Marketing Test

Ch. 10 What kind of pricing is a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price?

Cost-plus pricing is a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price. Demand-based pricing is a price-setting method based on estimates of demand at different prices. Yield management pricing is a practice of charging different prices to different customers in order to manage capacity while maximizing revenues. Value pricing, or everyday low pricing (EDLP), is a pricing strategy in which a firm sets prices that provide ultimate value to customers.

Ch. 12 Factory outlet stores carry a __________.

limited selection from a single manufacturer. Examples include Gap Outlet and Coach Outlet. Supermarkets carry a large selection of food items and a limited selection of general merchandise. Box stores carry a limited selection of food items, many of which are store brands. Department stores carry a large selection of many product lines.

Ch. 14 What is corporate identity?

materials such as logos, brochures, building design, and stationery that communicate an image of the organization. Media relations is a PR activity aimed at developing close relationships with the media. Publicity is unpaid communication about an organization that appears in the mass media. A public relations campaign is a coordinated effort to communicate with one or more of the firm's publics.

Ch. 12 Warehouse clubs carry a ___________.

moderate selection of limited product lines with many items in larger-than-normal sizes. Factory outlet stores carry a limited selection from a single manufacturer. Leased departments carry a limited selection of items in a single product line. Supermarkets carry a large selection of food items and a limited selection of general merchandise.

Ch. 13 User-generated content (UGC) is __________.

online consumer comments, opinions, advice and discussions, reviews, photos, images, videos, podcasts, webcasts, and product-related stories available to other consumers. Crowdsourcing is a practice in which firms outsource marketing activities, such as selecting an ad, to a community of users. Corrective advertising is advertising that clarifies or qualifies previous deceptive advertising claims. An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time.

Ch. 12 Adjusting pricing to influence demand is a marketing strategy that addresses the service characteristic of __________.

perishability. Providing tangibility through the physical appearance of the facility is a marketing strategy that applies to intangibility. Instituting total quality management programs is a marketing strategy that applies to variability. Training employees about successful service encounters is a marketing strategy that applies to inseparability.

Ch. 11 What is the purpose of warehousing?

storing goods in anticipation of sale or transfer to another member of the distribution channel. Materials handling is the moving of products into, within, and out of warehouses. Transportation is the mode by which products move among channel members. Inventory control includes activities that ensure goods are always available to meet customers' needs.

Ch. 12 With consideration to SERVQUAL, how is reliability defined?

the ability to provide what was promised dependably and accurately. Responsiveness is the willingness to help customers and provide prompt service. Tangibles are the physical facilities and equipment and the professional appearance of personnel. Empathy is the degree of caring and individual attention customers receive.

Ch. 12 Retail borrowing is __________.

the consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased. Retailtainment is the use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand. Nonstore retailing is any method used to complete an exchange with a product end user that does not require a customer visit to a store. B2C e-commerce is an online exchange between companies and individual consumers.

Ch. 12 What is the servicescape?

the environment in which a service is delivered and where the firm and the customer interact. A gap analysis is a marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred. The service encounter is the interaction between the customer and the service provider. A service is an act, effort, or performance exchanged from producer to user without ownership rights.

Ch. 10 What is loss-leader pricing?

the pricing policy of setting prices very low or even below cost to attract customers into a store. Surge pricing is a pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down. Predatory pricing is an illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business. Dynamic pricing is a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace.

Ch. 14 The order getter is __________.

the salesperson who works to develop long-term relationships with particular customers or to generate new sales. The new-business salesperson is responsible for finding new customers and calling on them to present the company's products. The order taker is the salesperson whose primary function is to facilitate transactions that the customer initiates. The missionary salesperson promotes the firm and tries to stimulate demand for a product but does not actually complete a sale.

Ch. 14 What is the role of the technical specialist?

to contribute considerable expertise in the form of product demonstrations, recommendations for complex equipment, and setup of machinery. The order taker's job is to process transactions the customer initiates. The missionary salesperson's job is to promote the firm and stimulate clients to buy. The order getter's job is to develop long-term relationships with particular customers to generate new sales.

Ch. 13 Dreaming up and producing the ads is the role of __________.

