(T/F). Place decisions are easier to change than Product, Promotion and Price decisions.

Merchant wholesalers account for almost 85 percent of all wholesalers.

(T/F). Too much price cutting erodes profits.

By definition, a markup of $1 on a cost of $2 translates to a markup of 40 percent.

Which of these is NOT a regrouping activity?

A. sorting
B. assorting
C. accumulating
D. bulk-breaking
E. all of these are regrouping activities

Wholesalers:

A. sell mostly to final consumers
B. sell mostly to retailers and other merchants
C. sell evenly between final consumers and retailers
D. sell to non-profits

A single price policy:

A. means that salespeople can adjust prices
B. can lead to hurt profits due to price cutting
C. is the same for everyone
D. is made easier by the use of databases

Alex's Knot Shop prices its ties at $5 intervals from $10 to $25 because most customers find these prices appealing and easier to compare. This is:

A. prestige pricing.
B. penetration pricing.
C. price lining.
D. odd-even pricing.
E. value in use pricing.

Discrepancy of quantity refers to:

A. the difference between a producer's product lines and assortment desired by final consumers
B. the difference between economical quantity for the producer and the quantity desired by final consumers
C. the difference between direct and indirect distribution
D. the difference between a wholesaler and retailer

Which of the following is NOT a type of agent wholesaler?

A. manufacturer's agent
B. auction company
C. selling agent
D. broker
E. specialty wholesaler

Which of the following is NOT a type of discount:

A. quantity discount
B. seasonal discount
C. cash discount
D. list price
E. all of the above are discounts

Break-even analysis can be useful for:

A. estimating future sales.
B. setting the most profitable price.
C. comparing pricing alternatives.
D. relating assumed prices to demand estimates.
E. All of these alternatives are correct.

Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogeneous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This "regrouping activity" is called:

A. accumulating.
B. bulk-breaking.
C. sorting.
D. wholesaling.
E. assorting.

Specialty shops:

A. offer fewer services than the typical limited-line store.
B. have trouble deciding what to carry because it's hard for them to get to know what their customers want.
C. rely heavily on knowledgeable salesclerks.
D. usually sell convenience products.
E. None of these alternatives are correct for specialty shops.

A stocking allowance:

A. is a reduction given to an intermediary to get shelf space for a product
B. is a reduction given for a used product if a customer buys a similar new product
C. is a reduction given to firms in a channel to encourage them to advertise a given product
D. is a reduction given by producers to retailers' salespeople to promote certain items

"Demand-backward" pricing:

A. starts with an acceptable final consumer price and works backward to what producers can charge.
B. ignores demand estimates.
C. is only sensible when the channel captain is a large retailer.
D. is an average-cost pricing approach.
E. None of these alternatives is correct.

The role of "channel captain":

A. should be taken by producers because they have more power.
B. is to force other channel members to accept the channel captain's plan.
C. should be taken by retailers because they are closer to consumers.
D. may not be necessary if the channel members are satisfied with the "status-quo."
E. is to help a channel system compete more effectively with other channel systems.

The main difference between an agent wholesaler and a merchant wholesaler is:

A. a merchant wholesaler does not own the product it sells
B. a merchant wholesaler operates at low cost
C. an agent wholesaler does not own the product it sells
D. an agent wholesaler takes title to products it sells

Pricing a product sold in a foreign market below cost of production is called:

A. price cutting
B. elastic pricing
C. dumping
D. discounted pricing
E. an allowance

Some consumers maintain a "price-quality association," meaning that if a product has a high price, they assume the product must have high quality. This "price-quality association" is the basis for the use of:

A. Odd-even pricing.
B. Prestige pricing.
C. Leader pricing.
D. Reference pricing.
E. Price lining.