Marketing Final Chapters 11-20

For many consumers, the pages near the back of magazines with dozens of very small black and white advertisements exceed their a) channel capacity. b) threshold of awareness. c) decoding abilities. d) transmission limitations. e) noise limit.

A

Order-getting activities are divided into two categories: missionary sales and technical sales. current-customer sales and new-business sales. order takers and trade sales. current sales and support sales. inside order sales and field order sales.

A

Channel capacity is determined by the a) most efficient component of the communication process. b) least efficient component of the communication process. c) source. d) receiver. e) meanings of the message.

B

Demand depends only on the price of the product. True False

F

Penetration pricing and price skimming of the market are two types of new-product pricing. True False

T

Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? Advertising marketing staff reductions Sales management Personal selling

advertising

what type of retailing began with Montgomery ward in the late 1800?

catalogs

A major disadvantage of personal selling is that it _____. cannot easily adjust the message to satisfy a customer's information needs is very expensive per contact. does not provide immediate feedback is not compatible with other promotional activities

is very expensive per contact.

All of the following are psychological techniques except _____. prestige pricing reference pricing odd-even pricing price skimming

price skimming

The target market of a regional shopping center typically includes at least ____ people. 50,000 100,000 150,000 250,000

150,000

In which stage of the product life cycle do profits begin to decrease? A. Introduction B. Growth C. Decline D. Recovery

B

Reference pricing is _____. A. mentioning the price that other retailers charge for the same product on the display for the product B. using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products C. pricing a product at a moderate level and positioning it next to a more expensive model or brand D. using prices in advertising so that customers will have a point of reference when they come to the retail facility

C

The four major stages of a product life cycle include _____. A. prosperity, recession, depression, and recovery. B. specialty, convenience, shopping, and unsought goods. C. introduction, growth, maturity, and decline. D. awareness, interest, trial, and adoption.

C

New products are classified solely as innovations that have never been sold by any organization. True False

F

Product support services are important mainly for products that are mechanical in nature T OR F

F

Product support services are important mainly for products that are mechanical in nature. True False

F

Services are products that can be touched and felt and considered tangible. True False

F

The two major product categories are business and institutional. True False

F

The use of price skimming discourages competitors from entering a market. True False

F

Trial is the first stage of the product adoption process. T or F

F

Venture team members usually come from the same functional areas within the firm. True False

F

during the decline stage of product life cycle, profits peak then begin to decline. T OR F

F

during the growth stage, promotional costs rise as a percentage of total sales T OR F

F

it is usually easy to obtain an accurate price list for a competitor's products

F

the phase out approach to product deletion exploits any strengths left in the product. T OR F

F

the use of price skimming discourages competitors from entering a market

F

What links producers to consumers through the purchase and reselling of products or contractual agreements? Marketing intermediaries Distributors Suppliers Middle marketers

Marketing intermediaries

Newspaper ads for Blue Haven Pools offer discounted prices during October and discounted cleaning supplies for hot tubs in March, are examples of which of the following uses of promotion? Retaining loyal customers Promoting new product uses Stimulating primary demand Reducing sales fluctuations

Reducing sales fluctuations

Nonprofit organizations usually have more diverse groups to serve than do for-profit organizations. True False

T

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product. True False

T

Service providers must adjust their behavior to buyer expectations to improve quality. True False

T

Time spent in test marketing can benefit a firm's competitors. True False

T

in nonprofit organizations, the direct consumers of the product are the client public T or F

T

organizations or individuals who buy products for resale to government, reseller, producer, and the institutional user is a wholesaler T or F

T

rent is usually a fixed cost

T

team selling is a particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equiment

T

the best advice for recruiting and selecting salespeople for one's organization would be to make recruitment a continuous activity aimed at seeking out the best applicants. t or f

T

At what point does a firm maximize profit? The point at which marginal cost equals marginal revenue The breakeven point plus the adjusted marginal cost The point at which marginal profits equal marginal revenue The point at which marginal cost equals marginal profits

The point at which marginal cost equals marginal revenue

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur more fixed costs fewer variable costs a marginal cost higher average variable costs

a marginal cost

Odd-even pricing is _____. competition-based a rarely used technique a psychological pricing strategy a form of unethical pricing

a psychological pricing strategy

a graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

demand curve

Quality modifications are changes that relate to a product's _____. dependability and durability. effectiveness and versatility. price and availability. reliability and value.

dependability and durability

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of _____. dual distribution. vertical integration. horizontal integration. exclusive dealing.

dual distribution.

