MKTG Study Guide

Viral marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event. True False

false

After marketers determine a specific price, it will not change. True False

false

Peak demand is when _______. a.more competitors enter the market and attract new customers b.a service provider that offers a time-sensitive service receives most of its revenue c.every customer wants to purchase a service at the exact same time d.customers' satisfaction is the greatest

b

Dwight is looking for new potential clients. He has decided to find potential clients through the use of a phone book and he will call them without prior consent, which is known as the _______ method. a.presentation b.referral c.repeat contact d.cold canvass

d

When tablet computers were first introduced to the market, which of the following would have been the logical choice for promotion? a.Selective demand b.Comparative promotion c.Primary demand promotion d.New introductory promotion

d

Product placement is illegal in all countries outside of the United States. True False

false

Seasonal discounts provide price incentives to customers during peak selling seasons. True False

false

Service quality is defined by compliance with a set of specifications. True False

false

When an organization uses an advertising agency, who usually develops the advertising campaign? a.The agency suggests ideas and the firm chooses among them b.The advertising department within an organization c.The firm and the agency working jointly d.The agency's specialists

c

The end result of eliminating marketing intermediaries is a cost benefit. True False

False

The objective of maintaining or increasing market share depends on growth in industry sales. True False

false

The primary advantage of franchising is the complete control the franchisee has over the business. True False

false

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. a.allowance b.trade c.cash d.geographic

d

Distribution channels for nonprofit organization products and services are _______. a.long b.narrow c.wide d.short

d

Multichannel retailing has made it easier for consumers to research products even before entering a store. True False

true

A general-merchandise wholesaler would be expected to carry a _______ product mix. a.wide and shallow b.narrow and deep c.wide and deep d.narrow and shallow

a

Before she calls potential clients for the accounting firm she works for, Joy is identifying key decision makers at each company, contacting other clients for information about them, and identifying needs of each company. This process is called _______. a.preapproach b.making the presentation c.approach d.prospecting

a

General Electric sells its home appliances through a network of dealers and only a few large retailers. It most likely distributes using _______ distribution. a.selective b.intensive c.exclusive d.dealer

a

Imagine you are at a grocery store and are asked by a researcher what the last television commercial you saw was. This would be an example of what kind of test? a.Unaided recall test b.Recognition test c.Aided recall test d.Memory test

a

Massage therapists cannot complete their work without their clients present because of the _______ feature of services. a.inseparability b.perishability c.value d.intangibility

a

Occasionally, firms may utilize a _______ pricing objective by temporarily setting prices low even below costs in order to generate higher levels of sales. a.survival b.return on investment c.cash flow d.status quo

a

Quentin and his friends saw a commercial advertising the latest Dwayne "The Rock" Johnson movie on Blu-ray, so they rented it from Redbox, an automated movie and game kiosk. This is an example of _______. a.vending b.direct selling c.direct-response marketing d.television home shopping

a

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. a.channel conflict b.channel cooperation c.channel leadership d.horizontal channel integration

a

The strategic location of products or product promotions within entertainment media content to reach the product's target market is known as product _______. a.placement b.positioning c.exhibition d.integration

a

What is the reorder point if the usage rate is 20 units per day, the order lead time is 8 days, and the safety stock is 60? a.220 b.88 c.1,208 d.500

a

What type of pricing is typically utilized by defense contractors when placing bids for projects with the government? a.Cost-plus b.Competition-based c.Demand-based d.Markup

a

At the end of each day, Deshawn submits a _______ to his sales manager that identifies the customers called on and provides detailed information about interactions with those clients. a.performance standard b.call report c.list of invoices d.customer feedback report

b

Realizing that her firm's sales promotion budget was small and cut by 30% for the coming year, Stacey Baronas rules out _______ as playing a role in her sales promotion plan. a.money refunds b.samples c.point-of-purchase materials d.coupons

b

The two levels of expectations that consumers generally have about services are _______. a.basic and extraordinary b.acceptable and desired c.low and high d.basic and desired

b

What are the two ways that markup percentage can be calculated? a.Percentage of revenue and percentage of profit b.Percentage of cost and percentage of selling price c.Percentage of cost and percentage of revenue d.Percentage of contribution margin and percentage of selling price

b

Yvonne works for an advertising agency hired by a local restaurant that wants to increase its revenue by 5% this year. Yvonne proposes that the restaurant will need to spend an additional $25,000 on its advertising campaign to meet this objective. Yvonne is using which advertising appropriation approach? a.The percent-of-sales approach b.The objective-and-task approach c.The competitive-matching approach d.The media plan approach

b

At times, customers interpret a _______ price as possessing _______ product quality. a.lower; higher b.moderate; higher c.higher; higher d.higher; lower

c

Huntington wants to find out whether its sponsorship of Pelotonia, a bike ride dedicated to raising funds for cancer research, is having a positive effect on stakeholders' views of Huntington's efforts to be a socially responsible company. Huntington should conduct a _______. a.public relations audit b.sponsorship-effectiveness audit c.communications audit d.social audit

d

If Pampers were to set its advertising appropriation based on how much is spent on Huggies, they would be using the _______ approach. a.arbitrary b.media plan c.percent-of-sales d.competitive-matching

d

Perishable products such as dairy or produce are more likely to be distributed through _______. a.exclusive distribution b.direct channels c.longer channels d.shorter channels

d

Ross is putting together an internet advertisement. He has the headline and copy he needs, but he is having problems arranging it all in the advertisement. This is a problem designing the _______. a.media plan b.illustration c.storyboard d.layout

d

Services are priced with all of the following characteristics in mind, except _______. a.the nature of the transaction b.costs of the service c.consumer price sensitivity d.technology concerns

d

Stephanie has recently opened a popcorn business selling a variety of popcorn flavors such as caramel, buffalo wing, and cheddar cheese. Stephanie is interested in determining the _______ for each flavor of popcorn that would help her figure out the level of popcorn she needs to sell in order to cover her costs of production. a.equilibrium level b.demand curve c.price elasticity d.breakeven point

d

Subway, a fast-food sandwich restaurant, has channel members that are connected using legal agreements that spell out the rights and responsibilities of each member. This is an example of a(n) _______ vertical marketing system (VMS). a.legal b.fast food c.corporate d.contractual

d

_______ is the value of the benefit given up by selecting one alternative over another. a.Opportunity cost b.Benefit price c.Satisfaction price d.Advantage cost

a

Benny is looking for a position as a salesperson. Ideally, he would like a job that has a _______ compensation plan because he enjoys aggressive selling and wants to spend as little amount of time as possible on nonselling tasks. a.salary plus commission b.salary plus bonus c.straight commission d.straight salary

c

Bounty paper towels likes to set its prices for the value pack of six paper towels slightly lower than Scott paper towels to attract more consumers to purchase the Bounty brand. This is an example of _______ pricing. a.demand-based b.cost-based c.competition-based d.status quo

c

Brad is a _______ for a magazine distributor. His job is to go into grocery stores and maintain the magazine displays, making sure the magazines are in stock and that older magazines have been removed. a.commission merchant b.truck jobber c.rack jobber d.cash-and-carry wholesaler

c

Brian is speaking to his sister about a meeting he had today with one of his clients. The fact that Brian is referring to his customer as a client suggests he is most likely a _______. a.waiter b.carpenter c.financial advisor d.florist

c

Business consumers frequently buy _______, while consumers typically buy _______. a.through catalogs; online or in-store b.on credit; with cash c.large quantities; limited quantities d.new products; used products

c

Commercials for Fruit of the Loom's new Everlight underwear for women discuss how light the fabric is saying, "You won't even notice you're wearing it." Fruit of the Loom is using _______ to distinguish its product from other brands. a.product quality b.price competition c.nonprice competition d.materials promotion

c

Daisy was watching TV recently and saw a commercial for a nursing home close by. The commercial highlighted the residents' rooms as well as the nurses and other personnel at the nursing home. This ad was most likely designed with the goal of _______. a.creating awareness among potential donors to the nursing home b.showing that the nurses are highly trained c.making the intangible aspects of the nursing home more tangible d.depicting the nursing home as a low-priced alternative to other homes

c

Hannah runs a housekeeping company that has two dozen housekeepers on staff. As part of their employment, Hannah has all of her housekeeping attend a two-day training seminar every year. The training seminar helps address problems associated with _______. a.intangibility b.customer contact c.heterogeneity d.inseparability

c

In its commercials, an insurance company claims that it is a company that has been "Trusted for Over 75 Years." This would most likely be considered _______ advertising. a.pioneer b.selective c.reminder d.comparative

c

Last summer, Colonial Gardens Center had a fine arts fair where artists were invited to sell their work in booths located throughout the center. This helped draw in traffic to the two department stores and various specialty stores located at Colonial Gardens. Colonial Gardens Center is most likely a _______. a.regional shopping center b.neighborhood shopping center c.community shopping center d.lifestyle shopping center

c

The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use _______ distribution for the products. a.exclusive b.intensive c.selective d.horizontal

c

Tiffany is attending college paid for by a scholarship from Society of Women Engineers, a nonprofit educational organization that tries to establish engineering as a desirable career option for women. Tiffany is a member of its _______. a.recipient publics b.general publics c.client publics d.scholarship publics

c

Kellogg's strives to lead the cereal industry by obtaining a high market share across various types and varieties of cereal. In order to capture a large market share upon introduction of new products, Kellogg's should utilize _______. a.price skimming b.product-line pricing c.captive pricing d.penetration pricing

d

Lexus has designed its commercials to appeal to more affluent car drivers as its _______. a.advertising platform b.media plan c.advertising objective d.target audience

d

A salesperson should not attempt to close a transaction until he or she has finished the entire presentation. True False

false

A straight commission compensation program ensures that selling costs will be predictable. True False

false

With prestige products, a firm will always be able to sell more at a higher price. True False

false

It is not unusual for one salesperson to perform multiple functions in the sales structure. True False

true

Small firms generally depend on local newspapers and radio stations for assistance with advertising efforts. True False

true

A bed and breakfast inn holds crafting getaways where all of the people staying at the property are interested in the same activity. These getaways are typically done during the fall when fewer people typically visit. These getaways are designed to _______. a.reduce sales fluctuations b.identify prospects c.facilitate reseller support d.encourage product trial

a

A grocery store that sells both Annie's Homegrown Organic Macaroni & Cheese and Horizon Organic Macaroni & Cheese has been giving Annie's products better locations on the shelves and promoting them more in stores than Horizon's products. If this continues, _______ is likely to result. a.channel conflict b.dual distribution c.horizontal channel integration d.vertical channel integration

a

A restaurant hangs a sign on the front window that states, "No shoes, no shirt, no service." The restaurant is trying to positively influence the _______ aspect of services. a.inseparability b.heterogeneity c.intangibility d.customer

a

Companies such as airlines utilize _______ pricing where they charge higher prices for airline fares during peak travel periods such as holidays when a large number of consumers will likely be traveling. However, they price fares lower during off-peak days. a.demand-based b.markup c.cost-plus d.competition-based

a

Consumers are increasingly going online for information and opinions about goods and services as well as about companies. Research has shown that _______ is the most important attribute about a ratings website. a.the site's credibility b.number of reviews per product c.the graphic design of the page d.ease of use

a

David is reviewing proposals from different shipping companies to see whether he can improve _______ of his company's products. a.order delivery b.order accuracy c.order entry d.order handling

a

Dennis enjoys going to a shopping center about 10 miles from his house. It has two department stores, a J.C. Penney and a Dillard's, a convenience store, and some specialty stores. This weekend, he is excited to go see the RV show that is taking place in the center's parking lot. This shopping center is most likely a _______ shopping center. a.community b.neighborhood c.lifestyle d.regional

a

Disneyland Railroad trains use biodiesel made with used cooking oil that comes from Disney hotels and restaurants. Disneyland is obtaining the fuel through _______. a.recycling b.purchasing c.acquiring d.sourcing

a

During which stage of the product life cycle is reminder advertising most appropriate? a.Maturity b.Recession c.Growth d.Introduction

a

Every time Ayame drives by the Eastgate Mall, she receives a push notification on her smartphone from Kohl's alerting her to a special or an in-store deal. Kohl's is utilizing _______ to reach customers. a.beacons b.text messaging c.signals d.pop ups

a

FX Productions, one of the production companies behind the television show Atlanta, made several marketing mix decisions that were related to distribution. All of the following are distribution decisions, except _______. a.leasing a billboard in Times Square to feature the star of the show b.airing Atlanta on FX c.selling merchandise through its official website d.making the show available for streaming on Netflix, Amazon, Hulu or other streaming services

a

From early September through the beginning of November, several stores selling Halloween costumes and supplies open. These stores cut down on rental costs compared to stores that are open year-round and are called _______. a.pop-up stores b.warehouse showrooms c.hypermarkets d.temporary storefronts

a

In 2013, UPS had a major _______ fail when the company was unable to deliver thousands of packages scheduled for December 24th delivery until after the Christmas holiday. The company stated that "demand was higher than forecast" as an explanation. Further, the company didn't notify customers until the end of the day on the 24th that their packages would not arrive on time. a.logistics management b.sourcing management c.supply chain d.procurement

a

In its commercials, the mattress company Sealy focuses on the comfort and quality of its brand of mattress. This advertisement is best described as being designed to _______. a.build selective demand b.stimulate primary demand c.retain loyal customers d.encourage product trial

a

Maggie is choosing the type of media for a promotion campaign for Hershey candy bars. She has studied the advantages and disadvantages of each type of promotion and is considering using outdoor advertising. Which of the following is NOT a disadvantage of using outdoor advertising? a.There is a long lead time for outdoor ads. b.They are criticized as a traffic hazard. c.They seldom attract readers' full attention. d.The message must be short and simple.

a

Your company's CEO believes that the company's image is important and wants to create a favorable view of the company. She wants you to develop advertisements that focus on the company as a whole rather than the individual brands your company sells. What type of advertising campaign should you use to meet her expectations? a.Pioneer advertising b.Institutional advertising c.Comparative advertising d.Competitive advertising

b

_______ carry regular grocery items as well as non-food products and consumer products such as hardware, housewares, small appliances, and clothing. These retailers are usually around 200,000 square feet and offer some services such as check cashing, automotive repair, and dry cleaning. a.Hypermarkets b.Superstores c.Megamarkets d.Warehouse clubs

b

Marketers at Stouffer's have assessed their target market's evaluation of price and evaluated their competitors' prices. Their next step in establishing prices will be to _______. a.select a basis for pricing b.select a pricing strategy c.determine a specific price d.develop pricing objectives

a

Marketers improve their ability to establish prices appropriately when _______. a.they know prices charged for competing brands b.the main objective is image building c.their products are of better quality than the competition's d.there is nonprice competition

a

Max has recently started his own business and needs several services from other companies to run his business. Which of the following is most likely to be considered a service product for his company? a.Internet access for the office b.Babysitting for his children c.Refrigerator for the break room d.Laser printers at employee desks

a

McDonald's has a multichannel distribution system in which it operates its own locations and has franchise agreements with other locations. Operating its own locations is a(n) _______, while the franchises represent a(n) _______. a.corporate VMS; contractual VMS b.contractual VMS; corporate VMS c.corporate VMS; administered VMS d.administered VMS; contractual VMS

a

Mitch uses Verizon for wireless services and has set up an automated system where Verizon automatically deducts the monthly service fee from his bank account. The amount of money that is deducted by Verizon each month for the cellular service is called Verizon's _______. a.price b.cost c.expense d.profit

a

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. a.quantity b.trade c.seasonal d.cash

a

Services are important to the U.S. economy and account for about _______ percent of GDP. a.70 b.80 c.60 d.50

a

The Mayo Clinic airs commercials that explain how caring and friendly its doctors and staff are as well as how exceptional the quality of the service provided by the clinic is. This type of promotion is best described as _______. a.institutional advertising b.public relations c.pioneer advertising d.advocacy advertising

a

The National Pork Board aired commercials featuring the slogan "The Other White Meat." These commercials were designed to stimulate demand for a _______, which is known as _______ advertising. a.product category; pioneer b.product category; institutional c.brand; competitive d.brand; product

a

The Old Country Buffet charges $12 per person for its dinner buffet. However, consumers who dine at the restaurant between 4 p.m. and 6 p.m. are charged an "Early Bird" rate of $9 per person. What type of pricing is the Old Country Buffet utilizing? a.Demand-based b.Cost-plus c.Discount d.Competition-based

a

The collective of individuals who have an interest in or a concern about an organization, product, or social cause is referred to as a _______ public. a.target b.general c.volunteer d.client

a

Walmart puts an advertisement in the Sunday newspaper that features toys from Fisher-Pice and electronics from Samsung. Because they are featured in the ad, Fisher-Price and Samsung have agreed to pay a portion of Walmart's media costs. This is an example of a _______. a.cooperative advertising b.buy-back allowance c.merchandise allowance d.dealer listing

a

What type of self-service store typically is less than 5,000 square feet, open 24 hours a day and 7 days a week, and stocks about 500 items? a.Convenience store b.Supermarket c.Department store d.Discount store

a

When Nintendo first introduced the Wii, it set a very high price point and created a very high demand for the product during the introductory stage. This strategy is known as _______. a.price skimming b.bait pricing c.prestige pricing d.odd-even pricing

a

When dealing with large grocery stores, Nestlé sells its Gerber baby foods directly to retailers. For smaller grocery stores, however, Gerber baby food is sold to wholesalers who in turn sell it to the stores. Nestlé is using _______. a.dual distribution b.a strategic channel alliance c.agents d.industrial distributors

a

When launching a new flavor of ice cream, the ice cream manufacturer may create a(n) _______ where it gives a trophy and cash prize to the salesperson who sells the greatest volume of the new flavor to wholesalers in the first month after introduction. a.sales contest b.compensation plan c.sales territory d.organizational climate

a

When shopping at Costco, customers are offered small portions of various food items to taste in the hope of enticing buyers to make a purchase. This is an example of _______. a.a free sample b.a point-of-purchase material c.a premium d.a demonstration

a

Which new product pricing strategy builds market share quickly to encourage product trial? a.Penetration pricing b.Captive pricing c.Product-line pricing d.Price skimming

a

Which of the following is the final step in the process of establishing prices? a.Determination of a specific price b.Selection of a basis for pricing c.Selection of a pricing strategy d.Assessment of target market's evaluation of price

a

Which of the following statements is true about personal selling? a.It gives marketers the greatest freedom to adjust a message to satisfy consumers' information needs. b.Personal selling goals are the same for every company that engages in personal selling. c.Personal selling is most important in business-to-consumer sales. d.It is among the cheapest forms of promotion.

a

Which of the following statements is true about salespeople? a.Salespeople are almost always closer to customers than anyone else in the company. b.Salespeople are not in a position to analyze the strengths and weaknesses of their company's products. c.A salesperson can ignore competitors. d.Salespeople only need a basic understanding of their product.

