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

Which of the following is a theory that describes a common way that retailers evolve, but does not account for stores that launch at the higher end of the market or for firms that retain their reputation as discount retailers?

Fixed costs are those costs companies incur regardless of the number of units sold.

The wheel of retailing refers to the tendency for the price of products at the retail end of the distribution channel to fall over time.

Logistics focuses primarily on the tactics involved in moving products along the supply chain.

Many medium- and high-priced products use a selective distribution strategy.

Drop shippers are often part of the distribution channel for bulky items such as timber and coal.

Companies such asChapters and Lush Cosmetics sell goods both online and in physical stores. What do we call this approach?

Best Buy, Home Depot, and Staples are examples of retailers who rely mainly on outlet stores.

Agents and brokers are the most common type of merchant wholesaler.

Which of the following enables merchant wholesalers to develop their own marketing strategies, including pricing strategies?

One drawback of using distributors in a distribution channel is that the addition of these intermediaries increases the total number of transactions that must occur to get the good from the producer to the consumer.

Marketing intermediaries can deliver utility created by producers, but they can't create new utility.

Which of the following involves planning and coordinating the flow of goods from raw materials to the finished products bought by final consumers?

The channel evolution theory helps explain the evolution of retailers that enter a market and initially attempt to attract customers by offering lower prices. It suggests that eventually low profit margins will force such firms to evolve into more upscale markets, leaving their original customer base behind.

Which of the following represent two-thirds of all wholesale trade members?

Which of the following is a subset of supply chain management that focuses on tactics rather than on strategy?

An exclusive distribution strategy works best for sellers of luxury goods such as Porsche and Cartier.

HP relies heavily on wholesale and retail channel partners to distribute its computers. Dell elects to sell most of its computers directly to consumers without using intermediaries. What do these firms therefore approach differently?

Which of the following is the positive difference between revenue and costs?

Which type of pricing aims to use price to send consumers a message about the high quality and exclusivity of a product?