BMGT350 Test 2 Practice Questions

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Internal factors that affect pricing include​ _________________.

The​ company's overall marketing​ strategy, objectives, and marketing mix

Which of the following is a pure tangible​ good?

Toothpaste

The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this​ goal, which of the following are logistical functional​ areas?

Warehousing, inventory​ management, transportation, and logistics information management

Which of the following statements about wholesaling is​ true?

Wholesalers must make decisions regarding their marketing mix

Progressive wholesalers recognize that their only reason for existing is to​ ____________________.

add value

Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply​ chain?

integrated supply chain management

New product commercialization takes much thought and planning. The first critical step in the commercialization process is​ ____________________.

introduction timing

When a product is in the maturity stage of the​ PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as​______________________.

modifying the market

Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale is known as​ ______________________.

shopper marketing

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​a(n) ______________ approach to new product development.

systematic

When setting marketing channel​ objectives, companies should state the objective in terms of​ ______.

targeted levels of customer service

To create successful new​ products, a company must​ _______.

understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

​________________________ is the first step in marketing channel design.

Analyzing consumer needs

Which of the following is NOT a product life cycle​ (PLC) stage?

Commercialization

Which of the following represents the four major classifications of retail​ organizations?

Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and franchise organizations

​_____________________ is the value of customer relationships that a brand creates.

Customer Equity

What is the overall goal when retailers choose their product​ assortment?

Differentiate the retailer while matching target​ shoppers' expectations

Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution​ strategy?

Exclusive

In which of the following is vertical​ conflict, conflict between different levels of the same​ channel, common?

Franchise organizations

Many vital and key functions are performed by marketing channels. Of the​ following, which is NOT one of those key​ functions?

Manufacturing and assembly

Which of the following statements concerning new products is​ correct?

Modified and improved products are considered new.

Which of the following represents a new trend in logistics to save​ costs, increase​ efficiencies, and gain faster and more effective access to global​ markets?

Outsourcing logistics functions

Kroger, headquartered in​ Cincinnati, Ohio, is one of the​ nation's largest grocery chains. It owns several brands sold in its​ stores, including Private​ Selection, Heritage​ Farm, and Simple. These brands represent which type of brand​ sponsorship?

Private Brands

What does the phrase​ "omni-channel buying calls for​ omni-channel retailing" imply for​ retailers?

Retailers should integrate all available shopping channels and devices into a seamless customer shopping experience.

Which of the following indicates the length of a​ channel?

The number of intermediary levels in the channel

Which of the following statements is correct concerning service marketers going​ global?

The trend toward growth of global service companies is expected to continue in the near future.

​_______________________ is an example of horizontal channel conflict.

A Subaru dealer complaining that another Subaru dealer is advertising in its territory

Which of the following correctly defines a​ product?

A product is anything offered to a market that might satisfy a need or want.

Channels often involve​ long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental​ changes?

Adaptability criteria

Best​ Buy, Home​ Depot, Petco, and Bed Bath​ & Beyond, which are actually giant specialty stores characterized by immense size and deep assortments of​ merchandise, are sometimes called​ _______________.

Category Killers

Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final​ buyer?

Channel levels

Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.

Corporate VMS

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using?

Good-value pricing

If the company has selected its target market and positioning​ carefully, then its marketing mix​ strategy, including​ price, will be fairly straightforward. Of the​ following, which is NOT one of the common pricing​ objectives?

Grabbing international market share

Which of the following is true regarding the​ price-demand relationship?

If demand is​ elastic, sellers will consider lowering their prices.

When, if​ ever, is price discrimination​ allowed?

If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

Groups of​ __________________ products consist of materials and​ parts, capital​ items, and supplies and services.

Industrial

Which of the following statements about new product development strategy is​ correct?

Innovation can be very expensive and very risky.

Which of the following statements regarding packaging is​ correct?

Innovative packaging can give a company an advantage over competitors and boost sales.

