BUAD 332 EXAM 3 2025 QUESTIONS
AND CORRECT ANSWERS
What are the 3 conditions of Market Penetration? - ANSWER-1. Market
Must be Highly Price-Sensitive so a Low Price Produces More Market
Growth, 2. Production/Distribution Costs Must Fall as Sales Volume
Increases, 3. Must Keep Out Competition & Maintain Its Low Price
Position or Benefits May Only be Temporary.
What is an example of market skimming? - ANSWER-Apple Watches
What is an example of market penetration? - ANSWER-Kindle Fire
Pricing optional or accessory products sold with the main
product. For example: added memory on a computer -
ANSWER-Optional-Product
Pricing products that must be used with the main product (ink for
printer) - ANSWER-Captive-Product
What are the 5 ways to adjust basic price to reward customers for certain
responses? - ANSWER-1. Cash discount, 2. Quantity discount, 3.
Promotional allowance, 4. Seasonal discount, 5.
Trade-In allowance
When do customers use price more? - ANSWER-When that can't judge
,the quality of a product
What is an example of a good with a psychological value? -
ANSWER-Rolex
What are the 3 reasons to cut prices? - ANSWER-1. Excess capacity, 2.
Falling market share, 3. Dominate market through lower prices
What are the 2 reasons to increase prices? - ANSWER-1. Cost inflation,
2. Over-demand (company cannot supply all customers' needs
Set of interdependent organizations organizations involved in the
process of making a product or service available for use or
consumption by the consumer or business user. - ANSWER-
Distribution Channel
Intermediaries used for distribution channels - ANSWER- Contacts,
Experience, Specialization, Scale of operation
What is an example of Channel of Distribution? - ANSWER- Orbit
irrigation products use Home Depot as their Channel of Distribution
"What should the channel look like?" answers what question? -
ANSWER-Channel Design
"How do I get the channel partners to do what I want them to do?"
answers what question? - ANSWER-Channel Management
, Intensive products - ANSWER-have it available in a lot of any location:
Doritos
Exclusive products - ANSWER-going to be picky about where this
product can be sold (prestige): Rolex
Selective products - ANSWER-somewhere in between intensive and
exclusive: Polo
What 4 tasks do manufacturers want performed in the channel of
distribution? - ANSWER-1. Product availability, 2. Promotional effort, 3.
Customer effort, 4. Market information
From producer to consumer - ANSWER-Portland farmers market
From producer to retailer to consumer - ANSWER-Levi's to JC Penny to
consumers
Producer to Wholesaler to Retailer to Consumer - ANSWER- Budweiser
has to be sold through a distributor, then to Kroger, then you consumer
Product and Service Producers are Bypassing Intermediaries and Going
Directly to Final Buyers or That New Types of Channel Intermediaries
are Emerging to Displace Traditional Ones - ANSWER-
Disintermediation
What is an example of Disintermediation? - ANSWER-Estee Lauder
allows you to chose how often to auto replenish your lotion by going
straight through their website (no retailer)
AND CORRECT ANSWERS
What are the 3 conditions of Market Penetration? - ANSWER-1. Market
Must be Highly Price-Sensitive so a Low Price Produces More Market
Growth, 2. Production/Distribution Costs Must Fall as Sales Volume
Increases, 3. Must Keep Out Competition & Maintain Its Low Price
Position or Benefits May Only be Temporary.
What is an example of market skimming? - ANSWER-Apple Watches
What is an example of market penetration? - ANSWER-Kindle Fire
Pricing optional or accessory products sold with the main
product. For example: added memory on a computer -
ANSWER-Optional-Product
Pricing products that must be used with the main product (ink for
printer) - ANSWER-Captive-Product
What are the 5 ways to adjust basic price to reward customers for certain
responses? - ANSWER-1. Cash discount, 2. Quantity discount, 3.
Promotional allowance, 4. Seasonal discount, 5.
Trade-In allowance
When do customers use price more? - ANSWER-When that can't judge
,the quality of a product
What is an example of a good with a psychological value? -
ANSWER-Rolex
What are the 3 reasons to cut prices? - ANSWER-1. Excess capacity, 2.
Falling market share, 3. Dominate market through lower prices
What are the 2 reasons to increase prices? - ANSWER-1. Cost inflation,
2. Over-demand (company cannot supply all customers' needs
Set of interdependent organizations organizations involved in the
process of making a product or service available for use or
consumption by the consumer or business user. - ANSWER-
Distribution Channel
Intermediaries used for distribution channels - ANSWER- Contacts,
Experience, Specialization, Scale of operation
What is an example of Channel of Distribution? - ANSWER- Orbit
irrigation products use Home Depot as their Channel of Distribution
"What should the channel look like?" answers what question? -
ANSWER-Channel Design
"How do I get the channel partners to do what I want them to do?"
answers what question? - ANSWER-Channel Management
, Intensive products - ANSWER-have it available in a lot of any location:
Doritos
Exclusive products - ANSWER-going to be picky about where this
product can be sold (prestige): Rolex
Selective products - ANSWER-somewhere in between intensive and
exclusive: Polo
What 4 tasks do manufacturers want performed in the channel of
distribution? - ANSWER-1. Product availability, 2. Promotional effort, 3.
Customer effort, 4. Market information
From producer to consumer - ANSWER-Portland farmers market
From producer to retailer to consumer - ANSWER-Levi's to JC Penny to
consumers
Producer to Wholesaler to Retailer to Consumer - ANSWER- Budweiser
has to be sold through a distributor, then to Kroger, then you consumer
Product and Service Producers are Bypassing Intermediaries and Going
Directly to Final Buyers or That New Types of Channel Intermediaries
are Emerging to Displace Traditional Ones - ANSWER-
Disintermediation
What is an example of Disintermediation? - ANSWER-Estee Lauder
allows you to chose how often to auto replenish your lotion by going
straight through their website (no retailer)