a

A wholesaler of produce wants to create a shipping plan for a variety of fruits and vegetables. The managers of the wholesaler want to use _______ because it has the most flexible schedules and routes of all transportation modes. a.pipelines b.waterways c.trucks d.airplanes

c

Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the _______ program they have on for this quarter?" a.dealer loader b.buying allowance c.push money d.merchandise allowance

c

After developing the budget for advertising the Kia Soul automobile, marketing managers at Kia then determined what proportion of that budget would be spent on television, radio, and magazine advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) _______ plan. a.arbitrary allocation b.objective-and-task c.media d.advertisement-allocation

c

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

c

Courtney is a transportation coordinator for Nike. She has a large shipment of shoes arriving from plants in Asia and plans on using waterways, railroads, and trucks to transport the containers. Using these different transportation methods will allow Nike to take advantage of the benefits offered by each type of carrier. Using different types of carrier is referred to as _______. a.freight forwarding b.cost-based transportation c.intermodal transportation d.container shipping

c

Customers can often get _______ discounts on winter clothes in March or April, when retailers need to make room for spring and summer fashions. a.quantity b.trade c.seasonal d.cash

c

Department stores, convenience stores, and warehouse clubs can all be classified as _______. a.superstores b.variety stores c.general-merchandise stores d.specialty retailers

c

Kleine Industrial Products has been in a prolonged period of declining sales. The company's marketing director is concerned that the declining sales has reduced the advertising budget, which has perpetuated the decline. Based on this information, Kleine Industrial Products most likely uses the _______ approach to determine its advertising appropriation. a.arbitrary b.media plan c.percent-of-sales d.competitive-matching

c

Larry hired an accountant to complete his tax return. The accountant was able to get Larry a refund, but Larry is having a difficult time finding out whether the accountant he hired got him the largest refund possible. This is because the accountant's work is typical of service firms in that it has many _______. a.experience qualities b.search qualities c.credence qualities d.unexpected results

c

Liz has decided to open a store that will offer second-hand children's items for sale. She will buy gently-used items and resell them to customers who are looking for children's clothes and books at discounted rates. No other store in the area seems to be offering children's items at the prices her store will offer. Liz is identifying her _______ before she opens her store. a.target customer b.product mix depth c.retail positioning d.store location

c

Paul is a service provider for a low-contact type of service. Paul is most likely which of the following? a.A flight attendant b.A real estate agent c.A dry cleaner d.A hairdresser

c

Sarah is a sales representative for Dana Holding Corporation, a manufacturer of axles, drive shafts, and other car parts. She spends her time listening to her clients, which include auto manufacturers, to understand their organizations. She also understands their needs and challenges and provides support to her clients after the sale. Which type of selling is Sarah engaged in? a.Order taking b.Technical selling c.Relationship selling d.Team selling

c

Select Comfort, a producer of adjustable air mattresses, sells its products through retail chains, direct mail sales, and on its website. This is an example of _______. a.logistics b.direct marketing c.multichannel distribution d.materials handling

c

Service marketers take steps to assure their customers about the quality and professionalism of the service. In this way, service marketers are trying to address the challenge of the service characteristic of _______. a.inseparability b.quality c.intangibility d.heterogeneity

c

Sherman's Appliances advertises a "price match" guarantee that it will meet or exceed competitors' prices on all products in the store. What type of strategy is Sherman's Appliances utilizing? a.Nonprice competition b.Equity competition c.Price competition d.Supply chain marketing

c

Steven Spielberg is considering starting his own cable company. He is aware that the barriers to entry are high and he would be competing against just a few cable providers. The cable industry can be considered _______. a.perfect competition b.a monopoly c.an oligopoly d.monopolistic competition

c

Stuart likes to have at least 25 potential customers ready to call for additional sales. He just realized that he currently has less than 20. In order to get his list back above 25, Stuart will have to spend time _______. a.following up b.preapproaching c.prospecting d.closing the sale

c

Target is a self-service store that sells general merchandise. It is a _______. a.department store b.superstore c.discount store d.specialty retailer

c

The Dollar Store has most items priced at $1, but they do carry some items priced at $3, $5, and even $10. This is an example of _______. a.bait pricing b.psychological pricing c.price lining d.penetration pricing

c

The Mini Roadster is manufactured in England. For cars sold in the United States, they are placed into large boxes that are 8-feet wide, 8-feet high, and 10- to 40-feet long. This way, they can be stacked and shipped on ships and barges across the Atlantic Ocean. This process is referred to as _______. a.piggybacking b.unit loading c.containerization d.warehousing

c

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines _______. a.cohesive marketing communications b.consistent message marketing c.integrated marketing communications d.coordinated marketing communications

c

A contractor who specializes in upgrading kitchens has a table set up at the county fair where he offers people a free estimate in exchange for their contact information. This promotional effort is directed at _______. a.creating awareness b.identifying prospects c.encouraging product trial d.stimulating demand

b

A firm that consolidates shipments from many smaller firms into efficient lot sizes is known as a _______. a.megacarriers b.freight forwarder c.freight consolidator d.logistics optimization engineer

b

A flight on American Airlines for Thanksgiving weekend will cost more than a ticket on the same flight earlier in November. This is an example of what kind of service pricing? a.A la carte b.Demand-based c.Time-based d.Supply-based

b

A service has six basic characteristics, that is, intangibility, inseparability of production and consumption, heterogeneity, client-based relationships, customer contact, and _______. a.labor dominance b.perishability c.value of labor d.customer service

b

A ski resort has hired an advertising agency to develop an advertising campaign aimed at families with small children. The advertising agency should do which of the following first? a.Develop the media plan b.Define advertising objectives c.Identify the target audience d.Set the advertising budget

b

An advertisement for West Bank illustrates the bank's personal connections with customers unlike the larger bank it competes against. West Bank uses the tagline, "We know you by name." What type of practice is West Bank using in marketing its services? a.Price competition b.Nonprice competition c.Value-conscious pricing d.Feature superiority

b

Angela works for QVC, a home shopping channel. As part of her job, she answers the phone calls from customers who wish to place an order for something they have seen on TV. Angela is best classified as a(n) _______. a.field order taker b.inside order taker c.missionary salesperson d.trade salesperson

b

As they walk to the car, Erin tells her sales representative, Joachin, that they may need to modify the price structure they just presented to the prospect. Erin bases her statement on the way the prospect folded his arms when Joachin quoted him the prices on the new system. Joachin says he didn't notice. Erin recommends a book on _______ communication to Joachin. a.verbal b.kinesic c.proxemic d.tactile

b

Athleta, which sells activewear and swimsuits for women, has retail stores across the United States as well as a website, an app, and a catalog. Athleta is participating in _______. a.webrooming b.multichannel retailing c.category killing d.general merchandising

b

Beats by Dr. Dre headphones are sold at Target for $159.00, and Target is able to purchase them for $90. What is the markup percentage of cost that Target is using on this product? a.43.3% b.76.7% c.52.4% d.48.6%

b

ClearView Windows sends out postcards containing an advertisement and a coupon to potential residential customers. This is part of the _______ component of the communication process. a.channel capacity b.communication channel c.decoding process d.encoding process

b

Client-based relationships are least likely to be developed by _______. a.lawyers b.flight attendants c.hairdressers d.doctors

b

Cook Right Pans has two types of warehouses that it uses. The first is a _______ that it leases to store excess inventory during times when its production output is greater than the demand for its pots and pans. The second is a _______ that is used to coordinate the shipping of completed products and is designed for quickly shipping products rather than for storage. a.private warehouse; public warehouse b.public warehouse; distribution center c.private warehouse; distribution center d.preassembly warehouse; postproduction warehouse

b

Dana works for Starbucks in its advertising department. She has been asked to determine the basic selling points that should be included in the new advertisements for Starbucks. She is creating the _______. a.media plan b.advertising platform c.advertising budget d.advertising appropriation

b

Darnell is the marketing director for an automobile company and is reviewing a print advertisement that has been developed by the marketing team. He is paying extra attention to the _______, because it is a critical component of the copy that _______. a.slogan; links the copy to the signature b.headline; is often the only part of the copy that is read c.headline; determines the final layout design d.artwork; takes up the most space

b

Donnie is a car salesman. When making his presentations, he likes to anticipate and counter potential objections before the prospect mentions the objection. Donnie feels this gives him an advantage in making the sale. What he does not realize is this approach may _______. a.not highlight the car's benefits and features b.raise objections that the prospect would not have c.make the presentation too long d.seem annoying to the customer

b

For a service, credence qualities are attributes that _______. a.can be assessed during purchase and consumption b.customers may be unable to evaluate even after purchase and consumption c.are tangible and can be evaluated prior to purchase and consumption d.have a positive impact on a customer's level of satisfaction with the service

b

For the Special Olympics, the athletes competing would be considered its _______ publics, while the athletes' parents, the coaches, and donors would be included in its _______ publics. a.direct; indirect b.client; general c.primary; secondary d.target; target

b

For which of the following products is selective distribution most appropriate? a.Snickers candy bars b.Keurig coffee makers c.Porsche cars d.Luxury watches

b

Hannah works for a shoe manufacturer. She spends most of her time visiting retailers to encourage them to place orders with her company's wholesalers. Hannah is best classified as a(n) _______. a.trade salesperson b.missionary salesperson c.technical salesperson d.order getter

b

If Kellogg's is forcing its retailers to place its cereals in prime locations on the shelves so that customers can see them easier than the competition, it would be _______. a.leading channel cooperation b.demonstrating channel power c.integrating the channel horizontally d.integrating the channel vertically

b

The purpose of the _______ stage of the personal selling process is to determine customers' future needs and create a solid relationship with the customer. a.overcoming objections b.approach c.following up d.prospecting

c

If Marathon Petroleum developed a new plant-based alternative to fossil fuels, the best way to announce this to the public and get wide media coverage would most likely be through a _______. a.news release b.press conference c.feature presentation d.publicity release

b

If Wrigley set its pricing objective as attaining 38% of the chewing gum market, what else would be needed to make this a true pricing objective? a.Identification of cost structure b.Identification of a time period for accomplishment c.Breakeven analysis d.Statement of demand elasticities

b

If a manufacturer decides to use a pull policy to promote its products, it is likely to focus its efforts on _______. a.other manufacturers b.ultimate consumers c.wholesalers d.retailers

b

If a restaurant tries to attract diners to eat dinner at the restaurant from Monday to Thursday by offering half-price appetizers on those days, it is trying to solve the marketing problem of _______. a.inseparability b.perishability c.intangibility d.customer contact

b

If all firms producing the same product charge the same price for it, _______. a.none of the firms will be the market share leader b.the firm with the lowest production costs is the most profitable c.a price war will ensue d.the firm that advertises the most will sell the most units

b

If an auto manufacturer creates an ad showing that the people in the car can feel secure in case of an accident, it is attempting to influence the customer's _______ need. a.self-actualization b.safety c.self-esteem d.love and affection

b

If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of promotion can be made that promotion _______. a.creates needs b.encourages materialism c.forces prices to go up d.forces people to spend too much

b

Imagine you are at a grocery store and are asked by a researcher to look at a print advertisement and state if you recognize it. This would be an example of what kind of test? a.Unaided recall test b.Recognition test c.Aided recall test d.Memory test

b

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? a.Restricted sales territories b.Dual distribution c.Tying agreements d.Refusal to deal

c

Lean Cuisine is exploring launching a new television advertising campaign. In order to determine which television programs to air its new commercials, its media planners will use a(n) _______ to examine the advertising fee charged for each program in relation to the number of people each program reaches. a.media planning guide b.cost comparison indicator c.advertising impact scale d.television program rating report

b

Which of the following is NOT a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a.Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. b.Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts. c.The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. d.Because of an increased focus on value, consumers are more responsive to promotional offers.

c

Parisian Dry Cleaners airs a series of radio ads that claim, "We Are the Fastest Dry Cleaners in Town." This campaign would best be described as _______ advertising. a.product b.comparative c.native d.pioneer

b

Raquel hired a lawn care service to mow her lawn and trim her trees and bushes weekly. She had expectations as to how her lawn and landscaping would look every week. After a while, the company started missing appointments and would forget to trim some of her bushes, leaving them overgrown. She decided to hire a new lawn care service because the first one failed to provide service within her _______. a.benefit acceptability zone b.zone of tolerance c.realm of expectation d.desired quality

b

Sherman's is a family-owned furniture and appliance retailer with four locations in central Illinois. The business is family-owned and now run by the son of the founder. Sherman's 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? a.Nonprice competition b.Price competition c.Value-conscious pricing d.Integrated pricing

b

Why might a competitor's price list not reflect the actual prices at which the competitive products are sold? a.Discounts are becoming more common. b.Negotiation is often involved in the final selling price. c.Prices are often different in secondary markets. d.It is impossible to determine competitors' prices.

b

With the largest department stores, widest product mixes, and deepest product lines of all shopping centers, _______ shopping centers have well-coordinated management and marketing activities. a.community b.regional c.neighborhood d.lifestyle

b

Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing. True False

true

The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers satisfied. True False

true

Yield management is a strategy of maximizing revenues by making numerous changes in response to demand, competitors' prices, or environmental conditions. True False

true

Which of the following is the best method a company can use to determine how many people heard the company's public relations message? a.Hire a clipping service to collect and send news stories that have been published from the publicity campaign b.Request that a television station records its name and the dates when a news item is broadcast c.Measure changes in product awareness, knowledge, and attitudes resulting from the publicity campaign d.Count the number of exposures in the media

c

You recently called your cell phone provider regarding a question about your bill. As you were placed on hold, you were told that all agents were currently busy, but someone would answer your call within four minutes. Being told the current wait time addresses the _______ dimension of service quality. a.empathy b.assurance c.responsiveness d.tangibles

c

Your local movie theater offers discount tickets on Tuesdays and on the first showing for any movie on Saturday mornings. They are attempting to increase demand during these times and counteract the _______ of services. a.homogeneity b.low customer contact c.perishability d.inseparability

c

_______ pricing is often employed by marketers such as cell phone companies including Verizon and AT&T who attempt to influence a customer's perception of price to make a product's price more attractive or evoke a customer's emotions in the purchase decision. a.Bait b.Captive c.Psychological d.Premium

c

A _______ usually has one or two department stores, some specialty stores, and convenience stores. They often hold special events to stimulate traffic. a.regional shopping center b.lifestyle shopping center c.neighborhood shopping center d.community shopping center

d

A car dealership airs a television ad in which it tells customers to visit its website to sign up for special offers. This ad has the primary objective of _______. a.encouraging product trial b.reducing sales fluctuations c.stimulating demand d.identifying prospects

d

A sales manager has analyzed the cost of the average salesperson in her firm and has determined that hiring an additional salesperson would not bring in more revenue than the cost of that salesperson. The sales manager is performing which sales management task? a.Training salespeople b.Setting sales objectives c.Recruiting salespeople d.Determining the size of the sales force

d

As Lynn is working on writing the text that will be incorporated into a new magazine ad for her company's line of handbags, she is engaging in the _______ stage of the communication process. a.receiving b.decoding c.sourcing d.encoding

d

China accused a well-known national retailer of engaging in unfair competition. According to Chinese authorities, the retailer had discounted many of its products. However, the stores allegedly informed consumers through promotions that the original prices for these products were much higher than they were initially. This made consumers think they were getting steeper discounts. This is an example of _______. a.price discrimination b.counterfeit pricing c.price fixing d.deceptive pricing

d

Jack is shopping for a birthday present for his mother. He wants to buy her a pair of earrings and decides to go to a store that provides the best selection of earrings and jewelry. The best store for him to shop at would be _______. a.a convenience store b.a superstore c.a department store d.a traditional specialty store

d

Jack is watching television when an infomercial for a vacuum cleaner begins. As he watches the infomercial, he sees the power of the vacuum being demonstrated. In this case, Jack is the _______ and the company selling the vacuum cleaner is the _______. a.audience; producer b.decoder; advertiser c.communicator; communicator d.receiver; source

d

Johnson Produce is a company that is an intermediary that works to get the produce section in grocery stores stocked with fruits and vegetables. Because of the perishability of food items, Johnson Produce does not take title over any of the produce moving from farmers to grocery stores. That means Johnson Produce cannot be which of the following? a.Broker b.Commission merchant c.Manufacturers' agent d.Merchant wholesaler

d

Kellogg's ran an advertising campaign asking customers to "Share Your Breakfast" in order to raise money to provide free breakfasts to children in need. This was an example of _______. a.institutional advertising b.public relations c.pioneer advertising d.advocacy advertising

d

Kellogg's uses a promotional program that incorporates both pull and push policies. Kellogg's will most likely use _______ for the push policy and _______ for the pull policy. a.advertisements to the consumer; coupons and rebates for the consumer b.coupons and rebates for the consumers; an allowance for retailers c.personal selling and advertising to the customer; rebates to the customer d.an allowance to retailers for promoting the cereals; advertisements to the customer

d

Landscapers, dry cleaners, and doctors are most likely to price their services based on _______, while psychologists, lawyers, and marriage counselors are likely to price their services based on _______. a.service quality; successful completion b.successful completion; customer satisfaction c.time; functions performed d.functions performed; time

d

Large manufacturers such as Procter & Gamble are typically able to have control over how its products are promoted and sold in different retail outlets. Due to this control, Procter & Gamble is likely a channel _______. a.developer b.priority c.dominator d.captain

d

Lindsay is an exercise equipment salesperson. When making a sales presentation, she realizes that _______ would be most beneficial in keeping the potential customer's attention and enhancing the presentation. a.overcoming objections b.showing a video of the equipment in use c.handing out an informational packet d.inviting the prospect to use the equipment

d

Lindsay visits jcrew.com and orders a sweater. This is an example of _______. a.television home shopping b.catalog marketing c.telemarketing d.online retailing

d

Marketers may utilize _______ pricing for items within a product line where the basic product is priced low but items that are required to operate or enhance the basic product are priced higher. a.penetration b.bait c.premium d.captive

d

Mercury Toy Store has two types of warehouses that it uses. The first is a _______ that it operates and uses exclusively to store inventory year-round. In the months leading up to the holiday season, when the company knows the demand for toys will increase, it gets a short-term lease on a _______ that helps it store the excess inventory it will need during the holiday shopping season. a.main warehouse; leased warehouse b.primary warehouse; secondary warehouse c.private warehouse; distribution center d.private warehouse; public warehouse

d

Sales are most likely to have a direct relationship to product availability for products that use _______ distribution. a.multichannel b.selective c.exclusive d.intensive

d

The Old Country Buffet notices that when it serves 501 customers at dinner instead of 500, its total revenue increases $12. This $12 increase represents the Old Country Buffet's _______. a.total revenue b.average revenue c.incremental revenue d.marginal revenue

d

The Wheeler-Lea Act and the Federal Trade Commission Act prohibit _______. a.price-fixing b.price discrimination c.independent pricing policies d.deceptive pricing

d

Which of the following types is most appropriate when selling new technology that needs specific technical expertise due to its complexity? a.Order taking b.Technical selling c.Relationship selling d.Team selling

d

Which type of store offers a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume? a.Convenience store b.Warehouse club c.Department store d.Discount store

d

Differential pricing is effective mainly when focusing on only one market segment. True False

false

Firms that stress low price tend to market differentiated products. True False

false

Institutional advertising and promotional advertising are the two basic categories of product advertising. True False

false

Marketers that evaluate competitors' prices do so to set their own prices slightly below those of competitors. True False

false

Supply chain management combines two or more stages of the marketing channel under one management. True False

false

While the specific communication vehicles employed in promotion have not changed, the fundamental role of promotion is changing. True False

false

You work for a company that has just launched a new line of juice drinks. Customers are aware of the product but have not decided to purchase your company's brand of juice. You decide to give out free samples in grocery stores in an attempt to _______. a.encourage product trial b.facilitate reseller support c.stimulate primary demand d.identify prospects

a

The reorder point is computed by multiplying the service standard by the order lead time. True False

False

A manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories to tighten control over distribution of its products. True False

True

Selective distribution is desirable when customer service from a channel member is important. True False

True

A grocery store recently discovered that it is having a problem with its checkout clerks being inconsistent in how they interact with the customers. The grocery store is having a problem with which of the following characteristics of the service offering? a.Intangibility b.Heterogeneity c.Consistency d.Inseparability

b

A Perfect Pair is a designer clothing boutique featuring fresh fashions for women who like to dress in up-to-the-minute fashions and have high levels of discretionary income to spend on clothing. The store does not offer very many discounts on clothing since it purchases in small amounts and frequently sells all that it orders. However, A Perfect Pair does price reductions on a nonsystematic basis, so customers are sometimes surprised to visit the store and notice items have been reduced from regular price. What pricing strategy is A Perfect Pair utilizing? a.Penetration pricing b.Random discounting c.Product-line pricing d.Captive pricing

b

Consumer contests and sweepstakes are used to promote established products and tend to generate similar levels of consumer response. True False

false

Direct selling is a type of specialty retailing. True False

false

Encoding is the process by which a receiver takes the coded message received from the source and converts it into ideas and concepts. True False

false

If a pull policy is used in promoting a product, the producer promotes the product only to the next marketing institution down the channel. True False

false

A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration. True False

true

Consistent brand messages and images throughout all communications can help a brand maintain strength during a crisis. True False

true

Nonprice competition emphasizes distinctive product features, service, and product quality. True False

true

One reason that promotion suffers from widespread criticism is that promotional efforts are highly visible and affect our everyday lives. True False

true

Publicity is a subset or part of public relations. True False

true

Rent is usually a fixed cost. True False

true

Sales promotion may facilitate personal selling. True False

true

An open-air shopping center that features upscale specialty stores, dining, and entertainment stores is called a _______. a.neighborhood shopping center b.community shopping center c.lifestyle shopping center d.power shopping center

c

In _______, marketers put a low price on one item in the product line with the intention of selling a higher-priced item in the line. a.bait pricing b.psychological pricing c.price lining d.captive pricing

a

In a nonprofit organization, the direct consumers of the product are called donor publics and indirect consumers are called client publics. True False

false

Team selling involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. True False

false

The effectiveness of a public relations program is usually measured in terms of sales. True False

false

The value of an idea cannot be assessed by price. True False

false

At last year's holiday banquet, Eric was recognized in front of all of the other salespeople and in front of senior management for being the highest-earning salesperson in the firm. This is an example of the company's efforts at _______. a.optimizing sales territories b.salesperson compensation c.sales force training d.salesperson motivation

d

When Lean Cuisine promotes the quality, taste, and calorie contents of its line of frozen meals, it is attempting to develop _______. a.new introductory promotion b.prospects c.selective demand d.primary demand

c

When a company is trying to communicate with its suppliers, employees, stockholders, the media, potential investors, government officials, and society in general, it is important to use _______. a.advertising b.sales promotions c.public relations d.personal selling

c

When a soft drink manufacturer offers digital coupons that customers can use in retail stores, it is using _______. a.social media b.advertising c.sales promotions d.public relations

c

Bank of America is a major sponsor of the Susan G. Komen Race for the Cure, a series of 5K runs and walks to raise money for breast cancer research. This is an example of a(n) _______ tool. a.sales promotion b.publicity c.advertising d.public relations

d

Becky has started a company selling homemade cookies online. As the company has grown, Becky has decided to hire a third party to handle her logistics tasks so that she can focus on serving existing customers and attracting new ones. She has been using _______ for logistics of the cookies. a.retailers b.wholesalers c.order processors d.outsourcing

d

American Eagle allows shoppers to buy its clothing through its stores or through its website, ae.com. This is an example of _______. a.vertical integration b.horizontal channel integration c.tying agreements d.dual distribution

d

An advertiser that wanted to use a medium that is highly selective, personal, and provided few distractions would likely select _______. a.radio b.outdoor advertising c.television d.direct mail

d

An advertising platform should consist of selling features that are important to consumers and are _______. a.easily identifiable as part of the advertised brand b.inexpensive features to develop c.widely recognized by consumers d.strongly competitive features of the advertised brand

d

Andrea receives an email from her sister-in-law that is actually a recommendation for a website with a demonstration of a new home hair-coloring system. She later discovers that her sister-in-law received a free trial kit for passing Andrea's and four other friends' email addresses along to the marketer. This is known as _______. a.a word-of-mouth pyramid b.guerilla marketing c.buzz marketing d.viral marketing

d

Andrea, a pediatrician, had several patients call on Thursday afternoon to schedule last-minute appointments because their children were sick. Earlier in the week, however, she had several cancellations. She wishes some of the appointment times from earlier in the week were available on Thursday or Friday. Andrea's problem deals with the _______ characteristic of services. a.intangibility b.heterogeneity c.timing d.perishability

