3.06 (a)
A company set prices for its products low in an attempt to drive its competitors out of business. This is an example of...
an unethical pricing practice
Which factors should businesses consider when establishing the selling price of a product?
Economic conditions
The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation?
Sherman Antitrust Act
What is an advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel?
Wholesalers usually buy in large quantities.
Which is the advantage to a business of using bar-code pricing?
Easier to change prices
A local ice-cream shop prices menu items below cost in an effort to eliminate its competition. This is...
an example of an ethical issue as it relates to predatory pricing
One way that many businesses use technology to reduce the costs associated with marking prices on products is by using which option?
Computer-generated tags
Which is an aspect of channel management that impacts customer service?
Timeliness
When is it best for a business to use an exclusive distribution pattern?
If it needs to maintain tight control over a product.
Which is an external factor that affects the price that a business charges for its products?
Economic conditions
Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. The businesses are engaging in which unethical activity?
Price-fixing
Which pricing tactic might be considered questionable by some businesses?
Developing a complex pricing structure
A dispatcher has current knowledge of a delivery truck's location and destination is an example of...
the use of satellite tracking within a distribution channel
What is an action customer service can take to facilitate the ordering process?
Communicate effectively
Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established prices based on which decisions?
Customer
What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?
Flexible pricing
A business charges a small company a higher price for a product than it charges a large company for the same product. What does this activity represent?
Price discrimination
How do channel members add value to a product?
By performing certain channel activities expertly
Indirect channel of distribution used to reach large retailers when the producer does not want responsibility for the selling activities.
Producer to agent to retailer to consumer
Which costs do businesses usually include in the prices of their products?
Transportation
How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function?
By determining the best time to adjust prices
Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPCs). Which information would be available?
Pricing
What do marketers want to achieve by determining distribution intensity?
Ideal market exposure
The statement "Some businesses have the capacity to distribute most or all of their products through the internet" has to do with...
Technology in relation to channel management
What might happen if a business’s customers feel that they are not getting the most value for their money?
Customers will spend money elsewhere.