Marketing Quiz #2

13) ________ pricing uses buyers' perceptions of value as the key to pricing. A) Customer value-based B) Cost-based C) Time-based D) Markup E) Target return

A) Customer value-based

2) ________ is the only element in the marketing mix that produces revenue.A) PriceB) ProductC) PlaceD) Fixed costsE) Variable costs

A) Price

7) At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore

A) full-service retailer

4) When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy. A) market-skimming B) cost-plus C) market-segmentation D) market-penetration E) competitive

A) market-skimming

6) Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

A) sales promotion

6) Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. A) the relative prices they charge B) the number of locations they have C) the strength of their Internet presence D) their sustainability and environmental policies E) the stability of their financial situation

A) the relative prices they charge

7) A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system. A) value delivery network B) horizontal channel C) consumer base D) product delivery network E) product line

A) value delivery network

8) ________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners

B) Intermediaries

6) Which of the following is true of price skimming? A) It is effective in situations in which competitors are able to undercut prices easily. B) It can be profitably used when the product's quality and image support its price. C) It involves underpricing products so that companies make larger sales. D) It is ineffective in situations in which competitors are unable to enter the market easily. E) It leads to a situation in which the company completes more, though less profitable, sales.

B) It can be profitably used when the product's quality and image support its price.

1) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation

B) Retailing

8) ________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D) Specialty-service E) Wholesaling

B) Self-service

4) ________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Differentiation B) Shopper marketing C) Social media marketing D) Retailer marketing E) Segmentation

B) Shopper marketing

9) Which of the following questions is NOT of major concern regarding marketing channels? A) What role do physical distribution and supply chain management plan in attracting and satisfying customers? B) What impact do marketing channels have on the profitability of the firm and its partners? C) How do channel firms interact and organize to do the work of the channel? D) What problems do companies face in designing and managing their channels? E) What is the nature of marketing channels, and why are they important?

B) What impactdo marketing channels have on the profitability of the firm and its partners?

3) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________ and includes broadcast, mobile, print, and online forms. A) sales promotion B) advertising C) direct and digital marketing D) personal selling E) public relations

B) advertising

4) Price is important to managers ________.A) because prices cannot be changed quickly, so must be correctly determined B) because a small percentage improvement in price can generate a large percentage increase in profitability C) but other marketing mix elements create customer value and build relationships D) but product features can be changed more quickly E) but has little impact on a firm's market share

B) because a small percentage improvement in price can generate a large percentage increase in profitability

9) Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing, and social media? A) sales promotion B) direct and digital marketing C) horizontal diversification D) public relations E) advertising

B) direct and digital marketing

3) Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? A) factory-supply networks B) downstream partners C) resource banks D) upstream partners E) supply channels

B) downstream partners

10) In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using? A) market-skimming pricing B) market-penetration pricing C) captive-product pricing D) cash discount pricing E) by-product pricing

B) market-penetration pricing

7) Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy. A) market-skimming pricing B) market-penetration pricing C) cost-plus pricing D) inclusive pricing E) exclusive pricing

B) market-penetration pricing

5) Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using? A) market-penetration pricing B) market-skimming pricing C) competitive pricing D) cost-plus pricing E) product-line pricing

B) market-skimming pricing

8) Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct and digital marketing E) advertising

B) personal selling

1) What sets the floor for product prices? A) consumer perceptions of the product's value B) product costs C) competitors' strategies D) advertising budgets E) market competition

B) product costs

4) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. A) direct and digital marketing B) sales promotion C) personal selling D) public relations E) publicity

B) sales promotion

1) Companies set not a single price, but a pricing ________ that covers different items in its line and changes over time as products move through their life cycles. A) by-product B) structure C) loop D) cycle E) bundle

B) structure

4) The term supply chain is considered limited because it ________. A) ignores the make-and-sell aspect of the market B) suggests that planning begins with raw materials and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) takes a sense-and-respond view of the market E) suggests that planning starts with identifying the needs of target customers

B) suggests that planning begins with raw materials and factory capacity

2) The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________. A) retailers B) upstream partners C) distributors D) downstream partners E) distribution channels

B) upstream partners

9) Which of the following is true of market-penetration pricing? A) It should be used when the product's quality and image support a high price. B) It involves setting a high price for a new product to appeal to the elite in society. C) It results in drawing in large numbers of buyers quickly, winning a large market share. D) It is best used in conjunction with a market-skimming pricing strategy. E) It results in the company making fewer and less profitable sales.

