MKTG 409: Exam 3 - Mindtap
A few months ago, a major B2B supplier raised prices of its products by 10 percent to compensate for changes in market conditions. One of its sales reps, Tamika, was surprised when orders from her regular customers plummeted. Her normal order was $1,100. After the price increase, the average order dropped by 25 percent. Tamika became concerned that customers might look elsewhere. For this reason, she decided to start offering discounts. When one of her loyal customers, David, purchases $950 worth of product for his firm, the supplier gives David the terms "4/20 net 30." She wants to maintain her relationship with David and would ideally like to receive payment in less than a month. Consider how the average order amount changed when prices were raised $75. The elasticity of demand is _______. With this in mind, the product can best be described as _______. 1.0; elastic 2.5; inelastic 2.5; elastic 0.4; inelastic
2.5; elastic
The PlayStation 5 retails for $499 at GameStop, and the cost to GameStop is $400. What is the markup as a percentage of the selling price? 50.3% 19.8% 80.2% 24.8%
24.8%
Chantel, a resident of Denver, Colorado, decided to open up her own fine jewelry store. To do so, she used her life savings and a loan from the bank. Chantel was able to open up a store with sufficient inventory. She markets the jewelry as the "finest jewelry in the West." The most popular item Chantel sells is a rose gold bracelet that sells for $550. During one month, Chantel's fixed costs are $6,000. Her variable costs average about $400. How many rose gold bracelets would Chantel have to sell to break even? 37 24 40 54
40
A few months ago, a major B2B supplier raised prices of its products by 10 percent to compensate for changes in market conditions. One of its sales reps, Tamika, was surprised when orders from her regular customers plummeted. Her normal order was $1,100. After the price increase, the average order dropped by 25 percent. Tamika became concerned that customers might look elsewhere. For this reason, she decided to start offering discounts. When one of her loyal customers, David, purchases $950 worth of product for his firm, the supplier gives David the terms "4/20 net 30." She wants to maintain her relationship with David and would ideally like to receive payment in less than a month. How much would David have to pay if he pays in 25 days? In 19 days? 950, 912 923, 950 950, 760 912, 950
950, 912
Customers receive the benefits of form utility from an intermediary when _______. The retailer has many locations available to purchase a desired product The product is preassembled in the manufacturer's packaging The consumer is pre approved for purchase and does not have to complete paperwork A retailer offers to add a monogram to a product
A retailer offers to add a monogram to a product
Best Buy stores have knowledgeable staff to provide information to consumers on products ranging from televisions to laptops. The company also offer repair and support services through the Geek Squad. These are examples that Best Buy is _______. Participating in multichannel retailing Facilitating comparison shopping Trying to appeal to business customers Adding value for customers
Adding value for customers
Miguel is setting prices for new couches. The couch he is currently looking at is higher quality and expected to last longer than a traditional couch. Miguel expects to set the price of the couch high because he knows that consumers anticipate paying more for longer-lasting products. What stage of the pricing process is Miguel currently at? Determining the final price Developing pricing objectives Assessing the target markets evaluation of price Choosing a basis for setting prices Evaluating competitors prices
Assessing the target markets evaluation of price
Rex is opening a retail outlet and will primarily sell used video games and game systems. Which of the following would most likely represent a fixed cost for Rex? Electricity Advertising expenditures Employee compensation Building rent
Building rent
Large manufacturers such as Procter & Gamble are typically able to have control over how their products are promoted and sold in different retail outlets. Due to this control, Procter & Gamble is likely a channel _______. Priority Dominator Developer Captain
Captain
A few months ago, a major B2B supplier raised prices of its products by 10 percent to compensate for changes in market conditions. One of its sales reps, Tamika was surprised when orders from her regular customers plummeted. Her normal order was $1,100. After the price increase, the average order dropped by 25 percent. Tamika became concerned that customers might look elsewhere. For this reason, she decided to start offering discounts. When one of her loyal customers, David, purchases $950 worth of product for his firm, the supplier gives David the terms "4/20 net 30." She wants to maintain her relationship with David and would ideally like to receive payment in less than a month. What type of discount is the supplier offering David? Trade Transfer Cumulative Allowance Cash
Cash
