Exam 12: Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Which pricing strategy for new products aims to capture as much of the market as possible by offering rock-bottom prices?

What are the two categories of independent wholesalers?

Which type of pricing aims to achieve long-term profitability by sustaining a high sales volume?

CDz, a local music and video retailer, spends $250 a month in advertising and inventory management. The business buys videos at a cost of $6.00 per unit and then sells each unit for $16.00. To break even in any one month, how many units would CDz have to sell?

Logistics refers to the logical criteria used in the selection of the best mix of retail strategies for marketing a good to its final consumers.

Drop shippers do not take title to the goods they help distribute. Instead, they merely provide delivery services for other wholesalers.

What is a channel of distribution?

Which of the following is the fastest form of transport?

Which of the following would most likely be classified as a variable cost in breakeven analysis for a furniture manufacturer?

The key to a successful pricing strategy is to focus on maintaining stability.

Outlet stores are owned by producers who sell directly to final customers and may offer discontinued or flawed goods.

How does cost-based pricing work?

Which type of pricing aims to price a handful of items temporarily below cost to drive in-store traffic?

Variable costs for a pizza parlour would include the cost of the insurance, rent, and property taxes.

What is odd pricing?

As technology evolves, consumers will see a growing number of vending machines for products, including fresh cooked French fries, digital cameras, and premium-style coffee.

Examples of limited service wholesalers include drop shippers, truck jobbers, and cash and carry wholesalers.

The use of skimming pricing is illegal because it discourages competition.

Retailers buy products from producers and sell them to businesses while wholesalers sell products to businesses for personal consumption.

Though Newton Coal Supply does actually take 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.