MAR3023 2012 Final

Shoes R Us, a retail outlet, offers shoes for men, women, and children in many sizes and foot widths. It offers running, cross training, walking, golf, and other types of shoes. This an example of the __________ that Shoes R Us offers to its customers. A. synergies B. breadth of product line C. versatility of product line D. depth of product line E. corporate footprint

D

ASOS.com is an online-only fashion retailer that started in the UK. They plan to build physical stores in the future. They enjoy huge profits compared to other retailers because they have a reputation for strong social media presence and for product variety. In a S.W.O.T. analysis, ASOS' strong social media presence and product variety are _____. A. Strengths B. Threats C. Strategies D. Weaknesses E. Opportunities

A

General Electric is looking to extend their business and sell refrigerators in India. After conducting some research on habits and behaviors in India, they discover that consumers place their refrigerators in different parts of the home (unlike the U.S. where consumers place their refrigerators in their kitchens). With this in mind, GE decides to market a variety of colors of refrigerators to satisfy the needs and wants of the consumers in India. Which type of global marketing approach is this? A. Multinational Marketing B. Transnational Marketing C. Consumer Preference Marketing D. International Marketing E. Global Marketing

A

Go to any Publix supermarket and walk down the cereal aisle. You will notice that four major brands—Kellogg's, Quaker, General Mills, and Post—occupy virtually all the shelf space. These cereals are all priced about the same. There is a good deal of product differentiation as the result of licensing agreements with movie studios (Disney, DreamWorks, etc.) and through the use of different health claims. The cereal industry is an example of what type of competitive market? A. an oligopoly B. pure competition C. a pure monopoly D. monopolistic oligopoly E. monopolistic competition

A

Hostess is planning on extending their marketing of Twinkies and other treats to other parts of the world. They decide to use the same marketing plan that is being used in the United States. Everyone loves a delicious Twinkie, so consumers should respond the same to a Twinkies ad no matter where they live in the world. Hostess is using which standardization model described in class? A. Pure Standardization B. Mixed Standardization C. Glocalization D. Transnational Standardization E. Pure Non-Standardization

A

Ronny's Cupcakes is a well-known bakery on the Jersey Shore that serves hundreds of customers a day. "Baking the tastiest and most scrumptious cupcakes in all of Jersey" is Ronny's Cupcakes': A. corporate mission B. corporate objective C. situational analysis D. tactical objective E. visionary aspiration

A

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as A. prestige pricing. B. value pricing. C. skimming pricing. D. status pricing. E. price lining.

A

The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as __________. A. marketing ROI (return on investment) B. situation analysis C. marketing ROA (return on assets) D. marketing response evaluation E. strategic marketing analysis

A

The detailed day-to-day operational decisions essential to the overall success of a firm's marketing effort are referred to as __________. A. marketing tactics B. marketing procedures C. marketing programs D. marketing plans E. marketing strategies

A

The local Abercrombie and Fitch was trying to figure out their stockturn rate for 2011. A&F's beginning inventory was $1,800 and ending inventory was $2,100. The cost of goods sold was $120,000. What was A&F's stockturn rate? A. 61.54 turns per year B. 57.14 turns per year C. 32.5 turns per year D. 30.77 turns per year E. 66.67 turns per year

A

The oldest retail setting, usually located in the community's downtown area, is referred to as A. historical commerce district. B. uptown center. C. community anchor. D. main street. E. central business district.

A

A __________ is essentially a sequence of linked suppliers and customers in which every customer is, in turn, a supplier to another customer until a finished product reaches the final consumer. A. supplier-customer alliance B. supply chain C. distributive cooperative D. demand chain E. logistical flow

B

A retail management approach in which a manager is assigned the responsibility for selecting all products that consumers might view as substitutes for each other, with the objective of maximizing sales and profits for that group of products is referred to as __________. A. capacity management B. category management C. retail inventory management D. automated inventory control E. product management

B

Bottom of the pyramid refers to A. the largest and most powerful socioeconomic group of people in the world whose combined buying power essentially dominates the world's economy. B. the largest, but poorest, socioeconomic group of people in the world. C. Physiological needs in Maslow's need Hierarchy. D. the tenth lowest firm, in terms of market share, within any given industry. E. the last link in the chain between the manufacturer and the ultimate consumer