In determining product​ quality, what are the two dimensions of quality marketers must decide​ upon?

Level and consistency

When we see Hello Kitty on​ children's clothing, Disney characters on​ lunchboxes, and SpongeBob SquarePants on breakfast​ cereals, which form of brand sponsorship is being​ used?

Licensing

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy does it​ employ?

Line extension

Which of the following is a reason that producers use marketing channels and channel​ intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which stage of the PLC is characterized by peak​ sales, low costs per​ customer, high​ profits, mainstream​ adopters, and a stable number of competitors that are beginning to​ decline?

Maturity

Which of the following types of wholesalers are Independently owned businesses that take title to all merchandise​ handled?

Merchant Wholesalers

_____________________ software systems enable companies to coordinate their​ whole-channel marketing efforts.

Partner relationship management

​________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.

Perishability

Of the​ following, which is true about​ pricing?

Price competition is a core element of our​ free-market economy.

Retailers must decide on which three major product​ variables?

Product Assortment, Service Mix, Store Atmosphere

Which of the following makes up the retail marketing​ mix?

Product and services​ assortment, price,​ promotion, and location

Which of the following statements regarding the important decisions in the development and marketing of individual products is​ correct?

Product attributes that communicate and deliver benefits to the consumer include​ quality, features, and style and design.

​______________________ is the step of the new product development process during which a physical product is first developed.

Product development

​______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

Product stewards

Which of the following statements about retailer marketing decisions is​ correct?

Retailers identify three critical factors for retail​ success: location,​ location, and location.

Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying​ process?

Retailing

Which of the following does NOT represent one of the major trends and developments in​ retailing?

Social e-tailing

Which of the following would be an appropriate strategy during the growth stage of the product life​ cycle?

Spend a lot of money on product​ improvement, promotion, and distribution.

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

Target return pricing

Nailit Cosmetics is advertising its newest line of nail​ polishes, made from a​ nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for​ Nailit's line of​ polishes?

The desire to have beautiful nails

When the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________________.

The responsibilities of channel members

Which of the following is TRUE regarding​ omni-channel buyers?

They shift easily across online and​ in-store channels.

Of the​ following, which most closely describes the method by which companies engage and create benefits for their​ customers?

Value delivery network

​________________________ is one major objective associated with a​ market-penetration pricing strategy.

Winning large market share

After market strategy is​ developed, the next step of the new product development process is​ _______________.

business analysis

Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas.

crowdsourcing

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​_______________________.

dynamic pricing

Companies today see channel members as​ ______________ and practice strong partner relationship management.

first-line partners

Adding a new product line to an existing portfolio means that the line has​ __________________

increased product mix width

A service firm must orient and motivate its​ customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as​ _________________________.

internal marketing

The three functions of​ __________ include​ identifying, describing, and promoting the product.

labeling

The illegal practice of​ ______________________ is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business.

predatory pricing

When Apple introduced its iPhone​ X, it priced the new product at nearly​ $1,000, considerably higher than competing smart phones. Apple was pursuing a​ ___________________ new product pricing​ strategy.

premium pricing

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​soaps, lotions, and​ moisturizers).

product bundle

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models.

product line

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing.

promotional

Hotels and​ motels, banks,​ airlines, restaurants,​ colleges, hospitals, movie​ theaters, tennis​ clubs, bowling​ alleys, repair​ services, hair​ salons, and dry cleaners are all examples of​ ________.

service retailers

Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of​ media?

social shopping retailing

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​asking, "Can we sell it for​ that?"

target costing

When Dr. Lawncare developed his revolutionary new​ solar-powered lawnmower, he expected that during the growth stage of the product life cycle​ ___________.

the company would see rising profits

UPS uses​ _________________, which charges different prices for shipping depending on an​ item's destination. The more distant the city where the package is being​ shipped, the higher the price UPS charges.

zone pricing

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

Administered VMS

Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand​ equity?

