marketing 12-14

there is intensive price competition for staple convenience goods such as milk and bread because customers see few product differences and are thus drawn to lower prices.

true

A channel of distribution must be able to adjust the large quantity of goods produced by a business to match the small quantity needed by a consumer.

true

In pure competition, it is almost impossible for a business to charge more for its products than other companies charge.

true

Indirect channels of distribution are used most often in sale of consumer products.

true

Products usually do not move continuously through the channel of distribution.

true

Supplies are consumable materials used in the operation of the business.

true

The maximum price in a price range is based on demand analysis.

true

Usually, a high markup reduces the quantity sold or results in slower sales and higher costs to the business

true

an invoice is an itemized billing statement with terms of payment for the order.

true

most wholesalers purchase products from producers and manufacturers and then resell them to their customers.

true

Which of the following is the most difficult purchasing situation for a business? A: new purchase B: modified purchase C: repeat purchase D: routine purchase

A: new purchase

Wholesale and retail businesses are considered to be A: resellers B: producers C: manufacturers D: nonprofit organizations

A: resellers

The final business organization in an indirect channel of distribution for consumer products is a A: retailer B: wholesaler C: manufacturer D: producer

A: retailer

Distribution has the most direct effect on A: time and place utility B: possession utility C: form utility D: price utility

A: time and place utility

If demand for a product or service is elastic, A: total revenue will go up when prices fall B: customers will continue to purchase it even if the prices increase a bit C: a price decrease will decrease total revenue D: there are few substitutes for consumers who purchase the product

A: total revenue will go up when prices fall

A reduction in price in exchange for the customer's old product when a new one is purchased is called a A: trade-in allowance B: advertising allowance C: rebate D: trade discount

A: trade-in allowance

Companies that offer products for sale to other businesses are known as A: vendors B: customers C: purchasing agents D: final consumers

A: vendors

The organizations and individuals who participate in the movement and exchange of products and services from the producer to the final consumer make up a A: supply chain B: channel of distribution C: marketing matrix D: economic system

B: channel of distribution

The first step in physical distribution planning is A: packaging the products securely B: deciding how products will be moved from the producer to the customers C: sending the products to the nearest distribution center D: storing the products in a conveniently located warehouse

B: deciding how products will be moved from the producer to the customers

A business would most likely use catalogs and websites to buy A: specialty items B: frequently purchased items C: modified products D: new products

B: frequently purchased items

Engineers or others with technical expertise would most likely be involved in the purchase of a very technical product or new product by A: negotiating the price and terms of a sale B: reviewing the specifications and evaluating and testing the products of suppliers C: developing the purchase contract D: deciding when to make the purchase

B: reviewing the specifications and evaluating and testing the products of suppliers

A company is most likely to use a sales-based pricing objective when A: the company's products are quite different from competitors' products B: the company has high levels of inventory C: the company wants to change its image D: the company has developed unique products in a small target market

B: the company has high levels of inventory

In this pricing strategy, different product or transportation costs are set for specific areas of the seller's market A: FOB pricing B: zone pricing C: price lines D: added-value pricing

B: zone pricing

Patents are granted to inventors of unique products for a period of A: 5 years B: 10 years C: 20 years D: 50 years

C: 20 years

For most products and services, distribution activities account for over _____ % of the total marketing costs A: 10 B: 25 C: 50 D: 90

C: 50

Independent businesses that provide specialized exchange functions such as locating suppliers, selling, financing, or arranging shipments without taking title to products are called A: full-service wholesalers B: limited-service wholesalers C: agents and brokers D: wholesale cooperatives

C: agents and brokers

Partially or completely processed items that becomes a part of the products produced by the business are called A: supplies B: raw materials C: component parts D: operating equipment

C: component parts

All of the following are examples of non-store retailing except A: ordering a book online from amazon.com B: buying girl scout cookies form a scout who comes to your door C: filling up your car with gas at the local Texaco station D: buying a candy bar from a vending machine

C: filling up your car with gas at the local Texaco station

The price of a product is likely to be relatively high A: if the product has been on the market for a long time B: if there us a very larger supply of product C: if there is a small quantity of the product but a very large demand D: if there is little demand for the product

C: if there is a small quantity of the product but a very large demand

A penetration price strategy A: s typically used in the maturity stage of the product life cycle B: frequently encourages other businesses to enter the market C: is used by a business to attract a large share of the market early D: usually results in very high profit levels for the company

C: is used by a business to attract a large share of the market early

The ___________ price in the price range is determined by the ____________. A: lowest; target market B: highest; target market C: lowest; costs of seller D: highest; costs of the seller

C: lowest; costs of seller

Information about the types, assortments, prices, and quantities of products that will be stocked by a business for A: model stock list B: inventory list C: merchandise plan D: basic stock list

C: merchandise plan

A form of bartering in which the products or services of one company are used as payment for the products or services of another company is called A: reciprocal financing B: bribery C: reciprocal trading D: paying a duty

C: reciprocal trading

Of the recent changes in wholesaling, among the most important are A: improved technology B: broader customer service C: better communications and info D: all of the above

D: all of the above

When products are accumulated from a number of manufacturers and made available in one location to give consumers adequate choice and variety to meet their needs, the ____ of products is being adjusted. A: price B: quantity C: location D: assortment

D: assortment

When a company lures customers with offers of low prices and then tells them the low-priced product is unavailable or inferior, what illegal pricing practice has occurred? A: unit pricing B: price discrimination C: price-fixing D: bait-and-switch

D: bait-and-switch

Costs that do not change no matter what quantity of the product is produced or sold are called A: product costs B: total costs C: variable costs D: fixed costs

D: fixed costs

A wholesaler that concentrates on one or two important functions such as warehousing & storage or product delivery is a A: agent B: full-service wholesaler C: broker D: limited-service wholesaler

D: limited-service wholesaler

An itemized listing of all of the products included in a shipment is called a A: purchase order B: receiving record C: invoice D: packing list

D: packing list

The term derived demand means that A: businesses that produce or resell similar products and services usually have common purchasing needs. B: business customers usually purchase in much greater quantities than final consumers C: the # of business customers for specific products usually smaller than the # of final consumers who will purchase a product D: the types and quantities of products and services demanded by businesses are based on the level of demand of their customers

D: the types and quantities of products and services demanded by businesses are based on the level of demand of their customers

An unplanned channel of distribution makes the exchange process much easier and more efficient than a planned channel.

false

If sales increase, profits will always increase as well.

false

just-in-time supply establishes specific quality standards for all procedures.

false

railroads are the most flexible of the major transportation methods

false

the easiest and least challenging part of marketing is distribution

false