When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a merchandise allowance. count-and-recount allowance. buy-back allowance. scan-back allowance. scan-count allowance.

scan-back allowance.

The identification of an advertisement's sponsor is done in the _____. copy signature trademark layout

signature

When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand, it is an attempt to build _________ demand. a) primary b) secondary c) selective d) economic e) competitive

C

Select the greatest advantage of horizontal channel integration. A. The flexibility of the channel is decreased. B. The markets are more heterogeneous. C. The expanded number of units is coordinated. D. Efficiencies in advertising, marketing research, and purchasing are increased.

D

Product deletion can best be described as the process of deleting a product from the product mix when it _____. A. is perceived as a failure by top management. B. is reviewed negatively by a systematic review board. C. increases production costs and decreases profits. D. no longer satisfies a sufficient number of customers.

E

Demand is best determined by a top management committee. True False

F

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using _____. dual distribution. industrial distribution. strategic channel alliance. an unethical marketing channel.

duel distribution

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

line extensions

Signs, counter pieces, racks, and self-service cartons are all forms of _____. in-store attention grabbers demonstrations retail media point-of-purchase displays

point-of-purchase displays

If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a _____. stakeholder message feature article sponsorship press conference

press conference

For most consumers, there is an assumed relationship between

price and quality

Functional modifications usually require that the product be _____. less specific. limited to its functions. more technical. redesigned.

redesigned

A merchant wholesaler _____. A. takes title to goods, assumes the risk associated with ownership, and buys and resells products. B. takes title and possession of goods and sells only to retailers. C. does not take title or possession of goods but facilitates exchanges between any parties. D. deals exclusively with business products.

A

A product mix is best described as _____. A. all products offered by a firm. B. product, distribution, promotion, and price. C. all products of a particular type. D. a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

A

Competition-based pricing is _____. A. used when costs and revenues are secondary to competitors' prices B not useful if the competing products are homogeneous c not able to increase sales d used when competing products are heterogeneous

A

During the growth stage of the product life cycle, marketers must _____. A. fortify the product position. B.move to exclusive distribution. C. raise the price. D. introduce private brands.

A

Maintaining or increasing market share _____. A. can be achieved even if industry sales are flat or decreasing B. is an infrequently used pricing objective in most industries C. is a profit-related objective based on price D. is directly tied to leading an industry in product quality

A

One disadvantage of test marketing a new product is that _____. A. competitors may copy the product. B. the results give little indication of the product's future success. C. price, advertising, and packaging cannot be varied from market to market. D. it might fail before it can be commercialized.

A

The three major types of non-store retailing are _____. A. direct marketing, direct selling, and automatic vending. B. direct marketing, direct selling, and mail-order. C. automatic vending, direct selling, and telemarketing. D. telemarketing, door-to-door, and mail-order.

A

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets A. services. B. ideas. C. goods. D. tangible products.

B

A specialty product A. requires minimal effort to purchase. B. is purchased frequently. C. requires purchase planning, and the buyer will not accept substitutes. D is generally less expensive than other items in the same product class.

C

Effective motivation of a sales force is best achieved through a) annual retreats at resort locations open to families. b) emphasizing sales force objectives and their connection to compensation. c) an organized set of activities performed continuously. d) motivation meetings when sales have declined. e) daily pep talks before the sales force makes sales calls.

C

Which of the following statements about price elasticity is false? A. Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. B. If marketers can determine price elasticity, then setting prices at optimum levels is much easier. C. When price is raised on a product that has an inelastic demand, then total revenue will decrease. D. A product like electricity has an inelastic demand.

