21) The volume packs so typical of the products sold at Costco demonstrate multiple-unit pricing. A) True B) False 22) The geographic pricing arrangement of F.O.B. Destination sees the buyer paying for the costs of the freight. A) True B) False 23) A supplier pays a retailer a shelving allowance for the purpose of securing shelf space. A) True B) False 24) A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill-back. A) True B) False 25) "3/10, net 30" means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount. A) True B) False 26) The buying committee turned to the sales manager of a new line of cereals and stated that it would cost the company $50,000 to get the products listed and placed on their store shelves. The buying committee is asking for a slotting allowance. A) True B) False 27) A drug store gives a deodorant manufacturer's island display a prominent location. The manufacturer will probably give the drug store a discount called a performance allowance. A) True B) False 28) Buying Christmas merchandise in July takes advantage of seasonal discounts. A) True B) False 29) A supplier who wants to persuade a customer to buy a more sophisticated photocopier can do so without affecting the list price by offering a generous trade-in allowance. A) True B) False 30) Quantity discounts are illegal because smaller customers are unfairly treated. A) True B) False

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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21) The volume packs so typical of the products sold at Costco demonstrate multiple-unit pricing.

A) True

B) False

22) The geographic pricing arrangement of F.O.B. Destination sees the buyer paying for the costs of the freight.

A) True

B) False

23) A supplier pays a retailer a shelving allowance for the purpose of securing shelf space.

A) True

B) False

24) A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill-back.

A) True

B) False

25) "3/10, net 30" means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount.

A) True

B) False

26) The buying committee turned to the sales manager of a new line of cereals and stated that it would cost the company $50,000 to get the products listed and placed on their store shelves. The buying committee is asking for a slotting allowance.

A) True

B) False

27) A drug store gives a deodorant manufacturer's island display a prominent location. The manufacturer will probably give the drug store a discount called a performance allowance.

A) True

B) False

28) Buying Christmas merchandise in July takes advantage of seasonal discounts.

A) True

B) False

29) A supplier who wants to persuade a customer to buy a more sophisticated photocopier can do so without affecting the list price by offering a generous trade-in allowance.

A) True

B) False

30) Quantity discounts are illegal because smaller customers are unfairly treated.

A) True

B) False

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