Creative Services The role of account planners is to combine research and account strategy to act as the voice of the consumer in creative, effective advertising. The role of media planners is to determine which communication vehicles are the most effective and efficient to deliver the ad. The role of researchers is to collect and analyze information that will help account executives develop a sensible strategy.

Ch. 13 The process that turns a concept into an advertisement is the __________.

Creative Strategy The creative brief is a guideline or blueprint for the marketing communication program that guides the creative process. The advertising appeal is the central idea or theme of an advertising message. The unique selling proposition is an advertising appeal that focuses on one clear reason why a particular product is superior.

Ch. 13 What is decoding?

Decoding is the process whereby a receiver assigns meaning to a message. Encoding is the process of translating an idea into a form of communication that conveys the desired meaning. The message is the actual content that goes from the source to a receiver. Feedback is a reaction to a message that helps marketers gauge the effectiveness of the message.

In the hierarchy of effects, examples of the __________ step include status appeals, sex appeals, and celebrity endorsements.

Desire Examples of the knowledge step include brochures, infomercials, public relations, and personal selling. Examples of the awareness step include repetitive advertising, slogans and jingles, and publicity stunts. Examples of the purchase step include point-of-purchase displays, coupons, contests, and samples.

What is the first step in the distribution planning process?

Develop Distribution Objectives The second step is evaluate internal and external environmental influences. The third step is choose a distribution strategy. The fourth step is develop distribution tactics.

Ch. 14 What type of direct marketing is a brochure or pamphlet that offers a specific good or service at one point in time?

Direct Mail A catalog is a collection of products offered for sale in book form, usually consisting of product descriptions accompanied by photos of the items. Direct-response advertising allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product. M-commerce refers to the promotional and other e-commerce activities that are transmitted over mobile phones and other mobile devices.

Ch. 12 An interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise is __________.

Direct Selling A party plan system is a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone. A pyramid scheme, a form of direct selling, is an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public. B2C e-commerce is an online exchange between companies and individual customers.

Ch. 14 __________ means talking with and providing information to government officials to persuade them to vote a certain way on pending legislation.

Lobbying Crisis management is the process of managing a company's reputation when some negative event threatens the organization's image. Investor relations activities focus on communications to those whose financial support is critical. Sponsorships are PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company's contribution.

Ch. 12 __________ is the number of different product lines available.

Merchandise Breadth Merchandise mix is the total set of all products offered for sale by a retailer. Merchandise assortment is the range of products a store sells. Merchandise depth is the variety of choices available for each specific product line.

Ch. 12 Merchandise breadth is the __________.

Merchandise breadth is the number of different product lines available. Merchandise mix is the total set of all products offered for sale by a retailer. Merchandise assortment is the range of products a store sells. Merchandise depth is the variety of choices available for each specific product line.

Ch. 12 What is the total set of all products offered for sale by a retailer

Merchandise mix is the total set of all products offered for sale by a retailer. Merchandise assortment is the range of products a store sells. Merchandise breadth is the number of different product lines available. Merchandise depth is the variety of choices available for each specific product line.

Ch. 12 Which of the following is a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited?

Network marketing Virtual experiential marketing is an online marketing strategy that uses enhancements, including colors, graphics, layout and design, interactive videos, contests, games, and giveaways, to engage experiential shoppers online. Nonstore retailing is any method used to complete an exchange with a product end user that does not require a customer visit to a store. A pop-up store is a temporary retail space that a company erects to build buzz for its products.

Ch. 10 What is penetration pricing?

Penetration pricing is the pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase. Trial pricing occurs when a new product is priced low for a limited amount of time in order to lower the risk for the customer. Captive pricing is a pricing tactic for two items that must be used together; one item is priced much lower, and the firm makes its profit on the other, high-margin item essential to the operation of the first item. Uniform-delivered pricing is a pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location.

Ch. 12 The characteristic of a service that makes it impossible to store for later sale or consumption is __________.

Perishability Intangibility is the characteristic of a service that means customers can't see, touch, or smell good service. Variability is the characteristic of a service that means even the same service performed by the same individual for the same customer may vary over time. Inseparability is the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service.

