3 P's (Marketing Mix)

In which case would price skimming be most suitable?

• When a completely new technological product with no competitors yet is launched.

• When a new brand of chocolate bars enters the market.

• When there are no competitors in an agricultural business.

• When the business is looking to remind the customers about their product.

Which method of distribution is most suitable for fast food?

• Department Store

• Mail Order

• Chain Store

• Supermarket

What is a major drawback of e-commerce to the general public?

• People could get into trouble via identity theft or scams.

• The demands of perishable (eg.food) products will decrease.

• It increases the overall level of unemployment.

• All of the above.

What are advantages to the producer in the third channel of distribution?

• Producer can reduce distribution costs as they only need to transport to wholesaler.

• Wholesalers can sell to retailers at a higher price than producers can.

• Producer can sell in large quantities to wholesalers.

• Producers and wholesalers make the same profit margin.

What are the main functions of wholesalers?

• "Breaking bulk" by dividing a large stock and selling it to several smaller retailers who have small storage space.

• Controls the break-even point of the producer.

• It shows the significance of the marketing mix to the society.

• Could offer credit to smaller retailers so that they can pay for products at a later date.

Which of these is not an effect of psychological pricing?

• Low prices for regularly purchased products gives customers a sense of value for their money.

• Helps customers rebuild interest in a declining product.

• High-income customers buying high-quality products to showcase their social status.

• High-priced products may make customers think that the product is of high quality.

Why is branding important for a business?

• It could help increase sales when a product is in its saturation stage.

• It could convince competitors to lower prices.

• It could help increase sales revenue.

• It helps build a good reputation and public image of a product / company.

Which of the following is true?

• In the introduction stage, informative advertisements are used to influence existing customers to buy the product.

• Sales peak at growth stage.

• Price skimming may be used during the introductory stage of the product.

• Promotion will intensify the effects of arbitrage pricing theory by a factor-specific beta coefficient.

Which of the following is not applicable in product development?

• Generating ideas.

• Selecting the best ideas for further research.

• Choosing the best methods of advertisements and promotion.

• Launch the product in a part of the market to test it.

What is the need of an agent in a distribution channel?

• They can be used to capture people doing illegal activities.

• They can help the producer in entering new (foreign) markets.

• They help consumers receive the best deals for promotion.

• They act as an intermediary between consumers and retailers.