Question 1

Cash and carry wholesalers are full­service merchant wholesalers who specialize in selling to large retail chains.

Accepted Answer

A) True 
 B)False

Question 2

Rolls Royce Motors is a company that represents the pinnacle of automotive excellence. Its cars deliver excellent quality and performance. The company prices its vehicles significantly higher than its competitors', as it believes that this communicates the quality and uniqueness of the vehicles. Which of the following pricing strategies is Rolls Royce using?

Accepted Answer

A)  Loss­leader pricing 
B)  Penetration pricing 
C)  Prestige pricing 
D)  High/low pricing

Question 3

The goal of penetration pricing strategy is to:

Accepted Answer

A)  develop a firm's products into prestigious brands. 
B)  develop differentiation between one firm's products and its competitors' products. 
C)  make profit from the sheer volume of sales. 
D)  increase profit margins to target an upscale market.

Question 4

Shadow, an art magazine, records salaries for reporters and photographers as recurring expenses no matter how many magazines are sold. They consider these expenses as fixed costs.

Accepted Answer

A) True 
 B)False

Question 5

The two largest transportation modes in terms of volume of shipments are rail and truck.

Accepted Answer

A) True 
 B)False

Question 6

Online retailing grew at a yearly rate of 25 percent in early 2000, but decreased to 1.6 percent in 2009. It bounced back to over 12 percent in 2011. Due to this, experts predict online retailing will continue to increase in double digits.

Accepted Answer

A) True 
 B)False

Question 7

Companies that place their stores in as many locations as possible, are using a strategy called _____ distribution.

Accepted Answer

A)  intensive 
B)  selective 
C)  exclusive 
D)  direct

Question 8

Variable costs are those expenses that change as the level of production changes.

Accepted Answer

A) True 
 B)False

Question 9

_____ act as middlemen to help producers move their product more efficiently and effectively from factories to the consumers.

Accepted Answer

A)  Stakeholders 
B)  Financial intermediaries 
C)  Suppliers 
D)  Channel intermediaries

Question 10

Multilevel marketing involves hiring independent contractors to sell products within personal networks of family and friends.

Accepted Answer

A) True 
 B)False

Question 11

Despite good marks for customer service for Internet­only retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than Internet­only retailers.

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

_____ distribution is the actual movement of products along a channel of distribution.

Accepted Answer

A)  Selective 
B)  Physical 
C)  Intensive 
D)  Exclusive

Question 14

Joanne works in the marketing department of a toy manufacturer. Her company plans to introduce a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar kinds of toys. The best strategy for achieving this goal would be:

Accepted Answer

A)  prestige pricing. 
B)  everyday­low pricing. 
C)  penetration pricing. 
D)  price leadership.

Question 15

Describe the four pricing strategies used to boost volume.

Accepted Answer

The answer of Describe the four pricing strategies used to...

Question 16

Walmart and Costco achieve long­term profitability through volume sales. They both use _____ pricing strategy.

Accepted Answer

A)  penetration 
B)  high/low 
C)  everyday­low 
D)  loss­leader

Question 17

Maqui wants to develop a free music download site that would be supported by ads. To get a better understanding of what hurdles need to be overcome before launching the site, Maqui would need to do a breakeven analysis.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

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

Cash and carry wholesalers are fullservice merchant wholesalers who specialize in selling to large retail chains.

The goal of penetration pricing strategy is to:

Shadow, an art magazine, records salaries for reporters and photographers as recurring expenses no matter how many magazines are sold. They consider these expenses as fixed costs.

The two largest transportation modes in terms of volume of shipments are rail and truck.

Online retailing grew at a yearly rate of 25 percent in early 2000, but decreased to 1.6 percent in 2009. It bounced back to over 12 percent in 2011. Due to this, experts predict online retailing will continue to increase in double digits.

Companies that place their stores in as many locations as possible, are using a strategy called _____ distribution.

Variable costs are those expenses that change as the level of production changes.

_____ act as middlemen to help producers move their product more efficiently and effectively from factories to the consumers.

Multilevel marketing involves hiring independent contractors to sell products within personal networks of family and friends.

Despite good marks for customer service for Internetonly retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than Internetonly retailers.

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.

_____ distribution is the actual movement of products along a channel of distribution.

Joanne works in the marketing department of a toy manufacturer. Her company plans to introduce a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar kinds of toys. The best strategy for achieving this goal would be:

Describe the four pricing strategies used to boost volume.

Walmart and Costco achieve longterm profitability through volume sales. They both use _____ pricing strategy.

Maqui wants to develop a free music download site that would be supported by ads. To get a better understanding of what hurdles need to be overcome before launching the site, Maqui would need to do a breakeven analysis.

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

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

Cash and carry wholesalers are full­service merchant wholesalers who specialize in selling to large retail chains.

The goal of penetration pricing strategy is to:

Shadow, an art magazine, records salaries for reporters and photographers as recurring expenses no matter how many magazines are sold. They consider these expenses as fixed costs.

The two largest transportation modes in terms of volume of shipments are rail and truck.

Online retailing grew at a yearly rate of 25 percent in early 2000, but decreased to 1.6 percent in 2009. It bounced back to over 12 percent in 2011. Due to this, experts predict online retailing will continue to increase in double digits.

Companies that place their stores in as many locations as possible, are using a strategy called _____ distribution.

Variable costs are those expenses that change as the level of production changes.

_____ act as middlemen to help producers move their product more efficiently and effectively from factories to the consumers.

Multilevel marketing involves hiring independent contractors to sell products within personal networks of family and friends.

Despite good marks for customer service for Internet­only retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than Internet­only retailers.

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.

_____ distribution is the actual movement of products along a channel of distribution.

Joanne works in the marketing department of a toy manufacturer. Her company plans to introduce a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar kinds of toys. The best strategy for achieving this goal would be:

Describe the four pricing strategies used to boost volume.

Walmart and Costco achieve long­term profitability through volume sales. They both use _____ pricing strategy.

Maqui wants to develop a free music download site that would be supported by ads. To get a better understanding of what hurdles need to be overcome before launching the site, Maqui would need to do a breakeven analysis.

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

Cash and carry wholesalers are fullservice merchant wholesalers who specialize in selling to large retail chains.

Despite good marks for customer service for Internetonly retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than Internetonly retailers.

Walmart and Costco achieve longterm profitability through volume sales. They both use _____ pricing strategy.