1. Removing the “middleman” in a distribution channel can lead to an increase in price for the end-user customer.

True False

2. The amount of time represented by each time period in an MPS plan must be equal

True or False

3. A health and beauty care product such as a new type of dental floss may have a slow rate of adoption because of its ‘low observability’.

True False

4. Before the i-Pod was introduced, mp3 players could only hold 33 songs, on average. The first generation i-Pod held over 1000 songs. The i-Pod was quickly adopted by consumers, because of its complexity.

True  False

5. Leprechaun Inc. plans to launch a new line of lawn ornaments, to be distributed through garden stores and mass merchandisers like Wal-Mart. Leprechaun has decided to spend $100,000 of its marketing budget on trade promotions and sales commissions, to motivate retailers to promote the ornaments. Relative to other firms in the industry, this is a huge amount. The remaining $1 million will be spent on advertising. This is a good example of “Pull” marketing.

True or False