Question 1

Which type of retailing activity is most likely to be found in a suburban shopping mall?

Accepted Answer

A)  Convenience stores 
B)  Specialty stores 
C)  Video marketing stores 
D)  Wholesalers 
E)  Factory outlets 
A)  Convenience stores 
B)  Specialty stores 
C)  Video marketing stores 
D)  Wholesalers 
E)  Factory outlets

Question 2

What results can be expected if Trimar Videos used a price skimming strategy to price its video equipment?

Accepted Answer

A)  Large profits may be earned on each sale. 
B)  It may generate a lot of consumer interest, but very low profits. 
C)  It permits the store to gain entrance to a market and then later adjust the price to a more realistic figure. 
D)  It generates a lot of consumer interest. 
E)  It will increase Trimar's market share 
A)  Large profits may be earned on each sale. 
B)  It may generate a lot of consumer interest, but very low profits. 
C)  It permits the store to gain entrance to a market and then later adjust the price to a more realistic figure. 
D)  It generates a lot of consumer interest. 
E)  It will increase Trimar's market share

Question 3

The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target audiences very well is

Accepted Answer

A)  direct mail. 
B)  newspapers. 
C)  magazines. 
D)  radio. 
E)  television. 
A)  direct mail. 
B)  newspapers. 
C)  magazines. 
D)  radio. 
E)  television.

Question 4

Online advertising is more advantageous for buyers than for sellers.

Accepted Answer

A) True 
 B)False

Question 5

Premiums are gifts, such as pens, pencils, calendars, or coffee mugs that are given away in return for buying a specific product.

Accepted Answer

A) True 
 B)False

Question 6

How do agents differ from brokers?

Accepted Answer

A)  Agents receive commissions. 
B)  Brokers take title to merchandise, but agents do not. 
C)  Brokers provide information services to customers, but agents do not. 
D)  Agents take title to merchandise, brokers do not. 
E)  Agents deal in the product lines of a few producers usually on a long term basis, whereas brokers match sellers and buyers as needed. 
A)  Agents receive commissions. 
B)  Brokers take title to merchandise, but agents do not. 
C)  Brokers provide information services to customers, but agents do not. 
D)  Agents take title to merchandise, brokers do not. 
E)  Agents deal in the product lines of a few producers usually on a long term basis, whereas brokers match sellers and buyers as needed.

Question 7

What is channel conflict? What are possible outcomes from channel conflict? How do vertical marketing systems help resolve channel conflict?

Accepted Answer

Channel conflict occurs when members of

Question 8

Avon, Dell, and Tupperware use the ________ channel of distribution.

Accepted Answer

A)  direct distribution 
B)  retail distribution 
C)  wholesale distribution 
D)  distribution by agents 
E)  distribution by brokers 
A)  direct distribution 
B)  retail distribution 
C)  wholesale distribution 
D)  distribution by agents 
E)  distribution by brokers

Question 9

West Coast Unlimited is a wholesaler that carries close to 20 000 products. The company has close to 3000 suppliers and sells its products mostly to business and institutional customers. The company markets its products by relying mainly on sales promotion and advertising. Faced with increasing costs, the company is looking at various ways to reduce expenses. West Coast Unlimited's vice-president feels that the company should shift one of its major distribution centres to a low-rent, low-tax area. Which of the following, if true, would strengthen the vice-president's argument?

Accepted Answer

A)  West Coast Unlimited recently signed a long-term lease for the distribution centre's current location. 
B)  The percentage decrease in taxes is higher than the percentage decrease in rent. 
C)  West Coast Unlimited's competitors are also capable of moving to the low-rent, low-tax area. 
D)  The political environment in the new area is stable, with no expected changes in tax policy. 
E)  Changes in the macroeconomic environment may reduce costs associated with the current location. 
A)  West Coast Unlimited recently signed a long-term lease for the distribution centre's current location. 
B)  The percentage decrease in taxes is higher than the percentage decrease in rent. 
C)  West Coast Unlimited's competitors are also capable of moving to the low-rent, low-tax area. 
D)  The political environment in the new area is stable, with no expected changes in tax policy. 
E)  Changes in the macroeconomic environment may reduce costs associated with the current location.

Question 10

Promotion seeks to accomplish all of the following with potential customers except

Accepted Answer

A)  persuade them to purchase products. 
B)  persuade them to dislike all other competitors' products. 
C)  make them aware of products. 
D)  make them knowledgeable about products. 
E)  persuade them to like products. 
A)  persuade them to purchase products. 
B)  persuade them to dislike all other competitors' products. 
C)  make them aware of products. 
D)  make them knowledgeable about products. 
E)  persuade them to like products.

Question 11

Premiums grab customers' attention and eliminate competitive products from consideration.

Accepted Answer

A) True 
 B)False

Question 12

Which distribution channel is used by companies such as Dell?

