Fast changing environment makes price changes necessary in some situations. Price changes involve price cut and price increase. Companies cut prices to increase sales and market share in case of excess capacity or insufficient demand. On the other hand, increased demand, inflation, or prices lack of supply cause price increase. Buyers react to price changes differently. Price increase can be perceived as high quality or eligibility while price cut can be considered as a low quality, old fashioned, or a less demanded product.

Product mix depth refers to the number of iPhone versions offered in the Apple Stores. Therefore, the correct answer is C.

There is a continuous flow in a distribution channel; thus, it resembles a pipeline. The work of the channel covers the performance of several marketing flows. The flows in the distribution channels are physical flow, possession flow, payment flow, information flow, and promotion flow.

Predatory pricing is to charge a too low price (sometimes below the cost) to drive a competitor out of business.

Market segmentation is a process of dividing the market into smaller groups that the members of each group are similar to each other as well as their reactions to the marketing mix of the company. Therefore, the correct answer is B.

Market-penetration pricing sets low prices to penetrate the market as much as possible. Therefore, the correct answer is D.

Sometimes two companies join together and use co-branding with two established brand names (e.g. Sony Ericsson).

All the options above, except B, are wrong since, cost is the lower limit of price. There are different kinds of costs including fixed costs, variable costs, and total costs. Fixed costs refer to costs which are independent from the level of production. Variable costs are the ones that vary based on production level. Total costs include both fixed costs and variable costs for a given production level. Average total cost is calculated  by adding fixed cost divided by unit sales to the variable cost. Therefore, the correct answer is B.

Price is the amount of money paid by consumers to possess a product or get a service. A broader definition is that; price is the total of all the values, which customers sacrifice in order to benefit from using or having a product or service.

Company should choose its orientation towards marketplace with five main categories; the production concept, the product concept, the selling concept, the marketing concept and the holistic marketing concept. Answer A 'the buying concept' is not true, it should be given as 'the selling concept', therefore it is the correct answer.

Price can be set between two limits. The upper limit is customer value while the lower one is cost.

The product mix of a company has four important dimensions:

• Product mix width

• Product mix length

• Product mix depth

• Product mix consistency

Markets are mainly divided into four categories as; consumer markets, business markets, global markets and nonprofit and governmental markets, so the correct answer is E. These markets are briefly explained:

Consumer Markets: Consumers are individuals who buy products or services for personal consumption. Since not all consumers are similar in terms of preferences, buying habits etc., marketers define their consumers’ characteristics through market segmentation based on demographic, psychographic, behavioristic and geographic criteria.

Business Markets: Business markets function differently than consumer markets. Their buying processes are particularly different. These markets consist of organizations that buy products or services for use in their own businesses or to make other products. For example, a dishwasher manufacturer might purchase steel, wiring, relevant equipment and so forth, as part of its final product from other parties in the business markets.

Global Markets: Companies realizing that they saturated in their local market have started to look for new opportunities in other regions of the world. Toyota Motors, McDonald’s, Adidas, or Nestle can be given as examples having global presence for many years. In global markets, companies focus on the selection and exploration of global marketing opportunities and utilize resources around the world for achieving competitive advantage. Toyota Motors started its business as a domestic marketer and then exported its cars to regional markets, then shifted to multinational markets and now company is a true global marketer building factories in foreign countries, employing local labor and complying to that country’s cultural environment. The companies in global markets face different requirements for buying and disposing of property, such as cultural, political differences as well as currency fluctuations.

Nonprofit and Governmental Markets: Nonprofit institutions are present for providing benefit to society and they are subject to different set of laws. Some educational institutions, charitable organizations and government agencies can be given as examples. For instance, Kızılay, Unicef or WWF offers different benefits to society. Kızılay provides aid for needy and defenseless people in disasters, Unicef specializes in promoting the practice of children’s rights. On the other hand, in governmental markets, the promised offering is reciprocated by tax offerings and other resources. Not only citizens, but also the stakeholders are influenced directly or indirectly by government legislation laws that are enacted.

Marketing channel is defined as sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

Rigby defined omni-channel retailing as: “an integrated sales experience that melds the advantages of physical stores with the information-rich experience of online shopping”, so the correct answer is A. The information about the orther answer choices are as follows:

The term bricks and mortar refers to the physical retail stores. Brick and click retailers are the retailers that operate both online store (the clicks) and offline the physical retail stores.

Distribution channels primarily focus on the movement of goods and services from the business to the consumers.

A marketing network includes the company and its supporting stakeholders (i.e. customers, employees, suppliers, distributors, university scientists, and others) with whom it has built mutually profitable business relationships.

The six steps in order in the price setting process are: Identifying pricing constraints and objectives, estimating demand and revenue, estimating cost, volume, and profit relationships, selecting an approximate price level, setting list or quoted price and making special adjustments to list or quoted price. Therefore, the correct answer is B.

Corporate Vertical Marketing Systems join production and distribution functions under single ownership. In this case, the producer undertakes the functions of wholesaler or retailer. An integration of an airline company with a travel agency or insurance company is an example for corporate VMS. The correct answer is A.

Ballou (1999) emphasizes that the objectives of logistics management as “getting the right goods or services to the right place, at the right time, and in the desired condition (undamaged) at the lowest cost and highest return on investment.”  The overall goal of logistics is to achieve a targeted level of customer service at the lowest possible total costs.