Promotional pricing is a practice of reducing prices for a limited time period.

A company can manage internal factors such as costs, pricing aims of the firm, and diverse variables driven by other elements of marketing mix.

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

Products fall into three groups according to durability and tangibility, therefore the correct answer is C.

Economic stability is not one of the factors that could affect price decisions. Therefore the correct answer is A.

Toyota Motor Company purchases parts to use for its final product from other parties in the business markets. Therefore, the correct answer is B. 

Geographical pricing refers to setting different prices for consumers who are in different locations in order to cover high shipping costs. For instance, lower prices are charged for consumers who are close to oil refinery while higher prices are charged for ones who are far away. The correct answer is A.

Supply chain management is mainly the broader concept including the series of companies including suppliers, customers, and logistics service providers that work together to deliver a value package of goods and services to the endcustomer. Supply chain management is an important concept in today’s business systems due to its increasing importance in connecting and managing the related parties within the overall supply chain of a company. Supply chain management is defined as “the management of a network of relationships within a firm and between interdependent organizations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, services, finances and information from the original producer to final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction” As can be understood from the information given, the correct answer is A. The information about the other answer choices are as follows:

Exchange is the habit of achieving a desired object from someone by offering something in return.

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.

Marketing channels are classified into three groups as; communication channels, distribution channels and service channels

Distribution channels primarily focus on the movement of goods and services from the business to the consumers. Products and services need to be transported to the consumption points, namely to the customers. In the early stages of trade, the local markets where sellers and buyers come together and interact face-toface were existent. Such local markets are still available in various countries. However, together with the globalization, developments in logistics and supply chain systems and increasing levels of sophistication in products and services, need for intermediaries ensuring the products and the services reach the consumer at the right time, place and price that has emerged.

Corporate Vertical Marketing Systems join production and distribution functions under single ownership. In this case, the producer undertakes the functions of wholesaler or retailer. Therefore, the correct answer is B.

Referent power comes from manufacturer’s reputation in the market, and the distribution channel members are proud to be associated with the manufacturer and use this affiliation as a reference to obtain other sources, gain trust, show case success or get new customers. Therefore, the correct answer is B. 

A core product is the fundamental need or want that consumers satisfy by consuming the product or service. Therefore, the correct answer is A.

Five levels of the product include; the core product (also called basic product), the generic product, the expected product, the augmented product and the potential product.

Three main levels of market coverage are intensive, selective, and exclusive distribution. Intensive distribution means placing the products or services in as many outlets as possible considering the customers buying habits and preferences. Therefore, the correct answer is A.

Economic utility is the value or usefulness of a product in meeting customer needs and wants.

In value-based pricing, customers’ value is used to charge a price for a product. Because the strategy is customer-driven, starting point is consumer. There are two types of value-based pricing, good- value pricing and value-added pricing.

Price can be affected by many factors. These factors can be grouped as external and internal factors13. The external factors include market and demand structure, economic factors, competitors’ costs and prices, distribution channels, legal regulations, and societal concerns. No single company can affect external factors; therefore, companies should adapt them. On the other hand, a company can manage internal factors such as costs, pricing aims of the firm, and diverse variables driven by other elements of marketing mix. The correct answer is B.

Companies start to set prices by considering the whole marketing mix rather than just the product itself. In this way, profits can be maximized. There are six different product mix pricing strategies including product line pricing, by-product pricing, optional-product pricing, captive-product pricing, two-part pricing, and product bundle pricing. The correct answer is E.

The flows in the distribution channels are physical flow, possession flow, payment flow, information flow, and promotion flow. Therefore, the correct answer is E.