Ch. 12 __________ are retail systems that collect sales data and connect directly into the store's inventory-control system.

Point-of-sale (POS) systems Perpetual inventory unit control systems are retail computer systems that keep a running total on sales, returns, transfers to other stores, and so on. Automatic reordering systems are retail ordering systems that are automatically triggered when inventories reach a certain level. Retail borrowing is the consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased.

Ch. 13 Advertising messages that promote the activities, personality, or point of view of an organization or company are known as __________.

Product Advertising Corporate advertising promotes the company as a whole instead of a firm's individual products. Advocacy advertising is advertising where an organization seeks to influence public opinion on an issue because it has some stake in the outcome. Public service advertisements (PSAs) are advertising run by the media for not-for-profit organizations or to champion a particular cause without charge.

Ch. 13 Which of the following is the distribution of free trial-size versions of a product to consumers?

Product Sampling A merchandising allowance is a reimbursement to the retailer for in-store support of the product. A trade show is an event at which many companies set up elaborate exhibits to show their products, give away samples, distribute product literature, and work to create new business contacts. A point-of-purchase (POP) display is an in-store display or sign.

Ch. 13 The major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing, make up the __________.

Promotion Mix Noise is anything that interferes with effective communication. The medium is a communication vehicle through which a message is transmitted to a target audience. The communication model is the process whereby meaning is transferred from a source to a receiver.

Ch. 14 The communication function that seeks to build good relationships with an organization's consumers, stockholders, legislators, and other stakeholders in the organization is known as __________.

Public Relations(PR) Publicity is unpaid communication about an organization that gets media exposure. A press release is information that an organization distributes to the media intended to win publicity. Crisis management is the process of managing a company's reputation when some negative event threatens the organization's image.

Ch. 13 Which of the following is a sales promotion that allows the customer to recover part of the product's cost from the manufacturer?

Rebate A premium is an item offered free to people who have purchased a product. A case allowance is a discount to the retailer or wholesaler based on the volume of product ordered. Push money is a bonus paid by a manufacturer to a salesperson, customer, or distributor for selling its product.

Ch. 12 With consideration to SERVQUAL, which of the five dimensions of service quality is described as the ability to provide what was promised dependably and accurately?

Reliability is the ability to provide what was promised dependably and accurately. Responsiveness is the willingness to help customers and provide prompt service. Tangibles are the physical facilities and equipment and the professional appearance of personnel. Empathy is the degree of caring and individual attention customers receive.

Ch. 12 Which of the following describes hypermarkets?

Retailers that are several times larger than other stores and offer virtually everything from grocery items to electronics. Off-price retailers buy excess merchandise from well-known manufacturers and pass the savings on to customers. Box stores are food stores that have a limited selection of items, few brands per item, and few refrigerated items. Variety stores carry a variety of inexpensive items.

Ch.11 What is the name for the process that includes product returns, recycling and material reuse, and waste disposal?

Reverse Logistics Order processing is the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door. Logistics is the process of designing, managing, and improving the movement of products through the supply chain. Transportation is the mode by which products move among channel members.

Which of the following is a loss experienced by a retailer due to shoplifting, employee theft, and damage to merchandise?

Shrinkage An experiential shopper is a shopper who shops because it satisfies the shopper's experiential needs. Customer profiling is the act of tailoring the level of customer service based on a customer's perceived ability to pay. An automatic reordering system is a retail ordering system that is automatically activated when inventories reach a certain level.

Ch. 12 What is retailing?

The final stop on the distribution path is retailing, in which organizations sell goods and services to consumers for their personal use. Direct selling is an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise. B2C e-commerce is an online exchange between companies and individual customers. Retailtainment is the use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand.

Ch. 13 What is the first step a prospective customer moves through in the hierarchy of effects?

The first step a prospective customer moves through in the hierarchy of effects is awareness. The second step a prospective customer moves through in the hierarchy of effects is knowledge. The third step a prospective customer moves through in the hierarchy of effects is desire. The final step a prospective customer moves through in the hierarchy of effects is loyalty.

Ch. 13 What is the first step in developing an advertising campaign?

The first step in developing an advertising campaign is understand the target audience. The second step is establish message and budget objectives. The third step is create the ads. The fourth step is pretest what the ads will say.

