Physical Distribution Decisions May Impact

question 13

Multiple Choice

Physical distribution decisions may impact

• A) location decisions.
• B) target market selection.
• C) price decisions.
• D) channel of distribution decisions.
• E) physical distribution decisions may impact all of these.

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Definitions:

Skimming Pricing

A pricing strategy involving setting high prices initially to target consumers who are willing to pay more for new or unique products.

Innovative Product

A new or significantly improved product that meets unique customer needs or opens up new markets.

High Initial Price

A pricing strategy where a new product is introduced to the market with a relatively high price point in order to maximize revenues from early adopters.

Skimming Pricing Strategy

A pricing strategy that involves setting high prices initially to target early adopters and then lowering the price over time.