Transfer pricing involves the sale of a product to another unit within the same
organization.
a. True
b. False
Scenario 17.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including
blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores
such as Kohl’s, Macy’s, and J.C. Penney through its own sales force. Kerry Wilson is
one of Presto’s salespeople, who is responsible for stores headquartered in Region 1 of
the U.S. Kerry, has just come from a monthly meeting where she has been informed
about the new stovetop grill that will be part of next season’s lineup. Presto’s marketing
department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include
television commercials which demonstrate the new grill, in-store rebates, and a
customer contest for the best grilled sandwich recipe. In addition, Kerry and other
members of the sales force will be given a free grill for their own home use so they can
become more familiar with the product. Presto is also offering a free trip to New York
City for their staff salesperson who has the highest dollar in sales to his or her stores. To
encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases
after the 60-day promotion is over. Kerry and the other sales force members are best
described as a sales force.
a. technical
b. missionary
c. trade