Marketing Final Exam

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When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​ ______________________.

​location-based pricing

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing.

​optional-product

​______ means sending email pitches only to customers who​ "opt in."

​permission-based email marketing

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​ _______________.

​price-fixing

The​ seven-step selling process takes a​ __________ approach to selling. In other​ words, its aim is to help salespeople close a specific sale with a customer.

​transaction-oriented

​Catalogs, online and social​ media, and mobile marketing are some of the specific promotional tools used in​ _________________________.

direct and digital marketing

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ _______________________.

dynamic pricing

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________.

price discrimination

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models.

product line

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing.

promotional

Press​ releases, sponsorships,​ events, and web pages are promotional tools used in​ _____________.

public relations

Companies like Amazon and Expedia.com that sell products and services directly to final buyers over the Internet are known as​ _______.

​e-tailers

The benefits of direct and digital marketing for buyers are that they are​ _________.

​easy, convenient, and private

Companies today see channel members as​ ______________ and practice strong partner relationship management.

​first-line partners

Service​ _______ means that the quality of services depends on who provides them as well as​ when, where, and how they are provided

. variability

​_______________________ is an example of horizontal channel conflict.

A Subaru dealer complaining that another Subaru dealer is advertising in its territory

What potential risk do marketers incur by using richer but more fragmented media and promotional​ mixes?

A communications hodgepodge for consumers

The four elements of a compensation plan for salespeople are​ __________.

A fixed​ amount, a variable​ amount, expenses, and fringe benefits

Which of the following correctly defines a​ product?

A product is anything offered to a market that might satisfy a need or want.

In which of the following does a producer direct marketing activities​ (primarily personal selling and trade​ promotion) toward channel​ members?

A push strategy

Which of the following statements about blogs is​ correct?

Blogs can be difficult for the company to control.

Which of the following are used to generate business​ leads, stimulate​ purchases, reward​ customers, and motivate​ salespeople?

Business promotions

Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final​ buyer?

Channel levels

Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as​ full-line forcing. Which of the following statements is true regarding​ full-line forcing?

It may or may not be legal.

The Great Recession of​ 2008-2009 had a profound effect on the economy and consumers. Of the​ following, which represents one of the major consumer trends resulting from the Great​ Recession?

It turned​ free-spending consumers into​ value-seeking ones.

Which of the following is a form of traditional direct​ marketing?

Kiosk marketing

In determining product​ quality, what are the two dimensions of quality marketers must decide​ upon?

Level and consistency

When we see Hello Kitty on​ children's clothing, Disney characters on​ lunchboxes, and SpongeBob SquarePants on breakfast​ cereals, which form of brand sponsorship is being​ used?

Licensing

Which of the statements is TRUE regarding media and message​ decisions?

Media and message decisions should be closely coordinated.

Which of the following types of wholesalers are Independently owned businesses that take title to all merchandise​ handled?

Merchant wholesalers

Which of the following statements concerning new products is​ correct?

Modified and improved products are considered new.

​___________________is used to build and maintain national or local community relationships and is one of the functions of public relations.

Public affairs

Nailit Cosmetics is advertising its newest line of nail​ polishes, made from a​ nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for​ Nailit's line of​ polishes?

The desire to have beautiful nails

Which of the following statements regarding socially responsible product decisions is​ correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.

Which of the following statements about sales promotions is​ correct?

The heavy use of sales promotions has resulted in promotion clutter.

Which of the following statements about public relations is​ correct?

The lines between advertising and public relations are becoming more blurred.

The quality of services depends on who provides them as well as​ when, where, and how they are provided. Which characteristic of services does this​ describe?

Variability

The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this​ goal, which of the following are logistical functional​ areas?

Warehousing, inventory​ management, transportation, and logistics information management

Which of the following is considered part of an augmented product rather than that of an actual product or core customer​ value?

Warranty

Which of the following statements about wholesaling is​ true?

Wholesalers must make decisions regarding their marketing mix.

