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Question 1 of


205.0 Points

Major functions performed in the channels of distribution include middlemen, merchant middlemen, and: 


            A. employees. 

            B. employers.  

            C. agents.

            D. organizations.


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Question 2 of 20  5.0 PointsChannels with one or more intermediaries are referred to as:




            A. administered systems.

            B. direct channels.

            C. indirect channels.     

            D. responsive channels.

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Question 3 of 20         5.0 Points

The choice of channels can be defined in terms of intensive distribution, selective distribution, and __________ distribution. 


            A. marketing

            B. sales

            C. exclusive

            D. product


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Question 4 of 20         5.0 Points

In __________ distribution, the manufacturer limits the use of intermediaries to the ones believed to be the best available in the geographic area.


            A. exclusive     

            B. geodemographic

            C. wholesale    

            D. selective


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Question 5 of 20         5.0 Points

The major distribution costs to be minimized are transportation, order processing, and:



            A. horizontal dimension.

            B. vertical dimension.   

            C. packaging.  

            D. geodemographic.


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Question 6 of 20         5.0 Points

It is well-documented in the marketing literature that __________ throughout the channel often lead to high-quality products and low price.


            A. discord

            B. competition 

            C. long-term relationships        

            D. collusion     


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Question 7 of 20         5.0 Points

Administered vertical marketing systems are most similar to:




            A. internal market mechanisms.

            B. conventional channels.

            C. selective distribution.

            D. horizontal channels. 

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Question 8 of 20         5.0 Points

__________ are merchants that are primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities.

            A. Retailers     

            B. Logistics companies

            C. Wholesalers

            D. Vendors     

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Question 9 of 20         5.0 Points

For which of the following products would its manufacturer be more likely to use intensive distribution?

            A. Blue jeans   

            B. Laser printer

            C. Gourmet cat food

            D. Can of soda

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Question 10 of 20       5.0 Points

A contractual vertical marketing system:



            A. is exemplified by a florist shop that buys a wholesale plant nursery.

            B. is very similar to a conventional marketing channel of distribution

            C. operates with a channel leader.

            D. is exemplified by the Subway sandwich shop franchise system.         

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Question 11 of 20       5.0 Points

The __________ factors that are particularly important for pricing decisions are: expected consumption rate of potential buyers, location of potential buyers, and position of potential buyers.

            A. economic

            B. political       

            C. demographic

            D. sociological 

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Question 12 of 20       5.0 Points

Price elasticity is a measure of consumer’s price sensitivity, which is estimated by dividing relative changes in the quantity sold by the: 


            A. volume consumed.  

            B. cost of the product or service.

            C. quantity produced.  

            D. relative changes in price.      

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Question 13 of 20       5.0 Points

Two factors that relate to the supply influences on pricing decisions are: 


            A. intangibility and perishability.

            B. rate-of-return and inventory levels.

            C. perishability and tangibility.

            D. cost and nature of the product.        

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Question 14 of 20       5.0 Points

The basic variations in cost-oriented pricing are mark-up pricing, cost-plus pricing, and:


            A. fixed pricing.

            B. demand oriented pricing.     

            C. rate-of-return pricing.

            D. additional profits.    

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Question 15 of 20       5.0 Points

The pricing strategy in which the seller charges a relatively high price on a new product is called:



            A. price fixing.

            B. deceptive pricing.    

            C. price discrimination.

            D. skimming.   

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Question 16 of 20       5.0 Points

The pricing strategy in which the seller charges a relatively low price on a new product is called:



            A. development.

            B. traditional marketing.

            C. penetration. 

            D. skimming.   

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Question 17 of 20       5.0 Points

Pricing a product at competition is called __________ pricing and is popular for homogeneous products, since this approach represents the collective wisdom of the industry and is not disruptive of industry harmony.


            A. sealed-bid   

            B. competitor  

            C. open

            D. going-rate   

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Question 18 of 20       5.0 Points

Price-fixing is illegal per se. Sellers must not make any agreements with competitors or distributors concerning the final price of the goods. The __________ is the primary device used to outlaw horizontal price-fixing. 


            A. Sherman Antitrust Act         

            B. Robinson-Patman Act

            C. Clayton Act

            D. Federal Trade Commission Act       

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Question 19 of 20       5.0 Points

Setting prices so that targeted customers will perceive products to offer greater value than competitive offerings is called:


            A. comprehension of service marketing.

            B. value pricing.

            C. mass merchandising.

            D. perishability pricing. 

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Question 20 of 20       5.0 Points

It is not uncommon for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment. This $30,000 fee is an example of a(n): 


            A. slotting allowance.   

            B. bribe.

            C. placement fee.

            D. opportunity fee.       




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