Business Exam 3 Quizlet

Price skimming is a price strategy often used in the maturity stage of the product life cycle.

False

Price skimming is often used as an inducement to get consumers to switch brands or companies.

False

Publicity is any information that a company issues to the media that is paid for by the company.

False

Agents are sales representatives for manufacturers or wholesalers and usually are hired on a commission basis.

True

Distribution strategy is another term for place strategy

True

The strategy that is based on the demand for the product and the cost of producing it is called the pricing strategy.

True

Transmissions purchased by the Snapper Inc. to build riding lawn mowers are called component parts.

True

Price is:

based on the expected value you will receive from your purchase

An ad for Virgin airlines shows a traveler sleeping comfortably in the airline's new seats. This ad is using _____ segmentation to appeal to its market.

benefit

Which of the following is an example of a capital product that would be found in a brewery?

bottling machine

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer has identified its potential market as blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes. Which segmentation variables are being used to identify the Topik target market?

demographic and psychographic

A marketer that took the city and the climate into consideration as marketing variables would be concerned about _____ segmentation.

geographic

Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation?

geographic

The goal of all promotion is to stimulate action

True

A manufacturers' representative is sometimes called a(n):

manufacturer's agent

_____ is the breaking down of large shipments of similar merchandise into smaller, more usable quantities that can be sold to consumers and end users.

Breaking bulk

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies

Brokers

What are the two distinct markets toward which sales promotions can be targeted?

Consumers and members of the marketing channel

Which of the following is NOT an element of the promotional mix?

Distribution

Buying Canon brand cameras because quarterback Archie Manning promotes that brand is an example of the use of benefit segmentation.

False

Market behavior is a term used to describe the actions people take in buying and using goods and services.

False

One-to-one marketing is synonymous with database marketing.

False

Personal selling is an element of the product strategy.

False

Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a large sales volume and prestige for the product.

False

The final stage of the selling process is closing the sale

False

The frequent reference to Chili's restaurants on the television show The Office is probably an example of co-marketing.

False

The goal in environmental scanning is to gather internal environmental data to identify future market opportunities and threats.

False

Which of the following is a type of sales promotion that can be used if the organization's goal is to increase brand loyalty?

Frequent-buyer programs

For most corporations, physical-distribution activities are usually the responsibility of the marketing department.

True

In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.

True

Public relations is the term used for any communication or activity designed to win goodwill or prestige for a company or person.

True

Sales promotion, advertising, and public relations are elements of the promotion strategy

True

Selling retirement plans to people over the age of 50 is an example of demographic segmentation.

True

Supply chain management plays a dual role. Its first role is as a communicator of customer demand that extends from the point of sale all the way back to the supplier. The second role is as a physical flow process that engineers timely and effective movement of products

True

The first step in the consumer decision-making process for buying sandals would be for the weather to turn hot and me to realize I have no footwear that doesn't make my feet sweat.

True

The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately.

True

The marketing concept emphasizes a consumer orientation.

True

Managerial accounting provides information that would probably be most beneficial to:

a middle manager of the company

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

a patent on titanium lock mechanism

The process of packing 3 16-ounce bottles of Hershey chocolate syrup in super-sized packages like those sold at Sam's and Costco is an example of:

accumulating

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

agent

An example of a convenience product is a:

bar of soap

Which of the following business products would be considered an accessory in the offices of a travel agency?

filing cabinet

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

The _____ is based on the five P's.

marketing mix

American Pet Pro purchases pet grooming supplies from various manufacturers, sorts them, and resells them to retailers. American Pet Pro is a(n) _____ wholesaler.

merchant

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are:

merchant wholesalers

Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May. Sales discounts amounted to $18,000. There were no returns. The difference, $102,000, is Nevada Silver's:

net sales

Which of the following is an example of in-store retailing?

none of the above

Fixed assets are property and buildings that a firm expects to use for more than:

one year

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

Which of the following is considered an expense item for a dentist's office?

peroxide for whitening teeth

A face-to-face sales presentation of a good or service to a prospective customer is called:

personal selling

Which of the following is an example of an individual factor that influences the consumer decision-making process?

personality

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

The two new-product pricing strategies most often used by marketers are:

price skimming and penetration pricing

Everything owned by the business

Assets

Information promotion is more common in the early stages of the product life cycle.

True

Internet retailing is also called e-retailing.

True

What the business owes to others

Liabilities

_____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

Market segmentation

Chewing gum, flashlight batteries, sewing needles, and adhesive tape are considered convenience products.

True

The worth of a business

Owner's equity

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

Personal selling costs can be adjusted by controlling the size of the sales force.

_____ pricing is the strategy of increasing the price of a product so that consumers will perceive it being of higher value.

Prestige

Channels of distribution make distribution easier by performing all of the following functions EXCEPT:

Production

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

Ratio analysis

A product is any good or service, along with its perceived attributes and benefits, that satisfies wants

True

A target market is a specific group of consumers toward whom a firm directs its marketing effort.

True

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

product and promotion

The _____ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.

product manager

The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

promotional mix

American Handgunner, Shooting Industry and Guns Magazine are all periodicals aimed at people who enjoy hunting and target shooting and want to improve their skills and stay current in the latest technology. These magazines use _____ segmentation.

psychographic

The Sarbanes-Oxley Act:

restricts the types of nonaudit services auditors can provide audit clients

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio?

2 times

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users.

True

An intermediary that takes possession and title of goods is called a merchant wholesaler.

True

Sales promotions are marketing events or sales efforts that stimulate consumer buying.

True

A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):

account payable

Amounts owed to the firm by customers who bought goods and services on credit are called:

accounts receivable

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

acid-test

When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The Web site O'Hare visited used _____ to make trip planning easier and more economical.

bundling

As a promotional tool, podcasting offers the advantage to listeners of:

convenience

The ratio of total current assets to current liabilities is called the _____ ratio.

current

Victorinox is the name of the company that manufacturers Swiss army knives. The _____ channel the company utilizes to get its knives to market is to wholesalers, than to retailers, and finally to consumers.

distribution

In accounting, every transaction must be recorded as two entries. This system is called:

double-entry bookkeeping

What is the final step in the selling process?

following up on sales

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

pricing

Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes. By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers. The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

pricing

Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition. In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas. In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus. By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

product

The first step in the selling process is to:

prospect and qualifying

In which of the following industries are you most likely to find a broker?

real estate

The two main types of operating expenses are:

selling and general and administrative

Reports the operation's efficiency and profitability

the income statement

When compared to the consumer market, the business-to-business market:

uses more direct channels of distribution

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

Create awareness

A retailer is showing concern for a store's atmosphere when he considers the type of store fixtures to have, the size and type of signage to use, the type of background music to play, and the number and type of employees to hire.

True

An example of nonstore retailing is the vending machine from which you purchased a soda.

True

Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.

True

Blogs provide marketers with a real-time dialogue with customers and an avenue to promote their products

True

Types of promotional goals include creating awareness, increasing the use of products, and identifying potential customers

True

When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of the use of a line extension strategy.

True

When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

distribution

The _____ is a series of marketing entities through which goods and services pass on their way from producers to end-users

distribution channel

A company in Maine builds portable drilling platforms used to locate new oil fields underwater. To build a platform, the company had to construct a specially designed dock with a large permanently-placed crane able to lift a twenty ton structure on to its floating base. This expensive dock and crane are examples of:

installations

Integrated marketing communications (IMC):

is accurately described by all of the above

Which of the following is NOT a type of retailer?

manufacturer's representative

On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called _____ expenses.

general and administrative

Which of the following is an example of nonstore retailing?

home shopping network