Ch. 10 What is the first step in the price planning process?

The first step in the price planning process is set pricing objectives. The second step in the price planning process is estimate demand. The third step in the price planning process is determine costs. The fourth step in the price planning process is examine the pricing environment.

Ch. 13 The __________ step in the promotional planning process is to identify the target audiences.

The first step in the promotional planning process is to identify the target audiences. The second step is to establish the communication objectives. The third step is to determine and allocate the marketing communication budget. The fourth step is to design the promotion mix.

Ch. 13 What is the last step in developing an advertising campaign?

The last step in developing an advertising campaign is evaluate the advertising. The next-to-last step is choose the media type(s) and media schedule. The fourth step is pretest what the ads will say. The third step is create the ads.

Ch. 11 What is inventory turnover?

The number of times a firm's inventory completely cycles through during a defined time frame. Supply chain management is the management of flows among firms in the supply chain to maximize total profitability. An enterprise resource planning (ERP) system is a software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation, and then facilitates sharing of data throughout the firm. Materials handling is the movement of products into, within, and out of warehouses.

Ch. 10 What is the break-even point?

The point at which a firm doesn't lose any money but doesn't make any profit is known as the break-even point. A break-even analysis is a method for determining the number of units that a firm must produce and sell at a given price to cover all its costs. The contribution per unit is the difference between the price the firm charges for a product and the variable costs. The gross margin is the markup amount added to the cost of a product to cover the fixed costs of the retailer or wholesaler and leave an amount for a profit.

Ch. 10 What is the last step in the price planning process?

The sixth and final step in the price planning process is develop pricing tactics. The fifth step in the price planning process is choose a pricing strategy. The fourth step in the price planning process is examine the pricing environment. The third step in the price planning process is determine costs.

Ch. 12 Which of the following retailers is an example of a category killer?

Toys "R" Us is an example of a category killer. A category killer carries a large selection of items in one or a few product lines. 7-Eleven is an example of a convenience store. Costco is an example of a warehouse club. Walmart is an example of a general merchandise discount store.

Ch. 10 What kind of discounts are discounts off list price of products to members of the channel of distribution who perform various marketing functions?

Trade discounts Quantity discounts use a pricing tactic of charging reduced prices for purchases of larger quantities of a product. A cash discount is offered to entice a customer to pay a bill quickly. A seasonal discount is a price reduction offered only during certain times of the year.

Ch. 14 Hard-sell tactics often occur with __________, an approach that focuses on making an immediate sale with little concern for developing a long-term relationship with the customer.

Transactional Selling Relationship selling is the process by which a salesperson secures, develops, and maintains long-term relationships with profitable customers. Team selling may consist of a salesperson, a technical specialist, and others who work together to develop products and programs that satisfy customers' needs. Personal selling occurs when a company representative interacts directly with a customer or prospective customer to communicate about a good or service. Transactional selling is one type of personal selling.

Ch. What are variable costs

Variable costs are the costs of production that are tied to and vary depending on the number of units produced. Fixed costs are the costs of production that do not change with the number of units produced. Average fixed cost is the fixed cost per unit product produced. Total costs are the total of the fixed costs and the variables for a set number of units produced.C

Ch. 10 Which of the following describes uniform-delivered pricing?

a pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location. Freight absorption pricing is a pricing tactic in which the seller takes on the total costs of transportation. F.O.B. origin pricing is a pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer. F.O.B. delivered pricing is a pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer.

Ch. 13 Which of the following describes the competitive-parity method?

a promotion budgeting method in which an organization matches whatever competitors are spending. The percentage-of-sales method is a method for promotion budgeting that is based either on a certain percentage of last year's sales or on estimates of the present year's sales. Bottom-up budgeting techniques allocate the promotion budget based on identifying promotion goals and allocating enough money to accomplish them. The objective-task method is a promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet those goals.

Ch. 13 What is co-op advertising?

a sales promotion where the manufacturer and the retailer share the cost. A trade promotion is a promotion that focuses on members of the "trade," which include distribution channel members. A rebate is a sales promotion that allows the customer to recover part of the product's cost from the manufacturer. A frequency program is a consumer sales promotion that offers a discount or free product for multiple purchases over time.

