Question

1) When a ________ strategy is used, a company attempts to motivate wholesalers and retailers to make the product available to their customers.

a) pricing

b) push

c) pull

d) test-marketing

e) skimming

2) Peanut butter is an example of a

a) generic product.

b) private distributor brand.

c) brand name.

d) specialty product.

e) shopping product.

3) Private distributor brands are

a) characterized by the absence of a brand name.

b) used to reduce the efficiency of production.

c) owned and controlled by a manufacturer.

d) identified by a manufacturer from the point of production to the point of purchase.

e) owned and controlled by a wholesaler or retailer.

4) When Ample Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest possible price that buyers are willing to pay. Which of the following is a reason Ample Appliances Inc. would choose price skimming instead of penetration pricing?

a) to help its appliances enter the market and gain market share rapidly

b) to prevent competitors from entering the market shortly after its appliances have been introduced

c) because it is easier to raise a penetration price than to lower a skimming price

d) to drive competitors out of business

e) because price skimming is more flexible than penetration pricing

Answer 1

1. Option B. Push

Explanation: In push marketing, efforts are made to make the product available to the consumer by reaching out to the consumer.

2. Option A. Generic product

Explanation: Generic products are the products which are named after the basic product type.

3. Option E

Explanation: It is controlled and sold by a specific retailer.