What event or circumstance has made mobile marketing a must for most​ brands?

Widespread adoption of mobile devices

​________________________ is one major objective associated with a​ market-penetration pricing strategy

Winning large market share

In place of traditional​ media, marketers are using​ __________________________ to engage smaller customer segments with more​ personalized, interactive content.

a broad selection of more specialized and highly targeted media

In the early​ 1970s, Gary Dahl sold Pet Rocks. The product had a​ short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product​ popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as​ ________________.

a fad

After the presentation and demonstration step in the sales​ process, a salesperson should next be prepared to​ _______.

handle objections

Crowdsourcing is used in the​ _______________________ step of the new product development process.

idea generation

Adding a new product line to an existing portfolio means that the line has​ __________________.

increased product mix width

The goal of a push strategy is to​ _____________________________.

induce channel members to carry and promote the product

Groups of​ __________________ products consist of materials and​ parts, capital​ items, and supplies and services.

industrial

Social media are ideal for participating in customer conversations and listening to customer feedback because they are​ _____________.

interactive

Many consumers today rent DVDs from a vending machine called​ Redbox, which can be found in retail stores and other locations. Redbox is type of​ ________ marketing.

kiosk

The three functions of​ __________ include​ identifying, describing, and promoting the product.

labeling

When a product is in the maturity stage of the​ PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as​ ______________________.

modifying the market

A blog is​ a(n) ______.

online forum

​Websites, online​ advertising, email, online​ video, and blogs are all forms of​ ______.

online marketing

GE Healthcare employs different sales forces for diagnostic​ imaging, life​ sciences, and integrated IT products and services. GE Healthcare has adopted a​ ______ sales force structure.

product

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers).

product bundle

By performing the channel function of​ ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.

selling and promoting

Hotels and​ motels, banks,​ airlines, restaurants,​ colleges, hospitals, movie​ theaters, tennis​ clubs, bowling​ alleys, repair​ services, hair​ salons, and dry cleaners are all examples of​ ________.

service retailers

Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale is known as​ ______________________.

shopper marketing

One challenge of social media marketing is​ _____________________

social networks are largely​ user-controlled

The​ fastest-growing sales trend today is​ ______________.

social selling

When a company lengthens a product line by adding more items beyond its current​ range, it is​ ________.

stretching the line

To create successful new​ products, a company must​ _______.

understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

​A(n) _____ consists of​ producers, wholesalers, and retailers acting as a unified system.

vertical marketing system

The digital version of​ word-of-mouth marketing that involves creating​ videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called​ _______.

viral marketing

What is the final step in the​ seven-step personal selling​ process?

​Follow-up

​Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using?

​Good-value pricing

​It's time for the Super​ Bowl, and the​ end-of-the-aisle displays at the supermarket feature​ chips, dips, and soft drinks. What type of sales promotion tool is​ this?

​Point-of-purchase

Which of the following does NOT represent one of the major trends and developments in​ retailing?

Social​ e-tailing

​_____________________ direct(s) its marketing activities​ (primarily advertising, consumer​ promotion, and direct and digital​ media) toward final consumers to induce them to buy the product.

A pull strategy

Channels often involve​ long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental​ changes?

Adaptability criteria

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

Administered VMS

​________________________ is the first step in marketing channel design.

Analyzing consumer needs

At which step in the personal selling process does a salesperson meet the customer for the first​ time?

Approach

Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing​ management?

Maturity

Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand​ equity?

Co-branding

Which of the following is NOT a product life cycle​ (PLC) stage?

Commercialization

Which type of consumer products are frequently purchased with little​ planning, little comparison or shopping​ effort, and low customer​ involvement?

Convenience products

Which of the following represents the four major classifications of retail​ organizations?

Corporate​ chains, voluntary​ chains, retailer​ cooperatives, and franchise organizations

What are the two major elements in developing advertising​ strategy?

Creating advertising messages and selecting advertising media

​_____________________ is the value of customer relationships that a brand creates.