ACE Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use? Quantity discount Trade discount Allowance Seasonal discount Cash discount
Cash discount
Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants to open up another channel of distribution. Based on her criteria, Delilah should probably use _______. Catalog marketing Home shopping Direct selling Telemarketing
Catalog marketing
Joseph has a passion for quality electronics. His dream is to open up a large electronics store to compete against Best Buy. He thinks he can utilize supplier relationships to source the latest high-tech electronics at lower prices. Therefore, he thinks he can beat Best Buy on the type of products available as well as with lower price points. Joseph is most likely to open up a(n) _______. Off-price retailer Category killer Convenience store Department store
Category killer
Snap-on Tools uses a franchise model to sell shop equipment products to customers. When Snap-on developed a website that sold tools directly to consumers, this likely caused _______ with franchisees, which would likely increase if Snap-on reaches an agreement to sell through Home Depot as well. Channel conflict Horizontal channel integration Channel leadership Channel cooperation
Channel conflict
Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Forouzan has obtained a list of prices that tell her how much similar products are being sold for. Forouzan is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Forouzan decided to undercut their price by several dollars. She believes putting a sign in their stores that features her company's discounted price next to the price of their major competitor for the same product will show consumers that Forouzan's company offers them a much better deal. However, she knows that she has to be careful not to misrepresent the competitor's price in the process. Which of the following pricing strategies is Forouzan planning to adopt? Comparison discounting Customary pricing Price lining Special event pricing
Comparison discounting
Before heading to the pool, Yash filled up his car with gas and ran into the _______ to withdraw $40 from the ATM and get snacks and a Gatorade. Discount store Extreme value store Department store Convenience store
Convenience store
Lin is attempting to price a piece of custom-made equipment for a gym. The production costs of the equipment are hard to assess. She decides it would just be easier to add a specified dollar amount to the total cost. What type of pricing is Lin using? Demand based Dynamic Markup Yield management Cost plus
Cost plus
______ pricing applies a specific dollar amount or percentage of the cost that is added to the seller's cost to establish the final price of a product or service. This type of pricing is frequently utilized in government and defense contracts. Competition-based Demand-based Markup Cost-plus
Cost-plus
Danny has a dilemma. He works for a chocolate company and the price of chocolate is going up. The most logical solution would be to raise the price. However, Danny knows from his history in the business that their loyal customers would not look favorably on a price increase. For customers, candy bars are one of those items where the price rarely changes. Danny's firm has sold its candy bars for $0.99 for the past two decades. Danny feels that the next best solution to absorbing the extra costs is to make the candy bars slightly smaller without lowering the price. Danny's company is most likely using which of the following pricing strategies? Everyday low price Penetration Price leader Product line Customary
Customary
ACE Corp.'s products have elastic demand. If ACE raises the price of products, what will be the result? Increase in total revenue Decrease in market share Decrease in total revenue Increase in market share
Decrease in total revenue
Off-price retailers compete primarily based on _______. Deeply discounted prices on name-brand merchandise A broad selection of products including food, electronics, and clothing High-quality private brands at low prices Low prices and broad product availability in one major product category
Deeply discounted prices on name-brand merchandise
If Kellogg's is forcing its retailers to place its cereals in prime locations on the shelves so customers can see them easier than the competition, it would be _______. Demonstrating channel power Integrating the channel vertically Leading channel cooperation Integrating the channel horizontally
Demonstrating channel power
Which of the following is the final step in the process of establishing prices? Assessment of target market's evaluation of price Selection of pricing strategy Determination of a specific price Selection of a basis of pricing
Determination of a specific price
Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due to his extensive experience and legal background, he believes that his fees should not relate directly to the time or effort spent on specific cases. Now that Malcolm has chosen the pricing strategy he wants to use, what is his next step? Developing pricing objectives Assessing the target markets evaluation of price Determining the final price Choosing a basis for setting prices
Determining the final price