C) It results in drawing in large numbers of buyers quickly, winning a large market share.

7) ________ includes sales presentations, trade shows, and incentive programs. A) Direct and digital marketing B) Sales promotion C) Personal selling D) Public relations E) Advertising

C) Personal selling

1) ________ refers to the amount of money charged for a product or service.A) ValueB) CostC) PriceD) WageE) Salary

C) Price

2) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing. A) comparative B) competitive C) market-skimming D) market-segmentation E) cost-plus

C) market-skimming

10) What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's valueD) variable costs E) break-even volume

C) customer perceptions of the product's value

3) Retailers connect brands with consumers in the ________ phases of the buying process. A) need identification B) evaluation of alternatives C) final D) information gathering E) post-purchase

C) final

10) Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process? A) self-service retailer B) limited-service retailer C) full-service retailer D) independent retailer E) off-price retailer

C) full-service retailer

10) A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) resource bank

C) marketing channel

5) The term demand chain is considered limited because it ________.A) advocates a make-and-sell view of the market that relies on a responsive supply network B) suggests that planning starts with raw materials, productive inputs, and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) ignores the evolution of the global marketplace E) overlooks the needs of target customers

C) takes a step-by-step, linear view of purchase-production-consumption activities

8) A market-penetration pricing policy should LEAST likely be used for a new product when ________.A) the market is highly price sensitive B) production and distribution costs fall as sales volume increases C) the product's quality and image support a high priceD) a high price helps keep out the competition E) there are few or no competitors in the market

C) the product's quality and image support a high price

1) A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools? A) the product mix B) product line filling C) the promotion mix D) the price mix E) horizontal diversification

C) the promotion mix

9) ________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers

D) Limited-service retailers

3) Which of the following is true with regard to price?A) Historically, price has had the least perceptible impact on buyer choice.B) Price is the least flexible element in the marketing mix.C) Unlike product features and channel commitments, prices cannot be changed quickly.D) Price is the sum of all the values that customers give up to gain the benefits of having a product. E) Prices only have an indirect impact on a firm's bottom line.

D) Price is the sum of all the values that customers give up to gain the benefits of having a product.

3) A market-skimming pricing strategy should NOT be used for a new product when ________. A) the product's quality and image support its higher price B) enough buyers want the products at that price C) competitors are unable to enter the market D) competitors can undercut prices easily E) producing a smaller number of goods is feasible

D) competitors can undercut prices easily

12) Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. A) competition-oriented B) cost-based C) time-based D) customer-oriented E) marketer-oriented

D) customer-oriented

2) Many institutions, including retailers, wholesalers, and ________ do retailing. A) schools B) government agencies C) factory farmers D) manufacturers E) defense contractors

D) manufacturers

10) Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? A) sales promotion B) direct and digital marketing C) advertising D) public relations E) horizontal diversification

D) public relations

5) Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct and digital marketing D) public relations E) advertising

D) public relations

1) Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________. A) upstream partnerships B) marketing channels C) inventory providers D) supply chain E) downstream partnerships

D) supply chain

5) ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Point-of-purchase marketing C) Social media marketing D) Virtual marketing E) Omni-channel retailing

E) Omni-channel retailing

2) Which of the following is one of the five major promotion tools? A) market penetration B) strategic positioning C) product line filling D) market diversification E) direct and digital marketing

E) direct and digital marketing

6) A view of the market that specifies that planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value is a(n) ________ view. A) make-and-sell B) identify-and-target C) purchase-produce-and-consume D) market-and-profit E) sense-and-respond

E) sense-and-respond

TRUE OR FALSE6) Price is the most inflexible of the marketing mix elements.

FALSE

TRUE OR FALSE 5) Prices have a direct impact on a firm's bottom line.

TRUE