Question 1: What reason was given to explain the emergence of Fair Trade as a business model for importers?

• Opportunity to reach less-saturated markets.
• Consumers' desire for meaningful engagement.
• Expansion of the middle class.
• Ability to reduce risk from difficult-to-foresee threats.

Question 2: Which of the following examples BEST illustrates a permanent pricing strategy that uses reductions from base price?

• Placing sale signs near one third of the merchandise on display.
• Offering a discount for customers who pay cash.
• Posting prices ending in 9.

Question 3: When an intermediary in the distribution channel takes ownership of items, what is the impact on others in the supply chain?

• Other supply chain partners must undertake value-adding activities to convert inputs to outputs.
• The channel partner selling the items must generate transaction records, such as invoices and packing slips.
• The channel partner taking ownership must generate demand through retailer supports, such as product display materials.

Question 4: Which statement BEST describes the strategic objective of volume maximization?

• To generate as much profit (revenue) as possible in the near term.
• To generate as much sales volume as possible over time.
• To generate as much sales volume as possible in the near term.
• To generate as much profit as possible over the life of an offering.

Question 5: When price sensitivity differs among customers in different market segments, which type of pricing strategy gains in importance?

• Modified pricing strategy
• Variable pricing strategy
• Differing price variables
• Short-term variability

Question 6: The term "reference pricing" refers to

• The price consumers typically have in mind when they consider a fair exchange for the value offered by a specific good or service.
• The average price point consumers will calculate when researching a specific good or service.
• The practice by sellers of posting competitors' prices or offering a blanket promise to match
• other sellers' prices.
• The value customers assign based on their expectations of customer service and post-sale support in addition to product features

Question 7: Which answer BEST describes outbound licensing as a business
model?

• A business in U.S. contracts with a business in India for exclusive rights to market its products in the U.S.
• A business in U.S. contracts with a business in the U.S. for exclusive rights to market its products in India.
• A business in India contracts with inventors in the U.S. to develop new products to distribute in India.
• A business in U.S. contracts with a business in India for exclusive rights to market its products in South America.