When Manufacturers Market Their Product Lines Using Transactional Websites, They

question 15

Multiple Choice

When manufacturers market their product lines using transactional websites, they often

• A)cooperate with retailers.
• B)run the risk of breaking anticompetitive laws, such as the Clayton Act.
• C)keep their websites as simple as possible.
• D)change their pricing strategy from a skimming to a penetration pricing strategy.
• E)employ the services of Internet warehouses so they do not have to maintain title to the goods.

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Definitions:

Direct Materials

Costs of raw materials that are directly used in the production of a product, easily traceable to the product being manufactured.

Direct Labor

The labor costs directly associated with the production of goods or services, including wages of workers directly involved in production.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, labor, and other expenses.

Insurance

A contractual agreement where one party, the insurer, agrees to compensate another, the insured, for loss on a specified subject by specified perils in return for a premium.