Customer equity

Intuit​ Labs, a division of​ Intuit, the accounting and payroll software​ developer, follows a​ "Design for Delight​ (D4D)" development​ philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit​ using?

Customer-centered new product development

Which of the following refers to setting prices based on​ buyers' perception of value rather than on the​ seller's cost?

Customer​ value-based pricing

A form of television marketing which persuasively describes a product and give customers a​ toll-free number or an online site for ordering is known as​ _________________.

DRTV marketing

Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function?

Development

What is the overall goal when retailers choose their product​ assortment?

Differentiate the retailer while matching target​ shoppers' expectations

Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships?

Direct and digital marketing

​_______________________ uses tools that engage directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

Direct and digital marketing

​____________________ is perhaps the biggest advantage of social media.

Engagement and social sharing capabilities

Advertising decisions involve multiple steps culminating in the measurement of the sales effects of advertising or brand content. Which of the following considers return on​ investment?

Evaluation

Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution​ strategy?

Exclusive

​_____________________ is a retailing technique of carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells.

Experiential retailing

In which of the following is vertical​ conflict, conflict between different levels of the same​ channel, common?

Franchise organizations

​_________________________ are the objectives of trade promotions.

Getting retailers to carry new items and more​ inventory, buy​ ahead, or promote the​ company's products and give them more shelf space

If the company has selected its target market and positioning​ carefully, then its marketing mix​ strategy, including​ price, will be fairly straightforward. Of the​ following, which is NOT one of the common pricing​ objectives?

Grabbing international market share

Which of the following is true regarding the​ price-demand relationship?

If demand is​ elastic, sellers will consider lowering their prices.

​When, if​ ever, is price discrimination​ allowed?

If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

Which of the following statements about new product development strategy is​ correct?

Innovation can be very expensive and very risky.

Which of the following statements regarding packaging is​ correct?

Innovative packaging can give a company an advantage over competitors and boost sales.

Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply​ chain?

Integrated supply chain management

​__________________ represent an internal source of new product ideas for a company.

Intrapreneurial programs

​____________ is perhaps the toughest public policy issue now confronting the direct marketing industry.

Invasion of privacy

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy does it​ employ?

Line extension

A discount store​ (for example,​ Target, Kohl's, or​ Walmart) sells standard merchandise at lower prices. To do​ this, discount stores accept which of the following two​ conditions?

Lower margins and higher sales volume

Many vital and key functions are performed by marketing channels. Of the​ following, which is NOT one of those key​ functions?

Manufacturing and assembly

Which of the following accurately describes a​ company's efforts to engage​ customers, persuasively communicate customer​ value, and build customer​ relationships?

Marketing mix

Which stage of the PLC is characterized by peak​ sales, low costs per​ customer, high​ profits, mainstream​ adopters, and a stable number of competitors that are beginning to​ decline?

Maturity

When​ Coca-Cola saw the growth of the​ bottled-water category, it launched DASANI​Ò​, its brand of bottled water. Which brand development strategy did​ Coca-Cola use in launching​ DASANI?

New brand

Which of the following is correct regarding the forms of direct and digital​ marketing?

New digital and the more traditional forms of direct marketing must be blended and integrated

Which of the following represent the newer tools of digital direct​ marketing?

Online​ marketing, social media​ marketing, and mobile marketing

Which of the following represents a new trend in logistics to save​ costs, increase​ efficiencies, and gain faster and more effective access to global​ markets?

Outsourcing logistics functions

Which of the following statements is TRUE about public relations and a​ company's overall integrated marketing communications​ efforts?

PR should be blended smoothly with promotion activities.

​_____________________ software systems enable companies to coordinate their​ whole-channel marketing efforts.

Partner relationship management

________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.

Perishability

Which of the following uses promotional tools such as​ presentations, trade​ shows, and incentive programs to engage​ customers, make​ sales, and build customer​ relationships?

Personal selling

​___________________ advertising is the type of advertising objective used when attempting to build brand preference and prompting customers to purchase now.

