Question

T Wiew 125% Zoom + Add Page HW TEET Insert Table Chart Text Shape Media Comment 23. When a seller offers a cash discount with terms of 3/10, n/60, this means that the buyer gets a discount of 10 percent if he pays his bill within 10 days; otherwise the entire amount is due in 60 days. 24. Time of the year and inventory levels affect pricing decisions. _25. Some firms let their competitors make pricing decisions for them. Part 2 - Multiple Choice (25 points) 26. Products that are readily available, low in price, heavily advertised, and quickly and frequently purchased by consumer are referred to as a. convenience b. marketing c. specialty d. shopping 27. Any name, term, sign, symbol, design or combination of these that is used to identify the products of a firm and to differentiate them from competing products is referred to as a a. brand b. capital item c. generic product d. specialty good 28. A brand that has been given legal protection so that its owner has exclusive rights to its use is called a: a. brand name b. generic name c. private brand d. trademark

Answer 1

26) These are Convenience goods. These are those goods that consumers buy easily without putting much of efforts and thoughts. For example, Newspaper, Magazines, Grocery items, etc. Companies need to spend a lot of money on advertisement to occupy the mind space of the customer so that customer can recall the brand name while taking any purchase decision. These type of products are readily available at every nook and corner of the street. So correct answer is (A) Convenience.

27) This is referred as Brand. In today's competitive world, it is very important for a company to differentiate themselves from other brands. This is often done with the help of brand. A brand helps a company to connect with the customers more easily and it helps in increased sales due to increased brand awareness and brand loyalty. For example, Nike, Puma, Adidas are popular brands and each of them have their own customer base. Nike has a symbol of right mark, Puma has a symbol of jumping tiger and Adidas has three strips in its logo. Hence, Brand is build by combination of words, symbol, sign, design or combination of either of them. So correct answer is (A) Brand.

28) It is known as Trademark. A trademark is a way for a company to legally protect the brand name so that no one can illegally use the same name without company permission. This is a very important for a company to trademark its brand so that the customer base can be maintained, otherwise, some other company can takeover the same brand name, hence taking away all customer base and loyalty into its court. Hence Correct answer is (D) Trademark.