B

Firehouse Subs currently holds 40% of the market share of sandwich shops in Gainesville. (Assume they also have 40% share of voice.) If they want to expand to 55% market share, they must increase their share of voice by: A. 42.5% B. 22.5% C. 26% D. 30% E. 15%

B

HDK Electronics has developed a new music listening device called the MP5. Instead of manufacturing and shipping the new device to China, they enter into a contract with a Chinese electronics company wherein HDK agrees to allow the Chinese firm to use its technology and brand name in exchange for royalty payments. The Chinese firm will finance all the production, distribution, and marketing in China. What global marketing strategy is HDK Electronics using? A. Exporting B. Licensing C. Direct Investment D. Globalization E. Joint Venture

B

Taylor's technology company is aimed at producing the maximum amount of computers per day and maintaining a high quality reputation. During the holiday season, many employees work overtime in order to meet the high demand for computers. As a result of these long, strenuous hours, many of the computers are not meeting Taylor's high quality standards. This problem is mainly due to which of the 7 Habits? A. Failure to Synergize B. Failure to Sharpen the Saw C. Failure to Put First Things First D. Failure to Think Win/Win E. Failure to First Understand, Then To Be Understood

B

The two types of channel conflict are A. producer and consumer. B. horizontal and vertical. C. transactional and promotional. D. external and internal. E. wholesaler and retailer.

B

Casey loves cats. For this reason Casey decides to open a cat emporium called MEOW! This store will sell everything from balls of yarn to scratching posts to little computers to watch MAR 3023 lectures on. Casey realizes that such a niche market is limited, so she decides to add a small section for dogs as well. Since she doesn't know anything about dog preferences, Casey decides to let her dog-goods supplier stock that area of the store. Casey is using which type of inventory management for her dog section? A. Outsourced management B. Manufacturers Representative C. Vendor-managed inventory (VMI) D. LIFO E. Just-In-Time (JIT) inventory

C

Christie loves her new iPhone but is very frustrated that she is hardly ever able to use FaceTime because she rarely has access to Wi-Fi in her home in rural New Mexico. Christie's frustration is due to: A. A weak Search Engine B. Lack of Internet Privacy concerns C. Lack of Bandwidth D. An "evil twin" E. Disintermediation

C

Cookie Monster currently has cookie sales of $10,000,000 each year. Assuming that their gross margin is $2,000,000, and that total industry sales are $40,000,000, how much would Cookie Monster be able to spend in additional marketing effort in order to expand its market share by three points and still break even? A. $120,000 B. $8,000,000 C. $240,000 D. $360,000 E. $80,000

C

Jenna wants to start a liquor store with her two friends Mia and Rachel. They are opening in Gainesville, so they have no doubt they'll be successful. Mia will be the main salesperson, Rachel will be in charge of ordering and stocking the shelves, and Jenna will develop a special rewards card to help college students save money. Who is performing which function in the distribution channel? A. Jenna - transactional, Mia - logistical, Rachel - facilitating B. Jenna - facilitating, Mia - facilitating, Rachel - transactional C. Jenna - facilitating, Mia - transactional, Rachel - logistical D. Jenna - transactional, Mia - facilitating, Rachel - logistical E. Jenna - logistical, Mia - transactional, Rachel - facilitating

C

Kacy, a Gator fanatic, has always had a dream to open a store that sells Gator jewelry. She has calculated that the rent will cost her about $1,500 per month and staff salaries will be about $2,000 per month. The variable cost per piece will come out to $10.00. She estimates that she will sell 350 pieces a month. If she sells all of her pieces each month and she wishes to earn a profit of $3,000 per month, what price should she charge for each piece of jewelry? A. $10.03 B. $18.57 C. $28.57 D. $20.00 E. $18.60

C

Price fixing refers to A. the practice of charging a very low price for a product with the intent of driving competitors out of business. B. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. C. a conspiracy among firms to set prices for a product. D. the practice of charging different prices to different buyers for goods of like grade and quality. E. a seller's requirement that the purchaser of one product also buy another product in the line

C

The North American Free Trade Agreement was designed to encourage free trade between A. North America and The Commonwealth of Independent States. B. member countries originally from NATO (North Atlantic Treaty Organization). C. the United States, Canada, and Mexico. D. the United States and the European Union. E. North America, Central America, and South America.

C

The law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country is referred to as the A. International Fair Practices Act. B. Law of International Equity Act. C. Foreign Corrupt Practices Act. D. International Law of Ethical Business Practices Act. E. Economic Espionage Act.