Persuasive

Of the​ following, which is true about​ pricing?

Price competition is a core element of our​ free-market economy.

​Kroger, headquartered in​ Cincinnati, Ohio, is one of the​ nation's largest grocery chains. It owns several brands sold in its​ stores, including Private​ Selection, Heritage​ Farm, and Simple. These brands represent which type of brand​ sponsorship?

Private brands

Which of the following makes up the retail marketing​ mix?

Product and services​ assortment, price,​ promotion, and location

Which of the following statements regarding the important decisions in the development and marketing of individual products is​ correct?

Product attributes that communicate and deliver benefits to the consumer include​ quality, features, and style and design.

​______________________ is the step of the new product development process during which a physical product is first developed.

Product development

______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

Product stewards

Retailers must decide on which three major product​ variables?

Product​ assortment, services​ mix, and store atmosphere

Which consumer promotion tool is like​ coupons, except that the price reduction occurs after the purchase rather than at the retail​ outlet?

Rebates

Which advertising objective is best suited to maintaining customer relationships and for more mature​ products?

Reminder

Which of the following retail trends is making differentiation more​ difficult?

Retail convergence

Which of the following statements about retailer marketing decisions is​ correct?

Retailers identify three critical factors for retail​ success: location,​ location, and location.

What does the phrase​ "omni-channel buying calls for​ omni-channel retailing" imply for​ retailers?

Retailers should integrate all available shopping channels and devices into a seamless customer shopping experience.

Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying​ process?

Retailing

Which of the following statements about personal selling is​ correct?

Salespeople are often the only direct contact with a customer.

Which of the following is described as​ "always on" and is a large component of the digital advertising​ mix?

Search advertising

Which of the following statements is correct regarding sellers and their use of direct and digital​ marketing?

Sellers have opportunities to engage in​ real-time marketing.

Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of​ media?

Social shopping retailing

Which of the following would be an appropriate strategy during the growth stage of the product life​ cycle?

Spend a lot of money on product​ improvement, promotion, and distribution.

Which of the following statements is true regarding standardizing products for international​ markets?

Standardization decreases product​ design, manufacturing, and marketing costs.

​_______________________ entails managing upstream and downstream​ value-added flows of​ materials, final​ goods, and related information among​ suppliers, the​ company, resellers, and final consumers.

Supply chain management

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

Target return pricing

What characteristics are possessed by the best​ salespeople?

The best salespeople are the ones who work closely with customers for mutual gain.

Which of the following indicates the length of a​ channel?

The number of intermediary levels in the channel

​Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called​ "high-low pricing." Which of the following correctly describes​ high-low pricing?

The retailer charges higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.

Which of the following statements is true regarding product life cycle​ curves?

The sales of a typical product follow an​ S-shaped curve made up of five stages.

Which of the following statements is correct concerning service marketers going​ global?

The trend toward growth of global service companies is expected to continue in the near future.

Which of the following is TRUE regarding​ omni-channel buyers?

They shift easily across online and​ in-store channels.

Internal factors that affect pricing include​ _________________.

The​ company's overall marketing​ strategy, objectives, and marketing mix

Which of the following accurately represents the three characteristics of advertising​ appeals?

To be​ meaningful, to be​ believable, and to be distinctive

What is the goal of​ advertising?

To help move consumers through the buying process

Which of the following is a pure tangible​ good?

Toothpaste

Which of the following statements about service marketing is​ correct?

Training current employees better and hiring new ones with more skills can increase service productivity.

After recruiting and selecting​ salespeople, what is the next major step in sales force​ management?

Training salespeople

Which of the following statements regarding managing service quality is​ correct?

Unlike product​ quality, service quality will always vary.

Of the​ following, which most closely describes the method by which companies engage and create benefits for their​ customers?

Value delivery network

​New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing?

