Reference no: EM132234126
1. A penetration pricing strategy is generally characterized by:
- status, uniqueness, and profit goals.
- high price elasticity, early cash recovery objectives, and high brand loyalty.
- high inventory costs, many product alternatives, and low price elasticity.
- low costs, low prices, and mass market appeal.
2. Reebok has developed a marketing strategy designed to produce inelastic cross-elasticity for their brand. What is the major reason Reebok is attempting to accomplish this?
- it wants to show the value of each brand attribute and relate it to the price of its brand.
- it wants to have more success when it puts its products on sale at season or year-end.
- it wants price to be less important to buyers than other brand attributes.
- it wants to be able to use price as a key tool to take market share away from Nike.
3. Why are channel intermediaries (i.e., members of supply chains) useful:
- they increase the number of intrachannel contacts, thus lowering costs.
- they perform special functions manufacturers cannot provide.
- they provide assortments not offered by some manufacturers.
- they sell in larger quantities than manufacturers can handle.
4. If a wholesaler were somehow eliminated from an existing distribution channel (supply chain):
- total cost of goods to consumers would decrease because costs have been eliminated.
- total cost of goods to consumers would increase because of increased demand.
- someone would have to take over the functions of the wholesaler.
- retailers who bought from the wholesaler would be forced out of business.
5. Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):
- product exists in many inexpensive sizes (e.g., nails).
- product is complex (e.g., computers).
- product is perishable (e.g., fresh fruit).
- product requires special handling equipment (e.g., blocks of ice).