Ch. 10 What is an internal reference price?

a set price or price range in consumers' minds to which they refer in evaluating a product's price. Price lining is the practice of setting a limited number of different specific prices, called price points, for items in a product line. Loss-leader pricing is the setting of prices very low or even below cost to attract customers into a store. Price fixing is the collaboration of two or more firms in setting prices, usually to keep prices high.

Ch. 11 A(n) __________ is a multiple-level distribution channel in which channel members work independently of one another.

A conventional marketing system A vertical marketing system (VMS) is a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels. In an administered VMS, a type of vertical marketing system, members remain independent but voluntarily work together because of the power of a single channel member. A horizontal marketing system is an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose.

Ch.11 A firm has ________ power when it has the ability to control resources.

A firm has economic power when it has the ability to control resources. A firm such as a franchiser has legitimate power if it has legal authority to call the shots. A firm has reward or coercive power if it engages in exclusive distribution. A firm has reward or coercive power if it has the ability to give profitable products to and take them away from the channel intermediaries.

Ch. 12 What is shrinkage?

A loss experienced by a retailer due to shoplifting, employee theft, and damage to merchandise. An experiential shopper is a shopper who shops because it satisfies the shopper's experiential needs. Customer profiling is the act of tailoring the level of customer service based on a customer's perceived ability to pay. An automatic reordering system is a retail ordering system that is automatically activated when inventories reach a certain level.

Ch. 13 ___________ is an approach that assumes that if consumers see the product on store shelves, they will be motivated to make a trial purchase.

A push Strategy A pull strategy is an approach that relies on consumers to demand a firm's products. Product advertising is an advertising message that focuses on a specific good or service. The hierarchy of effects is a series of steps through which prospective customers move, from initial awareness of a product to brand loyalty.

Ch. 13 Which of the following is nonpersonal communication from an identified sponsor using the mass media?

Advertising A case allowance is a discount to the retailer or wholesaler based on the volume of product ordered. Public relations describes a variety of communication activities that seek to create and maintain a positive image of an organization and its products among the various publics, including customers, government officials, and shareholders. The hierarchy of effects is a series of steps prospective customers move through, from initial awareness of a product to brand loyalty.

Ch. 11 Which of the following modes of transport is best suited for shipping fresh-cut flowers?

Air is the mode of transport best suited for shipping flowers. Airfreight is ideal when speed is needed or distant markets have to be reached. Among the most frequently airfreighted products are perishables—such as fresh fish or cut flowers—and high-value, low-bulk items like jewelry. Water transportation is appropriate for non-perishable items like automobiles. Trucks are appropriate for products that require refrigeration, like strawberries. Railroads are one of the most cost-effective modes for shipping large amounts of bulk products—like grain and steel—over long distances.

Ch. 11 For which of the following products is air transportation best suited?

Air is the mode of transport best suited for shipping fresh-cut flowers. Airfreight is ideal when speed is needed or distant markets have to be reached. Among the most frequently airfreighted products are perishables—such as fresh fish or cut flowers—and high-value, low-bulk items like jewelry.

Ch. 10 Which of the following describes markup?

An amount added to the cost of a product to create the price at which a channel member will sell the product Wholesaler margin is the amount added to the cost of a product by a wholesaler. Retailer margin is the margin added to the cost of a product by a retailer. Gross margin is the markup amount added to the cost of product to cover the fixed costs of the retailer or wholesaler and leave an amount for a profit.

Ch. 10 What are average fixed costs?

Average fixed costs are the fixed costs per unit produced. Variable costs are the costs of production that are tied to and vary depending on the number of units produced. Fixed costs are the costs of production that do not change with the number of units produced. Total costs are the total of the fixed costs and the variables for a set number of units produced.

Ch. 10 What of the following describes the illegal practice known as bait-and-switch?

Bait-and-switch is an illegal marketing practice where an advertised price special is used to get customers into the store with the intention of switching them to a higher-priced item. Loss-leader pricing is the pricing policy of setting prices very low or even below cost to attract customers into a store. Unfair sales acts are state laws that prohibit suppliers from selling products below cost to protect small businesses from larger companies. Price fixing is the collaboration of two or more firms in setting prices, usually to keep prices high.

