商务英语复习题12.docVIP

169) Differentiate between fixed costs and variable costs. Answer: Fixed costs remain constant with varying levels of production or sales. Variable costs change with the quantity of a product produced or sold. 170) How do companies price existing products? Answer: Companies may price existing products above prevailing market prices, below market prices, or at or near market prices. 171) What is price skimming? Answer: Price skimming is setting an initial high price to cover development and introduction costs and generate a large profit on each item sold. 172) What is penetration pricing? Answer: Penetration pricing involves setting an initially low price to establish a new product in the market. 173) What is the distribution mix? Answer: The distribution mix is the combination of distribution channels that a firm selects to get a product to end users. 174) Define wholesaling. Answer: Wholesaling is an independent operation that buys products from manufacturers and sells them to various consumers or other businesses. 175) How does a specialty store differ from a supermarket? Answer: Supermarkets stress low prices, self-service, and wide selection; specialty stores carry one line of related products. 176) How have discount houses changed? Answer: Discount houses began by selling large numbers of items at substantial price reductions to cash-only customers. As name-brand items became more common, they offered better product assortments while still transacting cash-only sales in low-rent facilities. As they became firmly entrenched, they began moving to better locations, improving decor, selling better-quality merchandise at higher prices, and offering services such as credit plans and non-cash sales. 177) What is a catalog showroom? Answer: Catalog showrooms mail catalogs to attract customers into showrooms to view display samples, place orders, and wait briefly while clerks retrieve orders from attached warehouses. 178) Explain direct-response retailin