Penn Foster 080604RR Value Capture and Value Delivery BUS213 Business Law 1 

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1. The Internet has compelled all retailers to expect more price-sensitive customers, but because customers can purchase electronics at highly discounted prices, those stores that sell the same electronic prices must adjust their prices and

A. seek lower prices from the manufacturers to at least equal the prices paid for the merchandise by the Internet retailers.
B. add services and advice to change the customer’s focus away from price competition.
C. take the Internet retailers to court if they feel they’re being harmed.
D. try to block access to the sites that are deeply discounting the prices.

2. As the logistics manager, Priscilla should focus on the movement and control of the company’s physical products, while her boss, the supply chain manager, should focus on

A. oversight and coordination of supply chain promotional considerations.
B. the interplay between pricing and product allocation decisions.
C. maximizing efficiency by constantly reducing production costs.
D. awareness of and coordination of the relationships among supply chain members

3. Which of the following is most likely to be characterized by oligopolistic competition in the United States?

A. Soft drinks
B. Soybeans
C. Stationary
D. Men’s clothing

4. _______ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence.

A. Limited assortment supermarkets
B. Full-line discount stores
C. Department stores
D. Convenience stores

5. Supply chain management adds value for customers by

A. incorporating universal product codes.
B. use of exclusive geographic territories.
C. maximizing total distribution costs.
D. getting products to customers efficiently.

6. Naomi owns and manages a gift store that features merchandise for many holidays throughout the year. Some are novelty items that are mass produced, and some are handcrafted. Manufacture and creation of these items occur throughout the year, but in cycles different from the customers’ purchases. To be successful, Naomi must pay special attention to the supply chain management goal of providing products at the right

A. locations.
B. quantities.
C. service levels.
D. time.

7. If a manufacturer was unhappy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be _______ distribution.

A. selective
B. moderate
C. case by case
D. compromise

8. Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $15. His fixed costs are $100,000, and his profit last year was $20,000. For Jacob, the contribution per unit is

A. $100.
B. $85.
C. $20,000.
D. $1000.

9. _______ have several advantages over manufacturers in selling directly to customers: they’re generally more efficient in dealing with customers, they can offer choices, and they can offer consumers one-stop shopping for complex or complicated purchases.

A. Catalog channels
B. Wholesalers
C. Online firms
D. Retailers

10. Every marketing decision is affected by and has an effect on

A. the supply chain.
B. universal product code verification systems.
C. electronic data intensity.
D. intranet efficiency.

11. As a type of retailer, category specialists are fierce competitors using

A. highly attractive loyalty programs.
B. highly trained personnel throughout the stores.
C. a complete assortment in a specific category at low prices.
D. a wide variety of merchandise.

12. In a _______ supply chain, none of the participants has any control over the others.

A. cooperative
B. conventional
C. contractual
D. corporate

13. B2B quantity discounts are legal if

A. new customers can buy up to reach the minimum quantity.
B. the discounts are available to all customers.
C. they’re not short term.
D. they don’t exceed 25% of the regular price.

14. Retailers with strong brand names of their own might operate outlet stores to

A. extend the useful life of mature products.
B. compete with category specialist stores.
C. sell excess inventory that might have to be sold at markdown prices in regular stores.
D. keep manufacturers from selling similar items in their own factory stores

15. Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a _______ orientation pricing strategy.

A. target return
B. target profit
C. sales
D. maximizing profits

16. Today, many retailers use targeted promotions, direct salesperson contact, customized services, and consumer information to provide added services to

A. friends and families of employees.
B. manufacturers whose products are in their stores.
C. strategic partners in the supply chain.
D. their best customers.

17. Electronic access to manufacturer’s inventory helped transform the effectiveness of manufacturer’s representatives and outside sales forces. Using new communications tools, they could now avoid the supply chain problem of

A. increasing prices without increasing transportation charges.
B. not being able to coordinate selling efforts with manufacturers’ promotional campaigns.
C. insufficient raw materials to produce the needed merchandise.
D. promising delivery of products that weren’t available.

18. General Mills (a manufacturer of a variety of food products) might engage Target, Costco, Wal-Mart, and Kroger in a

D. QR.

19. For marketers to advertise a price as their _______ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.

A. leader
B. fixed
C. regular
D. zon

20. The most significant potential benefit of the Internet channel is its

A. potential to provide customers with instant gratification.
B. ability to personalize information for each customer on a cost=effective basis.
C. capacity for a touch-and-feel customer experience.
D. capacity for providing location options for maintaining inventory.

21. Some companies want to get their products into as many outlets as possible. These companies understand that the more exposure they get, the more of their products they’ll sell. If this idea is consistent with the company’s overall strategy, it will most likely choose _______ distribution.

A. intensive
B. selective
C. collectively exhaustive
D. exclusive

22. Because of the way _______ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.

A. department stores
B. off-price retailers
C. downstream value stores
D. discount stores

23. _______ communities are networks of social shoppers who see an enhanced emotional connection with other participants during an Internet shopping experience.

A. Virtual
B. Gen-Y
C. Self-actualizing
D. Electronic loyalty program

24. One of the benefits of EDI is that it can reduce cycle time, which is the time

A. between the decision to place an order and the receipt of the merchandise.
B. from when an RFP is announced to the time a consumer purchases the finished product.
C. between when finished good leave the manufacturer until the time they arrive, floor-ready, at the retailer.
D. from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received.

25. Typically, manufacturers and retailers exchange business documents through a(n) _______ system.

A. floor-ready intranet
B. vertical-conflict reduction
C. cross-docking Internet
D. electronic data interchange

Course: BUS213 Business Law 1
School: Penn Foster College

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  • 25/07/2017
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