Accepted Answer

A)  Producer to retailer to consumer 
B)  Producer to agent to retailer to consumer 
C)  Producer to agent to wholesaler to retailer to consumer 
D)  Producer to wholesaler to retailer to consumer 
E)  Producer to consumer 
A)  Producer to retailer to consumer 
B)  Producer to agent to retailer to consumer 
C)  Producer to agent to wholesaler to retailer to consumer 
D)  Producer to wholesaler to retailer to consumer 
E)  Producer to consumer

Question 13

ABC Company sells product X for $12.00 each. With a fixed cost of $72 000 and a variable cost of $4.50, what is the break-even point in units?

Accepted Answer

$72 000/($

Question 14

Companies often price their products to establish ________, a company's percentage of the total market sales for a specific product type.

Accepted Answer

A)  break-even point 
B)  sales percentage 
C)  variable costs 
D)  fixed costs 
E)  market share 
A)  break-even point 
B)  sales percentage 
C)  variable costs 
D)  fixed costs 
E)  market share

Question 15

If total fixed costs are $200 000, the product is sold for $30, and the variable cost is $16, the break-even point is 14 286 units.

Accepted Answer

A) True 
 B)False

Question 16

Sara is selling posters at the sale price of $12.00, and the markup percentage is 35 percent. What is the dollar amount of the markup?

Accepted Answer

A)  $7.80 
B)  $4.20 
C)  $7.75 
D)  $3.50 
E)  None of these 
A)  $7.80 
B)  $4.20 
C)  $7.75 
D)  $3.50 
E)  None of these

Question 17

Coke has discovered that it can charge more for a can of soda in the sportswear aisle of Walmart than in the beverage aisle near competing colas. This is an example of a market share pricing objective.

Accepted Answer

A) True 
 B)False

Question 18

Cost-oriented pricing of products focuses primarily on the supply and demand for the product at various prices.

Accepted Answer

A) True 
 B)False

Question 19

What are the various business objectives that influence pricing decisions?

Accepted Answer

Objectives include maximizing

Question 20

The formula for determining the break-even point (in units) is total fixed costs divided by price minus variable cost.

Accepted Answer

A) True 
 B)False

Which type of retailing activity is most likely to be found in a suburban shopping mall?

What results can be expected if Trimar Videos used a price skimming strategy to price its video equipment?

The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target audiences very well is

Online advertising is more advantageous for buyers than for sellers.

Premiums are gifts, such as pens, pencils, calendars, or coffee mugs that are given away in return for buying a specific product.

How do agents differ from brokers?

What is channel conflict? What are possible outcomes from channel conflict? How do vertical marketing systems help resolve channel conflict?

Avon, Dell, and Tupperware use the ________ channel of distribution.

Promotion seeks to accomplish all of the following with potential customers except

Premiums grab customers' attention and eliminate competitive products from consideration.

Which distribution channel is used by companies such as Dell?

ABC Company sells product X for $12.00 each. With a fixed cost of $72 000 and a variable cost of $4.50, what is the break-even point in units?

Companies often price their products to establish ________, a company's percentage of the total market sales for a specific product type.

If total fixed costs are $200 000, the product is sold for $30, and the variable cost is $16, the break-even point is 14 286 units.

Sara is selling posters at the sale price of $12.00, and the markup percentage is 35 percent. What is the dollar amount of the markup?

Coke has discovered that it can charge more for a can of soda in the sportswear aisle of Walmart than in the beverage aisle near competing colas. This is an example of a market share pricing objective.

Cost-oriented pricing of products focuses primarily on the supply and demand for the product at various prices.

What are the various business objectives that influence pricing decisions?

The formula for determining the break-even point (in units) is total fixed costs divided by price minus variable cost.

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

Which type of retailing activity is most likely to be found in a suburban shopping mall?

What results can be expected if Trimar Videos used a price skimming strategy to price its video equipment?

The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target audiences very well is

Online advertising is more advantageous for buyers than for sellers.

Premiums are gifts, such as pens, pencils, calendars, or coffee mugs that are given away in return for buying a specific product.

How do agents differ from brokers?

What is channel conflict? What are possible outcomes from channel conflict? How do vertical marketing systems help resolve channel conflict?

Avon, Dell, and Tupperware use the ________ channel of distribution.

Promotion seeks to accomplish all of the following with potential customers except

Premiums grab customers' attention and eliminate competitive products from consideration.

Which distribution channel is used by companies such as Dell?

ABC Company sells product X for $12.00 each. With a fixed cost of $72 000 and a variable cost of $4.50, what is the break-even point in units?

Companies often price their products to establish ________, a company's percentage of the total market sales for a specific product type.

If total fixed costs are $200 000, the product is sold for $30, and the variable cost is $16, the break-even point is 14 286 units.

Sara is selling posters at the sale price of $12.00, and the markup percentage is 35 percent. What is the dollar amount of the markup?

Coke has discovered that it can charge more for a can of soda in the sportswear aisle of Walmart than in the beverage aisle near competing colas. This is an example of a market share pricing objective.

Cost-oriented pricing of products focuses primarily on the supply and demand for the product at various prices.

What are the various business objectives that influence pricing decisions?

The formula for determining the break-even point (in units) is total fixed costs divided by price minus variable cost.

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