Which of the following statements about Pull strategy is NOT true? When the manu
ID: 433104 • Letter: W
Question
Which of the following statements about Pull strategy is NOT true?
When the manufacturer tries to promote a product to the distributors (such as retailers) by
giving slotting fees, allowances, quantity discount, etc, they are using a Pull strategy.
Pull strategy is usually more effective for a high-end product.
When the manufacturer tries to promote a product to the end customers by focusing on TV
commercials, print ads, coupons, etc, they are using a Pull strategy.
______ is an example of Second Degree Price Discrimination.
Auction sites such as EBay where the buyer could put his maximum reservation price.
The regular membership price for the Metropolitan Museum of Art in NYC (the Met) is
$55, and the Students Discount price is only $45.
The pharmaceutical company, GlaxoSmithKline, charged different prices for its Aids
drugs in different markets. In developed countries, the price is approximately $10,000 per patient per
year, and in Africa, the price is $1,000 per person per year.
In the Publisher License Agreement contract signed between Microsoft and other game
publishers, Microsoft offers quantity discount to its game publisher. If the publisher's order quantity is
between 0 to 10,000 units, the price would be $20 per unit; if the publisher's order falls between 10,001
and 25,000 units, the price becomes $18 per unit; if the publisher could order more than 25,000 units, the
price drops to $15 per unit.
When the manufacturer tries to promote a product to the distributors (such as retailers) by
giving slotting fees, allowances, quantity discount, etc, they are using a Pull strategy.
Pull strategy is usually more effective for a high-end product.
When the manufacturer tries to promote a product to the end customers by focusing on TV
commercials, print ads, coupons, etc, they are using a Pull strategy.
______ is an example of Second Degree Price Discrimination.
Auction sites such as EBay where the buyer could put his maximum reservation price.
The regular membership price for the Metropolitan Museum of Art in NYC (the Met) is
$55, and the Students Discount price is only $45.
The pharmaceutical company, GlaxoSmithKline, charged different prices for its Aids
drugs in different markets. In developed countries, the price is approximately $10,000 per patient per
year, and in Africa, the price is $1,000 per person per year.
In the Publisher License Agreement contract signed between Microsoft and other game
publishers, Microsoft offers quantity discount to its game publisher. If the publisher's order quantity is
between 0 to 10,000 units, the price would be $20 per unit; if the publisher's order falls between 10,001
and 25,000 units, the price becomes $18 per unit; if the publisher could order more than 25,000 units, the
price drops to $15 per unit.
Explanation / Answer
1.
A
Pull strategy is used to communicate with the consumers who will consume the product. It is not used for the components of the distribution network such as wholesalers and retailers.
2.
D
Microsoft is offering discounts in price on the basis of quantity. Hence, it is a case of 2nd degree price discrimination.
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