d

Anheuser-Busch, Inc often gathers market research information to determine the prices that MillerCoors, Heineken, and various craft breweries such as New Belgium Brewing Co. and Sierra Nevada Brewing Co. are charging for their products. Anheuser-Busch then attempts to set prices at a similar level as these other companies' products. What type of method is Budweiser utilizing? a.Status quo pricing b.Cost-plus pricing c.Demand-based pricing d.Competition-based pricing

d

As Butterball plans its advertising campaign leading to Thanksgiving, it will need to remember that its desire to include images of its food will influence its choice of advertising _______. a.budget b.objectives c.message d.medium

d

A service is usually offered as part of a bundled package of services with a core service and one or more _______ services. a.add-on b.additional c.extra d.supplementary

d

A shopping center that combines off-price stores with category killers is known as a _______. a.community shopping center b.neighborhood shopping center c.lifestyle shopping center d.power shopping center

d

A regional sporting goods retailer has hired an advertising agency. Most of the compensation received by the advertising agency is through _______. a.a 15% commission received from the media from which it purchased the advertising b.a 15% shared commission paid by the media companies and the company that hired the agency c.a fee of 15% of the media purchased by the agency paid by the company that hired the agency d.flat fees charged to the sporting goods retailer that hired the agency

a

A restaurant chain recently had several customers become sick after eating at one of its locations. In order to lessen the negative effects of the event, the restaurant should most likely _______. a.facilitate news coverage of the event b.discourage news coverage of the event c.blame one of its suppliers for the illnesses d.deny that the event occurred at the restaurant

a

A temporary reduction of prices on an unsystematic basis is called _______. a.random discounting b.special-event pricing c.differential pricing d.haphazard pricing

a

Beth goes shopping to buy food for dinner, but 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 of her shopping at one store. Which of the following should Beth visit? a.Superstore b.Discount store c.Supermarket d.Convenience store

a

George works for a tire manufacturer that has recently developed a new method of manufacturing their tires that makes the tires 3% darker than previous editions. Even though George is responsible for publicity of new products, he decides not to issue a news release since it would likely be rejected by the news media for _______. a.not being newsworthy b.not being convincing enough c.being written using technical language d.being too complex

a

Gino's Italian Restaurant is an upscale restaurant. The management is updating the atmosphere of the restaurant to relax the customers and have them indulge in multiple courses. To do so, it is repainting the interior _______, which is known to be calming and associated with wellness, and playing _______ music, which has been shown to encourage customers to stay longer in restaurants. a.green; soft classical b.red; pop c.blue; pop d.blue; soft classical

a

Halloween Center is a specialty costume store that operates a retail location from late August through early November. The company needs some warehouse space to store its costumes. Because of the seasonality of its operations, they are most likely looking to lease a _______. a.public warehouse b.bonded warehouse c.temporary warehouse d.private warehouse

a

Kohler, a manufacturer of bathroom fixtures such as sinks and toilets, has uploaded several videos to YouTube that help demonstrate how to install its fixtures. These videos are best categorized under which of the following types of promotion? a.Public relations b.Personal selling c.Social media d.Sales promotions

a

Kroger grocery stores often use _______ pricing to encourage customers to purchase more units of a single product and take advantage of lower, per-unit prices. Thus, customers save money when purchasing multiple items of the same product at one time versus buying only one item at different points in time. a.multiple-unit b.cooperative c.bulk d.bundle

a

Promotions can lead to increased prices _______. a.if they do not stimulate demand b.only for potentially harmful products c.only for products that meet self-actualization needs d.if they lead to increased production

a

Retailers work with their suppliers to coordinate operations to meet customer needs, acquire products that their customers demand, and facilitate the movement of products from the suppliers to their stores. When doing all these activities, the retailer is engaging in _______. a.supply chain management b.intensive distribution c.materials handling d.horizontal channel integration

a

Rob is working on the promotional plan for a new bicycle helmet that has added technology to sense when a bicycler has fallen and has a head injury. The technology then releases an audible signal that will help others know that there is an injury that needs treatment. This is considered to be a new product that is in the introduction stage of the product life cycle. Which type of promotion should Rob focus on? a.New introductory b.Comparative c.Competitive d.Reminder

a

The belief behind _______ is that it is better to take a lower profit margin on a sale than no revenue at all. a.demand-based pricing b.survival pricing c.cost-plus pricing d.markup pricing

a

Tobias does not like making cold calls on businesses to find potential customers. He has many satisfied customers and would much rather use one of the best ways to find new prospects, which is why he uses _______. a.customer referrals b.trade shows c.public records d.sales records

a

Vista Advertising is an advertising agency hired by a company that manufactures coats and jackets. When Vista placed an order for $100,000 in advertising, it received a commission based on the traditional compensation method. This means that the advertising agency received _______ in compensation. a.$15,000 b.$20,000 c.$10,000 d.$5,000

a

When Bounty paper towels are advertised as being the "Quicker Picker-Upper," suggesting that it cleans more efficiently than other paper towels, Bounty is using _______ advertising. a.competitive b.institutional c.reinforcement d.reminder

a

When Coke Zero was added to the line of Coca-Cola products, it most likely was introduced using _______ distribution. a.intensive b.exclusive c.selective d.full-market

a

When Julie graduated with an engineering degree, she found a job as a salesperson for FANUC Robotics, a company that manufactures robotic equipment for manufacturing. Julie is most likely a(n) _______. a.technical salesperson b.order getter c.trade salesperson d.missionary salesperson

a

When a salesperson shakes a potential customer's hand, she is using _______. a.tactile communication b.verbal communication c.kinesic communication d.proxemic communication

a

Xavier is a purchasing agent for the Kroger grocery chain. He is currently negotiating with Kellogg's to receive a temporary price reduction based on the volume of cereal he is purchasing. This is an example of a _______. a.buying allowance b.buy-back allowance c.merchandise allowance d.scan-back allowance

a

You and your marketing team are in a meeting discussing whether you should use television or internet advertising to promote a new product your firm will launch later this year. You are analyzing the advantages and disadvantages of each. Which of the following steps in the advertising campaign development process are you performing? a.Developing the media plan b.Creating the advertising platform c.Determining the advertising appropriation d.Defining the advertising objectives

a

You are a senior analyst in the sales and finance group at an auto parts company. Your boss has asked you to complete a project that examines the following:The sales potential for several different census tractsCustomer density and distribution in the different census tractsBased on the information you are collecting, what element of sales force management is your boss focused on? a.Determining sales territories b.Salesperson compensation c.Sales force training d.Salesperson motivation

a

_______ 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. a.Cost-plus b.Competition-based c.Demand-based d.Markup

a

_______ pricing is often utilized to discourage competitors from entering the market. a.Penetration b.Bundle c.Product-line d.Captive

a

Alamo Rent A Car uses _______ depending on the number of reservations it has, how many cars are on the lot, and how many cars it expects to be returned. It can change its prices based on these factors several times throughout the day. a.markup pricing b.dynamic pricing c.status quo pricing d.cost-plus pricing

b

All of the following are reasons a company would likely emphasize personal selling in its promotion mix, except _______. a.the company's customers are concentrated in a small area b.the company's products are seasonal in nature c.the size of the product's target market is limited d.the company's promotion budget is extremely limited

b

As a marketing mix variable, price is an important element since it directly relates to _______. a.the number of employees a company hires b.the generation of total revenue c.a company's reputation d.the level of market share a firm achieves

b

As part of the _______ step of the personal selling process, Ruth is looking over her list of potential customers and evaluating them based on their ability, willingness, and authority to make a purchase. a.identification b.prospecting c.customer evaluation d.customer search

b

Bowflex uses infomercials to demonstrate its fitness products and encourage customers to call and receive a free video with more information about its products. This promotional effort is directed at _______. a.stimulating demand b.identifying prospects c.encouraging product trial d.creating awareness

b

Chris sees a television commercial for Arby's promoting its gyros at 2 for $6. Later that day he goes to the nearest Arby's but is told that the special offer is not available at that location. Arby's seems to lack _______. a.channel capacity b.integrated marketing communications c.promotional efforts d.communication

b

Chris works for a manufacturer of replacement knees and hips. He often works in operating rooms with surgeons during knee and hip replacements to help them as they perform surgeries, answering questions and providing support. Chris is best described as a(n) _______. a.field order taker b.technical salesperson c.order getter d.missionary salespersonWhich of the following statements is NOT true when making a sales presentation? a.The most successful salespeople are thorough in their preapproach. b.The salesperson must be able to adjust the message to meet the prospect's informational needs. c.The salesperson must attract and hold the prospect's attention during the sales presentation. d.The salesperson should anticipate objections and handle them before they arise.

b

Custom Hot Rods specializes in restoring or creating custom vehicles and motorcycles to customers who appreciate one-of-a-kind vehicles. Custom Hot Rods typically produces two units each month. If it's able to produce one more unit each month, it will incur _______. a.increased fixed costs b.a marginal cost c.lower average variable costs d.fewer variable costs

b

During a television commercial, the announcer reads a toll-free telephone number that viewers can call to order the product. The announcer has included the phone number to facilitate _______ for this communication. a.noise reduction b.feedback c.encoding d.decoding

b

If an inverse relationship exists between a product's price and the quantity demanded for the item, the demand is described as _______. a.unitary b.elastic c.unknown d.inelastic

b

In designing the advertising message, all of the following are likely to affect the message content, except _______. a.the advertising campaign's objectives and platform b.the length of the advertising campaign c.the product's features and benefits d.demographic characteristics of the audience

b

In episodes of America's Got Talent, the judges drink out of cups featuring the Dunkin' Donuts logo. The promotion strategy being used by Dunkin' Donuts is known as _______. a.product positioning b.product placement c.product integration d.product promotion

b

In order to calculate the breakeven point, fixed costs are divided by _______. a.average variable costs b.per-unit contribution to fixed costs c.price per unit d.marginal revenue

b

Mary is currently working on updating her company's website, incorporating signs and symbols that will help represent the ideas that the company is trying to express. Mary is most likely working on the _______ for the website. a.conversion process b.coding process c.decoding process d.communication strategy

b

Sam is the owner of a regional chain of convenience stores. He recently made a large purchase of Slim Jim snacks for his stores and received a gift from ConAgra Foods, the makers of Slim Jim. This gift is referred to as a _______. a.buying allowance b.dealer loader c.merchandise allowance d.dealer listing

b

Sell-Net is a small local company that provides assistance to people who are trying to sell their belongings online. To create and implement its advertising campaign, it is most likely that Sell-Net will use _______. a.an advertising department b.one or two employees c.an advertising manager d.an advertising agency

b

Which of the following is a difference between selling agents and manufacturers' agents? a.Selling agents bring buyers and sellers together and manufacturers' agents represent the manufacturer b.Selling agents have complete control over product pricing c.Selling agents have strict territories that they need to use d.Selling agents are allowed to represent competing products

b

Which of the following is not one of the disadvantages of using advertising as a promotion method? a.Difficulty in measuring effects on sales b.High cost per person reached c.High absolute dollar outlay d.Slow feedback

b

In nonprofit organizations, _______. a.target markets are defined much more easily b.the techniques used by for-profit organizations to define target markets cannot be applied c.the direct consumers of the product are the client public d.development of a marketing strategy should focus on the general public

c

A commercial for a piece of exercise equipment says that customers can become fit like the models in the commercial if they use the equipment but does not disclose that the models were already in shape before using the equipment. This could be considered _______ advertising. a.push b.pull c.deceptive d.unfair

c

A customer's _______ refers to whether the price will move customers closer to purchase of the product and the degree to which the price enhances their satisfaction with the purchase experience and with the product after purchase. a.internal reference price b.interpretation of the price c.response to the price d.external reference price

c

A first class airline ticket offers a _______ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service. a.bundled; extra b.complementary; main c.core; supplementary d.primary; secondary

c

A minor league baseball team communicates to its target market by advertising on local television and radio stations, in local newspapers, on its own website, through postings on social media, and on banner ads. These vehicles through which the baseball team transmits its coded messages to potential customers are called _______. a.fields of reference b.decoders c.communication channels d.relay channels

c

Add It Up produces and sells calculators. The company's average fixed costs totaled $5.60, average variable costs totaled $2.50, and the company produced 7,500 calculators last year. Calculate Add It Up's total cost. a.$105,000 b.$23,250 c.$60,750 d.$16,800

c

Advantages associated with _______ include their positive effect on print advertisements, that they reward current users and win back former users, and that they encourage purchases in larger quantities. a.consumer sweepstakes b.point-of-purchase displays c.coupons d.premiums

c

All of the following are elements of the perishability characteristic of services, except that _______. a.there can be unused service capacity b.demand for services can fluctuate over time c.consumption and production are simultaneous d.services have a capacity limit

c

Brandon works for Redwood Enterprises in Washington State. As the furniture company expands beyond the Pacific Northwest, Brandon has been asked to find a warehouse to lease in California to serve the company's new markets. This warehouse will be a _______ and will only store furniture manufactured by Redwood Enterprises to be distributed in California and the Southwestern United States. a.public warehouse b.bonded warehouse c.private warehouse d.distribution center

c

For which of the following products is exclusive distribution most appropriate? a.Hair dryers b.Computers c.Luxury cars d.Smartphones

c

Inditex, the parent company of fast-fashion retailer Zara, is an expert at using technology to track items. For instance, Zara has small bits of this technology attached to its fashion products' security tags. This technology uses signals to keep track of inventory and inform the retailer when more products need to be ordered. It also helps with shipment tracking. This technology is called _______. a.vertical marketing system (VMS) b.electronic data interchange (EDI) c.radio frequency identification (RFID) d.digital distribution

c

Marketing channels create four types of utility for consumers. These are _______. a.ownership, location, ease of use, and purchasing b.logistics, transportation, warehousing, and order processing c.time, place, possession, and form d.value, expectations, form, and distribution

c

MillerCoors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called _______. a.comparative b.native c.competitive d.pioneer

c

Procter & Gamble uses many different _______ in order to encourage consumers to purchase its products, including coupons, cents-off offers, rebates, point-of-purchase displays, free samples, and consumer contests. a.consumer incentives b.advertising media c.consumer sales promotion methods d.consumer allowances

c

Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has significant restaurant experience but often struggles with decisions about pricing. Over the years however, he's developed a simple method where he applies a straight 35% to the cost of an item as his retail price. Stephen always knows the various cost elements of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost to arrive at the final price to charge guests. What type of pricing is Stephen utilizing? a.Demand-based pricing b.Competition-based pricing c.Markup pricing d.Cost-plus pricing

c

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 its sweet treats. These ingredients or raw materials would most likely be classified as _______ costs. a.fixed b.sunk c.variable d.marginal

c

Tami is a sales manager and is hoping to attract and retain a top sales force. Which of the following is least likely to be a factor when Tami tries to attract and retain top-quality salespeople? a.Availability of flexible hours b.On-the-job training c.The price of the products being sold d.The pay mix not being too risky for the sales role

c

What is the primary motivation when a retailer such as Home Depot offers a discount on lawn mowers in September and October? a.Encourage product trial b.Retain loyal customers c.Reduce sales fluctuations d.Identify prospects

c

You are meeting with the head of a consumer advocacy group that claims your firm's promotion activities are causing food prices to rise. Naturally, you disagree with this claim, and you are meeting with this individual to make your case. Which of the following statements would be a strong defense against this advocacy group's claim? a.Promotion is not related to economic factors like prices. b.We actively promote our products because we have to make a profit. c.Promotion can help keep prices lower by facilitating price competition. d.Prices are rising because our competitors are not socially conscious.

c

_______ buyers are ones who often purchase products that signify prominence and status. a.Price-conscious b.Quality-conscious c.Prestige-sensitive d.Value-conscious

c

_______ combines price and quality attributes, which consumers use to differentiate among competing brands. a.Market share b.Perceived differentiation c.Value d.Image

c

_______ discounts are quantity discounts aggregated over a stated time period. a.Quantity b.Trade c.Cumulative d.Cash

c

_______ is/are most likely to have an inelastic demand curve. a.Airplane tickets for a vacation b.Carbonated beverages c.Milk d.Video games

c

The Stove Shop manufactures gas fireplace surrounds and is evaluating a new model that will incorporate stainless steel material to provide a sleek and modern look to the typical gas-log fireplace. The Stove Shop sells its fireplaces to retail outlets that specialize in custom or semi-custom installation to the residential market. The Stove Shop believes the new product will be successful but wants to identify the breakeven point in order to establish minimum goals for the first quarter of production. The Stove Shop estimates that its fixed costs to produce the new model will be $140,000. It believes a wholesale price of $249 will enable retail outlets to offer the product for sale at $525 to its residential customers. Variable costs are estimated to be $110. How many units will The Stove Shop need to sell in order to reach the breakeven point? a.337 units b.390 units c.1,007 units d.507 units

c The formula to calculate breakeven is fixed costs divided by the per unit contribution to fixed costs. The per-unit contribution to fixed costs is determined by subtracting variable costs from the price (Breakeven = 140,000/(249 − 110); 1,007 units).

A(n) _______ discount is defined as a concession in price to achieve a desired goal. a.trade b.cash c.seasonal d.allowance

d

Abdul has started a lawn mowing business in his neighborhood. He spends $4 every month for a small advertisement in the community newsletter. He also pays for gasoline to use in the lawn mower. The money Abdul spends on the advertisement is a _______ cost and the money he spends on gasoline is a _______ cost. a.fixed; fixed b.variable; variable c.variable; fixed d.fixed; variable

d

Airlines will often change prices depending upon day of the week, time of day, and number of days before the flight. It is quite common that a person sitting next to you on a flight paid a much different price than you did. What type of pricing strategy are the airlines most likely using? a.Cost-plus pricing b.Captive pricing c.Fluctuating pricing d.Dynamic pricing

d

An advertisement is more likely to be unintentionally deceptive if it _______. a.is part of a viral marketing campaign b.does not stimulate demand c.stimulates demand d.is directed at children

d

By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to _______. a.focus on increasing production capacity b.focus on increasing working capital c.provide quality merchandise to consumers d.focus on producing products that meet consumers' needs

d

If an advertising campaign is aimed at making customers' attitudes toward a brand more favorable, this means that the advertising objective have been stated in terms of _______. a.demand b.market share c.sales d.communication

d

If tickets to a Major League Baseball game have a classic demand curve, then _______. a.as the prices of tickets increase, the quantity demanded will increase until a certain point and then decrease b.the number of tickets sold will increase as ticket prices increase c.as the prices of tickets decrease, the quantity demanded will increase until a certain point and then decrease d.the number of tickets sold will increase as ticket prices decrease

d

In choosing an advertising medium for her travel agency's advertising campaign, Nika is avoiding media that have low or limited ability to reproduce high-quality images of multiple vacation destinations. Based on this information, Nika will most likely choose which of the following media? a.Outdoor advertising b.Newspaper c.Radio d.Direct mail

d

Paula is working on a promotional program for her company's line of designer dog collars. Her company needs to promote the dog collars to pet owners, so she is likely to use _______ because it reaches a vast number of people at a low cost per person. a.direct marketing b.personal selling c.public relations d.advertising

d

Personal selling goals typically include finding prospects, determining their needs, persuading prospects to buy, and _______. a.identifying new selling techniques b.matching sales levels of the competition c.developing new products to sell d.following up on the sale

d

The Casey's General Store chain typically operates in smaller markets and provides grocery items, liquor, pizza, and gasoline. Their prices of most grocery items, such as milk, eggs, juice, and bread, are typically priced higher than a grocery store because consumers are willing to pay more for the convenience. However, because Casey's General Store is often competing with several gas stations within a short radius of each location, it monitors the price of gas at various local outlets and adjusts prices daily to be at the same price or just under a competitor's price for gasoline. Casey's General Store is applying the _______ pricing basis. a.markup b.cost-plus c.demand-based d.competition-based

d

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. a.regional b.superregional c.power d.lifestyle

d

The Nintendo Switch retails for $299 at GameStop and the cost to GameStop is $200. What is the markup as a percentage of selling price? a.50% b.66% c.75% d.33%

d

The _______ pricing objective is often utilized to encourage rapid sales and recover cash as quickly as possible. a.profit b.market share c.survival d.cash flow

d

The level at which the costs of producing a product equals the revenue made from selling the product is termed _______. a.equilibrium level b.profit maximization point c.marginal revenue point d.breakeven point

d

Various food products for sale at Costco are offered as small portions for consumers to taste while shopping in the store. These efforts have a primary promotional objective of _______. a.identifying prospects b.creating awareness c.stimulating demand d.encouraging product trial

d

What is the first step in establishing prices? a.Determination of a specific price b.Determining a basis for pricing c.Evaluating competitors' prices d.Development of pricing objectives

d

Which of the following statements is NOT true about recruiting and training a sales force? a.There is no generally accepted set of traits for an effective salesperson. b.Recruitment should be a continuous activity for the organization. c.The costs of hiring and training a salesperson can cost more than $60,000 in some industries. d.Sales managers do not recruit applicants from departments within the company.

d

Which of the following statements is NOT true when making a sales presentation? a.The most successful salespeople are thorough in their preapproach. b.The salesperson must be able to adjust the message to meet the prospect's informational needs. c.The salesperson must attract and hold the prospect's attention during the sales presentation. d.The salesperson should anticipate objections and handle them before they arise.