Ch. 11 What is the process of dividing larger quantities of goods into smaller lots in order to meet the needs of buyers?

Breaking Bulk Creating assortments means providing a variety of products in one location to meet the needs of buyers. Facilitating functions are functions of channel intermediaries that make the purchase process easier for customers and manufacturers. Insourcing is a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations.

What type of retailer is Best Buy?

Category Killer 7-Eleven is an example of a convenience store. BJ's is an example of a warehouse club. Kmart is an example of a general merchandise discount store.

Ch. 11 What is the term for the dependence of producers, wholesalers, and retailers on one another for success?

Channel Cooperation Channel power is the ability of members to influence, control, and lead the entire channel based on one or more sources of power. The channel leader or channel captain is the dominant firm that controls the channel. Channel conflict is incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy.

The distinct categories of intermediaries that populate a channel of distribution are known as __________.

Channel Levels An industrial distributor buys products from a manufacturer and sells them to business customers. A hybrid marketing system uses a number of different channels and communication methods to serve a target market. A slotting allowance is a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space.

Ch. 14 In which of the following does a salesperson review the points of agreement with the customer?

Closing A salesperson reviews the points of agreement with the customer in the closing step of the selling process. The salesperson may offer to help write up the order, ask whether the buyer wants this model or that one, or note that the buyer will lose out if the order is not placed now. Handling objections involves a salesperson's clarifying and overcoming any customer objections to buying. Follow-up includes a salesperson's following up after sale to ensure customer satisfaction and repeat business. Prospecting is the first step, where a salesperson identifies qualified potential customers.

Ch. 11 In a process called __________, companies are eliminating many traditional intermediaries because they find that they don't add enough value to the distribution channel.

Disintermediation (of the distribution channel) Knowledge management refers to a comprehensive approach that collects, organizes, stores, and retrieves a firm's information assets. Risk-taking functions are functions of intermediaries that make the purchase process easier for customers and manufacturers. Creating assortments means providing a variety of products in one location to meet the needs of buyers.

The advantage of using __________ is that they facilitate transactions for bulky products.

Drop Shippers Truck jobbers ensure that perishable items are delivered and sold efficiently. Rack jobbers provide merchandising services to retailers. Mail-order wholesalers provide reasonably priced sales options to small organizational customers.

Ch. 10 What is dynamic pricing?

Dynamic pricing is a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace. Online auctions are a method of e-commerce that allows shoppers to purchase a product through online bidding. A freemium strategy is a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more features, greater functionality, or greater capacity. A skimming price is a very high, premium price that a firm charges for its new, highly desirable product.

Ch. 10 Which of the following describes elastic demand for a product?

Elastic demand for a product occurs when customers are sensitive to changes in prices, and a change in price results in a substantial change in demand. With inelastic demand, changes in price have little or no effect on the amount demanded. With cross-elasticity of demand, changes in prices of other products also affect the demand for an item. Prestige is not a type of demand. Prestige is used to describe a product. For example, a prestige product is a product that has a high price and that appeals to status-conscious consumers.

Ch. 13 Evaluating the effectiveness of the communication program is the __________ step in the promotional planning process.

Evaluating the effectiveness of the communication program is the last step in the promotional planning process. The next-to-last step is to design the promotion mix. The third step is to determine and allocate the marketing communication budget. The second step is to establish the communication objectives.

Ch. 10 Which step in the price planning process involves looking at the economy, the competition, government regulation, consumer trends, and the international environment?

Examine the pricing environment 1. The set pricing objectives step involves looking at profit, sales, market share, competitive effect, customer satisfaction, and image enhancement. 2. The choose a price strategy step entails setting a price that is based on cost, demand, the competition, and customers' needs and addressing new-product pricing. 3. The develop pricing tactics step addresses pricing for individual products and multiple products, and includes distribution-based tactics and discounting for channel members.

Ch. 12 Retailers that are several times larger than other stores and offer virtually everything from grocery items to electronics are known as __________.

