Exam 2 - Chapter 11
What can be exercised only when presented with specified shipping records?
A documentary draft
What statement is true of non-direct distribution?
A product's final price is more than the manufacturing cost if intermediaries are involved.
What statement is true of low customer contact businesses?
Empowerment zones offer businesses low-cost space and tax advantages.
A direct mail approach needs major inventory investment.
F
E-tailers have high overhead and limited shelf space.
F
Face-to-face meetings with the client are infrequent if the services are provided at the client's location.
F
Guerilla marketing is a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.
F
Something that is essential to how you live and does not have many substitutes or alternatives is called an elastic product.
F
Distributors and wholesalers prefer taking on start-up products as there are no setup charges involved.
F (False)
Exporting is usually expensive, difficult to start, and more risky than licensing, franchising, or joint ventures.
F (False)
What layout is more typically found in upscale department stores?
Free-form layout
Putting two or more of the same or different products or services together and selling for a price somewhat under the products' individual prices is _________.
Bundling
What businesses requires a stake in the company and is good for brainstorming with other entrepreneurs?
Business incubator
Sales promotion techniques used to introduce your brand to customers without an immediate call to purchase are _____________ techniques.
Contest
Giveaways, samples, and tastings are examples of ________ techniques used in sales promotion.
Introductory
What is true of leasing issues?
It costs more to limit the landlord's ability to lease to competing businesses.
What form of direct response advertising allows very specific targeting and is appropriate for business-to-business selling?
Magazine
A _____ is an example of a low customer contact business.
Manufacturing business
A(n) _____ refers to a set of goods or services that consists of only one or a few items.
Micro inventory
When finally setting the actual price of your product or service, there are several contextual factors including your company objectives, your marketing strategy, competition, channels of distribution, and legal and regulatory issues to consider. Which of the following statements is not true when considering these factors?
Pricing off a competitor's price is as easy as picking a percent, say 80%, and charging that price for your product or service.
What is a disadvantage of leasing?
Renovation options are limited in a leased property.
________ is setting a price at the highest level the market will bear, usually because there is no competition at the time.
Skimming
Access for employees and reasonable cost are critical for businesses with low customer contact.
T
Giveaways, samples, and tastings are all examples of introductory techniques used in sales promotion.
T
It is good to opt for distributors when a whole line of products need to be bought or warehoused.
T
Skimming, odd-even pricing, and price lining are three possible pricing strategies available to small businesses.
T
The primary areas for conflict resolution in exporting include nonpayment and contract default issues.
T
Radio advertisements provide both geographic and demographic segmentation of a product or service.
T (True)
When pricing your product, the optimum price is the highest price that will produce your desired level of sales in your intended market.
T (True)
The value delivered to the customer is second in order of importance to the pricing decision.
T(True)