d

While in a sales meeting, Andre notices that the customer he is speaking to takes a step backward during the conversation. Feeling that the customer is disinterested in his sales pitch, Andre changes his approach to make the conversation more interesting to the customer. Andre is paying attention to _______ communication from the customer. a.tactile b.verbal c.kinesic d.proxemic

d

_______ occurs when a shopper researches a product online and then heads to the nearest store to make the actual purchase. a.Window shopping b.Webhaggling c.Showrooming d.Webrooming

d

It has been relatively rare for a firm to be charged with predatory pricing. True False

true

The CEO's response to stakeholders after a major oil spill informing them about what the firm will do to clean up the spill is an example of public relations. True False

true

The statement of advertising objectives should include a benchmark—such as the current sales level—and indicate how much improvement is sought. True False

true

The use of wholesalers permits producers to concentrate on developing and manufacturing products that match consumers' wants. True False

true

For $14 a month, Shipt will deliver groceries to customers that the customers have ordered through an app or on the Shipt website. Shipt is an example of _______. a.online retailing b.catalog marketing c.telemarketing d.television home shopping

a

Proxemic communication is an element of which form of promotion method? a.Personal selling b.Public relations c.Social media d.Sales promotion

a

A private warehouse is a _______. a.company-operated facility for storing and shipping products b.facility specially designed for rapid flow of products c.company that offers storage and transportation services d.business that leases storage space to other firms

a

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? a.Value b.Competitive differentiation c.Supply d.Demand

a

A stay at a five-star hotel includes the _______ service of a room and bed for a night and _______ services of a concierge, a fitness center, a pool and spa. a.core; supplementary b.basic; added c.main; additional d.required; extra

a

A time-sensitive service needs to be concerned with _______, the point in time around which a significant number of customers desire the service. a.peak demand b.peak capacity c.preferred time d.high use time

a

Adam is in charge of advertising for his company and he has designed a magazine ad to promote one of his company's new products. When he shares the ad with his manager, the manager tells him that the ad has too much visual information. The manager is concerned with the _______ of the receiver. a.channel capacity b.noise c.feedback d.encoding

a

Agents and brokers differ in that _______. a.agents represent buyers or sellers on a permanent basis while brokers are intermediaries that buyers or sellers employ temporarily b.agents perform more functions than limited-service wholesalers while brokers provide fewer functions c.agents are usually specialists in particular products or types of customers while brokers do not specialize d.agents extend credit to customers while brokers do not

a

Aldi, normally the low-price leader in grocery stores, is starting to become concerned with the increasing number of Lidl stores in the United States. To maintain its leader status, which of the following methods will Aldi most likely employ? a.Hire comparison shoppers to purchase a typical basket of goods from Lidl and compare prices b.Raise prices on most items and compete on quality and services c.Ignore competitors' prices and keep current prices d.Lower prices below cost on all items to draw shoppers into stores

a

Allstate uses a logo featuring a pair of cupped hands accompanied by the slogan "You're in Good Hands" that signals safety and security to its customers. With the logo, Allstate is trying to help customers trust the company by _______. a.using tangible cues that symbolize the service b.adopting a customer-focused advertising strategy c.including performance certifications to enhance the service d.incorporating its customers' lifestyles into its advertising

a

An advertising schedule in which a portion of the advertising campaign runs continuously during the entire campaign and additional advertising is used during specific times to intensify the level of communication with the target audience is called _______. a.pulsing b.continuous c.variable d.flighting

a

An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is _______. a.cooperative advertising b.a buy-back allowance c.premium money d.a merchandise allowance

a

At a budgeting meeting, Erik Burns, CFO of Mancuso Supplies, is discussing the budget for the upcoming year. He takes a look at the current year's numbers and decides that next year's advertising budget will be $50,000 more than this year's budget. Based on this information, Burns is most likely using the _______ approach to advertising appropriation. a.arbitrary b.media plan c.percent-of-sales d.competitive-matching

a

At your local _______ store, there is a minimal assortment of goods—most of which are store brands offered at very low prices. To keep costs low, these stores have a no-frills environment where customers have to bag their own groceries and pay a quarter for a grocery cart. a.hard discounter b.hypermarket c.extreme-value d.warehouse club

a

AutoZone recently placed a newspaper and Facebook advertisement for a sale on tires that included the statement "up to 40 percent off" on certain brands such as Pirelli, Michelin, and Yokohama. This added statement is an example of _______ pricing. a.tensile b.bait c.captive d.penetration

a

Average total cost typically _______. a.has a U shape, declining initially and then increasing when marginal cost rises above average total cost b.has an upward sloping curve, beginning at zero and increasing with each unit sold c.rises and falls depending on demand and variable costs d.has a downward sloping curve and then evens out when marginal costs reach their lowest point

a

Back2Nature produces granola bars and protein snacks geared toward hikers and people that spend a lot of time outside. The company announced that it would increase product quality by using cage free eggs and whole grains in its products moving forward. We may expect to see the demand curve to _______. a.shift to the right b.remain the same c.become curved, like a demand curve for prestige products d.shift to the left

a

Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a _______. a.manufacturers' agent b.specialty-line wholesaler c.rack jobber d.selling agent

a

Because of a service's _______, employee training and the establishment of standard procedures can be important to help increase consistency and reliability. a.heterogeneity b.inseparability c.perishability d.intangibility

a

Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the _______. a.advertising platform b.advertising objective c.objective-and-task approach d.advertising appropriation

a

Ben & Jerry's is launching a new flavor of ice cream that it plans on supporting using advertising. In setting the budget using the _______ approach, its marketing team decided they wanted to have product awareness of the new flavor at 25% of existing Ben & Jerry's customers and then determined how much it would cost to reach that goal. a.objective-and-task b.arbitrary c.percent-of-sales d.competitive-matching

a

Best Buy stores have knowledgeable staff to provide information to consumers on products ranging from televisions to laptops. They also offer repair and support services through the Geek Squad. These are examples that Best Buy is _______. a.adding value for customers b.trying to appeal to business customers c.participating in multichannel retailing d.facilitating comparison shopping

a

Beth works for the marketing department of a ski resort and is developing a new magazine ad for the resort. The ad has a phrase designed to attract readers' attention, an additional phrase that explains the main phrase, an image featuring the resort, and the name and trademark of the resort. What other important element should be included? a.Body copy b.Artwork c.Subheadline d.Headline

a

Brandon is an avid golfer and often entertains customers on the golf course. He's considering purchasing a new set of clubs and is concerned both about the price and quality of the clubs. What type of consumer best describes Brandon and his golf club purchase? a.Value-conscious b.Price-conscious c.Quality-conscious d.Prestige-conscious

a

Brookdale Furniture, Inc., is a manufacturer of office furniture. It has hired a _______ named Davidson Intermediaries to market its product line. Davidson takes care of the sales and other marketing functions for the furniture maker but does not take possession of any of the furniture. a.selling agent b.commission merchant c.manufacturers' agent d.full-service wholesaler

a

Brookdale is a regional self-service store that sells name-brand and private-brand clothing, home goods, and electronics at low prices. Brookdale is an example of a _______. a.discount store b.hypermarket c.category killer d.department store

a

Carlos is listening to the radio while driving with his kids in the back seat. During the commercial break, one of the children repeatedly asks Carlos if they have arrived at their destination. The child's questions would be considered _______ in the communication process. a.noise b.channel capacity c.decoding distraction d.interference

a

Claire is the media planner for a small chain of restaurants in the Milwaukee area. She is deciding on an advertising medium. She is unsure about using _______ because of the high initial costs given her budget constraints even though the medium would have great impact. a.television b.magazines c.outdoor advertising d.radio

a

Clifton Medical Supplies has hired a wholesaler to sell its medical products to business customers. Although the wholesaler never physically possesses the products, it takes ownership of them and is responsible if the products do not sell. The wholesaler sells the product and then makes arrangements for Clifton to ship the products directly to the businesses. The wholesaler is a _______. a.drop shipper b.truck wholesaler c.cash-and-carry wholesaler d.rack jobber

a

Customers receive the benefits of form utility from an intermediary when _______. a.a retailer offers to add a monogram to a product b.the product is preassembled in the manufacturer's packaging c.the retailer has many locations available to purchase a desired product d.the consumer is preapproved for purchase and does not have to complete paperwork

a

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. a.neighborhood b.community c.regional d.power

a

Dee works as an insurance salesperson and spends most of his time locating prospects and converting them into buyers. Dee's job function is best described as _______. a.new-business sales b.missionary sales c.trade sales d.order taking

a

Dr. Bullock, a dentist, has a large customer base and a full schedule for her practice, yet she does very little advertising. Her promotion strategy relies mostly on _______. a.word-of-mouth b.billboards c.her online blog d.radio ads

a

During a sales presentation, Tom asks, "When will you be available next week for our delivery team to install your new windows, Mrs. Gibson?" This is an example of a(n) _______. a.trial close b.recommendation c.objection d.follow-up

a

During the evaluation of one of his salespeople, Kurt determines that Isaac's average sales per customer is lower than that of other salespeople on staff. At their performance review, Kurt will most likely _______. a.adjust the motivational methods used for Isaac b.lower the performance standards for Isaac c.increase Isaac's sales quota d.fire Isaac

a

Each year, Doritos holds a contest for customers to create a commercial. The winning commercial, as decided by internet voters, airs during the Super Bowl. This contest is an example of Doritos using _______ for its promotion strategy. a.sales promotions b.public relations c.advertising d.social media

a

For her sixteenth birthday, Josie has asked her parents for a new handbag from Coach. She insists that she must have a Coach bag, which has a high price and recognizable brand name. This insistence on the Coach brand supports the criticism of promotion that _______. a.promotion encourages materialism b.harmful products should not be promoted c.promotion creates needs for consumers d.promotion increases prices for consumers

a

Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following? a.Coupons b.Sweepstakes c.Frequent-user incentives d.Money refunds

a

Geico advertises that you can save 15% or more on auto insurance by switching to Geico. Which of the following best describes Geico's approach? a.Since many customers see auto insurance providers as similar in quality, Geico is claiming to be lower in price b.Geico's claim lets customers know that they can expect greater levels of customer contact compared to competitors c.By mentioning price in its advertising, Geico is able to overcome issues associated with heterogeneity d.Offering a low price allows Geico to focus on offering auto insurance that is higher in quality than the competition

a

If Honda gives one of its new motorcycles to a popular blogger so that the blogger would share information on the blog, this is best described as an example of _______. a.word-of-mouth communication b.sales promotion c.personal selling d.advertising

a

If the percent change of quantity demanded for razors is .5 and the percent change in price is −.18, what is the price elasticity of demand? a.−2.78 b.−.36 c..32 d.−.09

a

If you were to classify retailers based on the breadth of products they offer, then you would use which two categories? a.General-merchandise and specialty retailers b.Convenience and shopping retailers c.Chain stores and independent retailers d.Full-service and self-service retailers

a

In an effort to practice _______, Gammons International is hiring an external marketing company to handle its marketing efforts. These efforts will include advertising, public relations, and sales promotions. a.integrated marketing communications b.coordinated promotions c.all-in-one marketing d.efficiency in marketing

a

In order to increase sales of its fishing poles, Corinthian Fishing Supplies launched a social media campaign. After the campaign ended, Corinthian learned through marketing research that most of its target market is not active on social media and instead visit fishing websites. The promotion program suffered from an error in the selection of _______. a.communication channel b.target market c.noise d.channel capacity

a

In the past, Cheetah Chews, a brand of candy, had determined its budget by trying to spend as much as other candy brands, but has recently decided to switch its appropriation method to one in which it identifies the cost required to meet certain goals. They are switching from the _______ approach to the _______ approach. a.competitive-matching; objective-and-task b.percentage-of-sales; objective-and-task c.percentage-of-sales; competitive-matching d.competitive-matching; arbitrary

a

In transfer pricing, one method that might be used is _______. The cost is calculated based on what it would cost to produce the goods at full plant capacity. a.standard full cost b.actual full cost c.market-based cost d.cost plus investment

a

In which of the following situations is dual distribution likely to be determined illegal? a.A manufacturer's outlet store undercuts its independent retailers' prices for the same products. b.A retailer's prices at its stores undercut a manufacturer's own prices. c.A manufacturer sells its products exclusively online through its own website and an independent website. d.A manufacturer sells its products exclusively through its own website and its own retail stores.

a

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

a

Jennifer Sloan was recently hired by IBM as a solutions sales representative upon graduation from college and after working with the company for two years, now earns a base salary of $90,000 as well as commissions on sales and bonuses for exceeding her quarterly sales quotas. Jennifer is a fashionista and enjoys purchasing the latest styles and fashions from high-end designers such as Chanel, Dolce Gabbana, and her favorite red-soled shoes from Christian Louboutin that cost $500 or more per pair.Jennifer realizes that comparable products from other brands are priced much lower but enjoys the added luxury of these designer labels and feels that the quality is much better. In addition, Jennifer meets regularly with senior executives including vice presidents and presidents of companies and believes her image is related to her success as a sales representative. What type of pricing strategy do Christian Louboutin, Chanel, and Dolce Gabbana most likely utilize? a.Prestige b.Reference c.Odd-even d.Customary

a

Jessica invites a sales representative from The Pampered Chef, a company that sells kitchen tools, to her home. The representative brings sample products and makes a sales presentation to Jessica and 10 of her friends. Once the presentation is over, the representative takes orders from Jessica and the guests. This is an example of _______. a.a party plan b.online retailing c.home shopping d.direct-response marketing

a

Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n) _______. a.technical salesperson b.missionary salesperson c.order taker d.trade salesperson

a

Jody believes she is always smiling and friendly during her job as a waitress, which made her surprised to hear that results of a customer survey said she was serious and unapproachable. Her boss reminded her that she has to focus on service quality as defined by _______. a.her customers' perceptions b.the employee handbook c.the restaurant manager d.the restaurant's servers

a

Pnina Tornai is a wedding dress designer targeting upscale brides. Her wedding dresses have been worn by celebrities and featured in television programs. Which form of distribution would Pnina Tornai most likely use for her wedding gowns? a.Exclusive b.Selective c.Dealer d.Intensive

a

Justin, a sales representative for Serta Mattress manufacturers, phones Kirk of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is _______. a.noncumulative b.cash c.trade d.seasonal

a

Kate works in the reservations department for Walt Disney World Resorts. She works to make sure each hotel has as many guests as possible staying every night. This is because of the concept of perishability, which means _______. a.that if there are unfilled reservations one night, they cannot be sold at a later date b.the consumption of a night's stay by a guest must occur in that hotel room with the guest present c.each guest's stay will be unique because their interaction with hotel staff will be different d.there is a high level of interaction between guests and hotel staff, making the customer's presence necessary

a

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the _______ characteristic of services. a.perishability b.search c.heterogeneity d.credence

a

Louis Vuitton is a fashion brand often associated with elite or high-profile customers who can afford spending $1,000 or more on a purse. One of its most popular handbags is the Alma, which is a structured bag and part of the Monogram collection. Louis Vuitton closely monitors its sales and wanted to test the elasticity of demand. It noticed that when the Alma bag was priced at $1,500, a greater quantity was sold compared to a retail price of $1,300. However, if the price was $1,750, sales of the bag declined. The pricing research conducted by Louis Vuitton demonstrates that the Alma bag is a _______ product. a.prestige b.convenience c.standard d.reverse-demand

a

Makita, a manufacturer of power tools, is offering _______ to motivate its distributors to sell more of its products. It is offering recognition and a prize to the distributor who sells the most of its power tools to retail stores in the next month. a.a sales contest b.a dealer loader c.a merchandise allowance d.a dealer listing

a

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

a

Many large retailers such as Target and Home Depot are finding that because of their size they can deal directly with producers and take care of ordering, delivery, and handling of goods rather than using an independent wholesaler. They are able to do so because _______. a.they are performing the functions normally performed by independent wholesalers b.they have been able to eliminate many of the functions performed by wholesalers c.they have merged with wholesalers and absorbed their operations into their retail operations d.the functions performed by independent wholesalers are not needed for large retailers

a

Marginal revenue (MR) minus marginal costs (MC) tells a company _______. a.whether a unit makes a profit b.the point at which the costs of producing a product equals the revenue made from selling the product c.the ideal price for each unit d.if fixed costs could be reduced by producing additional units

a

Maria is working on the advertising campaign for Mr. Clean cleaning solutions. They have updated the look of Mr. Clean and want to find out whether the new creative idea for Mr. Clean will be successful. To pretest the campaign, Maria should use a(n) _______. a.consumer jury b.recognition test c.storyboard d.aided recall test

a

Marilyn works for the Chicago Department of Tourism. She has been analyzing its advertising campaign and has recommended that it changes the overall message of the advertising campaign from Chicago being a destination for families on a tight budget to a city where families can engage in many cultural activities. Marilyn's suggestion focuses most on which step of developing an advertising campaign? a.Creating the advertising platform b.Determining the advertising appropriation c.Defining the advertising objectives d.Identifying the target audience

a

Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a _______. a.drop shipper b.desk wholesaler c.mail-order wholesaler d.truck jobber

a

Marketers at Procter & Gamble (P&G) want to calculate the price elasticities of demand for two of their products: Dawn dishwashing detergent and Pampers diapers. The company raised prices slightly over the last year to offset increased costs and want to analyze the effects of that price change. To calculate price elasticity of demand for each product, the marketers looked at the change in prices and quantities demanded of each product, separately, from last August and this August. They found that Dawn dishwashing liquid had a price elasticity of demand of −1.24 while Pampers diapers had a price elasticity of demand of −0.41. They discovered that the percentage change in quantity demanded for Pampers was much less than the percentage change in quantity demanded for Dawn. Which of the following is true? a.It would be more beneficial for P&G to raise the price of Pampers than raise the price for Dawn. b.Increasing the price for Dawn will lead to an increase in revenue. c.Dawn is an inelastic good. d.Increasing the price for Pampers will lead to a decrease in revenue.

a

Natalie is a sales representative with Nike. Tomorrow she will join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process. Natalie is engaged in _______. a.team selling b.trade selling c.relationship selling d.missionary selling

a

One downside for customers to cost-plus pricing is _______. a.sellers may increase stated costs to gain a larger profit b.price fluctuates based on current demand c.the final price is not given up front d.customers often receive products made from low-grade materials

a

Online advertisements that ask for people to submit their name and email address help salespeople achieve which goal of personal selling? a.Identifying prospects b.Keeping customers satisfied c.Convincing prospects to buy d.Making the presentation

a

Ralph Lauren is planning a promotion in which it will showcase all of its clothing lines to buyers at retail stores. It also plans to develop a direct marketing campaign that will use social media to introduce its new seasonal styles. Ralph Lauren is using _______ with the retail showcase and _______ with the social media campaign. a.a push policy; a pull policy b.guerilla marketing; a push policy c.personal selling; a pull policy d.a pull policy; a push policy

a

Ricky owns a bowling alley that prides itself on its customer experience while bowling. Ricky spends time each week responding to any negative online reviews to try to find out what went wrong with the customer's experience and find a way to satisfy the customer. He knows how powerful _______ is/are for services and wants to have a successful business. a.word-of-mouth communication b.customer expectations c.customer referrals d.intangibles

a

Ryan and Megan sell printing solutions for the same company. Their target customers are small businesses with low printing volume. Their sales territories have the same sales potential, but Megan's territory covers the Atlanta metropolitan area while Ryan's territory is much larger and covers the rest of Georgia. As a result of the difference in size between the two territories, Ryan _______. a.must work harder and longer to generate the same sales volume as Megan b.has a larger income potential than Megan c.will have much larger sales than Megan d.works the same as Megan since their territories have the same sales potential

a

Ryan is the owner of a small corner grocery store. He does not have time to keep track of how much he has to order of every item he keeps in stock, so he relies on the _______ from his various suppliers to make sure his orders are placed periodically. a.field order takers b.order getters c.missionary salespeople d.inside order takers

a

Sea of Smiles pediatric dentist office has themed examination rooms such as a jungle room and glow-in-the-dark transformers room and an under the sea themed lobby. The themed rooms help children feel more comfortable about an often-disliked activity—visiting the dentist. Sea of Smiles is addressing the _______ dimension of service quality. a.tangibles b.responsiveness c.assurance d.reliability

a

Skippy Peanut Butter offers grocery stores a discounted price on cases of peanut butter when the grocery store agrees to participate in advertising and sales support programs such as newspaper flyers or point-of-purchase displays. This discount is known as a(n) _______ discount. a.allowance b.trade c.seasonal d.cash

a

Sonia is planning a trip to Belize. She is looking for places to stay through the online rental service Airbnb. After comparing many different places, she decides on where she wants to stay and books her lodging. Airbnb is able to use _______ that allows distribution and _______ to occur simultaneously. a.digital distribution; consumption b.multichannel distribution; purchasing c.just in time distribution; consumption d.multichannel distribution; electronic data interchange

a

Spirit Airlines is a relatively new entrant to the no-frills, value-oriented airline segment and hopes to capture a large proportion of the dollars consumers spend on air travel in the value segment over the next year by taking customers away from other airlines such as Southwest, Frontier, and Allegiant. What type of pricing objective is Spirit Airlines utilizing? a.Market share b.Survival c.Profit d.Return on investment

a

Stella's Diner runs advertisements at a steady rate in the local newspaper daily to encourage visitors but intensifies its advertising with radio commercials featuring its monthly specials during the first week of each month. Stella's Diner is using a _______ media schedule. a.pulsing b.continuous c.variable d.flighting

a

Summer works as a sales associate at a jewelry store where she is paid a fixed amount per hour plus an additional amount based on her amount of sales. She is on a _______ compensation plan. a.combination b.straight commission c.salary plus bonus d.straight salary

a

The Colorado Tourism Office advertises that people can visit Colorado ski slopes and mountains for hiking, ziplining, and horseback riding during the summertime in an effort to _______. a.reduce sales fluctuations b.encourage product trial c.facilitate reseller support d.retain loyal customers