What is the first step in establishing prices? Determining a basis for pricing Determination of a specific price Development of pricing objectives Evaluating competitors' prices
Development of pricing objectives
Blue Ribbon Farms is a family-owned farm and sells its seasonal produce, meat, eggs, and bakery items at several farmers' markets within a 60-mile radius of the farm. The owners utilize a Square payment system for credit cards, which is conveniently attached to a digital device such as an iPhone or iPad; however, the farm is charged a credit card fee of 8 percent of the retail price to process each credit card transaction. To encourage shoppers to pay with cash, Blue Ribbon Farms offers a 10 percent discount on purchases for consumers who pay by cash or check. Blue Ribbon Farms is utilizing a _______ pricing strategy. Random discounting Penetration Differential Premium
Differential
National Geographic sent Ray his monthly magazine. It also sent him a form letting him know that his subscription was running out. If he acts now, he can save $5 on his purchase. All Ray has to do to renew his subscription for the upcoming year is fill out a form and mail it with a check to National Geographic. This is an example of _______. Catalog marketing Direct response marketing Telemarketing Direct selling
Direct response marketing
Vaughn was wide awake at 2 a.m., so he decided to watch television. He ended up watching an infomercial about Gotham Steel frying pans. Vaughn became convinced he needed the dishwasher safe, scratch-resistant cookware and immediately called the 1-800 number listed on the screen to order a frying pan. This is an example of _______. Direct selling Catalog marketing Direct response marketing Telemarketing
Direct response marketing
KidRead is developing a way to increase the number of subscribers to its children's book subscription service using direct marketing. It has narrowed down the options to _______ in which it would mail out postcards advertising the service and having new customers place mail, telephone, or online orders or _______ in which it would call potential subscribers to sell them the service over the phone. Catalog marketing; online marketing Direct response marketing; telemarketing Online marketing; telemarketing Catalog marketing; television home shopping
Direct response marketing; telemarketing
Companies such as Avon and Amway choose to market their products to ultimate consumers. They use face-to-face sales presentations, either at home or at work. This strategy is referred to as _______. Direct selling Telemarketing Catalog marketing Direct response marketing
Direct selling
Joan is taking time out from her career as a marketing manager to be a stay-at-home mom. To supplement her family's income, she has recently arranged to host parties at her home for Pampered Chef. During these parties, she demonstrates Pampered Chef kitchen products to invited friends and former colleagues and gives them an opportunity to purchase Pampered Chef products. This is best described as _______. telemarketing Online retailing Television home shopping Direct selling
Direct selling
Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume? Discount store Department store Warehouse club Convenience store
Discount store
American Eagle allows shoppers to buy its clothing through its stores or through its website, ae.com. This is an example of _______. Tying agreements Vertical integration Horizontal channel integration Dual distribution
Dual distribution
LEGOLAND is implementing a new type of pricing. When demand increases and more customers visit the parks, the price will increase. When demand dips during the slow season, prices will decrease. This is a way to help balance out supply and demand. What is another name for the type of pricing that LEGOLAND is using? Markup pricing Cost plus pricing Competition based pricing Cost based pricing Dynamic pricing
Dynamic pricing
If a shift in price causes an opposite change in total revenue, then the product is _______. Unitary Elastic Unknown Inelastic
Elastic
Companies have been using computer technology to integrate order processing with production, inventory, accounting, and transportation in a system referred to as _______. Just in time delivery Expected data input Inventory management Electronic data interchange
Electronic data interchange
Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Forouzan has obtained a list of prices that tell her how much similar products are being sold for. Forouzan is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Forouzan decided to undercut their price by several dollars. She believes putting a sign in their stores that features her company's discounted price next to the price of their major competitor for the same product will show consumers that Forouzan's company offers them a much better deal. However, she knows that she has to be careful not to misrepresent the competitor's price in the process. When Forouzan is examining the list of prices, she is most likely in which of the following stages? Choosing a basis for setting prices Assessing the target markets evaluation of price Determining the final price Developing pricing objectives Evaluating competitors prices
