All of the following factors encourage the emergence of graytrade EXCEPT

		substantial price differences between national markets.
		stringent localization modifications required for standardizedproducts.
		a limited availability of certain models or versions in onemarket, and the local demand is high.
		ease of transportation and importation.

Which of the following does not belong to consumer salespromotion?

		Personal selling
		Frequent-user incentives
		Manufacture rebates
		Sweepstakes
		Free samples

Scenario 1: Globe Travel Agency sells Spring Break trips toUniversity of Houston undergraduate
students. The fixed cost of Globe is $100,000 and its variable costis $400 for every student who takes
the trip Globe offers. The price elasticity of demand is -2.5 atall levels of price. At present, the price of
the trip is $600/student and, at this price, demand is 1200 units.Assume that the number of trips sold
always equals demand.
Please refer to Scenario 1. If the price is decreased to $588/unit,the new demand will be approximately
given by:

		1140 units
		1170 units.
		1230 units.
		1260 units

Scenario 3: Liz Claiborne
Liz Claiborne, Inc. markets several different brands, under theirown Claiborne name label, as well as
others. Their primary brands, such as Liz Claiborne, Liz & Co,and DKNY, are sold to wholesalers.
These brands are then available through retail department storessuch as Kohl's and Macy's. Their
wholesale-based brands division is positioned as customer-focusedand cost-efficient. Their premium
brands division includes labels such as Kate Spade, Juicy Couture,and Mexx. These premium brands are
sold through stores which the Claiborne company owns.
Please refer to Scenario 3: Liz Claiborne. The Liz & Co brandis sold only at J.C. Penneys' stores. This
is an example of ___________ distribution.

		selective
		routine
		horizontal
		intensive
		exclusive