a

The _______ pricing objective is utilized to recover research and development expenses and create the impression that its products may last longer, are more durable, and are better than competitors' products. a.product quality b.market share c.survival d.status quo

a

The advertising appropriation is _______. a.the advertising budget for a specific time period b.the plan that specifies the media vehicles to be used c.the basic issues or selling points to be included in an advertising campaign d.the correct way to develop the advertising message

a

The best advice for recruiting and selecting salespeople for one's organization would be _______. a.make recruitment a continuous activity aimed at seeking out the best applicants b.follow a clear set of generally accepted job characteristics when determining an applicant's qualifications c.find out how long the applicant plans to stay with the company d.keep the expensive stages near the beginning of the recruiting process

a

The city of Boulder, Colorado, has built a new park that features the largest playground in the state. The city decides to send an image of the park with a description of the playground to news organizations throughout Colorado using the _______ public relations tool. a.captioned photograph b.feature article c.news release d.publicity

a

The idea that "satisfied employees lead to satisfied customers" addresses the _______ characteristic of services. a.customer contact b.client-based relationships c.heterogeneity d.inseparability

a

The internet, mobile apps, and billboards are all considered _______. a.communication channels b.communication resources c.communication links d.decoding sources

a

The main consideration that marketers use when setting up a coupon promotion for a product is _______. a.the nature of the product b.which retailers carry the product c.how many coupons they will need to issue d.the expected redemption rate of the coupon

a

The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare _______. a.current performance with past performance b.the size of sales territories c.the amount of new business generated d.selling expenses by various members of the sales force

a

The oldest form of exchange is known as _______. a.bartering b.credit c.retailing d.purchasing

a

The practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage over other buyers is known as _______. a.price discrimination b.price-fixing c.collusion d.deceptive pricing

a

The public relations department at Lowe's submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a _______. a.news release b.media bulletin c.public update d.feature article

a

The use of sales promotion has increased dramatically over the past 30 years, primarily at the expense of _______. a.advertising b.personal selling c.public relations d.direct marketing

a

To help offset the marketing challenges that the intangibility of services create, service providers should _______. a.offer 100% satisfaction guarantees on the service performed b.offer discounts during off-peak times c.offer standardized packages d.train employees in order to limit the variation in quality

a

To understand customer expectations of exceptional service quality, companies can _______. a.conduct market research b.encourage managers to show support of employee decisions c.communicate service expectations through advertising d.train employees to perform tasks in a specific way

a

When 4 buyers purchase the products of 6 producers, 24 transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is _______. a.10 b.4 c.18 d.12

a

When Birds Eye introduced its Steamfresh line of microwaveable frozen vegetables, it likely gave incentives to grocery stores to purchase the product. This effort was primarily designed to _______. a.facilitate reseller support b.retain loyal customers c.identify prospects d.encourage product trial

a

When flat-screen televisions were first introduced, manufacturers tried to increase customer awareness of the new product by using _______ to build _______. a.new introductory promotion; primary demand b.primary promotion; customer demand c.comparative promotion; competitive advantage d.new introductory promotion; selective demand

a

When someone designing an advertisement arranges the illustration, headline, body copy, and signature in the ad, this arrangement is referred to as the _______. a.layout b.storyboard c.artwork d.illustration

a

When the salesperson asks the customer several questions that assume they are buying the product, this is known as _______. a.a trial close b.taking the order c.overcoming objections d.getting the order

a

Which of the following is a challenge for traditional specialty retailers? a.They have high costs in proportion to sales. b.They tend to have less sales expertise than their main competitors, department stores. c.They struggle with understanding their customers and, therefore, which products to carry. d.Stores are often very large and require the retailer to pay close attention to average sales per square foot.

a

Which of the following is an example of native advertising? a.Marriott partnered with digital entertainment site Reddit to sponsor a Reddit-like post asking users to provide "sales pitches" about what makes their neighborhoods special. b.A U.K. group used technology to show a billboard of an abused woman whose bruises begin healing and disappearing to show passers-by that they can stop the cycle of domestic abuse. c.Volvo releases a video on television and the internet of Kung Fu master Jean-Claude Van Damme doing a split between two moving trucks. d.Gucci partners with Beyoncé to promote "Chimes for Change," a global campaign to raise funds and awareness of empowerment for women and girls.

a

Which of the following is the definition for retailing? a.All transactions in which the buyer is the ultimate consumer and intends to use the product for personal, family, or household purposes b.The business of selling to customers, especially in large quantities c.The act of producing and distributing goods and services to channel members in order to earn a profit d.All activities involved in producing, distributing, pricing, and staging items in a storeroom setting for ultimate purchase by business and household consumers

a

Which of the following is true of online retailers? a.Retailers may offer exclusive online sales. b.Online retailers have less merchandise in stock than brick-and-mortar stores. c.Online retailers do not have brick-and-mortar locations. d.Most retailers are hesitant to offer products online.

a

Which of the following statements about customer contact in services marketing is true? a.To improve quality and ensure good customer contact, employee training programs are important. b.Switching from a low-contact service to a high-contact service is a good way to decrease variability in quality. c.Low-contact services are more expensive to deliver because of the cost of human labor. d.Customer satisfaction is not greatly influenced by service employees.

a

Which of the following statements about nonprofit marketing is true? a.The basic aim of a nonprofit organization is to obtain a desired response from a target market. b.Trustees and board members of nonprofit organizations have experience evaluating advertising. c.Nonprofit marketers need to stay away from controversy in order to spread their messages. d.There are no differences for marketers in a nonprofit organization versus a for-profit business.

a

Which of the following statements is true about the follow-up step of the personal selling process? a.The follow-up helps create loyalty on the part of the buyer. b.The follow-up must occur within 24 hours of the closing. c.The follow-up occurs immediately after the sales presentation. d.The purpose of the follow-up is to ask for referrals.

a

Which two modes of transportation are used when containers are shipped by fishyback? a.Water carriers and trucks b.Pipelines and railroads c.Water carriers and railroads d.Water carriers and pipelines

a

Why do retailers generally want to avoid a price war? a.It slashes profit margins for the retailers involved. b.It is illegal and catches the attention of regulators. c.It harms consumers in the form of higher prices. d.It results in retailers having to use nonprice competition.

a

Word-of-mouth communications are most effective for _______ products. a.personal services b.convenience c.inexpensive d.mature

a

You are conducting a business startup workshop sponsored by the Small Business Administration (SBA). The workshop attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business. Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business experience.Based on these concerns, which of the following business strategies do you think would be most appropriate for these workshop attendees? a.Start their business as a franchisee b.Start their business as a mail-order wholesaler c.Start their business as a full-service wholesaler d.Start their business as a merchant wholesaler

a

You've been hired as a pricing analyst to assist a firm in setting their prices. The company wants to maximize its profits, and profit maximization is achieved when _______. a.marginal costs equal marginal revenue b.marginal costs exceed marginal revenue c.total variable costs equal average revenue d.average total costs equal marginal revenue

a

_______ is the most expensive form of retailing. a.Direct selling b.Telemarketing c.Vending d.Direct-response marketing

a

_______ is the strategy of selling products at certain predetermined prices that reflect explicit price breaks and is common for clothing and accessory products. This policy assumes that demand for various groups or sets of products is inelastic. a.Price lining b.Bait pricing c.Captive pricing d.Penetration pricing

a

_______ pricing objectives generally require some amount of trial and error since not all data and inputs are available when first setting prices. a.Return on investment b.Profit c.Status quo d.Market share

a

_______ 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. a.Markup b.Demand-based c.Cost-plus d.Competition-based

a

Shelia's Cookie Shop has fixed costs of $21,000, variable costs of $3,000, and it produces 4,500 cookies. What is Shelia's Cookie Shop's average variable costs? a.$0.67 b.$7 c.$5.33 d.$4

a Average variable cost, the variable cost per unit produced, is calculated by dividing the variable costs by the number of units produced. ($3,000 / 4,500 = $0.67).

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal _______. a.a loss of $32,000 b.a loss of $20,000 c.$40,000 d.$28,000

a Ignore the average billing per customer of $250 because what we need to know is total revenue, which is $150,000. The rest—rent, employee compensation and benefits, and costs—are total costs. Subtracting costs from revenue equals -$32,000. Paige experiences a loss.

Tuscany Pizza sells its frozen pizzas to grocery stores in the Midwest for $4.50 each. Its annual fixed costs to produce the pizzas are $80,000 annually and its variable costs are $2 per pizza. Calculate the breakeven point for Tuscany Pizza. a.32,000 b.17,778 c.10,000 d.12,308

a The breakeven point is calculated by dividing fixed costs ($80,000) by the per-unit contribution to fixed costs (price minus variable costs; $4.50 minus $2; $80,000 divided by $2.50 equals 32,000).a

Which of the following products would most likely utilize personal sales representatives to assist customers with their purchase decision? a.Laundry detergent b.Smartphones c.Blu-ray discs d.Video games

b

Which of the following service providers is most likely to use demand-based pricing? a.Carpet cleaner b.Resort hotel c.Counselor d.Nail salon

b

A company that utilizes _______ pricing may choose to set their prices below competitors' prices or at the same level. a.cost-plus b.competition-based c.demand-based d.parity

b

A grocery store is using a wholesaler that provides a variety of nonprescription medicines for its pharmacy section. If the wholesaler is providing financing to the grocery store, assisting with promotional materials, and streamlining coupon redemption, then the wholesaler is most likely a _______. a.limited-service wholesaler b.full-service wholesaler c.rack jobber d.commission merchant

b

A medical supply wholesaler has seen growth in its business recently and has decided to open a new facility designed for moving the products being sold. It will combine shipments received from manufacturers and ship them to medical facilities almost immediately. This new facility would be best classified as which of the following? a.Public warehouse b.Distribution center c.Bonded warehouse d.Private warehouse

b

A sales rep's willingness to accept risk is most relevant to the sales manager during which phase of sales management? a.Determining sales territories b.Compensating salespeople c.Training the sales force d.Motivating the sales force

b

A(n) _______ is a very large specialty store that competes on the basis of lower prices and enormous product availability. a.off-price retailer b.category killer c.warehouse club d.traditional specialty store

b

AMC Theaters has recently noticed a decline in movie theater attendance due to consumers' shifting media habits, such as streaming movies via Netflix, Hulu, and Amazon Prime. The theater chain is setting prices low to attract more sales and motivate consumers to return to the cinema for newly released movies. What type of pricing objective is AMC Theaters utilizing? a.Profit b.Survival c.Return on investment d.Market share

b

After appearing on a national talk show to discuss her line of bracelets and rings, Natalie expected sales volume to increase. Unfortunately, the sales volume was higher than expected and her company had $250,000 in lost sales because it did not have enough inventory. The $250,000 represents which of the following inventory management costs? a.Safety stock b.Stockout c.Shortage d.Carrying

b

After offering a cents-off offer to consumers, DiGiorno Pizza offers its retailers a sum of money for each pizza the retailer purchases. This would be an example of a _______. a.buying allowance b.buy-back allowance c.merchandise allowance d.scan-back allowance

b

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about _______. a.responsiveness b.tangibles c.assurance d.reliability

b

Amazon, Target, Kroger, Bed Bath & Beyond, and Lowe's are examples of _______. a.manufacturers b.retailers c.end-users d.wholesalers

b

Anna works in insurance sales and has looked over one of her prospect's account and credit history. She has determined the type of insurance the prospect needs and put together a sales presentation that will communicate specifically to the prospect. Anna is ready for the _______ step of the personal selling process. a.presentation b.approach c.closing the sale d.preapproach

b

Anne is organizing a beach vacation for her family. Which of the following expenses for the trip is NOT a service product? a.A hotel room b.Suntan lotion c.A snorkeling outing d.A rental car

b

Any human or mechanical effort that adds value to a product is called _______. a.overhead b.customer service c.an intangible d.a service

b

Beau needed to have some electrical work done at his house. Before he hired an electrician, there were very few _______ qualities he could examine, so he looked at online reviews of electricians in the area. While the electrician was at his house, Beau was satisfied with the electrician's _______ qualities such as his professionalism, appearance, and timeliness. However, when the electrician was done, Beau was not qualified to evaluate his _______ qualities since he had limited knowledge on electrical work. a.tangibles; reliability; belief b.search; experience; credence c.search; personal; belief d.primary; secondary; tertiary

b

Best Buy is a national retailer specializing in entertainment, appliances, computers, and stereo equipment. Best Buy is considered a category killer retailer since it has a wide range of merchandise in limited product categories and are able to negotiate special discounts from suppliers due to its ability to purchase in bulk. Best Buy encourages customers to shop the competition but make their purchase from Best Buy—either online or in the stores since Best Buy will meet or exceed any advertised price on any of its products. What type of practice is Best Buy implementing through its price-match guarantee? a.Nonprice competition b.Price competition c.Value-conscious pricing d.Integrated pricing

b

Bill's Pills is a full-service pharmacy and drug store located in a small, southern city. Since many of Bill's Pills' customers are on Medicare, the business must wait several months before they are reimbursed by the state that leads to cash flow issues for the pharmacy. Which strategy would be most useful for Bill's Pills to raise cash quickly? a.Hire an attorney to demand payment from the state b.Offer special discounts or sales to customers c.Seek discounts from suppliers d.Increase prices of over-the-counter products

b

Budweiser has a variety of different beers that it offers using the Budweiser name and prices the highest-quality beers such as its Platinum beverage at a higher price than other products in the line. What type of product-line pricing strategy is Budweiser implementing? a.Captive b.Premium c.Bait d.Penetration

b

Some grocery stores have installed self-checkout lanes, which allow more shoppers to checkout at once while simultaneously reducing the number of cashiers needed. This results in a decrease in _______. a.heterogeneity b.customer contact c.intangibility d.perishability

b

Burberry, a fashion retail brand selling men's and women's apparel and accessories, has recently been recognized as providing the highest level of customer service in the industry as customers rate the company extremely high on personalized service. Burberry clothing is quite expensive and may incorporate its iconic plaid fabric—partly as a signature element but also to convey to others that the wearer can afford Burberry. It's become somewhat of a status brand and those who purchase Burberry are high-income earners or aspire to live the life of a high-income earner. Which of the following best describes Burberry customers? a.Value-conscious b.Prestige-sensitive c.Quality-conscious d.Price-conscious

b

Carmen Sanchez is a sales representative for Sherwin Williams and her territory includes an approximately 120-mile radius of her "home" retail store. Her customers are painting contractors and facility managers of office complexes, apartment buildings, hospitals, and other businesses who might have commercial painting needs. Carmen uses her company vehicle and spends about five hours each day in her car visiting her customers and prospecting for new business. Since her territory is so large, Carmen puts about 200 miles on her car each day that consumes a lot of gasoline. She tries to be economical when choosing gas stations, but it doesn't really matter how much the gas costs—she pays the price. In this case, demand for gasoline is _______. a.elastic b.inelastic c.variable d.unitary

b

Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an example of a _______. a.category killer b.discount store c.department store d.supermarket

b

Caterpillar manufactures bulldozers and other large construction equipment that it sells directly to construction companies. This is an example of a _______ channel. a.producer-distributor-buyer b.producer-buyer c.producer-agent-distributor-buyer d.producer-agent-buyer

b

Client-based relationships are most likely to be developed by _______. a.bank tellers b.psychiatrists c.house painters d.mechanics

b

Companies replacing in-person services with automated services such as banks using ATMs and online banking, grocery stores using self-checkout lanes, and airlines using self-check-in kiosks reduce the _____ that comes from contact with human employees. a.inseparability b.heterogeneity c.perishability d.intangibility

b

Compared with goods marketers, service providers are more likely to promote training and certification of personnel, availability, price, and _______. a.their brand name b.guarantees c.variety d.quality

b

Desiree's job as a salesperson has her mostly contacting existing customers in order to gain repeat sales. Her position is most likely a(n) _______. a.trade salesperson b.order taker c.order getter d.technical salesperson

b

Doug had tickets to attend a Broadway play with his family. When they arrived at the theater, they were disappointed to find out that the star of the show was unable to perform and that the understudy would be performing the lead role instead. This is an issue regarding the _______ quality of services. a.intangibility b.inseparability c.customer contact d.perishability

b

Employees at Omni Hotels are trained to handle customer complaints in a specific way. After a customer has complained, the Omni employee is to respond, "I understand how upsetting this is for you, I will do my best to make it right." This is an example of the _______ dimension of service quality. a.assurance b.responsiveness c.empathy d.reliability

b

Exclusive distribution is _______. a.desirable when a special effort is important b.suitable for products consumed over a long period of time c.not suitable for infrequently purchased products d.appropriate for convenience products

b

Ford purchased a 30-second primetime television advertising spot, but later determined it would prefer an ad spot on Sundays during football season. Ford ended up trading its advertising spot with Apple. This is an example of _______. a.negotiation b.bartering c.leasing d.credit

b

GoPro video camera company wants to maximize its profit on its popular Hero6 video camera. Which of the following would be the best action for GoPro to achieve its profit maximization goal? a.Price the Hero6 at the level where average revenue equals average costs b.Manufacture GoPro Hero6 cameras at the point where marginal costs equal marginal revenue c.Price the Hero6 at the level where marginal revenue is the lowest d.Price the Hero6 at the level where average cost is the lowest

b

Government officials and consumer groups suggest products that _______ should not be promoted. a.are too expensive b.potentially have harmful effects c.fulfill self-actualization needs d.encourage materialism

b

If Betty Crocker stated, "We want our advertising to increase customer awareness of our new flavors of cake mix by 25% in the next six months," this would be an example of a(n) _______. a.percent-of-sales approach b.advertising objective c.advertising platform d.target audience goal

b

If Frito-Lay introduces a new line extension of its famous potato chips, it is likely going to engage in promotions that focus on _______ in order to have customers start the product adoption process. a.combating competitive promotional efforts b.creating awareness c.stimulating demand d.identifying prospects

b

If a company wants to improve the consistency and reliability of its services, which of the following strategies is most effective? a.Increase the pay of those employees that interact with customers b.Establish standard procedures and train employees c.Punish employees for providing unsatisfactory performance d.Hire employees with more direct experience

b

In a simple economy of 3 producers and 10 consumers, there would be _______ possible transactions without an intermediary. With one intermediary, the number of possible transactions would be _______. a.13; 30 b.30; 13 c.10; 30 d.30; 10

b

Sometimes called limited-line retailers, _______ carry a narrow product mix with deep product lines. a.warehouse clubs b.traditional specialty retailers c.category killers d.off-price retailers

b

In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and _______. a.the density of potential customers should be minimized b.territories should be designed to minimize selling costs c.the territorial pattern should consist of concentric circles d.all territories should be of similar size

b

In recent years the proportion of promotional dollars spent on sales promotion has _______. a.declined slightly, and the proportion spent on advertising has declined as well b.increased relative to advertising c.declined slightly, and the proportion spent on advertising has increased d.remained constant

b

In recent years, Target has become more upscale in its appearance and offerings, charging slightly higher prices for products. It has also introduced low-cost clothing lines by designer labels. These changes have blurred the line between _______. a.discount stores and specialty retailers b.discount stores and department stores c.superstores and warehouse clubs d.department stores and specialty retailers

b

In the weeks leading up to Halloween, Hershey's decides to use _______, the most common form of sales promotion, to encourage consumers to buy Hershey's products. a.premiums b.coupons c.free samples d.rebates

b

In the weeks leading up to Thanksgiving, Butterball turkey may allocate more of its promotion budget to _______ in order to account for the coupons it will be issuing to consumers. a.public relations b.sales promotions c.personal selling d.advertising

b

JD's Diner offers Coca-Cola products to its customers. They have an agreement with Coca-Cola that they are not allowed to carry products from PepsiCo or any other competitor. Coca-Cola is engaging in which of the following channel management practices? a.Restricted sales territories b.Exclusive dealing c.Tying agreements d.Refusal to deal

b

Jeep wants to transport new vehicles from its plant in Toledo, Ohio, to the dealers in Southern California. Which of the following methods would be the cheapest for transporting this cargo? a.Birdyback b.Railroads c.Airplanes d.Trucks

b

Jessie White recently graduated from dental school and is planning to start his own dental practice. He has never taken any business classes or economics courses and has very little business-related experience. The costs to start up a dental practice are quite high considering the equipment, rent, employee labor costs, and other supplies or materials needed for the business. Jessie was speaking with a friend who graduated with a degree in marketing about how to maximize profitability. The friend was telling Jessie that it's important to understand fixed costs, variable costs, marginal costs, and marginal revenue since profit will be at its highest when _______. a.fixed costs are less than marginal revenue b.marginal costs equal marginal revenue c.marginal revenue equals fixed costs d.variable costs are less than fixed costs

b

Joseph works for a manufacturer, but away from the manufacturing plants. He works with his company's retail customers to help provide wholesale services. His office does not contain any inventory, but his work helps strengthen the efficiency of the supply chain. Joseph works at a _______. a.merchant wholesaler b.sales office c.sales branch d.manufacturers' agency

b

Josh works in the marketing department for an airline and is reviewing the copy for an online ad. He is worried that nobody will read the entire advertisement, which includes the details of their improved frequent flyer program. In order for the ad to have the greatest impact, he is focusing his effort on the _______. a.signature b.headline c.text d.body copy

b

Kaitlynn is debating opening a Jimmy John's Gourmet Sandwiches franchise. As she is looking over the information, the major advantage that she sees for opening a franchise is _______. a.adaptability of franchise menus b.limited capital required to open a franchise c.a high gross margin d.freedom provided as a franchisee

b

Kaitlynn is the owner of a local fast-food hamburger chain. She recently saw a magazine article featuring a new machine that could cook and assemble burgers without needing employees to handle the burgers. She is thinking of purchasing the new machine since it would help address problems associated with _______. a.inseparability b.heterogeneity c.intangibility d.perishability