Hypermarkets Off-price retailers buy excess merchandise from well-known manufacturers and pass the savings on to customers. Box stores are food stores that have a limited selection of items, few brands per item, and few refrigerated items. Variety stores carry a variety of inexpensive items.

Ch. 11 A strategy that seeks to gain market share for a concept, philosophy, belief, or issue is __________.

Idea Marketing Place marketing is any activity that seeks to attract new businesses, residents, or visitors to a town, state, country, or some other site. A party-plan system is a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally busy if they were alone. A service is an act, effort, or performance exchanged from producer to user without ownership rights.

Ch. 13 What is the name for the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences?

Integrated marketing communication (IMC) The promotion mix is the total set of all products a firm offers for sale. A multichannel promotional strategy is a marketing communicating strategy combining traditional advertising, sales promotion, and public relations activities with online buzz-building activities. The communication model is the process whereby meaning is transferred from a source to a receiver.

Ch. 11 Marketers use __________ for products such as chewing gum, soft drinks, and milk that consumers quickly consume and must replace frequently.

Intensive Distribution Marketers use exclusive distribution to sell a product, typically with a high price tag, through a single outlet in a particular region. Marketers use selective distribution when demand is so large that exclusive distribution is inadequate but selling costs, service requirements, or other factors make intensive distribution a poor fit. While products may be distributed in mass quantities, this is not a form of distribution.

Ch. 11 Which of the following describes the just-in-time inventory technique?

Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed. A stock-out is a zero-inventory situation resulting in lost sales and customer dissatisfaction. Inventory control is the set of activities that ensures goods are always available to meet customers' demands. Order processing is the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.

Ch. 14 Follow-up is the __________ step in the creative selling process.

Last The next-to-last step is the close. The fifth step is handle objectives. The fourth step is the sales presentation.

Ch. 11 Developing distribution tactics is the __________ step in the distribution planning process.

Last The first step is develop distribution objectives. The second step is evaluate internal and external environmental influences. The third step is choose a distribution strategy.

Ch. 14 Internet-based platforms that allow users to create their own content and share it with others who access these sites are known as __________.

Social Media Loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand about which they care a great deal are known as brand ambassadors or brand evangelists. Social networks are sites used to connect people with other people who have similar backgrounds. Virtual worlds are online, highly engaging digital environments where avatars live and interact with other avatars in real time.

Ch. 10 Which of the following describes surge pricing?

Surge pricing is a pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down. Predatory pricing is an illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business. Loss-leader pricing is the pricing policy of setting prices very low or even below cost to attract customers into a store. Dynamic pricing is a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace.

Ch. 12 Which of the following is NOT a characteristic of a service?

Tangibility is not one of the four characteristics of a service. The four characteristics of a service include intangibility, perishability, inseparability, and variability. Perishability refers to the characteristics of a service that make it impossible to store for later use. Inseparability means that it is impossible to divide the production of a service from the consumption of that service. Variability means that the same service that the same individual performs for the same customer will change over time.

Ch. 14 Which of the following is an accurate description of the approach step in the creative selling process?

The approach step in the selling process is the step in which a salesperson meets the customer for the first time. Prospect and qualify is the step in which a salesperson identifies potential customers. Preapproach is the step in which a salesperson learns as much as possible about a prospective customer. The sales presentation is the step in which a salesperson tells the "value story" to the buyer.

Ch. 10 The __________ is primarily used to show the quantity of a product that customers will buy in a given time period, at different prices that might be charged.

The demand curve is primarily used to show the number of units the market will buy in a given time period, at different prices that might be charged. The relationship between the price charged and the resulting demand level is shown in the demand curve. A break-even analysis is a method for determining the number of units that a firm must produce and sell at a given price to cover all its costs. The price elasticity of demand is the percentage change in unit sales that results from a percentage change in price. The contribution per unit is the difference between the price the firm charges for a product and the variable costs.

Ch. 10 When pricing strategies are determined by ___________ objectives, the focus is on a target level of profit growth or a desired net profit margin.

