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169)Differentiatebetweenfixedcostsandvariablecosts.
Answer:Fixedcostsremainconstantwithvaryinglevelsofproductionor
sales.Variablecostschangewiththequantityofaproductproducedorsold.
170)Howdocompaniespriceexistingproducts?
Answer:Companiesmaypriceexistingproductsaboveprevailingmarket
prices,belowmarketprices,oratornearmarketprices.
priceskimmin
171)Whatisg?
Answer:Priceskimmingissettinganinitialhighpricetocoverdevelopment
andintroductioncostsandgeneratealargeprofitoneachitemsold.
penetrationpricing
172)Whatis?
Answer:Penetrationpricinginvolvessettinganinitiallylowpricetoestablish
anewproductinthemarket.
distributionmix
173)Whatisthe?
Answer:Thedistributionmixisthecombinationofdistributionchannelsthat
afirmselectstogetaproducttoendusers.
wholesaling
174)Define.
Answer:Wholesalingisanindependentoperationthatbuysproductsfrom
manufacturersandsellsthemtovariousconsumersorotherbusinesses.
175)Howdoesaspecialtystoredifferfromasupermarket?
Answer:Supermarketsstresslowprices,self-service,andwideselection;
specialtystorescarryonelineofrelatedproducts.
176)Howhavediscounthouseschanged?
Answer:Discounthousesbeganbysellinglargenumbersofitemsat
substantialpricereductionstocash-onlycustomers.Asname-branditemsbecame
morecommon,theyofferedbetterproductassortmentswhilestilltransacting
cash-onlysalesinlow-rentfacilities.Astheybecamefirmlyentrenched,they
beganmovingtobetterlocations,improvingdecor,sellingbetter-quality
merchandiseathigherprices,andofferingservicessuchascreditplansand
non-cashsales.
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