b

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Costco and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a _______. a.broker b.retailer c.wholesaler d.producer

b

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. a.catalog marketing; online marketing b.direct-response marketing; telemarketing c.online marketing; telemarketing d.catalog marketing; television home shopping

b

Larry runs an upscale tanning salon targeting customers who wish to tan in a luxurious and private environment. These customers do not wish to be seen at the salon and want to be treated like royalty. To do so, he has private entrances and private areas for each guest, luxurious amenities, and a staff eager to assist clients. No other tanning salons meet the needs of these customers. What strategic issue in retailing has Larry addressed for his tanning salon? a.Store image b.Retail positioning c.Store location d.Product mix depth

b

Lindsey has been a troop leader of the Girl Scouts, a nonprofit youth organization for girls, for several years. In her position, she leads the troop members through meetings, activities, and outings. Lindsey is a member of the Girl Scouts' _______. a.supervisor publics b.general publics c.administrator publics d.client publics

b

Lynn is always distracted by the end of her work day and the last haircut she gives each day is usually the worst one. This is an example of the ______ of services. a.perishability b.heterogeneity c.inseparability d.intangibility

b

Many department store retailers traditionally plan a "White Sale" in mid-January to motivate shoppers to their store and encourage them to spend money after the holiday season. A traditional "White Sale" typically covers towels, sheets, and other staple items that consumers do not routinely purchase. The term was coined as sheets, pillowcases, and towels were traditionally white in color—hence the name, "White Sale." Over the years, shoppers have come to expect the traditional sale of household linens and delay their purchase until the early part of the year when they know these products' prices will be drastically reduced. The "White Sale" is an example of the _______ strategy. a.captive pricing b.periodic discounting c.bait pricing d.price lining

b

Many people do not go to see their doctor to get a physical exam because they do not know whether getting a physical exam is worthwhile. This aspect of a physical exam is called _______ quality. a.experience b.credence c.search d.unknown

b

Marketing channels for services are usually _______. a.wide and detailed b.short and direct c.deep and streamlined d.long and complicated

b

Meade Farms wants to hire an intermediary to help with the distribution of the yield from its farms. It wants someone that will take possession of the harvested crops, store them, and sell them at an auction. Meade Farms is willing to give the distributor a percentage of what it raises from selling the crops. It should most likely hire a _______. a.selling agent b.commission merchant c.manufacturers' agent d.limited-service wholesaler

b

Microsoft offers retailers such as GameStop, Target, and Walmart a discount on the unit price of its popular Xbox game system when they purchase 1,000 or more units at one time. This is known as a(n) _______ discount. a.cash b.quantity c.allowance d.seasonal

b

Mike's Bikes has expanded sales of its bicycles throughout most of the United States. As it finishes its expansion, it wants to find an intermediary to handle its sales functions in the new territory west of the Rocky Mountains. This intermediary would be restricted to that territory and Mike's Bikes would retain control over pricing and other marketing decisions. Mike's Bikes should hire a _______. a.limited-line wholesaler b.manufacturers' agent c.commission merchant d.selling agent

b

Mitch Harris is an avid car collector and enjoys buying and selling British sports cars. He's currently on the market for a Lotus Evora and has seen them advertised between $42,000 and $65,000 depending upon the model year, options, and condition of the vehicle. Mitch is very interested in one particular advertisement and plans to contact the owner to discuss the vehicle. The owner is asking $54,500 for the vehicle, but Mitch believes he will be able to utilize _______ pricing to purchase the vehicle. a.premium b.negotiated c.bait d.penetration

b

Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _______ ; the second is to meet, but not beat, competitors' prices of cookie products, which is a _______ objective. a.market share; cash flow b.market share; status quo c.survival; status quo d.cash flow; market share

b

Old Navy sells its clothing directly to consumers through its own retail outlets. This is an example of a(n) _______. a.contractual vertical marketing system. b.corporate vertical marketing system. c.dual distribution system. d.administered vertical marketing system.

b

Online sales are _______ by 2022. a.expected to fall slightly b.projected to grow c.expected to remain the same d.projected to rise then fall rapidly

b

Pepsi wants to find out how its public relations program in which it sponsors the Super Bowl Halftime Show has changed perceptions of the company. To do so, it should conduct a _______. a.sponsorship-effectiveness audit b.public relations audit c.communications audit d.social audit

b

Precision Equipment is updating the way it ships its products. Specifically, it is improving _______ by adding electronic ordering to its system, adding automated machines to move items in the warehouse, and partnering with UPS to ensure priority shipping with the carrier. a.warehousing b.order processing c.inventory management d.logistics

b

Prior to school starting, Keenan went shopping at a shopping center about 20 miles outside of Cleveland. He bought last season Nike shoes for a significant discount. He also bought a few items from Under Armour, the Gap, and Banana Republic. Keenan was likely shopping at a _______. a.community shopping center b.factory outlet mall c.lifestyle shopping center d.power shopping center

b

Producers commonly provide intermediaries with discounts, or reductions, from list prices and they are classified into five categories. Which of the following is NOT a type of discount offered to business markets? a.Trade b.Quality c.Allowance d.Quantity

b

Randy Whitacre of Randy's Hardware is talking to one of his employees about a salesperson that had stopped by earlier in the day. Randy thought the salesperson had done a bad job with _______ because he had no idea what specific products Randy's Hardware sold or what the store's needs were. a.following up b.preapproach c.closing d.making the presentation

b

Rinnai produces tankless water heaters which sell for $650. In the United States, Rinnai estimates its manufacturing costs are $250 per unit if it produces 1,000 units per week. If it produces 1,001 units per week, its costs are $280 per unit. The $30 difference is a(n) _______. a.fixed cost b.marginal cost c.average cost d.variable cost

b

SC Johnson airs television ads that highlight the qualities of the company rather than promote specific brands. These ads would best be described as _______ advertising. a.product b.institutional c.target d.pioneer

b

Salim has recently been hired as a salesperson for an air conditioner sales firm. When he started his job, he decided that the first thing to do was to go through his company's sales records and through telephone directories to find potential customers. During this process, Salim was _______. a.approaching b.prospecting c.evaluating d.obtaining referrals

b

Service businesses try to communicate a higher level of quality to potential customers by having clean, well-lit, attractive physical facilities. This is an attempt to address the _______ characteristic of services. a.heterogeneity b.intangibility c.perishability d.inseparability

b

Sony has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the _______ approach. a.arbitrary b.objective-and-task c.match-competition d.reliable-appropriation

b

Spencer is a sales representative for an office furniture company. Last year, the production manager decided to replace one of their suppliers with a cheaper alternative. As a result, the furniture is not as durable as the prior models and is more likely to break. The CEO of the company has told the Director of Marketing to keep the prices constant. He has also told the sales managers to instruct the sales representatives to not mention the change in quality. If Spencer's customers are having issues with their new furniture, most of the burden of achieving customer satisfaction lies with _______. a.the Director of Marketing b.Spencer c.the CEO d.the production manager

b

Stones Custom Choppers is a motorcycle repair and maintenance shop specializing in customizing and restoring motorcycles to its customers' specifications. Rebuilds and custom bikes typically cost $20,000 and up, and each one is unique to the customer's size, interest, and personality. What type of pricing is most appropriate for the company? a.Markup b.Cost-plus c.Demand-based d.Competition-based

b

Sutter Homes Winery offers special discounts to retailers to compensate them for providing transportation or warehousing services, which are known as _______ discounts. a.quantity b.trade c.seasonal d.cash

b

Taylor Fence Company manufactures fencing popular for farms and large fields. It sells them in retail locations exclusively through wholesalers. It has been unable to find a wholesaler willing to sell the fencing to retailers in remote areas because the wholesalers do not find them to be profitable. Taylor Fence should consider using a _______ to reach these retail customers. a.rack jobber b.mail-order wholesaler c.limited-line wholesaler d.drop shipper

b

The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. This promotion program suffered from an error in the selection of _______. a.decoded meanings b.communication channel c.targeted customers d.shared symbols

b

The Farmhouse Restaurant has been struggling to attract customers for its lunch service and decides to utilize a _______ pricing objective where it prices its lunch specials below costs at $5.99 per person to attract customers to the restaurant. The restaurant hopes this is a short-term strategy that will increase revenue and create more loyal customers who will return to the restaurant even if the lunch special price is increased. a.profit b.survival c.market share d.return on investment

b

The _______ is/are considered the lowest level at which a company would price its product or service. a.average revenue b.costs c.profits d.variable cost

b

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) _______ strategy in pricing these components. a.skimming b.penetration c.lining d.odd-even

b

The marketing manager for the BMW X5 is developing pricing objectives and sent the following objective statement to the Vice President for review, "Increase market share in the large SUV market to 22% and achieve a 15% return on investment." Which of the following statements is correct regarding this objective statement? a.The statement should include a comparison to the competition. b.The statement should include a time frame for accomplishing the objective. c.The statement should be related to the price of the product. d.The statement should be more general rather than specific.

b

The media planners for Dr Pepper are launching a new advertising campaign. As part of their media plan, they want to expose their target market to its new advertisement about five times each. This is their advertisement's _______. a.exposure b.frequency c.repetition d.reach

b

The online streaming music service Spotify produces an advertisement in which a person is listening to music streaming over the internet. She says that she enjoys the convenience of listening to music without needing to worry about her personal music library and the ability to create custom playlists on Spotify. The element of the commercial where the person discusses the convenience of an online streaming music service would best be classified as _______, while the focus on the custom playlists available in Spotify is best classified as _______. a.institutional advertising; product advertising b.pioneer advertising; competitive advertising c.advocacy advertising; product advertising d.comparative advertising; competitive advertising

b

The primary goal of a media planner is to _______. a.achieve the appropriate message reach and frequency b.reach the largest number of people in the target market within the budget constraints c.develop a message that works well with the firm's target market d.choose the best commercial spots available

b

The use of a push policy may require heavy expenditures for _______. a.advertising b.personal selling c.public relations d.coupons

b

Tiffani works for Mazda, where she works to create favorable relationships between Mazda and its customers, suppliers, employees, shareholders, the media, and other stakeholders. Tiffani is most likely employed in Mazda's _______ department. a.human resources b.public relations c.sales d.marketing

b

Tiffany is creating a promotion plan for Owens Corning, which manufactures fiberglass insulation. Her company is trying to promote the insulation to home builders to use in the building of new residential homes. She is most likely to recommend _______ because it allows marketers to adjust their message to improve communication. One downside is that it costs _______ than advertising to reach one customer. a.direct marketing; more b.personal selling; more c.personal selling; less d.sales promotion; less

b

To announce a new drug-testing policy, Major League Baseball decides it needs to get wide media coverage, so it holds a _______ and invites media personnel. a.news release b.press conference c.feature presentation d.publicity release

b

To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best alternative? a.Editorial letters b.Press conference c.Feature article d.Captioned photograph

b

Tomás has a monitor inside his home that tracks when his television is on and what station he is watching. When he goes to the store, he uses an identification card that is scanned at checkout. Ted is providing researchers with _______. a.individual marketing research b.single-source data c.behavioral tracking data d.a consumer jury

b

Tony is on the marketing team for a new line of self-heating soups designed for mountain climbers. The soups come in a convenient pouch that hooks on to a mountain climber's gear and collapses for easy storage when empty. The product is considered a new product in the introductory stage of the product life cycle. What type of promotion should the marketing team focus on? a.Comparative b.New introductory c.Reminder d.Repetitive

b

Treasure works for Frito-Lay and works with retailers to help promote the company's snack foods. She sets up displays in the stores and occasionally hands out samples to customers. Treasure is best described as a(n) _______. a.field order taker b.trade salesperson c.order getter d.technical salesperson

b

Turner Furniture, Inc., advertises the quality of its furniture in its commercials. The Comfy Couch Company wants to counter those ads with its own ads discussing the quality of its products. Which of the following types of advertising would the Comfy Couch Company most likely use? a.Primary b.Competitive c.Institutional d.Pioneer

b

Twin Pines Mall has a Nordstrom, J.C. Penney, and 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. a.community b.regional c.lifestyle d.superregional

b

Using horizontal channel integration allows a firm to _______. a.better communicate with other members of the distribution channel b.increase efficiency and develop economies of scale in advertising and other marketing functions c.combine all stages of the distribution channel under a single company's ownership d.use contractual agreements to open franchise locations

b

Verizon Wireless airs commercials using the slogan "Better Matters" stating that it provides higher quality service than other carriers. This is an example of _______ advertising. a.pioneer b.competitive c.institutional d.reinforcement

b

Versace's men's cologne "Gucci Guilty" is most likely considered a prestige product. If the marketing managers at Versace wanted to test the elasticity of the demand to confirm its prestige product status, which of the following outcomes would they likely expect? a.The demand for the product would be unaffected by the price. b.The demand for the product would diminish at a certain higher price point. c.The demand for the product would be lower at higher prices. d.The demand for the product would vary widely based on the price.

b

Walmart has begun requiring that its suppliers add _______ to their shipments. The shipments can then be tracked using radio waves to help Walmart and its suppliers make the supply chain more efficient. a.UV chips b.radio frequency identification (RFID) tags c.mobile scanners d.LED trackers

b

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 _______. a.a vertical marketing system b.supply chain management c.channel conflict d.a horizontal marketing system

b

What type of shopping center usually consists of several small convenience and specialty stores? a.Regional b.Neighborhood c.Specialty d.Convenience

b

When a supermarket allocates space for different competing products on a shelf, it is engaging in _______. a.atmospherics b.category management c.pricing d.retail positioning

b

When considering the best channel to use, the following are true about smaller firms, except that they _______. a.may be in a strong position to cater to customers in a particular area b.are likely to have a large number of distribution centers c.may consider including channel members that can extend credit d.may not be able to maintain a large inventory

b

Which of the following describes an advantage of using industrial distributors? a.They are part of a corporate vertical marketing system and under the same management. b.They can perform needed selling activities in local markets at a relatively low cost. c.They usually possess considerable specialized knowledge to sell technical products. d.They are focused only on the producer's products and do not sell any competing products.

b

Which of the following is NOT a technique associated with psychological pricing? a.Bundle pricing b.Penetration pricing c.Reference pricing d.Multiple-unit pricing

b

Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? a.Technical selling b.Team selling c.Trade selling d.Relationship selling

b

Which of the following is the best definition of value? a.Value is considered the amount of money that consumers pay for a good or service. b.Value combines price with quality attributes and is often used by consumers to differentiate among competing brands. c.Generally, consumers are not concerned with the value they receive for their money. d.Consumers do not consider trade-offs when making purchasing decisions.

b

Which of the following is the best example of a high-contact service? a.A flight attendant b.Personal training c.Auto repair d.Mail carrier

b

Which of the following is true about assumptions related to a price skimming strategy? a.It should only be used with high quality products. b.Demand for the product is inelastic. c.Demand for the product has unitary elasticity d.Competitors will be unlikely to enter the market.

b

Which of the following products will most likely use the longest distribution channel? a.Fine china b.Canned vegetables c.Automobiles d.Milk

b

Which of the following statements about price as an element of the marketing mix is true? a.Developing the price for a product or service is a lengthy process and is very inflexible. b.The pricing element of the marketing mix is very flexible, and marketers can quickly respond to changes in demand or competitors' actions. c.Price has limited effects on a firm's sales and profitability. d.Development of the price and pricing-related objectives involves a long-term commitment and once set, is rarely changed.

b

Which of the following statements about restricted sales territories is NOT true? a.They allow manufacturers to tighten control over product distribution. b.They restrict the amount of competing products available in an area. c.Courts have found that they can promote competition among dealers with different brands. d.They are often favored by intermediaries because they minimize competition.

b

Which of the following statements is NOT true about training salespeople? a.New salespeople usually require comprehensive training b.Experienced salespeople do not need training c.Sales training may be done in the field, at educational institutions, in company facilities, or online d.Some firms train new employees before assigning them to a specific sales position

b

Which of the following types of retailer has put the most pressure on category killers? a.Off-price retailers b.Online retailers c.Superstores d.Discount stores

b

Which regulations or laws limit the use of price differentials? a.Wheeler-Lea Act b.Robinson-Patman Act and Clayton Act c.Sherman Antitrust Act d.Federal Trade Commission Act

b

While at the mall, Adrienne decides to buy a new smartwatch. She purchases one using a credit card. The transaction takes place at a machine and involves no contact with a person. This transaction most likely used _______. a.a party plan b.vending c.telemarketing d.direct-response marketing

b

Whole Foods was able to identify a market segment that was looking for healthy and organic foods. This segment was underserved in that there were no large grocery stores that provided a broad assortment of healthy and organic foods, so it created _______ to meet the needs of that segment. a.atmospherics b.a retail positioning c.a deep product mix d.target customers

b

Wholesaling involves all of the following activities, except _______. a.selling products that will be resold b.selling products to the ultimate consumer c.selling products for use in general business operations d.selling products that will be used to make other products

b

You represent a group of investors who are exploring alternatives for entering the retailing business. Many of these investors have significant past experience working for other retailing companies and they realize the retailing business is very competitive. They also realize there is a high failure rate for startups in this industry. They ask you to recommend a retailing strategy that would meet the following criteria:No storefront would be neededNo personal selling would be neededNo traditional store operating expenses are necessaryCustomers can place orders via the internet, telephone, or mailLow operating expenses and limited customer service requiredWhich of the following retailing strategies are you going to recommend they use? a.Vending b.Catalog marketing c.Telemarketing d.Direct selling

b

Zach enjoys dressing well and believes it's important to his image that he looks polished and professional. He makes his purchase decisions based on the reputation of a brand and appreciates the additional status that brands such as Burberry and Rolex provide to him. He is characterized as a _______ consumer. a.value-conscious b.prestige-sensitive c.quality-conscious d.price-conscious

b

_______ are promotions that allow buyers to pay less than the regular price to encourage purchase, and _______ are promotions in which a consumer is sent a specified amount of money for making a single purchase. a.Money refunds; premiums b.Cents-off offers; rebates c.Premiums; money refunds d.Coupons; rebates

b

_______ pricing is typically utilized by marketing consultants and accountants who have great skill or experience in their fields. Professional accountants may determine their pricing decisions by using a set fee for various types of services such as $99 for filing a simple tax return and $400 for filing an itemized return for a couple. a.Promotional b.Professional c.Consultant d.Preferred

b

_______ pricing is utilized by marketers as a product-line pricing strategy and is implemented by charging the highest price for products that are the most versatile and most desirable version of a product. a.Penetration b.Premium c.Bait d.Captive

b

_______ qualities of a service can only be assessed during the consumption of a service. a.Tangible b.Experience c.Credence d.Customer-focused

b

A customer is looking for a service that meets his or her specific needs, but knows this may result in variability of service quality. Which service characteristic does this situation reflect? a.Intangibility b.Perishability c.Heterogeneity d.Inseparability

c

CoverGirl created a display rack to feature its new line of cosmetics in the store. This is an example of _______. a.a frequent-user incentive b.in-store attention grabbers c.a point-of-purchase material d.retail media

c

Customer Direct is hiring Customer Care Agents. Agents must have a customer service background and a positive attitude. Customer Care Agents will work flexible hours in their own homes. This is an example of _______. a.teleworking b.offshoring c.homesourcing d.telecommuting

c

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a.The manufacturer's product is expensive with a lot of specific technical detail. b.The product being sold is relatively inexpensive and easy-to-use. c.The producer wants to cover a large geographic area but has no sales force. d.The manufacturer's sales force is available to assist the agents and distributors.

c

A technology attorney claims that while Amazon has done a lot of good for the industry, it is engaging in aggressive pricing strategies. According to him, Amazon purchases books for one price and then sells them for much cheaper. For instance, it allegedly purchases a book for $13 and sells it for $9. Because of its power and scale, Amazon can currently get away with this. The lawyer believes Amazon will drive prices down so low that rivals cannot compete, and it will gain up to 90 percent market share. Authors will then have to sell their books at knock-down prices because they have nowhere else to go. The technology attorney is accusing Amazon of _______. a.price discrimination b.counterfeit pricing c.predatory pricing d.deceptive pricing

c

A tire installation company includes a car wash and a comfortable waiting room with complementary water and coffee in addition to its tire installations. These services are known as _______ services. a.core b.bundled c.supplementary d.complimentary

c

Agatucci's Restaurant is marketing a line of frozen pizzas based on its famous recipe it has served at the restaurant for the last 40 years. The pizzas will be sold in grocery stores across the country, and prior to the national roll-out, Agatucci's used test marketing to determine the appropriate price and market niche for its pizzas. It discovered that the typical grocery store would sell 25 pizzas per day at $6.99, 45 pizzas per day at $7.49, and 38 pizzas per day at $8.99. Which of the following best describes what Agatucci's learned as a result of its test marketing and pricing study? a.Consumers are not very interested in purchasing the Agatucci brand. b.Demand for Agatucci's pizza is inelastic. c.The pizzas are considered a prestige product. d.Demand for Agatucci's pizza is a normal, downward sloping curve.

