Question 1

Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?

Accepted Answer

A)  discount houses 
B)  catalog showrooms 
C)  second-hand stores 
D)  factory outlets 
E)  direct-response bargain marketing 
A)  discount houses 
B)  catalog showrooms 
C)  second-hand stores 
D)  factory outlets 
E)  direct-response bargain marketing

Question 2

How might Superior benefit from using e-catalogs?

Accepted Answer

E-catalogs use the Internet to display p

Question 3

In which of the following retail outlets is there a most direct communication line between producer and consumer?

Accepted Answer

A)  e-retailing 
B)  specialty store retailing 
C)  catalog showroom retailing 
D)  mail-order retailing 
E)  brokered retailing 
A)  e-retailing 
B)  specialty store retailing 
C)  catalog showroom retailing 
D)  mail-order retailing 
E)  brokered retailing

Question 4

Which of the following strategies is involved with price skimming?

Accepted Answer

A)  setting an initial low price to establish a new product in the market 
B)  setting an initial low price to cover new product costs and still generate a profit 
C)  setting a limited number of prices for certain categories or products 
D)  setting an initial high price to establish a new product in the market 
E)  setting an initial high price to cover new product costs and still generate a profit 
A)  setting an initial low price to establish a new product in the market 
B)  setting an initial low price to cover new product costs and still generate a profit 
C)  setting a limited number of prices for certain categories or products 
D)  setting an initial high price to establish a new product in the market 
E)  setting an initial high price to cover new product costs and still generate a profit

Question 5

The only goal of determining prices is to maximize profit for the firm.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is crucial for high-priced consumer products such as homes and cars?

Accepted Answer

A)  creative selling 
B)  interactive marketing 
C)  missionary selling 
D)  order processing 
E)  trade shows 
A)  creative selling 
B)  interactive marketing 
C)  missionary selling 
D)  order processing 
E)  trade shows

Question 7

Which of the following best describes the purpose of point-of-sale displays?

Accepted Answer

A)  to inform customers about the benefits of the products 
B)  to entice customers to buy additional products 
C)  to make it easier for customers to find products 
D)  to promote the reputation of the company offering certain products 
E)  to target specific messages about the product to customers 
A)  to inform customers about the benefits of the products 
B)  to entice customers to buy additional products 
C)  to make it easier for customers to find products 
D)  to promote the reputation of the company offering certain products 
E)  to target specific messages about the product to customers

Question 8

Which of the following costs refers specifically to those that change with the quantity of a product sold or produced?

Accepted Answer

A)  annual costs 
B)  variable costs 
C)  fixed costs 
D)  marginal costs 
E)  market-adjusted costs 
A)  annual costs 
B)  variable costs 
C)  fixed costs 
D)  marginal costs 
E)  market-adjusted costs

Question 9

Variable costs of a product are those costs that change due to the conditions of the market.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following best describes department stores?

Accepted Answer

A)  A department store is a large product line retailer organized into smaller, convenience-focused components. 
B)  A department store is a large product line retailer organized into smaller, bargain-focused components. 
C)  A department store is a large product line retailer organized into smaller, producer-focused components. 
D)  A department store is a large product line retailer organized into smaller, product-focused components. 
E)  A department store is a large product line retailer organized into smaller specialty stores. 
A)  A department store is a large product line retailer organized into smaller, convenience-focused components. 
B)  A department store is a large product line retailer organized into smaller, bargain-focused components. 
C)  A department store is a large product line retailer organized into smaller, producer-focused components. 
D)  A department store is a large product line retailer organized into smaller, product-focused components. 
E)  A department store is a large product line retailer organized into smaller specialty stores.

Question 11

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Accepted Answer

A) True 
 B)False

Question 12

Sales promotions are short-term promotional activities designed to stimulate consumer buying or cooperation from distributors, sales agents, or other members of the trade.

Accepted Answer

A) True 
 B)False

Question 13

Products priced above the market play on the common assumption that a higher price means higher quality.

