Which of the following statements regarding cost-savings sharing is false?
a. Cost-sharing approaches require joint identification of the full cost to produce an item.
b. Profit is a function of the productive investment committed to the purchased item and a supplier's asset return requirements.
c. The cost-based approach provides a supplier with incentives to pursue continuous performance improvement to realize shared cost savings and invest in productive assets.
d. Profit is a direct function of cost.
e. In the traditional market-based pricing approach, one party (usually the purchaser) seeks to capture all cost savings resulting from a supplier's improvement effort.
Question 2There are generally considered to be _______ reasons for making channel design decisions.
a. 10
b. 15
c. 18
d. 20
e. an indefinite number of
Question 3Motorola Inc, and Singapore's Flextronics International's relationship is best characterized as a
a. joint venture. c. marketing alliance.
b. manufacturing alliance. d. distribution alliance.
Question 4Tomas, a tennis player, has fractured his elbow and has been advised not to play tennis for a few months. He decides to temporarily dispose of his tennis racket until he has healed. In this case, which of the following should Tomas do to accomplish this?
A) He should sell his tennis racket.
B) He should rent his tennis racket.
C) He should throw away his tennis racket.
D) He should send his tennis racket to a recycling center.
E) He should give his tennis racket away.
Question 5Collection and observation of feedback is necessary only for interpersonal situations.
Indicate whether the statement is true or false
Question 6With _____, a product's allowable cost is strictly a function of what a market segment is willing to pay less the profit goals for the product.
a. penetration pricing
b. target pricing
c. market-share pricing
d. should-cost modeling
e. revenue pricing
Question 7For a producer of computer-based training programs for businesses, all of the following should precipitate a channel design decision except:
a. Development of a new product for the government market.
b. Deleting one training program from the product line.
c. Deciding to sell the current product line in Canada.
d. Merging the firm with another company that manufactures products for the business market.
e. Identifying home-based business owners as a new target market.
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