QUESTION Before the explosion of the Internet, nonstore retailing did not exist. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Although the Internet has vastly expanded the possibilities of nonstore retailing, it has existed in many different forms for many years. Examples include door-to-door selling, vending machines, and house-party selling.
QUESTION Several senior managers are strongly in favor of a penetration pricing policy. Which of the following, if true, strengthens their argument? A) Research reveals that the market is not price sensitive. B) There are significant economies of scale in production. C) Prices could be raised once the introductory period is over. D) The demand […]
QUESTION Multilevel marketing is sometimes associated with fraud and so-called “pyramid schemes.” Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Multilevel marketing, in which sellers recruit other participants, making money not only on their own sales but on the sales of the people they recruit, is sometimes associated with fraud […]
QUESTION Another high-end fashion designer has refused offers to create a less expensive clothing line, believing that doing so would reduce sales of her most expensive creations. Which of the following approaches is likely to be most effective at addressing her concern? A) creating less expensive versions of dresses but not accessories B) limiting less […]
QUESTION Which of the following, if true, weakens the CEO’s argument? A) Historically, technology companies have been able to leverage higher market shares to earn long-term profits. B) Profits can be earned using captive-product pricing techniques, such as maintaining high margins on accessories. C) A high number of bugs in the initial release of an […]
QUESTION Distribution channels are systems for conveying goods from producers to consumers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: A distribution channel, also known as a marketing channel, is a system for conveying goods or services from producers to consumers.
QUESTION Which of the following observations, if true, strengthens the CEO’s argument? A) Profits would come from support, maintenance, and sale of applications that are compatible with the operating system. B) Customers frequently complain about the number of bugs in the initial releases of operating systems. C) The promised technology behind the new operating system […]
QUESTION Among the different types of distribution channels, there must always be at least one intermediary. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: There are four types of distribution channels for consumer goods and services, which range in intermediaries from zero to three or even more. A direct channel […]
QUESTION If intermediaries are eliminated, their functions are also eliminated. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: If intermediaries are eliminated, their functions must still be provided. For instance, if there’s no wholesale wine broker to warehouse wine, the winemaker or the retail stores will have to do it.
QUESTION The general rule for knowing which distribution channel is best is: Make the product available in whatever number of locations, great or small, is needed to satisfy customers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: This is a way to maximize sales by matching distribution to customers as […]
