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Reduces transit time
Using a freight forwarder usually
Electronic data interchange
A commonly used computerized means of integrating order processing with production inventory, accounting, and transportation is
Use premium pricing for its products
A company trying to position itself as value oriented should NOT
Unauthorized resellers acquire and sell products or counterfeits, violating the agreement between a manufacturer and its exclusive authorized dealers
A problem that can arise with exclusive (and selective) distribution is that
General-merchandise retailer
A retail establishment that offers a variety of product lines that are stocked in significant depth is best classified as a
An increase in lost sales
An inventory stock out results in
76.7%
Beats by Dr. Dre headphones are sold at target for $159.00 and target is able to purchase them for $90. What is the markup percentage of cost that target is using on this product
Considers cost to be secondary to competitors pricing You will set your price at or below competitor Common method among homogenous products
Competition based pricing is
Telemarketing
Which of the following is the performance of marketing-related activities by telephone
Cut out the tasks they do. This means you will have to do the tasks yourself which could eat up the money you would have saved
Cutting out the middleman will
Manufactures agent
Dawkins Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion decisions. It should most likley hire a
Superstore
Elena goes to Walmart and buys some clothing, a Blu-ray disc, and all the groceries she needs for her family. What type of retailer is this particular Walmart
Captive pricing
Epson sells some of its color printers for about $100, but the refill cartridge's cost over $30 each. Epson's pricing strategy would be best labeled as
1167 units 175,000 / (250 - 100) = 1,166.6667 units
Hopper Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Hopper would break even at _____ units
Fixed costs / (Selling price - Variable price) = Breakeven point
How is the breakeven point calculated?
Manufacturing Agent
If Craig Nelson helps clients to buy or to sell used portable water well or oil well drilling equipment and is compensated based on a commission he would be known as a
Direct
If a consumer were to approach a bakery in a grocery store to make a birthday cake, what channel of distribution does this represent?
increase the reorder point
If a retailer is reviewing its inventory and notices that the order lead time for one of the products it stocks has increased, the retailer should
5000 units Equation units to sell to attain target profit: (Fixed cost + Profit) / (Selling price - Variable cost per unit = units
If the owner of a business wishes to make an $80,000 profit, what is the number of units that must be sold under the following conditions.... Selling price = $100, Variable cost per unit = $60, Fixed cost = $120,000
A party plan or Direct selling
Jessica invites a sales rep from The Pampered Chef, a company that sells kitchen tools to her home. The representative brings sample products to Jessica and 10 other friends. Once the presentation is over, the rep takes orders from Jessica and the guests. This is an example of?
Cost
Mark up and cost plus are different types of _______ based pricing
Return on investment
Most pricing objectives based on _____ are achieved by trial and error because not all cost and revenue data are available when prices are set
Involves ending a price with certain numbers 4.99 is better than 5 to pay Odd makes you think you're getting a deal
Odd-Even pricing is
Category killer
Office Depot is an example of a
Multiple-unit pricing, lower per unit price
Product such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ____ which usually results in a _____
Non-price competition
Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing
Differential pricing
Some colleges charge a higher tuition for certain majors, such as business, engineering, and medicine. This pricing scheme is known as
Periodic discounting
Some retailers utilize ________ as a pricing strategy by offering discounts after Christmas or back-to-school offers to attract consumers to shop. However, this strategy may backfire as consumers may put off purchases in anticipation of a sale or reduced price offer
Off price retailers
Stores such as TJ Maxx, Burlington Coat Factory, and Marshalls, which buy manufactures' seconds, overruns, returns and off-season production runs at below wholesale price for resale to consumers at deep discounts are called?
Penetration
Taco Bell was the first fast food restaurant to reduce price while maintaining the same quality and quantity. This type of pricing strategy is best defined as
firms seek to benefit from economies of scale; Many manufacturers prefer mass production with its economies of scale - which means that as a company produces larger numbers of a particular product, the cost of each unit of the
The discrepancy in assortment exists because
Multichannel retailing
The use of multiple distribution channels that integrate organizations brick and mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers reviews, and make actual purchases is known as
Price skimming
When Texas Instruments first introduced its line of graphing calculators, it set the price quite high, it has lowered the price as competitors have entered the market. The pricing strategy initially used by Texas Instruments is called
10 6 producers x consumers = 24 transactions 6 producers and 4 consumers 6 producers + 4 consumers = 10 transactions
When four buyers purchase the products of 6 producers, 24 transactions are required. If one intermediary serves both producers and buyers the number of possible transactions is
Buying a printer for computer and needing to buy print cartridges for that model Razor and razor blades
Which of the following is an example of captive pricing
Elasticity Market share, Profit, Competitive effect, and Image enhancement are all pricing objectives
Which of the following is not a type of pricing objective?
A major advantage of price competition is flexibility
Which of the following is true about price competition
When calculating the break-even point, income taxes play no role. It is calculated using variable costs, the unit price, and fixed costs
Which of the following statements are true about breakeven analysis
Periodic discounting
You are the marketing manager for a multistate auto dealership in the southeast United States. It is that time of year when your company experiences a model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos. Which of the following pricing strategies will you use to facilitate this model year change?
Third party logistics firm
_____ have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently
Discount retailing
______ developed on a large scale in the early 1950s, when postwar production caught up with strong consumer demands for goods