Reference no: EM132265603
1. A penetration pricing strategy is generally characterized by:
- high inventory costs, many product alternatives, and low price elasticity.
- low costs, low prices, and mass market appeal.
- status, uniqueness, and profit goals.
- high price elasticity, early cash recovery objectives, and high brand loyalty.
2. Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):
- product requires special handling equipment (e.g., blocks of ice).
- product is complex (e.g., computers).
- product is perishable (e.g., fresh fruit).
- product has low unit value (e.g., hard candy).
3. Which best characterizes a modified rebuy situation?
- purchasing paper clips for the office.
- purchasing the first local intranet for a small business.
- purchasing airline tickets under a new fare schedule.
- purchasing printer toner for a copier.
4. Which is an example of a product that is being sold in the business market?
- a thermometer to hang on the front porch of a school bus driver’s home.
- registration fee paid for a membership in a private health club.
- a mailbox to go in front of Pete’s new house.
- a truckload of sand to use on the beach being built for a lakefront resort.