Question 1: 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.
Question 2: 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.
Question 3: 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.
Question 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.
Question 5: 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
Question 6: 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
Question 7: 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.