C

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

Concept testing

A product is a price leader when a) it is sold at the highest price. b) its price maximizes profits. c) an increase or decrease in price leads to increased revenue or lower costs. d) it is sold at less than cost in the hope that sales of other products will increase. e) its price leads the industry in sales.

D

With respect to retailing, what is the "party plan"? A. A sales representative has a party at her home to demonstrate products to a group of friends and associates. B. A party is set up that demonstrates a product and provides free samples of the product to all in attendance. C. An individual is asked to tell two friends about a product, who are in turn each asked to tell two friends, etc. until a sufficient number of people are reached. D. A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.

D

Victor knows that if he decides to buy a franchise, he will most likely have to supply a) management know-how and labor. b) buildings and daily operations. c) marketing assistance and management know-how. d) a percentage of total sales and expertise. e) labor and daily operations.

E

A hairstylist that gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is suffering from the challenges associated with intangibility. True False

F

Due to increased customers' desires for personalization, service providers are using bigger sales forces. True False

F

During a product's maturity stage, all sales promotion efforts are focused on consumers. True False

F

Early adopters are the first group if consumers to adopt a new product T OR F

F

Fixed costs vary with the number of units produced or sold. True False

F

New products are classified solely as innovations that have never been sold by any organization T OR F

F

Randy orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Randy should have been certain that the order terms were _____. F.O.B. RANDY C.O.D. 2/10, n/30 F.O.B. destination

F.O.B. destination

manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. what marketing channel are these manufactures most likely to use?

Producer wholesaler, retailer, consumer

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? Producer, consumer Producer, wholesaler, retailer, consumer Producer, retailer, consumer Retailer, consumer

Producer, wholesaler, retailer, consumer

Because practically all marketers provide some services, ____ typically do not exist in today's business environment. pure goods customer services service products tangible-dominant products

Pure goods

Gambrell Designs thinks its new product, the Automatic Dog Walker, will have a short product life cycle; therefore, its marketing department sets its primary pricing objective as _____. ROI profit product quality status quo

ROI

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. product advocacy issue competitive

advocacy

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using _____. competitive advertising product advertising public service awareness advocacy advertising

advocacy advertising

The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products? Pizza Automobiles Apples and oranges Wedding photographs

automobiles

Promotion can help keep prices lower because _____. demand for the product does not increase can help increase demand promotion of prices leads to nonprice competition promotion tends to reduce consumers' price sensitivity

can help increase demand

Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced by Specialized Sports. He and the other consumers were shown three different advertisements and asked to judge several dimensions of each one. Matt participated in a(n) _____. panel of advertising experts consumer jury customer ad expert ad preview group

consumer jury

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a _____. additive cash discount cumulative quantity discount cumulative aggressive allowance additive quantity cost

cumulative quantity discount

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is _____. shifting costs to suppliers. maximizing costs. maximizing technology implementation. customer relationships.

customer relationships

The driving force behind marketing channel decisions should be _____. convenience. environmental concerns. customer satisfaction. quality.

customer satisfaction

The supply chain includes ______. A . producers, wholesalers, and retailers. b suppliers, producers, intermediaries, and customers. c suppliers and suppliers' suppliers. d all entities that facilitate product distribution.

d

A measure of sensitivity of demand in relation to changes in price is

elasticity of demand

Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called _____. refusal to deal a restricted sales territory a restricted channel exclusive dealing

exclusive dealing

A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as _____. continuous skipping flighting intervals

flighting

The final stage of the selling process is closing. trial close. presentation. follow-up. overcoming objections.

follow-up

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is _____. retailing. wholesaling. licensing. franchising.

franchising

A penetration pricing strategy is particularly appropriate when demand is _____. increasing highly elastic highly inelastic inefficient

highly elastic

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called perishability. credence. inseparability. heterogeneity.

inseparability

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services.

intangibility

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines _____. integrated marketing communications. tactile communication. kinesic communication. proxemic communication.

integrated marketing communications.