c

Amazon's "Alexa Lost Her Voice" commercial was shared by thousands of people through social media and watched millions of times on YouTube. This is an example of _______. a.personal selling b.public relations c.viral marketing d.sales promotion

c

An _______ price is developed in the buyer's mind through experience with the product. a.external reference b.experiential c.internal reference d.association

c

An advantage of the arbitrary approach for determining the advertising appropriation is that it is _______. a.accurate b.objective c.expedient d.scientific

c

An arrangement under which a producer forbids an intermediary to carry products made by competing manufacturers is called _______. a.a tying agreement b.exclusive distribution c.exclusive dealing d.refusal to deal

c

Anne-Marie is the manager of a department store. She has read predictions that the coming winter is going to be very cold and is concerned that there will be a lot of demand for winter coats. To help avoid stockouts, she is keeping _______. a.excess inventory b.private warehouses c.safety stock d.just-in-time inventory

c

Apple has successfully introduced several new products utilizing a skimming approach where it charges the highest possible price during the introduction stage of the product life cycle. Which of the following is NOT one of the benefits of a skimming strategy? a.Creates cash flow to offset the development costs associated with product creation b.Protects the marketer from problems that arise when prices are set too low to cover costs c.May achieve lower levels of sales but still recoup developmental costs d.Helps keep demand consistent with production capabilities

c

Apple regularly holds events where the company CEO announces the latest products in front of a large group of stakeholders. This type of event is best categorized under which of the following types of promotion? a.Sales promotions b.Advertising c.Public relations d.Social media

c

Ashley is currently working on a video to introduce a new line of athletic wear for women. She is using signs and symbols to represent the concept and meaning of the new athletic wear. Ashley is most likely working on the _______ for this promotional video. a.conversion process b.decoding process c.coding process d.communication strategy

c

Because a television advertisement contains both audio and visual material, copywriters and artists will combine copy and visual material in a _______ that depicts a series of miniature television screens showing the major scenes in the commercial with a description of the audio portion for each screen. a.scene display b.layout presentation c.storyboard d.screenplay

c

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. a.extreme-value store b.department store c.convenience store d.discount store

c

Beremand Limited sends out paper copies of a listing of its products. Customers can then look through the listing and place orders online, through mail, or by calling a toll-free number. Beremand Limited is primarily a _______. a.telemarketer b.direct seller c.catalog marketer d.superstore

c

Bo finds a code under the cap of the soft drink he just bought. He visits a website where he enters the code for a chance to win a prize. This is an example of a _______. a.premium b.consumer contest c.consumer sweepstakes d.consumer game

c

By locating in the same general vicinity as other car dealerships, Hartfield Honda can _______. a.create form utility b.facilitate wholesale exchanges c.facilitate comparison shopping d.create possession utility

c

Carly works at Kellogg's and is on a team developing a new breakfast cereal. She is currently trying to contact different companies who can provide the specific ingredients and equipment needed to make the cereal. She will work with the procurement department to reach an agreement with the companies selected to provide the ingredients and equipment. She is currently engaging in _______. a.purchasing b.logistics management c.procurement d.sourcing

c

Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a _______ site for his retail business. a.traditional business district b.neighborhood shopping center c.freestanding d.community shopping center

c

Companies have been using computer technology to integrate order processing with production, inventory, accounting, and transportation in a system referred to as _______. a.expected data input b.just-in-time (JIT) delivery c.electronic data interchange (EDI) d.inventory management

c

Dallas owns a pet grooming business called Pawsatively Perfect. He only works weekdays between 8 a.m. and 5 p.m. He has loyal customers and enjoys all of the pets he grooms. Dallas is happy with the amount of business he currently has and would like to maintain his current work load. Dallas would likely employ which type of pricing objective? a.Survival b.Cash flow c.Status quo d.Product quality

c

Dan is responsible for developing the promotional campaign for Under Armour's new line of footwear for teens. He will be writing advertising campaign objectives that are aimed at increasing Under Armour's market share. This means his objectives are written in terms of _______. a.demand b.markets c.sales d.communication

c

Dan is the president of a small firm that builds office furniture. His company is still fairly small and has not hired a sales staff yet. Dan's firm likely is using _______ to maintain contact with the companies that buy its furniture. a.brokers b.retailers c.agents d.wholesalers

c

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. a.seasonal b.cash c.trade d.allowance

c

Effective management of integrated marketing communications is based upon _______. a.budgetary allowances b.the communication process model c.information about customers d.consumer attitudes toward promotion

c

Energizer decides to offer buyers the opportunity to mail in the proof of purchase for batteries in exchange for a free plush version of its Energizer Bunny. This is an example of _______. a.a free sample b.a point-of-purchase material c.a premium d.a demonstration

c

FedEx provides overnight shipping of packages across the United States. If a customer in San Francisco wants a package to be delivered to Atlanta the following morning, speed is very important, and the customer is willing to pay a higher price for the speed. FedEx would most likely use _______ for transporting the overnight package from San Francisco to Atlanta. a.trucks b.pipelines c.airplanes d.waterways

c

Fernando had already passed through airport security and was sitting at the Delta terminal when he realized he forgot to pack the charging cable for his cell phone. He located the nearest CNBC News & Gifts store in the terminal and purchased a new cable. He was appalled at the inflated price for the cable, and normally wouldn't pay that much, but he felt he couldn't make it through his whole trip without one. Fernando was influenced by _______. a.the target market b.the level of quality c.the purchase situation d.the type of product

c

Fernando makes and sells custom signs to sell online. He calculated his _______ by dividing his variable costs by the number of units produced. a.marginal revenue b.profit c.average variable cost d.marginal cost

c

Ford is planning on sending out news releases about its new car models and is interested in finding out whether potential consumers will understand the content of the news stories they may see about the new cars. To do so, it should conduct a _______. a.public relations audit b.sponsorship-effectiveness audit c.communications audit d.social audit

c

Generally, companies whose customers are numerous and geographically dispersed will find promotion mixes featuring _______ to be more practical. a.public relations b.personal selling c.advertising d.viral marketing

c

George, a car salesman, asks customers whether they have had any issues with their new car _______. a.the next time the customer visits the dealership b.before the sales presentation c.during the follow-up d.immediately after the close

c

Hannah is reading through one of her favorite magazines. She notices an ad for a complete set of mint-condition state quarters. To order the coins, she would have to dial a toll-free number or mail in a form printed on the ad. This is an example of _______. a.telemarketing b.party planning c.direct-response marketing d.catalog marketing

c

IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service businesses. Recently, IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members. If IMA continues to do this, _______ is likely to result. a.vertical channel integration b.channel disintegration c.channel conflict d.horizontal channel integration

c

If Roberts Electronics finds that the average total cost and the marginal cost of its radar detectors are both $85, then _______. a.average total cost is at its maximum b.its marginal costs are falling c.average total cost is at its lowest level d.average total costs are rising

c

If a restaurant tries to attract diners to eat dinner at the restaurant from Monday to Thursday by offering half-price appetizers on those days, it is trying to solve the marketing problem of _______. a.inseparability b.perishability c.intangibility d.customer contact

c

In certain boxes of cereal, Kellogg's offers a code that customers can redeem for a free children's eBook. This is an example of _______. a.a free sample b.a point-of-purchase material c.a premium d.a demonstration

c

In its advertising campaign, Coca-Cola tells its consumers that it is still available and that it has a history as a trusted brand. The commercials also focus on the advantages that Coca-Cola has to offer. This advertising would best be classified as _______. a.pioneer b.selective c.reminder d.comparative

c

In many television shows and movies, you will see characters using Apple computers and laptops during the show. This promotion strategy is called _______. a.product display b.product endorsement c.product placement d.product positioning

c

In the McDonald's advertisements that state, "I'm Lovin' It," McDonald's is the communication _______. a.decoder b.transmitter c.source d.noise

c

Isabella is using a scheduling system to plan her sales calls for the coming week. The system's main goal is to _______ when routing and scheduling sales representatives. a.organize the sales calls based on expected sales volume b.allow the maximum flexibility for salespeople c.minimize nonselling time d.maximize the use of public transportation

c

Isabelle and George both work in sales at John Deere. Isabelle's main job is to take orders, follow up on deliveries to make sure they were shipped on time, and provide some basic technical services. She mainly deals with current customers, although sometimes she will receive calls from potential customers interested in learning more about the firm's products. George, on the other hand, actively seeks new potential clients. He is constantly attending events to solicit new clients and he makes sales calls to potential clients to discuss John Deere's product offerings. Like Isabelle he also takes orders for equipment. Isabelle is most likely a(n) _______ salesperson, while George is most likely a(n) _______ salesperson. a.current-customer; technical b.trade; missionary c.inside; outside d.inside; support

c

It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services? a.Perishability b.Client-based relationships c.Intangibility d.Inseparability

c

Jackie works for a custom bicycle manufacturer and is analyzing the order fulfillment process. She wants to shorten the time between receiving an order online and having the order picked up by UPS while maintaining customer service and cost. Jackie is focusing on improving her company's _______ as a way of increasing customer satisfaction. a.turnaround time b.shipping time c.cycle time d.fulfillment time

c

JanSport offers a line of backpacks in a variety of styles and sizes. The company needs to make sure that it has an adequate assortment of backpacks available to meet customer demand as part of the _______ stage of logistics. a.warehousing b.materials handling c.inventory management d.transportation

c

Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame _______ for their reduced level of customer satisfaction. a.the marketing manager b.the textbook authors c.Jennifer d.the sales manager

c

Jonah is a member of his local gym. The gym has asked him and some other members to view a potential commercial set to air in the area. They were then asked to judge the commercial on several different dimensions. Jonah was a part of a(n) _______. a.expert panel b.customer panel c.consumer jury d.preview group

c

Kristen received an email from a friend that linked to a video of a funny commercial made by Old Spice. Kristen thought it was so funny that she shared the video on her Facebook page and on Twitter so that all of her friends and followers could see the video as well. This is an example of _______. a.buzz marketing b.personal promotions c.viral marketing d.conversational promotion

c

Local news reports sometimes include announcements about new stores opening in the area. These stories are most likely examples of _______. a.sales promotions b.direct marketing c.publicity d.press conferences

c

Lorenzo noticed on a recent shopping trip to Walmart that many of the items in the store had prices with an $0.88 ending. For example, a household multi-surface cleaner was priced at $2.88. Walmart is utilizing which pricing strategy? a.Price skimming b.Reference pricing c.Odd-even pricing d.Customary pricing

c

Management commitment to providing customers with a quality service experience is important in addressing _______. a.employee performance b.management of service expectations c.service quality specifications d.analysis of customer expectations

c

Many consumers love shopping at discount stores like T.J. Maxx, HomeGoods, or Marshall's. Cindy and Tamra were recently shopping at HomeGoods and saw some dining room chairs they really liked. The price tag had a retail price of $79.95 with additional detail of manufacturer's suggested retail price of $129.95. They thought this was a great discount and decided to purchase two chairs for their apartment. What type of pricing strategy does HomeGoods utilize in pricing the chairs and other merchandise? a.Price leaders b.Odd-even pricing c.Comparison discounting d.Special-event pricing

c

Many fashion or trendy products are expected to have a relatively short product life cycle and managers seek to recover cash as quickly as possible. Which pricing objective would be most appropriate for fashion or trendy products? a.Profit b.Status quo c.Cash flow d.Quality

c

Many small restaurants visit Costco to purchase supplies for their food and operating items. While Costco is a retailer, it combines retailing with _______ functions, allowing small businesses that are able to supply their own transportation the ability to pay for and take their products immediately. a.commission merchant b.selling agent c.cash-and-carry wholesaler d.truck jobber

c

Marilyn is at home and sees a vacuum cleaner being used on QVC. She calls a toll-free number to order the vacuum and pays with her credit card. This is an example of _______. a.telemarketing b.online retailing c.television home shopping d.direct-response marketing

c

Marisol works for a manufacturer of frozen foods. Her job consists of visiting retailers and helping them promote her company's products. She helps restock shelves, negotiates for more shelf space, and sets up displays. Her position is best described as a(n) _______. a.technical salesperson b.order getter c.trade salesperson d.missionary salesperson

c

More than _______ of new businesses in the United States are service businesses, and service employment is _______. a.two-thirds; expected to remain the same b.one-half; expected to remain the same c.one-half; expected to grow d.two-thirds; expected to decline

c

Nabisco Foods has noticed a decline in sales for its various brands of cookies, and sales for cookies in general are declining. However, Nabisco still hopes that its Oreo cookies can achieve a higher percentage of sales compared to competing cookie brands. This is an example of a _______ pricing objective. a.status quo b.survival c.market share d.profit

c

Target sets up a special display in its stores featuring Brawny paper towels. Because it has set up this display, Brawny agrees to provide a _______ to Target. a.buying allowance b.buy-back allowance c.merchandise allowance d.scan-back allowance

c

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 _______. a.procurement b.operations management c.logistics management d.channel management

c

Place utility is best described as _______. a.having the product available in as few locations as possible to increase brand exclusivity b.having the product available in as many locations as possible to make it easy to find c.making the product available in locations where customers wish to purchase it d.not running out of a product in any location where it is sold

c

Pricing a product at a moderate level and physically positioning it next to a more expensive model or brand in the hope that the customer will use the higher price as a comparison is known as _______. a.prestige pricing b.customary pricing c.reference pricing d.penetration pricing

c

Professionals such as accountants and attorneys typically use a _______ pricing objective where nonprice competition occurs since pricing is not utilized as a competitive tool. a.quality b.survival c.status quo d.profit

c

Promotional efforts designed to allow a manufacturer of a seasonal product to operate at peak efficiency year-round seek to _______. a.encourage product trial b.facilitate reseller support c.reduce sales fluctuations d.identify prospects

c

Providing useful information and responding to customers through social media help service providers with which characteristic of services? a.Inseparability b.Client-based relationships c.Heterogeneity d.Intangibility

c

Rachel is a sales representative. Every week, she spends time looking for potential customers by doing an online search through her industry's trade association database for new members. This is part of which step of the personal selling process? a.Identifying b.Surveying c.Prospecting d.Scouting

c

Recently the local television station communicated a news story about the new specialized medical mart opened by Cleveland Clinic. The story provided information about the various services that the new medical mart would offer and how to get in touch with the service providers. This story is most likely an example of _______. a.personal selling b.sales promotion c.publicity d.institutional advertising

c

Rich's Auto Lube offers customers 10% off on their next service if they provide proof that they have posted a positive review on a social media site. This program is designed to _______. a.increase customers' zone of tolerance b.reinforce brand equity c.encourage online viral communication d.improve employee effectiveness

c

Richland Technologies produces smartphone accessories. In order to have enough capital to manufacture its latest batch of accessories, Richland Technologies secured a loan with its inventory as collateral. Instead of moving the collateral to a warehouse, the bank making the loan hired a company to set up a _______ to provide security over the collateral at Richland Technologies' facility. a.secured warehouse b.public warehouse c.field public warehouse d.private warehouse

c

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's _______ cost. a.fixed b.average total c.marginal d.variable

c

Rohit and Kushi recently retired to South Carolina and discovered a fine art furniture maker with whom they contracted to build a custom walnut dining table for their new home. The contractor utilized _______ pricing by multiplying 150% times the cost of the lumber and materials to build the table to arrive at the purchase price. a.markup b.demand-based c.cost-plus d.competition-based

c

Ryan has been a florist for years and considers himself to be an expert in how florists and flower growers exchange their products. He wants to start a new business as an intermediary that can help growers find florists to sell their flowers. He does not want to represent either party and also does not want to take ownership of any of the product. He simply wants to bring the flower growers and florists together. He will be a _______. a.selling agent b.commission merchant c.broker d.limited-line wholesaler

c

Ryder describes itself as a firm "that delivers outstanding execution from deep expertise in your industry. Our proven supply chain management and transportation solutions, LEAN guiding principles and an established network across NAFTA and Asia help us customize the right solution to meet your business' needs." Due to its specialized expertise, many firms outsource its logistics activities to Ryder. Ryder is most likely a(n) _______. a.distribution center b.industrial distributor c.third-party logistics (3PL) firm d.manufacturers' agent

c

Sam is meeting with a purchasing agent about an order for his company's forklifts. As he is describing the features of the newest version, the purchasing agent nods her head to signal that she understands the features. Sam does not notice the _______ communication the purchasing agent is sending and goes into more detail about the new features. a.tactile b.verbal c.kinesic d.proxemic

c

Sergei runs an upscale nail salon targeting consumers who wish to get a manicure or pedicure in a luxurious environment. He is working hard to make sure the salon is appealing to his customers. He has installed marble countertops and floors and has gold-plated accents throughout the salon. He has adjusted the music and lighting and uses scented candles that all help add to the luxurious feeling. He believes these changes will make his customers return more frequently. Sergei has been focusing on _______. a.retail positioning b.store location c.atmospherics d.pricing

c

Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion? a.Cents-off offer b.Push money c.Buying allowance d.Buy-back allowance

c

Target gives a portion of its profits to local organizations. This is an example of _______. a.promotion b.charitable promotion c.cause-related marketing d.integrated marketing communications

c

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 its 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. a.random discounting b.bait c.periodic discounting d.price lining

c

The Comfort Station Restaurant features daily lunch specials just like grandma used to make and enjoys serving "comfort-style" food—food that nurtures and comforts the soul. The restaurant is near a large office complex and competes against many national chains such as Chipotle, McDonald's, and Subway. It typically offers its lunch specials at $8.99 per person, but recently lowered its prices to $6 per person hoping that consumers would relate this price to Subway's $6 sandwich deal, which was so popular. Which of the following objectives is The Comfort Station Restaurant most likely seeking to achieve? a.Increasing per-item revenue b.Increasing the number of competitors c.Increasing market share d.Decreasing total costs

c

The EU recently fined major truck makers for pricing that they viewed as anticompetitive. Many years ago, the managers at five of the companies got together and decided to set certain prices. By setting agreed-upon prices, customers would have to purchase at those prices and could not go to a competitor that sold comparable products at lower prices. They also agreed to pass the costs of environmental regulations onto consumers. These truck makers were fined for _______. a.price discrimination b.counterfeit pricing c.price fixing d.deceptive pricing

c

The Guiliani family desperately needed a new stove as theirs had only two working burners. They decided to wait just a few more weeks until Home Depot had their Labor Day sale, which usually resulted in 40% off appliances. The Labor Day sale is an example of _______. a.random discounting b.comparison discounting c.special-event pricing d.price leading

c

The formula to calculate the markup as a percentage of cost places _______ in the denominator. a.markup b.quantity c.cost d.profit

c

The internet may increase resentment between intermediaries and manufacturers because _______. a.it makes it easier for the manufacturers to take the role of channel captain b.role expectations posted on a manufacturer's website are unclear to intermediaries c.it allows manufacturers to create a direct channel that competes with retailers d.communication between the manufacturers and intermediaries is more open and clear

c

The knowledge and competence of employees and the ability to convey trust and confidence is an important dimension of service quality called _______. a.tangibles b.assurance c.reliability d.empathy

c

The most important link to the customer in service marketing is _______. a.marketing research b.the service facility c.contact employees d.customer referrals

c

The number of times target customers are exposed to an advertisement is referred to as _______. a.a media plan b.exposure c.frequency d.reach

c

There are two mechanics close to Hazel's home, but she prefers to go to Pep Boys because the waiting room is nice and bright, has free coffee, and current magazines. This is likely important to Hazel because _______. a.she doesn't subscribe to People magazine and likes to read it at Pep Boys b.low-contact service providers don't need to be concerned with the appearance of their facility c.she will need to be present to initiate and finalize the service transaction d.a nice waiting room equates to quality service

c

To advertise her dental practice, Lauren is planning on using the radio. She is looking over the copy for her ad and knows that in order to keep listeners' attention, it needs to _______. a.include as much information as possible b.repeat the name of the office several times c.be informal and conversational d.be fast-paced

c

Tombstone Pizza is planning on starting a new online advertising campaign to reach consumers where it will develop banner ads and increase its social media presence. It also plans on increasing its spending on personal selling with its wholesalers. Tombstone is using _______ with the online campaign and _______ with the increase in personal selling. a.publicity; a pull policy b.a push policy; a pull policy c.a pull policy; a push policy d.sales promotions; public relations

c

Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) _______ tool. a.sales promotion b.publicity c.public relations d.advertising

c

Tutors, attorneys, and consultants are most likely to price their services based on _______, while auto repair, hair stylists, and house painters are likely to price their services based on _______. a.objectives accomplished; time b.demand; objectives accomplished c.time; functions performed d.functions performed; time

c

Walgreens offers a variety of over-the-counter medication for allergies, colds, and flu symptoms such as Zyrtec, Tylenol Cold & Flu, and Robitussin cough syrup. The store has a private label brand and typically places the private label or store brand right next to the major brand of the same product and prominently displays the product's price with a shelf tag. Walgreens believes this approach will result in a great proportion of sales for its private label brand that produces higher profit margins for the store and is using a _______ pricing approach. a.customary b.private label c.reference d.prestige

c

What is the primary difference between superstores and supermarkets? a.Supermarkets offer food and nonfood products and superstores offer only nonfood products. b.Supermarkets are larger in size than superstores. c.Superstores offer routinely purchased products in addition to products found at supermarkets. d.Superstores offer lower prices than those found at supermarkets.

c

What is the typical shape of the demand curve for most products? a.Upward sloping b.U-shaped c.Downward sloping d.C-shaped

c

When Kroger mails out a circular that advertises its upcoming sale, the cost of the circular is partially paid for by manufacturers that are included in the advertisements. The manufacturers are helping pay for the advertising expenses as a way to _______. a.reduce sales fluctuations b.identify prospects c.facilitate reseller support d.encourage product trial

c

When manufacturers such as Microsoft, Sony, and Bose bypass retailers by opening up their own retail locations, it is likely to _______. a.make horizontal channel integration more likely b.lead to increased channel cooperation between the retailers and the manufacturers c.result in channel conflict between the manufacturers and the retailers d.increase the communication between the various channel members

c

When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a.Consolidated Mustard Company has an elastic product. b.Consolidated Mustard Company did poor market demand research. c.Consolidated Mustard is a prestige good. d.Consolidated Mustard Company engages in price competition.

