QUESTION Which of the following, if true, strengthens the argument for adopting a price skimming strategy? A) Existing operating systems satisfy most customer requirements. B) Two competitors are expected to release new versions of their operating systems in the coming weeks. C) Large organizations are eager to adopt the new version because of improved enterprise […]
QUESTION Sand, coal, lumber, and other bulky goods are often handled by drop shippers. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Drop shippers are limited-function wholesalers who own the products but do not have physical custody of them. Rather, the drop shipper takes orders and has the producer ship […]
QUESTION Which of the following, if true, suggests that the less expensive clothing lines would damage the sales of the designers’ high-end fashions? A) Some designers of less expensive furniture have done business under a different name when producing high-end furniture. B) The clothing lines designed for women are, on average, more expensive than those […]
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 A Stardust ‘n’ Clay product line manager is critical of the organic product line proposal, arguing that sales of these products will come at the expense of sales of Stardust’s other beauty products. Her belief is that the new line will pull current customers to a new product rather than bring in new customers […]
QUESTION Which of the following, if true, strengthens the case for Stardust ‘n’ Clay to begin developing organic beauty products? A) Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available. B) Organic raw materials sourced from economically weak countries provide a source of […]
QUESTION Which of the following questions is LEAST relevant to the question of whether the company should produce a private-label brand? A) Would selling private brands increase overall sales? B) Is the profit margin higher for sales of private brands as opposed to established brands? C) Do nationwide retailers usually have success when producing private […]