Channel capacity is determined by the _____. least efficient component of the communication process source receiver meanings of the message

least efficient component of the communication process

Which of the following is most likely to have an inelastic demand curve? Vacation life-saving surgery Recreational vehicle Computer

life-saving surgery

An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) regional shopping center. neighborhood shopping center. community shopping center. lifestyle shopping center.

lifestyle shopping center

Freight transportation companies that offer several different shipment methods are called _____. megacarriers freight forwarders shipping experts superfreighters

megacarriers

Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at _____. motivating salespeople commissioning salespeople increasing sales territories promoting salespeople

motivating salespeople

Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at motivating salespeople. compensating salespeople. providing training for the sales force. increasing sales territories. promoting salespeople.

motivating salespeople.

Manufacturers' agents offer products that are both _____. noncompeting and complementary. competing and specialized. complementary and competing. unrelated and competing.

noncompeting and complementary

____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. Off-price shopping centers Outlet shopping centers Regional shopping centers Upscale shopping centers

outlet shopping centers

Walmart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Walmart works directly with suppliers through its advanced system of inventory control and data processing. Walmart is...

performing many of the critical functions of wholesalers

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of _____. secondary pricing off-peak pricing periodic discounting random discounting

periodic discounting

The fact the services cannot be inventoried and then sold at a later date is called ______. heterogeneity. inseparability. perishability. nonstorability.

perishability

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is _____. advertising personal selling public relations individual promotion

personal selling

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

price conclusion

Dividing the percentage change in quantity demanded by the percentage change in price gives the _____. breakeven point marginal cost curve price sensitivity curve price elasticity of demand

price elasticity of demand

Ideally, test marketing should follow which stage in the new-product development process? Commercialization Screening Limited conservation Product development

product development

The perception of price depends on a _____. A. product's actual price and consumers' expectations regarding price B consumer's reference price C consumer's expectation of price D product's actual price in comparison with the manufacturer's suggested price

product's actual price and consumers' expectations regarding price

What equation shows organizations the relationship between price and profit?

profits =(price x quantity sold)- total costs

When a salesperson varies the physical distance between himself and a customer he is using _____. kinesic communication tactile communication comfort relations proxemic communication

proxemic communication

a deduction from list price for purchasing large quantities aggregated over a stated period of time is a

quantity discount

A marketer is most likely to set prices according to a cash-flow objective when a _____. certain market share must be maintained quick return on investment is desired higher price is acceptable to the firm product is expected to have a long life cycle

quick return on investment is desired

A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a _____. regional shopping center. neighborhood shopping center. complete business district. lifestyle shopping center.

regional shopping center

All of the following are concepts used in a just-in-time inventory management system except _____. A.supplies arrive just as they are needed B. safety stock is kept to reduce stock-outs C purchases are made in small quantities D purchases are made frequently

safety stock is kept to reduce stock outs

The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the _____. preapproach follow up approach sales presentation

sales presentation

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of _____. lower costs of selling. easier financial transactions. superior ability to demonstrate the product. decreased cycle time.

superior ability to demonstrate the product.

Which of the following may include special attractions such as amusement parks or skating rinks? Convenience shopping centers Neighborhood shopping centers Community shopping centers Superregional shopping centers

superregional shopping center

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is _____. profit survival market share recovery

survival

On a break between classes, Kelley checks her smartphone and enters her contact information on the Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a chance to participate in a _____. consumer media blitz game of chance sales promotion sweepstakes

sweepstakes

Selling agents perform every wholesaling activity except _____. setting prices. financing the products. taking title to products. inventory control.

taking title to products

Nick is a salesperson for DuPont. His college degree is in engineering, with a minor in physical science. Nick is most likely a(n) trade salesperson. missionary salesperson. technical salesperson. chemicals order taker. support to the sales staff.

technical salesperson.

If a product has an inelastic demand and the manufacturer raises its price, _____. total revenue will increase the demand schedule will shift the demand will become more inelastic total revenue will decrease

total revenue will increase

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection? On-site wholesalers Cash-and-carry wholesalers Truck jobbers Drop shippers

truck jobbers

Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler?

truck wholesalers

Carla is stopped by a researcher at a shopping mall and asked what was last television commercial she remembers seeing was. This is an example of a(n) _____. unaided recall test pretest aided recall test memory test

unaided recall test