C

A form of retail ownership that involves multiple outlets under common ownership is referred to as a(n). A. administered system B. contractual system C. independent retailer D. corporate chain E. franchise system

D

A price war refers to A. competition between sellers and resellers to maintain or attain the largest market share of potential customers. B. when one channel member believes another channel member is engaged in pricing behavior that prevents it from achieving its profitability goals. C. conflicts between manufacturers and distributors regarding acceptable percentages they each may charge relative to one another. D. the successive price cutting by competitors to increase or maintain their unit sales or market share. E. the practice of replacing promotional allowances with lower manufacturer list prices.

D

According to the text, all of the following are examples of pricing constraints EXCEPT: A. demand for the product class, product, or brand. B. newness of the product (stage in its life cycle). C. competitors' prices. D. social responsibility. E. cost of producing the product.

D

Diversification analysis refers to A. a framework that identifies four "generic" strategies to achieve a competitive advantage. B. a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. C. a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive. D. a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. E. a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies

D

Electronic marketing channels refer to A. intranet systems linking all aspects of production within a single firm. B. manufacturers that specialize in the creation and production of microprocessors used in industrial markets. C. a firm's computer-driven inventory management through an entirely mechanized warehousing system. D. the use of the Internet to make products and services available for purchase or use by consumers or industrial buyers. E. the name given to all Internet addresses that end in ".com" to indicate the website is a commercial entity that distributes goods and services.

D

Fossil, an American manufacturer of clothing and accessories, has been particularly successful in developing a licensed watch line with popular designer Michael Kors. This licensing agreement added a new segment of contemporary fashion watches with retail prices ranging $65-$595. In line with the reputation of Michael Kors, these watches are sold only at a few department stores in each city that cater to the contemporary fashion market, including stores like Bloomingdales, Nordstorm, and Macy's. The degree of channel coverage for Michael Kors watches can most accurately be described as: A. Intensive B. Exclusive C. Indirect D. Selective E. Direct

D

Hostess, makers of the iconic snack Twinkies, has noticed that it has lost much of its market share to competitors. Its top executives have decided that the brand is no longer worth their efforts and are preparing for the sale of their iconic brand. What strategy based on market share are Hostess' executives implementing? A. Harvesting B. Positioning C. Maintaining D. Divesting E. Optimization

D

Kim, Khloe and Kourtney need to improve implementation at their small boutique called DASH. They want to switch to a commission based pay plan for their employees to help increase sales. On top of commission, the top seller for the month will receive a free trip to a place of their choice! What are the three sisters doing to improve implementation at DASH? A. Seek Feedback B. Just Do It! C. Schedule Tasks D. Reward Performance E. Leadership

D

Line positions refer to A. people who have the authority and responsibility to advise people in staff positions but cannot issue direct orders to them. B. the senior executives responsible for a firm's marketing strategies and activities. C. members of the board of directors who are responsible for implementing the firm's marketing strategies and tactics. D. managers who have the authority and responsibility to issue orders to people who report to them. E. middle management with the responsibility of assuring that tasks are completed on time but who do not actually have the authority to issue orders

D

Olivia likes the convenience of ordering food to be delivered using the Seamless App on her smartphone. With her address and payment information saved on the app, Olivia can have her Bento order placed within seconds. Olivia's use of the Seamless app is an example of which concept? A. Fast Food B. Disintermediation C. Comparison Shopping D. M-Commerce E. E-Commerce

D

Sam's Club is a large warehouse store that carries a variety of products. Many of their products are sold in larger quantities than would be found in supermarkets and at a lower unit cost. What value adding retail function does Sam's Club not incorporate into its retail strategy to the same degree supermarkets do? A. Providing Services B. Atmospherics C. Holding Inventory D. Breaking Bulk E. Providing Assortment

D

Stefano loves his Harley-Davidson motorcycle. Unfortunately for Stefano, none of his friends share the same love for Harley-Davidson or motorcycles in general. One day Stefano finds the "Harley Owners Group" website. Stefano eagerly joins and meets many new online friends with whom he can talk about Harley-Davidson motorcycles. The Harley Owners Group website most accurately fits the description of which use of the Internet? A. Brand Building B. B2B C. Selling Merchandise D. Virtual Communities E. Facilitating Sales

