  Identity thieves do not use malware to steal consumers' identities.

Question 5

A retail seller of music would like to hit the break-even point as late as possible so profits will be maximized.

Accepted Answer

A) True 
 B)False

Question 6

What is price lining?

Accepted Answer

Price lining is sett

Question 7

A negative review of a new high-tech speaker system has been published in an influential magazine. How can the company that makes the speaker counter this negativity?

Accepted Answer

Marketers usually have little control ov

Question 8

Riverdale Inc. is a multiplatform retailer that does business primarily through direct mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism. Which of the following, if true, would most weaken the argument for using email for direct mail marketing?

Accepted Answer

A)  Growth in the use of email for direct marketing is uncertain. 
B)  Studies show that a large percentage of such emails go directly to customers' spam folders. 
C)  Riverdale has traditionally used catalogues for its direct marketing efforts. 
D)  Not everyone who has used this medium for direct marketing has been successful. 
E)  Only interested customers will go through such messages in great detail. 
A)  Growth in the use of email for direct marketing is uncertain. 
B)  Studies show that a large percentage of such emails go directly to customers' spam folders. 
C)  Riverdale has traditionally used catalogues for its direct marketing efforts. 
D)  Not everyone who has used this medium for direct marketing has been successful. 
E)  Only interested customers will go through such messages in great detail.

Question 9

Pricing new products is usually a choice between skimming and penetration.

Accepted Answer

A) True 
 B)False

Question 10

When Vancouver-based Uniglobe Travel International books flight reservations, it is an illustration of which channel of distribution?

Accepted Answer

A)  Direct distribution 
B)  Retail distribution 
C)  Wholesale distribution 
D)  Distribution by agents/brokers 
E)  None of these 
A)  Direct distribution 
B)  Retail distribution 
C)  Wholesale distribution 
D)  Distribution by agents/brokers 
E)  None of these

Question 11

List one advantage and one disadvantage of using trucks for transportation.

Accepted Answer

The advantages of trucks inclu

Question 12

Which of the following represents a reason for a firm's use of personal selling promotions?

Accepted Answer

A)  It is the only form of selling that works. 
B)  It provides a personal link between the seller and the buyer. 
C)  The salesforce has the capability of contacting the greatest number of potential customers. 
D)  Personal selling provides the lowest promotional costs per contact. 
E)  Sales promotions must be convenient and accessible when the purchase decision is made. 
A)  It is the only form of selling that works. 
B)  It provides a personal link between the seller and the buyer. 
C)  The salesforce has the capability of contacting the greatest number of potential customers. 
D)  Personal selling provides the lowest promotional costs per contact. 
E)  Sales promotions must be convenient and accessible when the purchase decision is made.

Question 13

The key factor for selecting the appropriate transportation method is cost.

Accepted Answer

A) True 
 B)False

Question 14

Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. They have been assigned to work on a product team for the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The team is reviewing the pricing strategy used to this point. Bill insists that they should price the speakers to maximize profits. He explains, "It is basic economics: companies price their products to maximize profits. There's no question, this is the strategy that we should use." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is right. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the new speakers should be priced higher than the Superior V, while others are arguing for a lower price. In the past, the price for the Superior V has been slightly higher than similar products offered by competitors. Why would a company use this strategy?

Accepted Answer

Firms generally set prices above the mar

Question 15

Edna's Bakery produces large cakes for commercial events and weddings. Edna's Bakery is a(n)

Accepted Answer

A)  convenience store. 
B)  one-product store. 
C)  specialty store. 
D)  off-price store. 
E)  variety store. 
A)  convenience store. 
B)  one-product store. 
C)  specialty store. 
D)  off-price store. 
E)  variety store.

Question 16

Dove is introducing a new deodorant. In order to entice customers to purchase the deodorant, a free bar of soap is attached to the package. Which type of sales promotion is Dove using?

Accepted Answer

A)  Point-of-sale display 
B)  Premium 
C)  Contest 
D)  Trade show 
E)  Coupons 
A)  Point-of-sale display 
B)  Premium 
C)  Contest 
D)  Trade show 
E)  Coupons

Question 17

A music storeowner would begin to price DVDs by taking into consideration all of the following costs except

Accepted Answer

A)  market share objectives. 
B)  utilities and insurance. 
C)  store rent and staff salaries. 
D)  product displays. 
E)  cost of buying DVDs from the manufacturer. 
A)  market share objectives. 
B)  utilities and insurance. 
C)  store rent and staff salaries. 
D)  product displays. 
E)  cost of buying DVDs from the manufacturer.

Question 18

What is meant by the term "product placement?"

