Selecting one or more geographical locations from which the list price for products plus
freight expenses are charged to the buyer is referred to as __________.
a. FOB origin pricing
b. basing-point pricing
c. single-zone pricing
d. multiple-zone pricing
e. freight absorption pricing
Answer:
The third consideration in choosing a marketing channel is profitability, which is
determined by the margins earned for each channel member and for the channel as a
whole. Based on this information, which of the following statements would be most
accurate?
a. The more responsibilities a channel member takes in terms of distribution,
advertising, and selling expenses, the greater the potential for manufacturer
profitability.
b. The more responsibilities the manufacturer assumes relative to its channel members,
the greater the potential for profitability.
c. The extent to which channel members share costs determines the margins received by
each member and by the channel as a whole.
d. While channel members can increase profitability by taking on distribution and
selling expenses, advertising expenses should always remain with the manufacturer if a
firm is looking for the greatest profitability.
e. Profitability is not related to the length or nature of the distribution chain but