B) It offers consumers more value for the money.
C) It combines the benefits of the other pricing strategies.
D) It provides a more complete product experience for consumers.
E) All of the above.
19) Which of the following is NOT a price adjustment strategy?
A) segmented pricing
B) promotional pricing
C) free samples
D) geographical pricing
E) seasonal pricing
20) Service Industries, Inc., plans to offer a price-adjustment strategy in the near future. They could consider each of the following EXCEPT ________.
A) discount and allowance pricing
B) segmented pricing
C) physiological pricing
D) promotional pricing
E) location pricing
21) A quantity discount is a price reduction to buyers who purchase ________. A) frequently
B) large volumes
C) close outs
D) inferior merchandise
E) superior merchandise
22) Trade or functional discounts are offered by manufacturers to which of the following?
A) channel members who perform tasks that the manufacturer would otherwise have to perform
B) consumers who earn a price reduction for buying in bulk
C) intermediaries such as financing institutions as a cost of doing business with them
D) manufacturers that agree to exclusive distribution contracts
E) the government market and other organizations that require bid proposals
23) Which of the following is an example of a cash discount?
A) 2/10, net 30
B) $5.00 with a two-pack
C) a free case when you buy 12
D) when you pay cash and take the product with you
E) none of the above
24) When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________.
A) trade discount
B) functional discount
C) allowance
D) promotional allowance
E) trade credit
25) Quantity discounts provide an incentive to the customer to buy ________. A) more products or services from a variety of sellers
B) less from another competitor
C) more from one given seller, rather than from many different sources
D) more than he or she needs
E) bundled merchandise
26) By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
A) segmented pricing
B) variable pricing
C) flexible pricing
D) cost-plus pricing
E) reference pricing
27) When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.
A) revenue management
B) penetration
C) variable
D) time
E) value-added
28) Airlines, hotels, and restaurants call segmented pricing ________.
A) time pricing
B) yield management
C) location pricing
D) segmented
E) service pricing
29) Which of the following conditions should exist for segmented pricing to be an effective strategy?
A) The market must be able to be segmented.
B) The segments must show different degrees of demand.
C) Competitors can't undersell in the segment being charged the higher price.
D) All of the above.
E) None of the above.
30) Consumers usually perceive higher-priced products as ________.
A) not within reach of most people
B) having a higher quality
C) having high profit margins
D) popular brands
E) being in the introductory stage of the product life cycle
Chapter 12 Marketing Channels: Delivering Customer Value
1) Which of the following is NOT a typical supply chain member?
A) resellers B) customers
C) intermediaries
D) government agencies
E) raw materials supplier
2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
A) Downstream from
B) Upstream from
C) Separated from
D) Congruous to
E) Parallel with
3) Another term for the supply chain that suggests a sense and respond view of the market is ________.
A) supply and demand chain
B) demand chain
C) channel of distribution
D) distribution channel
E) physical distribution
4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________.
A) value delivery network
B) channel of distribution
C) supply chain
D) demand chain
E) all of the above
5) Most producers today sell their goods to ________.
A) final users
B) final users and marketing members
C) intermediaries
D) the government at various levels
E) competitors
6) A company's channel decisions directly affect every ________.
A) channel member
B) marketing decision
C) customer's choices
D) employee in the channel
E) competitor's actions
7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners.
A) short-term commitments
B) long-term commitments
C) major problems
D) financial losses
E) disagreements
8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries?
A) financial support
B) fast service
C) scale of operation
D) working relationships with foreign distributors
E) promotional assistance
9) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________.
A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers
10) Producers benefit from using intermediaries because they ________.
