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READ THE PASSAGE CAREFULLY! Answer: What have you learned from the passage? What are your suggestions?

READ THE PASSAGE CAREFULLY! Answer: What have you learned from the passage? What are your suggestions?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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READ THE PASSAGE CAREFULLY! Answer: What have you learned from the passage? What are your suggestions? The major purpose of transportation is to make food products useful by Transporting them from the farm or processor to the customer. In transporting food products, the primary concerns are the cost and the time it takes to move them from the farm to the processing and consuming centers. Transportation time and costs influence the location of production centers, the market area served, the qualities and sizes of products shipped to market, the form in which they are marketed, and the kind and type of transportation service used. There are listed effects of transportation cost. These are: 1. Location of production Conventionally, the location of production and the specialization in farm production are explained by the principle of comparative advantage. However, comparative advantage has been shown to be unstable, and shifts in production have changed over time. 2. Market area served. The cost of transportation determines not only location differentials but also the markets that will be served by a particular because farmers will be producing area. This is always look for markets offering the highest price net or transportation cost. 3. Form of product marketed. Transportation costs may be altered by a change in the form of the marketed product thereby partially overcoming the importance of these costs in determining both the location of production centers and the market areas to be served. Often the relationships between the rates for different forms of the same Commodity are of greater concern to producers than their overall level. If it costs more to transport corn than hogs, corn will be fed and marketed in the form of hogs. The heaviest hogs will likely come from areas farthest from the market. 4. Size and quality of product marketed. Just as transportation costs influence the form in which a product will be marketed from a particular area, they also influence the sizes and qualities of a product that will be marketed/harvested or produced. On the other hand, WHO PAYS TRANSPORT COST? When an increase or decrease in transportation cost is anticipated, the argument often arises as to who will benefit or lose the producer or the consumer. Producers maintain that they have to pay increases in costs because the prices they get for their products are determined in the marketplace, and the costs of getting products to the market must, therefore, come out of the price they receive. In support of their argument, they can submit the many transportations bills they have paid. Consumer interest, on the less to other hand, argues that the higher transportation costs cause producers to shin market, with the result that the higher prices in the marketplace reflect the added T fact that there is an element of the truth in both arguments adds transportation cost. The fact that there is an element of the truth in both "fuel to the fire."
Transcribed Image Text:READ THE PASSAGE CAREFULLY! Answer: What have you learned from the passage? What are your suggestions? The major purpose of transportation is to make food products useful by Transporting them from the farm or processor to the customer. In transporting food products, the primary concerns are the cost and the time it takes to move them from the farm to the processing and consuming centers. Transportation time and costs influence the location of production centers, the market area served, the qualities and sizes of products shipped to market, the form in which they are marketed, and the kind and type of transportation service used. There are listed effects of transportation cost. These are: 1. Location of production Conventionally, the location of production and the specialization in farm production are explained by the principle of comparative advantage. However, comparative advantage has been shown to be unstable, and shifts in production have changed over time. 2. Market area served. The cost of transportation determines not only location differentials but also the markets that will be served by a particular because farmers will be producing area. This is always look for markets offering the highest price net or transportation cost. 3. Form of product marketed. Transportation costs may be altered by a change in the form of the marketed product thereby partially overcoming the importance of these costs in determining both the location of production centers and the market areas to be served. Often the relationships between the rates for different forms of the same Commodity are of greater concern to producers than their overall level. If it costs more to transport corn than hogs, corn will be fed and marketed in the form of hogs. The heaviest hogs will likely come from areas farthest from the market. 4. Size and quality of product marketed. Just as transportation costs influence the form in which a product will be marketed from a particular area, they also influence the sizes and qualities of a product that will be marketed/harvested or produced. On the other hand, WHO PAYS TRANSPORT COST? When an increase or decrease in transportation cost is anticipated, the argument often arises as to who will benefit or lose the producer or the consumer. Producers maintain that they have to pay increases in costs because the prices they get for their products are determined in the marketplace, and the costs of getting products to the market must, therefore, come out of the price they receive. In support of their argument, they can submit the many transportations bills they have paid. Consumer interest, on the less to other hand, argues that the higher transportation costs cause producers to shin market, with the result that the higher prices in the marketplace reflect the added T fact that there is an element of the truth in both arguments adds transportation cost. The fact that there is an element of the truth in both "fuel to the fire."
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