Marketing Final Exam

Payment indirect payment is received to cover a broad

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Unformatted text preview: equitable allocation among individuals and households or across geographic or political boundaries. NONFINANCIAL PRICES. Consumers often absorb nonmonetary costs rather than paying a monetary price. These nonmonetary costs may consist of the cost of time, embarrassment costs, or effort costs. INDIRECT PAYMENT. Indirect payment is received to cover a broad range of services. Indirect payment may take the form of taxes or other dues that help pay for free services provided by libraries, police departments, or fire departments. SEPARATION BETWEEN PAYERS AND USERS. Services distributed to one group are largely paid for by those in another group (usually those in a better financial situation). BELOW-COST PRICING. Often, products and services are provided below cost. Nonprofit organizations do this to remain socially responsible. PTS: 1 REF: 193-195 Communication KEY: CB&E Model Pricing OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis Chapter 13—Marketing Channels TRUE/FALSE 1. A marketing channel is a business structure composed of interdependent organizations that reach from the point of product origin to the final consumer. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Knowledge REF: 201 OBJ: 13-1 KEY: CB&E Model Distribution 2. As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Comprehension REF: 202 OBJ: 13-1 KEY: CB&E Model Distribution 3. A consumer stopped by the convenience store to buy a bag of charcoal briquettes. She only needs one bag, but the manufacturer produces millions of bags. For consumers, the convenience store overcomes a discrepancy of dimensions. ANS: F The store overcomes the discrepancy of quantity. PTS: 1 REF: 202 Thinking KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB Reflective MSC: BLOOMS Application 4. Residents of Sobarro, New Mexico, live in an isolated area of the state. Residents must travel two hours to receive medical treatment. Luckily, a physician has just opened a new practice in Sobarro. In this case, the physician has overcome service discrepancies by opening an office close to consumers. ANS: F This is an example of overcoming a spatial discrepancy. PTS: 1 REF: 203 Thinking KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB Reflective MSC: BLOOMS Application 5. Consider a scenario in which there are four manufacturers, no intermediaries, and three consumers. Twelve transactions would be required for each consumer to receive products from each manufacturer. The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency. ANS: F Introducing one intermediary reduces the required number of transactions to seven. See Exhibit 13.1. PTS: 1 REF: 203 Thinking KEY: CB&E Model Distribution OBJ: 13-1 TOP: AACSB Reflective MSC: BLOOMS Application 6....
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