QUESTION Which of the following, if true, weakens the vice president’s argument? A) The low-rent, low-tax area is located farther from delivery sites. B) West Coast Unlimited’s competitors often place their distribution centers in relatively expensive locations. C) Better use of technology could reduce distribution costs more than a relocation could. D) Final customers are […]
QUESTION A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the best criticism of this argument? A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate. B) It fails to demonstrate […]
QUESTION Which of the following, if true, strengthens the argument for exclusive distribution? A) A growing number of shoe customers prefer to shop online instead of visiting stores. B) The number of customers who buy shoes is greater than the number of people who buy belts. C) Some expensive leather products use leather that is […]
QUESTION Which of the following, if true, strengthens the argument for intensive distribution? A) Competitors sell through exclusive outlets. B) Phoenix is concerned about the effects of channel conflicts. C) Consumers treat the kinds of shoes that Phoenix will produce as commodities. D) Phoenix wishes to build positive relationships with its retail partners by encouraging […]
QUESTION Which of the following, if true, weakens the argument for intensive distribution? A) Competitors follow an intensive distribution strategy. B) The company follows a penetration pricing policy to increase its market share. C) Market research indicates that customers prefer convenience and easy access to products while shopping. D) The company’s attempts at direct channel […]
QUESTION Which of the following, if true, strengthens the argument for shifting to television infomercials? A) Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares. B) ValueNet could slightly modify its telemarketing techniques and receive a much better customer response. C) TV media production costs are […]
QUESTION What is the general rule to help you determine which distribution channel is best for your product? What will be an ideal response? ANSWER Answer: The general rule is: Make the product available in whatever number of locations, great or small, is needed to satisfy customers. Explanation: Knowing which distribution channel is best […]
QUESTION Which of the following, if true, most strengthens the argument for continuing direct mail marketing? A) The consumers that direct mail marketing reaches are much better prospects compared to those reached by advertising. B) Direct mail marketing accounts for 34 percent of all U.S. direct marketing spending. C) Direct mail marketing has proven to […]
QUESTION What would a company most likely consider when deciding between air and water as a mode of overseas transportation? What will be an ideal response? ANSWER Answer: The two biggest factors most companies consider when choosing between air and water for overseas transportation are price and time. While water is the cheapest form […]
QUESTION Which of the following, if true, weakens the argument for shifting to direct-response television marketing? A) Most customers perceive infomercial sales tactics to be loud, aggressive, and questionable. B) Some companies have found it difficult to adopt an infomercial strategy. C) Consumer behavior is highly dependent on the state of the economy. D) New […]
