All of the following factors encourage the emergence of graytrade EXCEPT
| | substantial price differences between national markets. |
| | stringent localization modifications required for standardizedproducts. |
| | a limited availability of certain models or versions in onemarket, and the local demand is high. |
| | ease of transportation and importation. |
Which of the following does not belong to consumer salespromotion?
| | Personal selling |
| | Frequent-user incentives |
| | Manufacture rebates |
| | Sweepstakes |
| | Free samples |
Scenario 1: Globe Travel Agency sells Spring Break trips toUniversity of Houston undergraduate
students. The fixed cost of Globe is $100,000 and its variable costis $400 for every student who takes
the trip Globe offers. The price elasticity of demand is -2.5 atall levels of price. At present, the price of
the trip is $600/student and, at this price, demand is 1200 units.Assume that the number of trips sold
always equals demand.
Please refer to Scenario 1. If the price is decreased to $588/unit,the new demand will be approximately
given by:
| | 1140 units |
| | 1170 units. |
| | 1230 units. |
| | 1260 units |
Scenario 3: Liz Claiborne
Liz Claiborne, Inc. markets several different brands, under theirown Claiborne name label, as well as
others. Their primary brands, such as Liz Claiborne, Liz & Co,and DKNY, are sold to wholesalers.
These brands are then available through retail department storessuch as Kohl's and Macy's. Their
wholesale-based brands division is positioned as customer-focusedand cost-efficient. Their premium
brands division includes labels such as Kate Spade, Juicy Couture,and Mexx. These premium brands are
sold through stores which the Claiborne company owns.
Please refer to Scenario 3: Liz Claiborne. The Liz & Co brandis sold only at J.C. Penneys' stores. This
is an example of ___________ distribution.
| | selective |
| | routine |
| | horizontal |
| | intensive |
| | exclusive |