Accepted Answer

A) True 
 B)False

Question 14

Shopping agents allow consumers to purchase products directly from their site.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following describes the function of search engines that act as collections of business Web sites representing diverse products?

Accepted Answer

A)  Internet service providers 
B)  electronic storefronts 
C)  cybermalls 
D)  e-catalogs 
E)  interactive retailing 
A)  Internet service providers 
B)  electronic storefronts 
C)  cybermalls 
D)  e-catalogs 
E)  interactive retailing

Question 16

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

Accepted Answer

Department stores provide a variety of p

Question 17

A well-established Internet provider is facing stiff competition from several new companies. Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?

Accepted Answer

A)  order processing 
B)  sales promotions 
C)  direct marketing 
D)  creative selling 
E)  missionary selling 
A)  order processing 
B)  sales promotions 
C)  direct marketing 
D)  creative selling 
E)  missionary selling

Question 18

Explain the primary difference between a wholesaler and a sales agent.

Accepted Answer

The primary difference is the role that

Question 19

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the best criticism of this argument?

Accepted Answer

A)  It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate. 
B)  It fails to demonstrate that traditional retailing businesses are also in jeopardy. 
C)  It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain. 
D)  It does not specify how wholesalers can reduce costs most effectively. 
E)  It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale. 
A)  It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate. 
B)  It fails to demonstrate that traditional retailing businesses are also in jeopardy. 
C)  It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain. 
D)  It does not specify how wholesalers can reduce costs most effectively. 
E)  It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

Question 20

If prices are set too high, the company will make a large profit on each item but will sell fewer units.

Accepted Answer

A) True 
 B)False

Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?

How might Superior benefit from using e-catalogs?

In which of the following retail outlets is there a most direct communication line between producer and consumer?

Which of the following strategies is involved with price skimming?

The only goal of determining prices is to maximize profit for the firm.

Which of the following is crucial for high-priced consumer products such as homes and cars?

Which of the following best describes the purpose of point-of-sale displays?

Which of the following costs refers specifically to those that change with the quantity of a product sold or produced?

Variable costs of a product are those costs that change due to the conditions of the market.

Which of the following best describes department stores?

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Sales promotions are short-term promotional activities designed to stimulate consumer buying or cooperation from distributors, sales agents, or other members of the trade.

Products priced above the market play on the common assumption that a higher price means higher quality.

Shopping agents allow consumers to purchase products directly from their site.

Which of the following describes the function of search engines that act as collections of business Web sites representing diverse products?

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

A well-established Internet provider is facing stiff competition from several new companies. Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?

Explain the primary difference between a wholesaler and a sales agent.

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the best criticism of this argument?

If prices are set too high, the company will make a large profit on each item but will sell fewer units.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters

Exam 12: Pricing, Distributing, and Promoting Products

Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?

How might Superior benefit from using e-catalogs?

In which of the following retail outlets is there a most direct communication line between producer and consumer?

Which of the following strategies is involved with price skimming?

The only goal of determining prices is to maximize profit for the firm.

Which of the following is crucial for high-priced consumer products such as homes and cars?

Which of the following best describes the purpose of point-of-sale displays?

Which of the following costs refers specifically to those that change with the quantity of a product sold or produced?

Variable costs of a product are those costs that change due to the conditions of the market.

Which of the following best describes department stores?

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Sales promotions are short-term promotional activities designed to stimulate consumer buying or cooperation from distributors, sales agents, or other members of the trade.

Products priced above the market play on the common assumption that a higher price means higher quality.

Shopping agents allow consumers to purchase products directly from their site.

Which of the following describes the function of search engines that act as collections of business Web sites representing diverse products?

Why would one expect a product sold at a specialty store to cost more than the same product at a department store?

A well-established Internet provider is facing stiff competition from several new companies. Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors?

Explain the primary difference between a wholesaler and a sales agent.

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the best criticism of this argument?

If prices are set too high, the company will make a large profit on each item but will sell fewer units.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Managing Finances

Filters