Value-added pricing

A company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else's product through​ _______________________.

acquisition

Progressive wholesalers recognize that their only reason for existing is to​ ____________________.

add value

Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about​ wine, she will likely use the price of the wines as​ ________.

an indicator of quality

The primary purpose of​ _________ websites is to do more than just sell products or move them closer to a direct purchase.

brand community

After market strategy is​ developed, the next step of the new product development process is​ _______________.

business analysis

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing.

captive-product

Best​ Buy, Home​ Depot, Petco, and Bed Bath​ & Beyond, which are actually giant specialty stores characterized by immense size and deep assortments of​ merchandise, are sometimes called​ _______________.

category killers

Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that​ _________________________.

consumers​ don't distinguish between content sources the way marketers do.

​Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.

corporate VMS

Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas.

crowdsourcing

After segmenting and defining their target​ markets, retailers must then​ ____________________.

decide how they will differentiate and position themselves

The goal of integrated marketing communications is to​ __________________________________.

deliver​ clear, consistent, and compelling messages about the organization and its brands

The first decision a manager must make in sales force management is​ _______________.

designing sales force strategy and structure

Ad agency Young​ & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand​ ___________ is defined in terms of how highly consumers regard and respect the brand.

esteem

A service firm must orient and motivate its​ customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as​ _________________________.

internal marketing

Personal selling can be more effective than advertising in complex selling situations because it is​ ______________________________.

interpersonal

New product commercialization takes much thought and planning. The first critical step in the commercialization process is​ ____________________.

introduction timing

Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse​ logistics, which means it​ ____________________________.

involves the entire supply chain management

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

market-penetration pricing

​Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed​ a(n) ______ website.

marketing

The massive shift in how and where people buy calls for​ __________________________.

massive shifts in how store retailers operate

Which of the following is used to engage customers​ anywhere, anytime during the buying and​ relationship-building processes?

mobile marketing

Consumers may receive an​ e-mail, supposedly from their bank or credit card​ company, saying that their​ account's security has been compromised. The sender asks consumers to log on to a provided Web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called​ ______.

phishing

One of the primary advantages of marketing logistics is​ __________________.

potentially high cost savings and improved customer satisfaction

Most companies today want their salespeople to​ _______, which means demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.

practice value selling

The illegal practice of​ ______________________ is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business.

predatory pricing

When Apple introduced its iPhone​ X, it priced the new product at nearly​ $1,000, considerably higher than competing smart phones. Apple was pursuing a​ ___________________ new product pricing​ strategy.

premium pricing

One consumer promotion tool is​ _______, which are goods offered either free or at low cost as an incentive to buy a product.

premiums

More than a​ territory, compensation, and​ training, new salespeople need​ ________________.

supervision and motivation

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) ______________ approach to new product development.

systematic

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

target costing

When setting marketing channel​ objectives, companies should state the objective in terms of​ ______.

targeted levels of customer service

During the presentation step in the personal selling​ process, the salesperson​ ______________.

tells the buyer a​ "value story"

​Justin, Inc., a​ U.S.-based watch​ manufacturer, sells its products in​ China, Russia,​ France, and India. To manage​ sales, Justin appoints a number of sales representatives to each location. Justin has adopted a​ ________ sales force structure.

territorial

When Dr. Lawncare developed his revolutionary new​ solar-powered lawnmower, he expected that during the growth stage of the product life cycle​ ___________.

the company would see rising profits

When the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________________.

the responsibilities of channel members

To set its sales force​ size, a company can first group accounts into different classes according to​ size, account​ status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the​ ______ approach.

workload

As companies become more​ market-centered, a​ customer-focused sales force​ __________________.

works to produce both customer satisfaction and company profit

UPS uses​ _________________, which charges different prices for shipping depending on an​ item's destination. The more distant the city where the package is being​ shipped, the higher the price UPS charges.

zone pricing

​________ involves sending an​ offer, announcement,​ reminder, or other item to a person at a particular address.

​Direct-mail marketing

Which of the following are common trade promotion​ tools?

​Discounts, free​ goods, allowances, and free advertising specialty items


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