Evaluating competitors prices
Lexi operates a service business that engages in systematically collecting data on brands and prices at competitors' stores for her business customers. For which stage of the price establishment process would this service be most appropriate? Assessing the target markets evaluation of price Selecting a pricing strategy Evaluating competitors prices Developing pricing objectives
Evaluating competitors prices
Camila is undergoing the eight-step process for establishing prices for a newly launched product. She has just finished assessing the target market's evaluation of possible prices. What is Camila's next step? Development of pricing objectives Determination of a specific price Selection of pricing strategy Evaluation of competitors prices
Evaluation of competitors prices
An arrangement under which a producer forbids an intermediary to carry products made by competing manufacturers is called _______. Exclusive distribution A tying agreement Exclusive dealing Refusal to deal
Exclusive dealing
Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores are best described as _______. Department stores Supermarkets Extreme value stores Discount stores
Extreme value stores
By locating in the same general vicinity as other car dealerships, Hartfield Honda can _______. Facilitate wholesale exchanges Facilitate comparison shopping Create form utility Create possession utility
Facilitate comparison shopping
Kaylee has entered into an arrangement in which she can sell branded products, benefit from a national promotion program, and obtain equipment, buildings, management know-how, and marketing assistance in exchange for a percentage of her sales. This is best described as _______. Online retailing Retail positioning Franchising Direct marketing
Franchising
If a retailer needs help with document management, communication management, and the distribution of retailer flyers, it will most likely hire a _______. Full service wholesaler Cash and carry wholesaler Rack jobber Limited service wholesaler
Full service wholesaler
Department stores, convenience stores, and warehouse clubs can all be classified as _______. Superstores Variety stores Speciality retailers General merchandise retailers
General merchandise retailers
A business marketer may offer _______ pricing that involves reducing a product's price relative to the transportation costs or other costs associated with the physical distance between buyer and seller. Allowance Trade Geographic Cash
Geographic
Hans can spend hours at his local Carrefour. He will shop for household items and clothing, paying lower prices than at other stores. If he needs to, he can also get his eyeglasses, make deposits at a branch of his bank, and eat lunch at a fast-food restaurant. Carrefour is a _______. Discount store Department store Hypermarket Supermarket
Hypermarket
The United Kingdom's largest supermarket chain is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _______. Warehouse club Hypermarket Supermarket Department store
Hypermarket
Grainger is an industrial supply company selling equipment from manufacturers and selling the equipment to manufacturing companies. Grainger takes title and carries inventory of the products it sells. Grainger is an example of a(n) _______. Manufacturer's agent Wholesaler Industrial distributor Broker
Industrial distributor
Chantel, a resident of Denver, Colorado, decided to open up her own fine jewelry store. To do so, she used her life savings and a loan from the bank. Chantel was able to open up a store with sufficient inventory. She markets the jewelry as the "finest jewelry in the West." The most popular item Chantel sells is a rose gold bracelet that sells for $550. During one month, Chantel's fixed costs are $6,000. Her variable costs average about $400. When Chantel raised the price of her rose gold bracelets by $75 to cover unexpected expenses, she was surprised to see that demand appeared to increase. She was making more sales at a higher price. This means the rose gold bracelets are _______. Typical products Valued conscious Elastic Price conscious Inelastic
Inelastic
When Coke Zero was added to the line of Coca-Cola products, it most likely was introduced using _______ distribution. Selective Intensive Exclusive Full market
Intensive
JanSport offers a line of backpacks in a variety of styles and sizes. The company needs to make sure it has an adequate assortment of backpacks available to meet customer demand as part of the _______ stage of logistics. Materials handling Inventory management Warehousing Transportation
Inventory management
Alicia is a product manager for a computer manufacturer and has decided to improve its inventory management. She is working with suppliers to wait to purchase materials right before they are needed in production so she can keep the levels of inventory low. She is suggesting a(n) _______ approach. Order minimization Safety stock Just in time Inventory reduction
Just in time
