Marketing EXAM 3

To determine the break-even point, a firm needs to first do which of the following?

calculate the contribution per unit

Mach 5 razor blades must be used in the Mach 5 razor. Which type of pricing is most likely used for the razor blades?

captive

Which of the following refers to store personnel tailoring the level of service they give based on a customer's perceived ability to pay?

customer profiling

IKEA has a breakeven volume of 100,000 units for a new lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are:

$2,499,000

What should be the target cost if consumers are willing to pay no more than $89.99 for a part of jeans and (round at two digits): 1. The retailer's markup is 40% 2. The company expects to have at least 15% of profit

55

Which of the following should be true for a skimming price to be successful?

There should be little chance that competitors can quickly enter the market.

Which of the following is an advantage of using cost-based pricing methods?

They are relatively simple to calculate.

Which of the following is an illegal sales technique?

a pyramid scheme

For a company that manufactures plastic signs, the printing press to make the signs, the manager's salary, and the utilities are all examples of ________.

fixed costs

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

psychological pricing

Which of the following is NOT an example of a business service?

raw material supply

Retail stores are often classified on the breadth and depth of their merchandise assortment. The depth of the merchandise is the variety of choices for each specific product. Merchandise depth may be classified as ________ or ________.

shallow; deep

It is most accurate to say that channels of distribution provide which of the following?

time, place, and possession utility

What is the most logical explanation that retailers carry private-label brands?

to earn more profit

Which of the following is the purpose of omnichannel marketing?

to provide a seamless shopping experience for customers across shopping locations

A customer got a great haircut at a salon and went back six weeks later to the same person to get a second haircut. This time, the customer received one of the worst haircuts of his life. The difference between the two haircuts is due to the ________ characteristic of services.

variability

________ is an agreement between two brands to work together in marketing a new product.

Cobranding

Which of the following is the best example of a direct channel?

Farmer Mintz sells corn to the Hughes household, who will eat it for supper.

A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps?

Place

Which of the following is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use?

retailing

Which of the following is NOT a benefit provided by e-commerce?

It enables specialized businesses to be more successful.

Which of the following is NOT a desirable quality for a brand name?

It should be a long word to get attention.

________ is the basis of most discount operations. Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process.

Self-service

________ carry a narrow assortment of product lines with deep assortments within those lines.

Specialty Stores

Karen likes using the SERVQUAL scale to measure her clients' perception of the quality of her hair styling salon because it includes assessing ________, which involves the physical facilities and equipment and professional appearance of the stylists. These aspects are very important for the comfort of her clients.

Tangibles

A franchise organization is a type of contractual VMS.

True

Technological changes have motivated marketers to make changes in the retailing industry.

True

To combat piracy, Netflix uses the strategy of making legal access to content easier and more convenient.

True

Which of the following marketing strategies runs the greatest risk of brand dilution?

brand extension

Whenever a product line or a product family is extended, there is a risk of ________, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

cannibalization

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use?

competitive effect

Through a process of ________, traditional intermediaries are being eliminated as many companies question the value added by layers in the distribution channel.

disintermediation

Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products.

entertainment

Conventional distribution channels, like the one presented in the video of the Taza company, consist of one or more ________ producers, wholesalers, and retailers.

independent

Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.

indirect marketing channel

P&G makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice, and Vidal Sassoon shampoos. Through its use of a separate and unique brand name for each of these products, Procter & Gamble is using a(n) ________ strategy.

individual brand

To a producer of goods, a greater number of channel levels means ________.

less control

Through ________, one firm sells another firm the right to use a legally protected brand name for a specific purpose for a specific period of time.

licensing

Each member of a channel of distribution adds a ________ to create the price at which they will sell the product.

markup

Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices?

off-price retailers

Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services.

perishability

Four characteristics are used to differentiate services from goods. Which of the following is NOT one of those characteristics?

personalization

Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to disappointing sales. This is an example of a ________.

product line contraction

Which of the following refers to a product's overall ability to satisfy customers' expectations?

product quality

Product packaging can do all of the following EXCEPT which one?

provide service