IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1071:

  Which of the following pricing policies results in setting freight charges to customers at the actual average freight cost?

  A. Freight absorption pricing.

  B. Uniform delivered pricing.

  C. Zone pacing.

  D. FOB-noggin pacing

  Correct Answer: B

  In uniform delivered pricing, the firm charges the same price, inclusive of shipping costs, to all customers regardless of their location. This price is the firm's average actual freight cost. Thus, both nearby and distant customers are charged the same amount. This policy is easy to administer, permits the firm to advertise one price nationwide, and facilitates marketing to faraway customers.

• Question 1072:

  Effective design of distribution channels involves balancing many factors. Accordingly, the firm should

  A. Emphasize a push strategy by motivating customers to pressure intermediaries to sell the firm's products.

  B. Adopt a pull strategy by pressuring intermediaries to sell the firm's products.

  C. Decrease costs by increasing service outputs.

  D. Select channels that reach different segments.

  Correct Answer: D

  Channels are very diversified, and each has specific strengths and weaknesses that must be evaluated in deciding on the channel mix. Preferably, each channel En the mix should reach different segments with appropriate products at minimum cost. An objective is to avoid channel conflict, loss of control and excess cost.

• Question 1073:

  Multichannel marketing

  A. Is ownership of channels by multiple cooperating firms.

  B. Introduces conflict when channels compete for customers.

  C. Tends to increase coverage and cost.

  D. Improves control by customizing the selling process.

  Correct Answer: B

  Conflict in the channel may be vertical (between different levels), horizontal (between firms on the same level), or multichannel (between different channels). Channels may compete for the same customers and be unwilling to cooperate, espy dally when they have been added recently.

• Question 1074:

  Different firms in a distribution channel system play different roles. The firms least likely to respect the industry code of conduct are

  A. Transients.

  B. Strivers.

  C. Complementary

  D. Insiders.

  Correct Answer: A

  A transient enters the dominant channel only when it perceives an opportunity It is not a member and has only short-term objectives Thus, it is less likely than other participants to abide by the industry code of conduct.

• Question 1075:

  The form of distribution channel organization characterized by substantial overall control by one channel member is a

  A. Conventional marketing system (CMS)

  B. Horizontal marketing system (HMS).

  C. Vertical marketing system (VMS).

  D. Multichannel marketing system (MMS)

  Correct Answer: C

  A CMS consists of separate, independent members that do not control the others. A VMS differs because it is a coordinated system with a channel captain that has the substantial ability to control other members behavior. The effect is to eliminate members pursuit of conflicting objectives. Use of VMSs is the norm in the U.S. consumer market

• Question 1076:

  A distribution channel

  A. May consist only of a producer and an ultimate customer

  B. Performs sales and goods delivery functions only.

  C. Is chosen after other marketing policies are determined.

  D. Performs functions that involve only forward flows of activities

  Correct Answer: A

  Direct marketing (a zero-level channel) is the simplest distribution channel. Because direct marketing emanates all intermediaries, it consists only of a producer and an ultimate customer

• Question 1077:

  Market-based pricing bases prices on

  A. The choice of products offered as accessions and those offered as standard features.

  B. The products perceived value and the competitor's actions.

  C. A relativity low ratio of price to quality delivered.

  D. Differentiation of prices by geographic region.

  Correct Answer: B

  Market-based pricing bases prices on the product's perceived value and competitors' actions rather than on the seller's cost. Announce variables in the marketing mix (image, seller's reputation, warranties. customer service, and channel attributes) augment the perceived value

• Question 1078:

  II a US, manufacturers price in the U.S. market is below an appropriate measure of costs, and the seller has a reasonable prospect of recovering the resulting loss in the future through higher prices or a greater market share, the seller has engaged in

  A. Collusive pricing.

  B. Dumping.

  C. Predatory pricing

  D. Price discrimination

  Correct Answer: C

  Predatory pricing is intentionally pricing below cost to emanate competition and reduce supply. Federal statutes and many state laws prohibit the practice. The U.S. Supreme Court has held that pricing is predatory when two conditions are met (1) the seller's price is below an appropriate measure of its costs, and (2) it has a reasonable prospect of recovering the resulting loss through higher prices or greater market share.

• Question 1079:

  In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and delivery costs for the product'?

  A. By-product pricing

  B. Optional-product pricing

  C. Captive-product pricing

  D. Product-bundle pricing

  Correct Answer: A

  A by-product is a product of relatively minor importance generated during the production of one or more other products. Its production entails no additional costs. Any amount received above the storage and delivery costs for a by-product allows the seller to reduce the main products price to make it more competitive

• Question 1080:

  Which of the following price adjustment strategies is designed to stabilize production for the selling firm?

  A. Cash discounts.

  B. Quantity discounts.

  C. Functional discounts.

  D. Seasonal discounts.

  Correct Answer: D

  Seasonal discounts are designed to smooth prod chon by the selling firm.. For example, a ski I manufacturer offers seasonal discounts to retailers in the song and summer to encourage early lording.