The Grove is an open-air shopping center that has upscale specialty stores, nice restaurants, and a movie theater. It is designed to encourage customer loyalty by looking like a "mini-city" with streets, benches, and a small park. The Grove is most likely a _______ shopping center. Lifestyle Regional Superregional Power
Lifestyle
Kroger is planning to open a new suburban grocery store. Management is currently evaluating how easy it will be to get deliveries at different sites, leasing terms of sites, and compatibility with potential neighboring stores. Kroger is evaluating a new store's _______. Retail positioning strategy Product mix Market segmentation Location
Location
Pierre runs a grocery store and is working with his suppliers in the planning and implementation of the flow of products from the manufacturer to his store. The goal is to make the transportation and storage of products more efficient and effective. He is engaging in _______. Logistics management Operations management Channel management Procurement
Logistics management
Custom Hot Rods specializes in restoring or creating custom vehicles and motorcycles for customers who appreciate one-of-a-kind vehicles. Custom Hot Rods typically produce two units each month. If it's able to produce one more unit each month, it will incur _______. Marginal cost Fewer variable costs Increased fixed costs Lower average variable costs
Marginal cost
Juan thinks he has reached the point where he has maximized his profit. However, because this can be tricky to determine, he is not sure. He decides to test it by selling one more unit. If Juan is correct in his assumption, what should happen when he sells this additional unit? Profits will be reduced to zero Juan will break even on his sales Marginal cost will exceed marginal revenue Marginal revenue will exceed marginal cost
Marginal cost will exceed marginal revenue
Artemis Inc. has a pricing objective to increase its primary product's sales relative to total industry sales. This is best described as a _______. Status quo objective Product quality objective Return on investment objectives Market share objective Cash flow objective
Market share objective
Land's End mines the data obtained from all customer interactions on its website using _______ tools in order to better understand customers' needs and to make recommendations to them. Sales data Beacon Marketing analytics Decision support system
Marketing analytics
_____ pricing, which is typically used by retailers such as Best Buy, calculates the retail price by adding a predetermined percentage of the cost to the cost of the product. Markup Competition-based Cost-plus Demand-based
Markup
Tri-County Supply is a wholesaler that works in the home construction industry, providing building supplies such as doors, windows, gutters, and other components used in home construction. Tri-County Supply takes ownership of the components, which means it assumes the risk associated with the products if it is unable to sell them to home builders. Tri-County Supply is a _______. Rack jobber Sales office Merchant broker Merchant wholesaler
Merchant wholesaler
Felipe goes to a Toyota dealership looking for a new car. He finds a Toyota Corolla he really likes. The time has come to meet with the salesperson. What type of pricing strategy is the salesperson likely to adopt with Felipe? Negotiated pricing Secondary market pricing Customary pricing Professional pricing
Negotiated pricing
Deborah is opening a second-hand clothing store in a shopping center that has other small specialty stores, a convenience store, and a fast-food restaurant. The center primarily attracts customers who live within a couple miles of the stores. Deborah's store is most likely in a _______ shopping center. Power Community Regional Neighborhood
Neighborhood
Apple has long promoted the style, design, and quality of its products and has become very successful because many consumers consider these characteristics desirable. Apple can best be described as operating in an environment of _______. Price elasticity Pricing objectives Price competition Marginal analysis Nonprice competition
Nonprice competition
______ occurs when a marketer utilizes distinctive product features, service, product quality, promotion, packaging, or other factors to differentiate its products or services from their competitors. Differential competition Nonprice competition Monopolistic competition Price competition
Nonprice competition
Ross Dress for Less is a retail chain that buys manufacturers' seconds, overruns, returns, and off-season production runs of apparel at below-wholesale prices for resale to consumers at deep discounts. Ross stores offer limited lines of national-brand and designer apparel and accessories. Consumers appreciate the ability to purchase name-brand goods at discounted prices, and the stores do particularly well during economic downturns. Ross is best classified as a(n) _______. Category killer Department store Off-price retailer Traditional speciality retailer
Off-price retailer
Lindsay visits jcrew.com and orders a sweater. This is an example of _______. Television home shopping Online retailing Telemarketing Catalog marketing
Online retailing
