BUSA 330 quiz 5

Chet knows the pro shops selling his golf photography will "keystone" his products. He also knows sales will decline significantly if the retail price is greater than $200. The maximum wholesale price Chet can charge is:

$100

Benton manages a building supply company. He wants to invite twenty of his most valuable building-contractor customers to a golf outing and party. Benton will probably use the firm's __________ to identify these customers.

CRM database

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________ pricing strategy.

Competitor-oriented

For a JIT system to be successful, the firm and its vendors must:

Cooperation

When Brian took over the position of purchasing manager for Gray Lumber Company, a regional building materials supply company, he found a JIT system in place, but in spite of that the company had frequent problems related to inventory. Shipments were often late or incomplete, there was little communication from the company's vendors, and only superficial attempts were being made to address the problems. For companies like Gray Lumber, the critical factor in having a successful JIT system is:

Cooperation

In a(n) __________ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases.

High; Low

Manufacturers use wholesalers and retailers because:

They create value through convenience

Merchandise that arrives in the delivery truck ready to be sold is considered:

Floor ready

Supply chain management adds value for customers by:

Getting products to customers efficiently

__________ is the practice of colluding with other firms to control prices.

Price fixing

Mira purchased some books online, and since then she often receives recommendations to buy other books when visiting the bookstore website. These recommendations were probably the result of:

All of these

Retailers use __________ to create an atmosphere that will offer a more pleasant shopping experience.

All of these

What is the primary function of a stock keeping unit (SKU)?

An SKU represents a unique inventory item in a store

Category killers are also known as:

Big-box retailers.

Cindy went shopping for a new outfit. She bought a low-priced shirt at a discount store, and combined it with an expensive designer skirt. Which of the following terms best describes Cindy's actions?

Cross-shopping

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) __________ system.

Electronic data interchange

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments and operating in low-rent locations.

Extreme value retailers

Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will likely focus on:

In-store promotions

The fact that millions of consumers are using online search engines for comparison shopping has:

Increased price elasticity of demand

Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because:

It happens behind the scenes

Ferrari and Lamborghini are manufacturers of very expensive automobiles. Their limited edition cars often sell for $300,000 or more. For most consumers, these are prestige products, and demand is likely to be:

Price inelastic

The food and beverage manager at an upscale country club once offered a two-for-one happy hour price for all alcoholic beverages, only to see a very little response to the special. For these consumers, demand for alcoholic beverages is:

Price inelastic

Because there are only a few firms in markets with oligopolistic competition:

Price wars may occur

In which of the following levels of competition does one firm control the industry and restrict competition?

Monopoly

Today, most successful retailers concentrate on providing:

More value to their best customers

The commercial airline industry is considered what type of market?

Oligopoly

Zara's success as a clothing retailer derives from its innovations in the retail area and its mastery of supply chain management. Zara __________.

Operates its own flexible worldwide distribution network

Traditionally, logistics has been the responsibility of:

Operations

__________ measures consumers' sensitivity to price changes.

Price elasticity of demand

Retailers' coupons, rebates, and online discounts are types of:

Pricing promotions

Variable costs, primarily labor and materials, are those costs that vary with:

Production volume

At the break-even point:

Profits are zero

José has been a manufacturer's representative for over 20 years. He was ecstatic when he got electronic access to his manufacturer's inventory. This allows him to avoid the supply chain problem of:

Promising delivery of products that are not available

For consumers, logistical management activities including inventory control, warehousing, and transportation, are:

Rarely visible because they take place outside retail locations

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively:

Reduced the price elasticity of demand for its product

Retailers with strong brand names of their own might operate outlet stores to:

Sell excess inventory that might have to be sold at markdown prices in regular stores

In which of the following categories would a dry cleaning business be placed?

Service retailer

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price:

Skimming

When Apple Computer Company introduced the iPhone--a combination phone, MP3 player, and Internet access device--in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy.

Skimming

One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market.

The right mix of merchandise and services

Customers have little knowledge of or concern for inventory control. Customers want:

The right products that meet their needs

In marketing's four Ps, Place refers to all activities required to get:

The right products to the right customer when that customer wants it

Although conflict is likely to occur in any supply chain, it is generally more pronounced when:

The supply chain members are independent entities

The key factor distinguishing retailers from other members of the supply chain is that:

They sell to customers for their personal use

A(n) __________ is a 13-digit code retailers can use to track inventory.

UPC

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with more than 80 percent of the supercenters in the United States.

Walmart

An everyday low pricing strategy stresses the continuity of retail prices:

at a level somewhere between the regular price and the deep-discount sale prices competitors may offer.

Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as:

bait and switch.

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. Each firm weighs the comparative advantages and disadvantages of their offerings to determine whether to price above, equal to, or below the other hotel. In these markets, the hotels are using a __________ pricing strategy.

competitive parity

Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow:

customers to try before they buy.