BUS 330 Week 2 Quiz

1                                                   Question :            What reason was given to explain the emergence of Fair Trade as a business model for importers?

Opportunity to reach less-saturated markets.

Consumers’ desire for meaningful engagement.

Expansion of the middle class.

Ability to reduce risk from difficult-to-foresee threats.

2.                                                  Question :            Which of the following examples BEST illustrates a permanent pricing strategy that uses reductions from base price?

Placing sale signs near one third of the merchandise on display.

Offering a discount for customers who pay cash.

Posting prices ending in 9.

3.                                                  Question :            When an intermediary in the distribution channel takes ownership of items, what is the impact on others in the supply chain?

Other supply chain partners must undertake value-adding activities to convert inputs to outputs.

The channel partner selling the items must generate transaction records, such as invoices and packing slips.

The channel partner taking ownership must generate demand through retailer supports, such as product display materials.

4.                                                                    Which statement BEST describes the strategic objective of volume maximization?

To generate as much profit (revenue) as possible in the near term.

To generate as much sales volume as possible over time.

To generate as much sales volume as possible in the near term.

To generate as much profit as possible over the life of an offering.

5.                                                  Question :            When price sensitivity differs among customers in different market segments, which type of pricing strategy gains in importance?

Modified pricing strategy

Variable pricing strategy

Differing price variables

Short-term variability 

6. Question : The term “reference pricing” refers to

The price consumers typically have in mind when they consider a fair exchange for the value offered by a specific good or service.

The average price point consumers will calculate when researching a specific good or service.

The practice by sellers of posting competitors’ prices or offering a blanket promise to match

other sellers’ prices.

The value customers assign based on their expectations of customer service and post-sale support in addition to product features

7.Question : Which answer BEST describes outbound licensing as a business

model?

A business in U.S. contracts with a business in India for exclusive rights to market its products in the U.S.

A business in U.S. contracts with a business in the U.S. for exclusive rights to market its products in India.

A business in India contracts with inventors in the U.S. to develop new products to distribute in India.

A business in U.S. contracts with a business in India for exclusive rights to market its products in South America.