QUESTION Which players are involved in a typical three-intermediary distribution channel, and how does the process work? What will be an ideal response? ANSWER Answer: A typical three-intermediary distribution channel consists of a producer that sells to an agent/broker, that in turn sells to a wholesaler, that in turn sells to a retailer, that […]
QUESTION Which advertising method would MOST likely be used to sell customers life insurance? A) informational advertising B) competitive advertising C) direct-action advertising D) fear-appeal advertising E) reminder advertising ANSWER Answer: D Explanation: D) Fear-appeal advertising attempts to stimulate the purchase of a product by motivating consumers through fear of loss or harm. This […]
QUESTION What’s the difference between agents and brokers? What will be an ideal response? ANSWER Answer: Agents tend to maintain long-term relationships with the people they represent. Brokers, on the other hand, are usually hired on a temporary basis. Their relationship with the buyer or the seller ends once the transaction is completed. Explanation: […]
QUESTION If you want to advertise your product by comparing it more favorably to another brand, which of the following types of advertising would you MOST likely use? A) competitive advertising B) direct-action advertising C) informational advertising D) persuasive advertising E) fear-appeal advertising ANSWER Answer: A Explanation: A) Competitive advertising, which is also called […]
QUESTION What is a rack jobber? What will be an ideal response? ANSWER Answer: A rack jobber is a limited-function wholesaler who furnishes products and display racks or shelves in retail stores and shares profits with retailers. Explanation: A rack jobber is a limited-function wholesaler who furnishes products and display racks or shelves in […]
QUESTION What is Chrysler concerned with if it is considering how often its ads should appear? A) reach B) frequency C) continuity D) cost E) persuasion ANSWER Answer: C Explanation: C) Continuity is the timing of the ads, how often they appear, or how heavily they are concentrated within a given time period.
QUESTION Give an example of how an intermediary adds value to a product. What will be an ideal response? ANSWER Answer: Intermediaries sell products where people want them. An example of this is a wholesaler that moves apples from orchards into retail stores, making it easier for consumers to shop for them. Explanation: Intermediaries […]
QUESTION What is the name given to face-to-face communication and promotion to influence customers to buy goods and services? A) personal selling B) fear-appeal advertising C) direct-action advertising D) press release E) advocacy advertising ANSWER Answer: A Explanation: A) Personal selling is face-to-face communication and promotion to influence customers to buy goods and services.
QUESTION Why are agents and brokers placed in a special category, treated neither as wholesalers nor as retailers? What will be an ideal response? ANSWER Answer: Agents and brokers don’t own or take title to the products they handle, they usually don’t carry any inventory or provide credit, and they earn fees or commissions […]
QUESTION Which of the following is a form of publicity? A) press release B) brand advertising C) institutional advertising D) advocacy advertising E) product placement ANSWER Answer: A Explanation: A) Publicity is defined as unpaid coverage by the mass media about a firm or its products. A press release is a brief statement written […]