D

Stephanie is opening a deli and is trying to figure out what price she should charge for giant dill pickles. She buys dill pickles from her supplier at $12.00 per dozen. Stephanie uses a markup of 60% on everything she sells. What is her price per pickle? A. $19.20 B. $1.60 C. $30.00 D. $2.50 E. $12.60

D

The online consumer who researches products online and then purchases them at a retail store is referred to as a __________ shopper. A. casual B. "show roomer" C. marketspace D. cross-channel E. clicks and bricks

D

When Kroger, a national supermarket chain, uses a one-time, special weekend promotion to price a six-pack of soda at $2.09 (which is below its customary price level), it is attempting to A. fill its parking lot so its store will look successful. B. help stimulate the local economy and generate good will with its customers. C. work with the local bottler to move products that are close to their expiration dates. D. attract customers in hopes they will buy other products as well. E. drive its competition out of business.

D

Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a company that sells extremely expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization. A. strategic B. functional C. business unit D. tactical E. corporate

E

Forever 21 is trying to increase its customer base by changing its retail store strategy. The stores will have a big fashion show once every quarter, showing off all the new styles, offering complimentary food and drinks, and basically hosting a big party, all while customers can still shop for clothes. What retail concept is Forever 21 using? A. Retail Positioning B. Brand Management C. Category Management D. Non-store Retailing E. Retailtainment

E

Go Gators! is a small company that makes Seminole Stomping kits priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Go Gators! unit variable cost for its kits is A. $120. B. $5. C. $45. D. $170. E. $50.

E

Jordyn sells a variety of household products for a small group of producers. She sells to discount stores and convenience stores in the Central Florida region. One of the products she sells is 3M Command Adhesives. When a store agrees to order a shipment of Command Adhesives, Jordyn places the order with 3M on behalf of the customer. The nearest 3M warehouse will then package the order and ship it to the customer. Jordyn's position can most accurately be described as a: A. Manufacturers Representative B. Distributor C. Merchant Wholesaler D. Jobber E. Food Broker

E

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to the remaining independent drugstores in the U.S. What best describes the distribution method used by pharmaceutical companies in this example? A. direct distribution B. horizontal distribution C. vertical distribution D. exclusive distribution E. dual distribution

E

Shelby is currently having problems with her bakery. She has recently mapped out an entire new strategy for both her baking process and her marketing to try to make her company more profitable. However, her employees are not abiding by her new guidelines and therefore her company is still failing. This situation is a result of: A. Process Launch Problems B. Resource Allocation Issues C. Planning Failure D. Critical Path Computation Failure E. Implementation Failure

E

Starbucks is looking to expand into India, but first must conduct market research to make sure they will be successful there. The marketing director is currently working on the pricing strategy, and must take several factors into consideration. He has heard that India has a higher import duty on coffee beans, so he is looking into that issue further, as it would affect his cost of goods. What international environmental sector is he examining? A. Socio-Cultural Sector B. Demographic Sector C. Economic Sector D. Natural Sector E. Legal/Regulatory Sector

E

Suppose you are designing a transactional website and you would like it to be as user-friendly as possible. In particular, you do not want repeat customers to have to enter their address, e-mail, telephone number, and credit card data every time they make an online purchase. Rather, you would like your website to recognize each customer by name every time he or she visits the website and to retrieve all the information about that customer automatically whenever he or she wishes to make a purchase. To achieve this goal, you would most likely use __________. A. spam B. portals C. bots D. spiders E. cookies

E

The actions taken during the evaluation phase of the strategic marketing process include: (1) __________ and (2) correct negative deviations and exploit positive ones. A. find points of difference B. develop the budget by estimating revenues, expenses, and profits C. track sales and revenues and compare with competitors D. execute the marketing program E. compare results with plans to identify deviations

E

Tim's Teak Tables makes tables for furniture stores across the U.S. Tim is trying to decide how much he needs to charge his distributors who sell his tables to retailers. Tim estimates that the retail price for one of his teak tables should be $300, assuming a retail markup of 50%. The distributor markup is 15%. What should Tim charge his distributors? A. Can't tell from information given B. $170.00 C. $173.91 D. $130.41 E. $127.50

E

When you view a selection at Amazon.com and see "Customers who bought this (item) also bought ", you are seeing the application of __________. A. interactive marketing B. personalization C. connectivity D. real-time e-commerce E. collaborative filtering

E