Co-branding

Which type of consumer products are frequently purchased with little​ planning, little comparison or shopping​ effort, and low customer​ involvement?

Convenience products

Intuit​ Labs, a division of​ Intuit, the accounting and payroll software​ developer, follows a​ "Design for Delight​ (D4D)" development​ philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit​ using?

Customer-centered new product development

Which of the following refers to setting prices based on​ buyers' perception of value rather than on the​ seller's cos

Customer​ value-based pricing

_____________________ is a retailing technique of carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells.

Experiential retailing

​__________________ represent an internal source of new product ideas for a company.

Intrapreneurial programs

Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse​ logistics, which means it​ ____________________________.

Involves the entire supply chain management

Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as​ full-line forcing. Which of the following statements is true regarding​ full-line forcing?

It may or may not be legal.

The Great Recession of​ 2008-2009 had a profound effect on the economy and consumers. Of the​ following, which represents one of the major consumer trends resulting from the Great​ Recession?

It turned​ free-spending consumers into​ value-seeking ones.

A discount store​ (for example,​ Target, Kohl's, or​ Walmart) sells standard merchandise at lower prices. To do​ this, discount stores accept which of the following two​ conditions?

Lower margins and higher sales volume

Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing​management?

Maturity

When​ Coca-Cola saw the growth of the​ bottled-water category, it launched DASANI​Ò​, its brand of bottled water. Which brand development strategy did​ Coca-Cola use in launching​ DASANI?

New brand

Which of the following retail trends is making differentiation more​ difficult?

Retail convergence

Which of the following statements is true regarding standardizing products for international​ markets?

Standardization decreases product​ design, manufacturing, and marketing costs.

_______________________ entails managing upstream and downstream​ value-added flows of​ materials, final​ goods, and related information among​ suppliers, the​ company, resellers, and final consumers.

Supply chain management

Which of the following statements regarding socially responsible product decisions is​ correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.

​Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called​ "high-low pricing." Which of the following correctly describes​ high-low pricing?

The retailer charges higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.

Which of the following statements about service marketing is​ correct?

Training current employees better and hiring new ones with more skills can increase service productivity.

Which of the following statements regarding managing service quality is​ correct?

Unlike product quality, service quality will always vary

​New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing?

Value-added pricing

Service​ _______ means that the quality of services depends on who provides them as well as​ when, where, and how they are provided.

Variability

The quality of services depends on who provides them as well as​ when, where, and how they are provided. Which characteristic of services does this​ describe?

Variability

A(n) _____ consists of​ producers, wholesalers, and retailers acting as a unified system.

Vertical marketing system

Which of the following is considered part of an augmented product rather than that of an actual product or core customer​ value?

Warranty

In the early​ 1970s, Gary Dahl sold Pet Rocks. The product had a​ short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product​ popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as​ ________________.

a fad

A company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else's product through​ _______________________.

acquisition

Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about​ wine, she will likely use the price of the wines as​ ________.

an indicator of quality

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing.

captive-product

After segmenting and defining their target​ markets, retailers must then​ ____________________.

decide how they will differentiate and position themselves

Ad agency Young​ & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand​ ___________ is defined in terms of how highly consumers regard and respect the brand.

esteem

Which of the following statements is true regarding product life cycle​ curves?

he sales of a typical product follow an​ S-shaped curve made up of five stages.

Crowdsourcing is used in the​ _______________________ step of the new product development process.

idea generation

When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​______________________.

location-based pricing

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

market-penetration pricing

The massive shift in how and where people buy calls for​ __________________________.

massive shifts in how store retailers operate

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing.

optional-product

One of the primary advantages of marketing logistics is​ __________________.

potentially high cost savings and improved customer satisfaction

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________.

price discrimination

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​_______________.

price-fixing

By performing the channel function of​ ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.

selling and promoting

When a company lengthens a product line by adding more items beyond its current​ range, it is​ ________.

stretching the line


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