The Black Friday sale is highly anticipated by shoppers and many online and brick-and-mortar retail stores offer extreme discounts on items ranging from laptop computers to televisions to attract consumers to their stores. Some consumers even arrive at the retail location several hours before the store opens to wait in line and be one of the first shoppers allowed in the store. The Black Friday sale is an example of a _______ pricing strategy. Random discounting Bait Price lining Periodic discounting
Periodic discounting
Sherman's is a family-owned furniture and appliance retailer with four locations in central Illinois. The business is family-owned and is now run by the son of the founder. Sherman frequently uses television advertising and social media to promote the business and recently began offering a price match guarantee. The company is encouraging customers to check competitor prices while shopping at Sherman's and will even offer customers the use of an iPad to check deals. Sherman's will meet or beat any advertised competitor's price on similar merchandise. What type of practice is Sherman's implementing through its price-match guarantee? Value conscious pricing Nonprice competition Price competition Integrated pricing
Price competition
The mathematical result of dividing the percentage change in quantity demanded by the percentage change in price is known as the _______. Price elasticity of demand Marginal cost Marginal revenue Average variable cost
Price elasticity of demand
Eduardo's company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Eduardo's firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality. What type of pricing strategy is Eduardo's company using for this product? Penetration pricing Captive pricing Pricing lining Price skimming Differential pricing
Price skimming
Carlos works at Kellogg's and is on a team developing a new breakfast cereal. He is currently trying to contact different companies who can provide the specific ingredients and equipment needed to make the cereal. He will work with the procurement department to reach an agreement with the companies selected to provide the ingredients and equipment. Carlos is currently engaging in _______. Sourcing Logistics management Purchasing Procurement
Procurement
Kraft sells its macaroni and cheese through thousands of retailers across the country. Which of the following marketing channel structures is Kraft most likely to use? Producer, wholesaler, retailer, and consumer Producer and consumer Producer, wholesaler, and consumer Producer, retailer, and consumer
Producer, wholesaler, retailer, and consumer
If Peloton seeks to lead the electronics industry in innovation, what type of pricing objective will it most likely adopt? Return on investment Status quo Survival Cash flow Product quality
Product quality
Daniel always has to purchase popcorn whenever he goes to the movies. Popcorn is typically marked up 1,275 percent. However, Daniel is willing to pay this price. For Daniel the _______ is influencing his view of price. Type of product Marketing mix Product quality Purchase situation Target market
Purchase situation
Rental car companies purchase thousands of new cars each year for their fleets. Companies like Hertz and Enterprise Rent-A-Car are likely to receive _______ discounts when purchasing from automobile manufacturers. Quantity Seasonal Cash Trade
Quantity
Twin Pines Mall has a Nordstrom, a J.C. Penney, and a Macy's as well as many specialty stores that are national chains. It attracts customers traveling a distance because it has stores selling products that smaller shopping centers do not offer. Twin Pines Mall is most likely a _______ shopping center. Superregional Lifestyle Community Regional
Regional
Which of the following is true of online retailers? Online retailers do not have brick and mortar locations Retailers may offer exclusive online sales Most retailers are hesitant to offer products online Online retailers have less merchandise in stock than brick and mortar stores
Retailers may offer exclusive online sales
When Olive Garden sells wine to its customers in the restaurant, this is an example of _______. Wholesaling Direct marketing Vending Retailing
Retailing
_____ pricing objectives generally require some amount of trial and error since not all data and inputs are available when first setting prices. Profit Status quo Market share Return on investment
Return on investment
Gucci sells its handbags through its company-owned stores and through a handful of high-end department store chains like Neiman Marcus and Saks Fifth Avenue. Gucci is using _______ distribution. Selective Intensive Exclusive Full market
Selective
Arturo works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Arturo's organization have few options to choose from because its beef products tend not to vary. Arturo most likely works for a _______. Rack jobber Specialty line wholesaler Limited line wholesaler General merchandise wholesaler
Specialty line wholesaler
