Which of the following is a reason that producers use marketing channels and channel intermediaries?

The greater the number of channel levels in a marketing channel, the ________.

greater the channel complexity

Which of the following is true of conventional distribution channels?

Channel members seek to maximize their own profits

When setting channel objectives, companies should state the objectives in terms of _______.

targeted levels of customer service

The length of a channel is determined by ________.

the number of intermediary levels

A view of the market that specifies that planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value

Which of the following is NOT a major logistics function?

______ is a practice whereby a producer agrees to sell a brand to a dealer agrees to sell some or all of the rest of its line.

Which of the following statements regarding marketing logistics is correct?

The goal of marketing logistics should be to provide a targeted level of customer service at the least cost

Which of the following is most likely true of marketing channel decisions?

They often involve long-term commitments to other firms

Which of the following statements regarding marketing channel behavior and design is correct?

The success of individual channel members depends on the overall channel’s success

Which of the following is true of vertical marketing systems?

Producers, wholesalers, and retailers act as a unified system

Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of _______.

Which of the following is a reason that producers use marketing channels and channel intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) ______ vertical marketing system (VMS).

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

Multichannel distribution system

After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and ______.

the responsibilities of channel members

Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products ________.

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

Which of the following is true of channel members?

They play specialized roles in the channel

A ______ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system.

Which of the following is an example of horizontal channel conflict?

A Ford dealer complaining that another Ford dealer is advertising in their territory.

A ______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Which of the following statements is correct regarding the functions channel members perform?

Channel members create greater efficiencies than manufacturers could achieve on their own

A marketing channel that consists of one or more intermediaries is known as a(n) ______ marketing channel.

In a(n) ______ channel, the same member both produces and distributes a product or service to consumers.

Which of the following is a price adjustment strategy?

Discount and allowance pricing

A quantity discount is a price reduction for buyers who ______.

______ occurs when retailers set an artificially high “regular price” and then advertise a “sale price” which is actually close to their everyday price.

Recently, Amazon.com has been accused of ______, which is the practice of selling products below cost to harm competitors.

When would a competitor most likely react to a firm’s price change?

When the number of firms involved is small

A seller offers a _______ to trade-channel members who perform certain functions, such as selling, storing, and record keeping.

Which of the following statements regarding initiating price increases is correct?

The company should consider ways to meet higher costs or demand without raising prices.

Whirlpool washers and dryers are offered in many different models. Whirlpool will use _______ pricing to determine the price steps between the different models.

Which of the following statements regarding segmented pricing is correct?

Segmented pricing practices can cause consumer resentment

Margaret has been invited to a fancy dinner party and wants to bring a bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of wines as a(n) _________.

What is the purpose of the Robinson-Patman Act?

To prevent unfair price discrimination

Which of the following statements is true concerning new product pricing strategies?

For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called_________ pricing.

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?

Gillette charges a fairly low price for their razors (relative to costs) and a high price for razor blades. They are using a strategy of _________ pricing.

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

the product’s quality and image support a high price

Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of _______ pricing.

Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent?

Consumers are less likely to use price to judge the quality of a product when they __________.

have experience with the product

A market-skimming pricing strategy should NOT be used for a new product when _________.

competitors can undercut prices easily

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

Promotional pricing tactics include ________.

discounts, special-event pricing, and limited time offers

One major objective of a market-penetration pricing strategy is to __________.

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

Electrowhip operates in a market with many competitors.

Which of the following statements is true regarding initiating price cuts?

Cutting prices in an industry with excess capacity may lead to price wars.

The amount of money charged for a product or a service is ______.

Uses buyers’ perceptions of value as the key to pricing is ________.

Customer value-based pricing

Offering just the right combination of quality and good service at a fair price is ________.

Attaching features and services to differentiate company’s offers and charging higher price is _________.

Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk is ________.

Costs that do not vary with production or sales level are _______.

Costs that vary directly with the level of production are _______.

The sum of the fixed and variable costs for any given level of production is _______.

The drop in the average per-unit production cost that comes with accumulated production experience is a(n) ________.

Experience curve (learning curve)

Adding a standard markup to the cost of the product is ________.

Cost-plus pricing (markup pricing)

unit cost = variable cost + fixed cost/unit sales

markup price = unit cost/(1-desired return on sales)

Setting price to break even on the costs of making and marketing a product or setting price to make a target return is _________.

Break-even pricing (target return pricing)

Break-Even Volume Equation

break-even volume = fixed cost/price - variable cost

Setting prices based on competitors’ strategies, prices, costs, and market offerings is __________.

Competition-based pricing

Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met is _________.

A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged is __________.

A measure of the sensitivity of demand to changes in price is _________.

Which of the following is true regarding the price-demand relationship?

If demand is elastic, sellers will consider lowering their price.

Which factor sets the ceiling on setting a product’s price?

Customer’s value perceptions

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be _______.

Which factor sets the floor on setting a product’s price?

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

The perceived value of different product offers can be reasonably assessed by ________.

conducting surveys and experiments

Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?

Which of following statements about price is correct?

Customers have put increasing pricing pressures on many companies.

How is price determined using cost-plus pricing?

The price is set by adding a standard mark-up to the cost of the product.

DivetheBlue, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availability of many low-priced products in the market, customers seem to prefer DivetheBlue, which has earned a reputation for selling high-quality products. This exemplifies ___________.

Setting a price and then setting costs that will ensure that the price is met

If demand hardly changes with a small change in price, the demand is _______.

Which of the following statements is true regarding costs?

Average cost tends to decrease with accumulated production experience.

Which of the following statements regarding customer value-based pricing is correct?

In using this strategy, companies often find it hard to measure the value customers attach to their product.

In which type of market does no buyer or seller have much impact on setting the going market price?

Which of the following processes does value-based pricing reverse?

In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company’s variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ___________.

Price is the only part of the marketing mix that _______.

Companies with lower costs ________.

can set lower prices that result in smaller margins but greater sales and profits

Which of the following correctly identifies the three major pricing strategies used by marketers?

Customer value-based pricing, cost-based pricing, and competition-based pricing

Underpriced products _________.

produce less revenue than they would if they were priced at the level of perceived value

Internal factors that affect pricing include _______.

the company’s overall marketing strategy, objectives, and marketing mix

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and others amenities for which they charge a higher price. This is an example of which type of pricing?

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged?

As a manufacturer increases the price, _________.

the break-even volume drops

Why do producers use marketing intermediaries?

Why are marketing channels and intermediaries necessary?

What marketing channels and channel intermediaries are?

What are the reasons for intermediaries?