Accepted Answer

A)  Making sure that products are prominently visible on store shelves 
B)  Using brand-name products as part of the storyline of TV shows 
C)  Choosing the channel of distribution with the lowest overall cost 
D)  Placing free sample of products in consumers' mailboxes so they can actually try the product 
E)  Providing free product samples to influential consumers 
A)  Making sure that products are prominently visible on store shelves 
B)  Using brand-name products as part of the storyline of TV shows 
C)  Choosing the channel of distribution with the lowest overall cost 
D)  Placing free sample of products in consumers' mailboxes so they can actually try the product 
E)  Providing free product samples to influential consumers

Question 19

Riverdale Inc. is a multiplatform retailer that does business primarily through direct mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism. One manager argues that Riverdale's corporate image will suffer if customers receive too many emails about its different services and offerings. Which of the following, if true, is the most effective counterargument?

Accepted Answer

A)  Customers can report the emails as spam and ensure that they do not receive these service mails in their inboxes in the future. 
B)  Research shows that customers who opt to receive marketing emails rarely complain, even if they are not happy about them. 
C)  This is a problem that affects all email marketers, not Riverdale alone. 
D)  Customers can use a ready menu of email selections to opt in and receive only the marketing product information they are interested in. 
E)  The cost of email marketing is lower than public service advertising. 
A)  Customers can report the emails as spam and ensure that they do not receive these service mails in their inboxes in the future. 
B)  Research shows that customers who opt to receive marketing emails rarely complain, even if they are not happy about them. 
C)  This is a problem that affects all email marketers, not Riverdale alone. 
D)  Customers can use a ready menu of email selections to opt in and receive only the marketing product information they are interested in. 
E)  The cost of email marketing is lower than public service advertising.

Question 20

What is an advantage to the firm when using trade shows as a type of sales promotion?

Accepted Answer

A)  They are effective since the buyer comes to the seller. 
B)  Coupons may be used to encourage customers to try new products. 
C)  The displays serve to attract customer attention as they walk through a store. 
D)  Free samples may be used to allow customers to try a product for a few days without any risk. 
E)  Contests may increase sales by stimulating buyers' interest in a product. 
A)  They are effective since the buyer comes to the seller. 
B)  Coupons may be used to encourage customers to try new products. 
C)  The displays serve to attract customer attention as they walk through a store. 
D)  Free samples may be used to allow customers to try a product for a few days without any risk. 
E)  Contests may increase sales by stimulating buyers' interest in a product.

Why has channel 3 (wholesale distribution) gained in popularity?

What is the difference between fixed costs and variable costs?

The combination of distribution channels that a firm selects to get a product to its end users is its

A retail seller of music would like to hit the break-even point as late as possible so profits will be maximized.

What is price lining?

A negative review of a new high-tech speaker system has been published in an influential magazine. How can the company that makes the speaker counter this negativity?

Pricing new products is usually a choice between skimming and penetration.

When Vancouver-based Uniglobe Travel International books flight reservations, it is an illustration of which channel of distribution?

List one advantage and one disadvantage of using trucks for transportation.

Which of the following represents a reason for a firm's use of personal selling promotions?

The key factor for selecting the appropriate transportation method is cost.

Edna's Bakery produces large cakes for commercial events and weddings. Edna's Bakery is a(n)

Dove is introducing a new deodorant. In order to entice customers to purchase the deodorant, a free bar of soap is attached to the package. Which type of sales promotion is Dove using?

A music storeowner would begin to price DVDs by taking into consideration all of the following costs except

What is meant by the term "product placement?"

What is an advantage to the firm when using trade shows as a type of sales promotion?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 13: Pricing, Promotion, and Distributing Products

Why has channel 3 (wholesale distribution) gained in popularity?

What is the difference between fixed costs and variable costs?

The combination of distribution channels that a firm selects to get a product to its end users is its

A retail seller of music would like to hit the break-even point as late as possible so profits will be maximized.

What is price lining?

A negative review of a new high-tech speaker system has been published in an influential magazine. How can the company that makes the speaker counter this negativity?

Pricing new products is usually a choice between skimming and penetration.

When Vancouver-based Uniglobe Travel International books flight reservations, it is an illustration of which channel of distribution?

List one advantage and one disadvantage of using trucks for transportation.

Which of the following represents a reason for a firm's use of personal selling promotions?

The key factor for selecting the appropriate transportation method is cost.

Edna's Bakery produces large cakes for commercial events and weddings. Edna's Bakery is a(n)

Dove is introducing a new deodorant. In order to entice customers to purchase the deodorant, a free bar of soap is attached to the package. Which type of sales promotion is Dove using?

A music storeowner would begin to price DVDs by taking into consideration all of the following costs except

What is meant by the term "product placement?"

What is an advantage to the firm when using trade shows as a type of sales promotion?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Money and Banking

Finacial Decisions and Risk Management

Filters