Forouzan works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Forouzan has obtained a list of prices that tell her how much similar products are being sold for. Forouzan is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Forouzan decided to undercut their price by several dollars. She believes putting a sign in their stores that features her company's discounted price next to the price of their major competitor for the same product will show consumers that Forouzan's company offers them a much better deal. However, she knows that she has to be careful not to misrepresent the competitor's price in the process. Forouzan's firm has adopted a _______ pricing objective. Profit Status quo Cash flow Return on investment
Status quo
Exclusive distribution is _______. Appropriate for convenience products Not suitable for infrequently purchased products Suitable for products consumed over a long period of time Desirable when a special effort is important
Suitable for products consumed over a long period of time
Nevaeh goes shopping to buy food for dinner, but she also wants to pick up a new pair of running shoes and a new shirt for her son. Because she is with her children, she wants to do all her shopping at one store. Which of the following should Nevaeh visit? Superstore Discount store Convenience store Supermarket
Superstore
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of _______. Channel conflict A horizontal marketing system A vertical marketing system Supply chain management
Supply chain management
Sahana has become well known for her beautiful jewelry creations. For years, she sold her jewelry in her downtown farmer's market as well as on Etsy.com. Sahana's Etsy sales were slow until she hired a professional photographer to take better pictures of her items using herself or friends as models. Sahana feels like she could make and sell more jewelry but isn't sure what retail format would best allow her to demonstrate her jewelry items and show them off. What type of retailing would you recommend that Sahana try next? Direct response marketing Television home shopping Online retailing Telemarketing
Television home shopping
A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? The product being sold is relatively inexpensive and easy to use The manufacturer's product is expensive with a lot of specific technical detail The producer wants to cover a large geographic area but has no sales force The manufacturer's sales force is available to assist the agents and distributors
The producer wants to cover a large geographic area but has no sales force
Marketers improve their ability to establish prices appropriately when _______. Their product are of better quality than the competition's There is a nonprice competition They know the price charges for competing brands The main objectives is image building
They know the price charges for competing brands
Discounts that are used to attract and keep effective resellers by compensating them for performing certain functions such as transportation or warehousing are called _______ discounts. Trade Cash Allowance Seasonal
Trade
Phydeaux & Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally-owned store is best classified as a(n) _________. Department store Category killer Off-price retailer Traditional speciality retailer
Traditional speciality retailer
Redlands Distributing wants to carry Tide detergent products made by Procter & Gamble (P&G). P&G agrees, but only if the supplier also purchases P&G's entire line of detergents such as Gain and Cheer. If this were to occur, Procter & Gamble would be engaging in which of the following channel management practices? Tying agreement Refusal to deal Exclusive dealing Multichannel distribution
Tying agreement
When launching its Dove Men+Care line of men's skin care products, Unilever told its distributors that they had to carry the new line if they still wanted to carry the rest of the Dove line of products. They would have been engaging in which of the following channel management practices? Dual distribution Tying agreements Restricted sales territories Refusal to deal
Tying agreements
A recent consumer trend has led grocery stores to expand their offering of organic produce, grass-fed beef, free-range chicken, and other products that consumers view as highly desirable given their attributes related to the use of pesticides, ethical treatment of animals, and environmental impact of the products. Consumers are willing to pay more for products that possess these positive attributes. What pricing concept best characterizes consumers' willingness to pay higher prices for products that possess desirable features or characteristics? Demand Competitive differentiation Value Supply
Value
Sweet Things is a bakery specializing in cupcakes, cookies, and pies. The owners purchase ingredients such as sugar, flour, spices, baking soda, chocolate, and butter as raw materials to create their sweet treats. These ingredients or raw materials would most likely be classified as _______ costs. Marginal Variable Sunk Fixed
Variable
____ occurs when a shopper researches a product online and then heads to the nearest store to make the actual purchase. Window shopping Webhaggling Webrooming Showrooming
Webrooming
Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _______. Competition based pricing Cost plus pricing Yield management Markup pricing
Yield management
