D174 / D 174 Objective Assessment (Latest Update 2025 / 2026) Marketing Management | Review Questions and Answers | Grade A | 100% Correct (Verified Answers) - WGU
Question:
A business sets prices based on the cost to produce products plus a markup percentage.
Which price setting approach is the business using?
- Cost-plus pricing
- Demand-based pricing
- Average-cost pricing
- Target return pricing
Answer:
- Cost-plus pricing
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Question:
What are two goals of supply chain?
Answer:
- Efficiently delivering products/services
- Adequately supplying to meet demand
Question:
Types of Intermediaries
Answer:
- Middleman
- Merchant Middleman
- Agent
- Manufacturers Agent
- Distribution
- Wholesaler
- Jobber
- Facilitating Agent
- Retailer
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Question:
What are the five ways channel intermediaries contribute to physical distribution?
Answer:
- Breaking bulk
- Accumulating bulk & Sorting
- Creating assortments
- Reducing transactions
- Transportation & Storage
Question:
Franchising
Answer:
A contractual agreement in which a firm provides a contracted company in a foreign market with a bundle of products, systems, services, and management expertise in return for local market knowledge, financial consideration, and local management expertise.
Question:
Licensing
Answer:
When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales. 3 / 4
Question:
Outsourcing (Third-party logistics, 3PL)
Answer:
Handing over one or more of its core internal functions, such as most or all of its supply chain activities, to other (third-party) companies that are experts in those areas allows the firm to better focus on its core business.
Question:
Disintermediation
Answer:
The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, is common in the electronic channel.
Question:
Reintermediation
Answer:
The addition of intermediaries to the distribution channel.
Can occur for two reasons:
- the internet and creation of new digital products and services
- potential problems with the e-commerce disintermediation concept.
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