When pricing strategies are determined by profit objectives, the focus is on a target level of profit growth or a desired net profit margin. When pricing strategies are determined by customer satisfaction objectives, a firm believes that profit will result from making customer satisfaction the primary objective. When pricing strategies are determined by image enhancement objectives, the firm uses price to communicate product quality and image. When pricing strategies are determined by sales or market share objectives, the focus is on maximizing sales or increasing market share.

Ch. 11 Firms that handle the flow of information from the manufacturer to the retailer or business user are __________.

Wholesaling intermediaries. Independent intermediaries are channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers. Merchant wholesalers are intermediaries that buy goods from manufacturers and sell to retailers and other business-to-business customers. Merchandise agents (brokers) are channel intermediaries that provide services in exchange for commissions but never take title to the product.

Ch.10 What is a freemium strategy?

a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more features, greater functionality, or greater capacity. Dynamic pricing is a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace. Online auctions are a method of e-commerce that allows shoppers to purchase a product through online bidding. A skimming price is a very high, premium price that a firm charges for its new, highly desirable product.

Ch. 11 Which of the following describes a vertical marketing system?

a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels. Exclusive distribution is selling a product only through a single outlet in a particular region. A retailer cooperative is a group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains. A horizontal marketing system is an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose.

Ch. 11 What is the supply chain?

all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer. Insourcing is a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, and retailers who in some way help move the product to the consumer or business user. Facilitating functions are functions of channel intermediaries that make the purchase process easier for customers and manufacturers.

Ch. 12 What is nonstore retailing?

any method used to complete an exchange with a product end user that does not require a customer visit to a store. A leased department is a department within a larger retail store that an outside firm rents. Customer profiling is the act of tailoring the level of customer service based on a customer's perceived ability to pay. The wheel-of-retailing hypothesis is a theory that explains how retail firms change, becoming more upscale as they go through their life cycle.

Ch. 11 The advantage of using __________ is that they provide efficiency, primarily in agricultural markets.

commission merchants Manufacturers' agents maintain legal ownership of a product by the seller. Selling agents handle all marketing functions for small manufacturers. Merchandise brokers enhance efficiency in markets where there are many small buyers and sellers.

Ch. 11 Sales agents who receive goods, primarily agricultural products, on consignment are __________.

commission merchants. Manufacturers' reps are independent salespeople who carry several lines of noncompeting goods. Selling agents market a whole product line or one manufacturer's total output. Merchandise brokers are intermediaries that facilitate transactions in markets in which there are lots of small buyers and sellers.

Ch. 13 Determining and allocating the marketing communication budget is the step in the promotional planning process that involves __________.

determining the total promotion budget, deciding between a push and a pull strategy, and allocating the budget to a specific promotion mix. Establishing the communication objectives involves creating awareness, informing the marketing team, creating desire, encouraging purchase and trial, and building loyalty. Designing the promotion mix involves determining the specific communication tools to use, what message to communicate, and the communication channel(s) used to send the message. Evaluating the effectiveness of the communication program determines whether the developed plan is working.

Ch. 14 What are input measures?

efforts that go into selling, such as the number and type of sales calls, expense account management, and a variety of nonselling activities. Publicity is unpaid communication about an organization that appears in the mass media. Output measures are the results of a saleperson's efforts. Internal PR is PR activities aimed at employees of an organization.

Ch. 11 What are wholesaling intermediaries?

firms that handle the flow of information from the manufacturer to the retailer or business user. Independent intermediaries are channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers. Merchant wholesalers are intermediaries that buy goods from manufacturers and sell to retailers and other business-to-business customers. Merchandise agents (brokers) are channel intermediaries that provide services in exchange for commissions but never take title to the product.

Ch. 12 A __________ is a retailer that offers a broad assortment of items at low prices with minimal service.

general merchandise discount store A supercenter is a larger store that combines an economy supermarket with other lower-priced merchandise. A category killer is a large specialty store that carries a vast selection of products in its category. A specialty store is a retailer that carries only a few product lines but offers good selection within the lines that it sells.

Ch. 11 A firm has economic power when it __________.

has the ability to control resources. A firm such as a franchiser has legitimate power if it has legal authority to call the shots. A firm has reward or coercive power if it engages in exclusive distribution. A firm has reward or coercive power if it has the ability to give profitable products to and take them away from the channel intermediaries.