c

When news reports are released that highlight a new charitable initiative launched by a company like Nordstrom, it is most likely an example of _______. a.a press conference b.sales promotion c.publicity d.institutional advertising

c

Which of the following best describes circumstances under which competition-based pricing should be utilized? a.Commonly utilized when varying levels of demand are present in the marketplace b.Commonly utilized when competing products are heterogeneous c.Commonly utilized among producers of relatively homogeneous products when consumers are sensitive to price d.Commonly utilized among producers of customized products

c

Which of the following factors or situations would affect the success of a company's use of nonprice competition? a.The marketer's ability to negotiate favorable price terms with suppliers b.Cutting prices in response to a competitor's pricing strategy c.The existence of unique product features that consumers value d.Employing an everyday low-price strategy

c

Which of the following is NOT a service product? a.The planning of a wedding by a wedding planner b.Getting a haircut c.Technical support for a computer d.A taxi cab ride

c

Which of the following is NOT a technique affiliated with promotional pricing? a.Price leaders b.Comparison discounting c.Odd-even pricing d.Special-event pricing

c

Which of the following is NOT one of the requirements for pricing objectives? a.Include measurable terms b.Include a time frame for accomplishment c.Include a comparison to the competition d.Stated explicitly

c

Which of the following is least likely to be considered when deciding on a retailer's location? a.Placement of competitors' stores b.Kinds of product being sold c.Distance from corporate headquarters d.Customer characteristics

c

Which of the following is the best example of a well-stated sales objective? a.Each salesperson should increase their average order size by November 1. b.Each salesperson should triple their daily dollar sales volume by March 1. c.The sales force should increase domestic market share by 5% by the end of the fiscal year. d.Each salesperson should increase the number of orders placed per call made.

c

Which of the following is the best example of noise that originates with the receiver in the communication process? a.Kim is watching an online advertisement when her building's smoke alarm starts ringing. b.Dennis receives a postcard printed in Spanish but does not speak or read Spanish. c.Tony checks his e-mail when the television commercial break begins. d.Bernard does not drive on the highway and does not see a new billboard.

c

Which of the following is the best example of the promotional objective of combating competitive promotional efforts? a.Lilly Pulitzer collaborates with Target to offer a special line of Lilly Pulitzer products sold exclusively through Target stores. b.BMW offers no-cost maintenance for its cars for the first four years or 50,000 miles on all of its cars if customers have their cars serviced by BMW rather than another location MW offers no-cost maintenance for its cars for the first four years or 50,000 miles on all of its cars if customers have their cars service by BMW rather than another location. c.When McDonald's advertises that it has the best fries based on the number of fries sold, Burger King advertises it has the best fries based on taste tests. d.Jif peanut butter uses the slogan that "Choosy Moms Choose Jif."

c

Which of the following methods is utilized to gather data about competitive prices? a.Employing comparative shoppers who gather data at competitors' stores b.Incorporating it as a regular part of marketing research c.All of the answer choices are ways to gather data about competitive prices d.Purchasing syndicated marketing research services

c

Which of the following pricing strategies is NOT utilized when establishing prices for a product line? a.Captive pricing b.Premium pricing c.Price skimming d.Bait pricing

c

Which of the following statements is true about personal selling? a.A major advantage of personal selling is its cost. b.Personal selling provides marketers the least freedom to adjust their message to satisfy customers' information needs. c.Personal selling is the most precise of all promotional methods. d.Personal selling is not necessary for expensive or high-risk products.

c

Which of the following statements is true about relationship selling? a.The focus is on short-term repeat sales. b.It is most appropriate in a business-to-consumer retail setting. c.Being proactive in identifying the need for recovery behaviors is important. d.Sales representatives spend most of their time marketing the benefits of their products.

c

While watching a television commercial, Chloe receives a text message from her friend and responds immediately. This is an example of _______ in the communication process. a.inaccuracy b.communication channels c.noise d.decoding

c

You are a brand manager for a major retailer and your team has been airing a series of television commercials with the help of an outside ad agency. The vice president of your company does not believe the ads have been effective and wants you to do some research to find out whether customers have seen the ads. Which of the following should you use? a.A pretest b.Environmental monitoring c.A recognition test d.A consumer jury

c

_______, popular in Europe, combine supermarkets and discount shopping in one location. These retailers offer 45,000-60,000 different types of low-priced products. a.Superstores b.Megamarts c.Hypermarkets d.Warehouse clubs

c

Which of the following is a limited-service wholesaler? a.Limited-line wholesaler b.General-merchandise wholesaler c.Specialty-line wholesaler d.Cash-and-carry wholesaler

d

A commercial for SodaStream announces that the sparkling water makers are available at Bed Bath & Beyond and Target. This is a form of sales promotion called _______. a.buying allowance b.dealer loader c.merchandise allowance d.dealer listing

d

A general-merchandise retailer offers _______. a.few product lines with deep assortments of these lines b.few choices of a large variety of product lines c.a single product line that is stocked in depth d.a variety of product lines that are stocked in depth

d

A new advertising campaign for CoverGirl cosmetics is beginning next week. Within the first six months of the campaign, the media planners want the new advertisement's _______ to be 45% of the target market and the _______ to be seven times. a.exposure; repetition b.range; rate c.goal; multiplier d.reach; frequency

d

Alaskan Wholesale is a full-service wholesaler that exclusively deals with selling fish that are caught by fishermen in Alaska. Although it only carries Alaskan fish, its inventory contains a great selection of every type of fish available from Alaska. Alaskan Wholesale is most likely a _______. a.general-merchandise wholesaler b.rack jobber c.drop shipper d.specialty-line wholesaler

d

Aldi's food stores that are owned by a German company have been expanding across the United States and feature a smaller retail store space with a limited selection of brand-name merchandise. Aldi's has worked hard to develop partnerships with suppliers to source items and package private or store-brand merchandise that's similar to a national brand product. For example, Aldi's offers its Millville brand of cookies and snack items such as a strawberry grain bar that's similar in appearance and taste to Nutrigrain. Aldi customers appreciate both high-quality products at a reasonable price point. What type of shoppers does Aldi's attract? a.Price-conscious b.Prestige-sensitive c.Economy-sensitive d.Value-conscious

d

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 just right before they are needed in production so that she can keep the levels of inventory low. She is suggesting a(n) _______ approach. a.ordering minimization b.inventory reduction c.safety stock d.just-in-time (JIT)

d

All of the following are examples of procurement, except _______. a.purchasing b.recycling c.sourcing d.retrieving

d

Although Maybelline would like to use _______ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder. a.rebates b.frequent-user incentives c.coupons d.demonstrations

d

Ben owns a wedding planning company that specializes in unique and eccentric weddings. Recently, he has been trying to improve the quality of the service received by the company's clients but has experienced difficulty finding ways to standardize and control the quality. Ben's problem illustrates the _____ feature of services. a.perishability b.customer contact c.inseparability d.heterogeneity

d

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% of the retail price to process each credit card transaction. In order to encourage shoppers to pay with cash, Blue Ribbon Farms offers a 10% discount on purchases for consumers who pay by cash or check. Blue Ribbon Farms is utilizing a _______ pricing strategy. a.premium b.random discounting c.penetration d.differential

d

Canon has several lines of digital cameras and often markets its Rebel DSLR camera body with a basic lens at an affordable price of $399. However, consumers who desire additional lenses might pay $400 or more for each additional lens. What type of pricing is Canon utilizing for its Rebel product line? a.Penetration b.Bait c.Premium d.Captive

d

Chris is an advertising manager for a local car wash. The company has been trying to get new customers to visit the wash by having a staff member make phone calls in a process called _______. Since this strategy has not been as successful as he had hoped, he is instead going to mail out postcards advertising the car wash. The cards, part of a strategy called _______, will include a toll-free number where potential customers can call and order prepaid cards to use at the car wash. a.direct-response marketing; direct selling b.telemarketing; catalog marketing c.television home shopping; direct selling d.telemarketing; direct-response marketing

d

Chuck works for a small manufacturer of salsa. For his job, he travels to various grocery stores within his territory to find out how much salsa each store plans on ordering in the coming month. Chuck is best classified as a(n) _______. a.missionary salesperson b.inside order taker c.trade salesperson d.field order taker

d

Clayton's is a large retail store that has distinct areas for housewares, appliances, men's apparel, women's apparel, cosmetics, and jewelry. It offers personal assistance with shopping, merchandise returns, delivery options, and a pleasant atmosphere. Clayton's is most likely an example of a _______. a.superstore b.supermarket c.category killer d.department store

d

Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n) _______. a.new-business salesperson b.technical salesperson c.outside sales representative d.missionary salesperson

d

DeAngela owns several boutiques in Georgia and Florida that specialize in women's apparel and accessories. DeAngela personally selects each item that is sold in her stores, often selecting items based on quality and the latest fashion trends. DeAngela markets her stores by promoting the personal service customers receive from store associates as well as the uniqueness of the items. DeAngela is likely competing in a market described as _______. a.a monopoly b.an oligopoly c.perfect competition d.monopolistic competition

d

Dorothy recently purchased a piano and had no problem testing out the piano to listen to how it sounds and felt. She is finding it more difficult to evaluate piano lessons. The piano was easy to evaluate because it had many _______ qualities. a.intangible b.experience c.credence d.search

d

Eliminating wholesalers from marketing channels _______. a.would likely decrease prices consumers pay b.eliminates the functions performed by wholesalers c.increases the efficiency of marketing channels d.would likely increase prices consumers pay

d

Ethan Allen, a U.S. furniture company, is careful to use hardwoods that naturally regenerate through seeding and sprouting. When procuring wood for furniture, Ethan Allen is largely concerned with _______. a.acquiring b.recycling c.purchasing d.sourcing

d

Fast-food companies will often compare their french fries to their competitors' fries. Mentioning the competitor's name, they will say that their fries scored better in taste tests. This type of advertising is best described as _______. a.pioneer b.selective c.reminder d.comparative

d

Felix goes to McDonald's, where he collects Monopoly real estate pieces that are available on cups and fries. As he collects the pieces, he can win cash and prizes. This is an example of a _______. a.premium b.consumer contest c.consumer sweepstakes d.consumer game

d

Freight transportation companies that have the ability to transport products in many different ways including ships, rails, trucks, and air service are known as _______. a.air-land-sea carriers b.freight forwarders c.shipping experts d.megacarriers

d

Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of _______. He didn't even know what brands we carry or what types of retailers we service!" a.presenting b.prospecting c.follow-up d.preapproach

d

Gordon is driving on the highway and sees a billboard for a local auto dealership. On the billboard he sees pictures of three of the dealership's cars and an announcement of a current promotion. In this situation, the auto dealership is a _______, which is one who _______. a.sender; encodes b.messenger; encodes c.receiver; decodes d.source; encodes

d

Greg is the marketing manager at Snyder School Supplies. The company has just set the advertising budget for the coming year and Greg is tasked with determining what portion of the budget is going to be spent on television, radio, and magazine advertisements as part of developing a _______ plan. a.business b.competitive c.marketing d.media

d

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. a.intensive b.exclusive c.full-market d.selective

d

Hamilton Manufacturing, located in New Hampshire, offers to ship items to different parts of the country according to _______. That is, customers in the Southwest, Midwest, Southeast, Rocky Mountains, and Pacific regions pay different prices according to transportation costs to those areas. a.freight absorption pricing b.uniform geographic pricing c.F.O.B. destination pricing d.zone pricing

d

Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n) _______. a.environmental audit b.communications audit c.publicity audit d.social audit

d

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a.The quantity demanded would always increase. b.The quantity demanded would immediately fall. c.The demand curve for the product would always shift to the right. d.Above some price level, the quantity demanded would begin to decrease.

d

If a retailer is reviewing its inventory and notices that the usage rate for one of the products it stocks has decreased, the retailer should _______. a.increase the amount of safety stock b.decrease safety stock c.increase the order lead time of the product d.decrease its reorder point

d

If a small retailer is in a marketing channel that contains only the producer, the retailer, and the customer, which of the following is most likely being sold by the retailer? a.Potato chips b.Power tools c.Haircut d.New college textbooks

d

If a smartphone manufacturer launches a series of online advertisements with a slogan of "Get the Most Out of Your Device," the advertisements are most likely using _______ advertising. a.institutional b.comparative c.reminder d.reinforcement

d

In the _______, concepts and ideas are converted into signs or symbols by the source. a.marketing process b.advertising process c.message creation process d.encoding process

d

In-N-Out Burger is a fast-food hamburger chain headquartered in California that owns and operates every location, resisting franchising any new locations. By owning every location and not franchising, In-N-Out operates a(n) _______ and has no plans of adopting a(n) _______. a.contractual VMS; corporate VMS b.corporate VMS; administered VMS c.administered VMS; corporate VMS d.corporate VMS; contractual VMS

d

Instead of charging each of his customers across the United States a different price for shipping, José decided to average the costs of shipping to customers in Florida, Washington, Vermont, and Kansas and charge everyone the same price. What type of pricing is José using? a.F.O.B. destination pricing b.Zone pricing c.Base-point pricing d.Uniform geographic pricing

d

Isabella works at a discount store and is coordinating her store's supply chain. She has a system that collects information on sales demand and on consumer behavior. The system then determines optimal product allocations for her store's shelves between competitors for each type of product. Isabella is working on _______. a.identifying target customers b.expanding product mix width c.improving atmospherics d.category management

d

Isaiah has been subscribing to ESPN The Magazine for several years. He loves reading the articles every month and thinks that $29.95 for a one-year subscription is a great deal. He recently received a subscription renewal notice from ESPN. The new yearly rate for the magazine is $39.95. Isaiah isn't sure that he is willing to pay more for the subscription. Isaiah is likely using _______ to make this determination. a.price conscientiousness b.an external reference price c.price discrimination d.an internal reference price

d

Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's _______. a.perceptions of quality b.specifications c.desired responsiveness d.specifications zone of tolerance

d

Jose Rodriguez is a pricing analyst for Walgreens and is responsible for all products in the grocery category including chilled merchandise. Jose knows that consumers who purchase grocery items at Walgreens are willing to pay more for these items than they normally would at the grocery store since Walgreens is providing more location convenience and a faster shopping experience. Jose typically tests the _______ of demand by working with local store managers in several different Walgreens stores and adjusting the price so that he can determine the best price that maximizes profitability for the chain. a.quantity b.feasibility c.sensitivity d.price elasticity

d

Josh is trying to decide on a restaurant for dinner. He can look at different websites to evaluate restaurants based on their menu, prices, and décor, but will not be able to evaluate how the meal tastes or how friendly the staff is until he visits one. The attributes Josh is evaluating ahead of time are _______ attributes and those he will evaluate during dinner are _______ attributes. a.experience; credence b.search; credence c.credence; search d.search; experience

d

Juno Chang is the owner of a local upscale, fine dining restaurant and typically sets prices in order to achieve a 50% return on sales revenues. This is an example of a _______ pricing objective. a.market share b.status quo c.cash flow d.profit

d

Lauren works for the public relations department for Burger King. She wrote up one page of copy about a new type of burger being offered in the restaurant and submitted it to national news services. This is an example of a _______. a.publicity update b.press conference c.feature article d.news release

d

Laurie bought herself a new jacket using a marketing channel that has only one intermediary. That intermediary is classified as a _______. a.industrial distributor b.broker c.wholesaler d.retailer

d

Leo is working on finalizing the promotion plan for his company's line of air fresheners. They plan on using a nonpersonal communication method that will use a mass medium for transmission to the target audience. Leo's company is using _______ as its promotion method. a.sales promotion b.public relations c.social media d.advertising

d

Lisa's position requires that she increase sales of her company's products. She finds ways to get existing customers to repurchase and finds new customers for her company's products. Lisa would best be described as a(n) _______. a.technical salesperson b.missionary salesperson c.order taker d.order getter

d

Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use _______, because it provides immediate feedback. The disadvantage is that it is _______ than advertising to reach one customer. a.sales promotion; more costly b.sales promotion; less effective c.direct marketing; less effective d.personal selling; more costly

d

Microsoft decided on an advertising campaign for its new tablet launched in October. The company would air commercials on TV for several weeks for the launch and then not have any commercials for four weeks. It would then run more commercials again in December for three weeks. Microsoft is using a _______ schedule for its advertising. a.pulsing b.continuous c.variable d.flighting

d

Miller Ltd. would like to conduct business with GE Aircraft Engines. In an effort to earn business, Miller Ltd. offers to absorb all of the freight costs. This is an example of which type of pricing? a.Base-point pricing b.Zone pricing c.F.O.B. factory pricing d.Freight absorption pricing

d

Nicole manages a boutique that sells unique gifts and stationery. She wants to update the store's strategic plan. Which of the following aspects of the store is the least flexible? a.Store image b.Store atmosphere c.Product assortment d.Store location

d

Nike has set an advertising objective to increase market share by 5%. In developing the advertising appropriation, it is having trouble determining how much to increase its national advertising in order to reach that objective. This is a problem typical of which appropriation approach? a.The competitive-matching approach b.The arbitrary approach c.The percent-of-sales approach d.The objective-and-task approach

d

One of the problems associated with _______ is that it is often difficult to measure its effect on sales. a.sales promotion b.personal selling c.price d.advertising

d

Pricing is a unique component to the marketing mix because _______. a.of its ability to create relationships with consumers b.it is often the first thing that consumers notice about a product c.it is the only thing that marketers can control d.of its flexibility

d

Product managers for Green Giant are meeting to discuss ways so that they can improve the packaging of their frozen foods to reduce damage and make loading and transportation more efficient. This is an attempt to improve _______. a.order processing b.warehousing c.inventory management d.materials handling

d

Promotions help consumers because they _______. a.only focus on products that have no harmful effects for consumers b.increase the focus on brand names c.create new needs for consumers d.allow customers to make more intelligent buying decisions

d

Recently Walmart utilized a commercial showing employees using a big pair of scissors to cut prices and stated "low price guarantee." Walmart also utilizes signage throughout the store on various items that say, "Low Prices" or "Low Price Guarantee." What type of pricing strategy is Walmart utilizing? a.Bundle pricing b.Customary pricing c.Odd-even pricing d.Everyday low pricing (EDLP)

d

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? a.Multichannel distribution b.Exclusive dealing c.Refusal to deal d.Tying agreement

d

Retailing is vital to the U.S. economy. There are more than _______ retail establishments in the United States employing nearly _______ people. a.one million; 36 million b.two million; 20 million c.two million; 10 million d.one million; 16 million

d

Ridgeland Designs is a small manufacturer of novelty T-shirts and is trying to decide on an intermediary to help get the T-shirts to retailers. The owner does not want the intermediary to take title of the T-shirts but wants someone to represent the company in negotiating with retailers. More importantly, the owner wants to retain control over the pricing and promotion of the T-shirts to retailers. Ridgeland Design would most likely be looking for a _______. a.broker b.sales branch c.drop shipper d.manufacturers' agent

d

Rosie and John both are buying textbooks for the class. Rosie prefers the online option and purchases her copy of the textbook from the publisher's website. John likes the feel of the book in his hands and buys a print copy from his college bookstore. Rosie is purchasing her book through _______, while John is purchasing his through _______. a.an indirect marketing channel; a retailer b.a retailer; a wholesaler c.a direct marketing channel; a wholesaler d.a direct marketing channel; a retailer

d

Script to Screen is an agency that produces television infomercials. When potential consumers view the infomercial, they can purchase the product by phone, mail, or online. Script to Screen is an example of a company engaging in _______. a.direct selling b.catalog marketing c.telemarketing d.direct-response marketing

d

Senior management at Best Buy is reviewing the compensation strategy for the company's salespeople. They currently use _______, which gives the company the benefits of being easy to administer, yielding predictable selling expenses, and providing managers greater control over their salespeople. a.salary plus commission b.straight commission c.salary plus bonus d.straight salary

d

Service companies typically hope that customers are extremely satisfied with the service they provide. That way, the satisfied customers will use the service repeatedly over time. This service feature is known as _______. a.service partnerships b.repeat customers c.customer satisfaction d.client-based relationships

d

Sharp Home Pressure Washing offers a 100% satisfaction guarantee on all services because owner, Bob Sharp, understands that customers can't try out their service before they buy it. Bob is trying to address which characteristic of services? a.Low customer contact b.Heterogeneity c.Perishability d.Inseparability

d

Some shopping centers are designed to attract customers from many miles away. They offer the deepest and widest product mixes and even include attractions like theme parks. These are known as _______. a.power shopping centers b.community shopping centers c.regional shopping centers d.superregional shopping centers

d

Stepan is a global manufacturer of chemicals such as surfactants and polymers that are sold to manufacturers such as Procter & Gamble for use in its shampoos, laundry detergent, and soap products. Stepan competes with a variety of other chemical suppliers and knows that in general, it is a higher-priced and higher-quality supplier. However, Stepan doesn't know exactly how much its competitors charge for similar products. Which of the following practices should Stepan utilize to identify the prices competitors are charging for similar products? a.Stealing price lists from a display at a trade show b.Pretending to be a buyer and soliciting pricing information from the competitor c.Hiring sales representatives from competitors' companies and asking them to share price information d.Using consumer pricing surveys

d

Suppose that Samsung has decided to contract with the producers of The Avengers to have characters in the movie exclusively use Samsung tablets and smartphones. This would best be an example of _______. a.personal selling b.public relations c.viral marketing d.product placement

d

Suppose that Sony has determined that its popular PlayStation game system _______ when it has total costs of $7 million and sells $7 million worth of product in the same fiscal year. a.achieves equilibrium b.has profit loss c.is profitable d.reaches the breakeven point

d

Taco Bell developed a smartphone app that allows customers to place orders by their phones rather than by speaking to an employee at the store. Customers can choose whether to pick up their food in the drive-thru lane or inside the restaurant. The app has given Taco Bell the opportunity to improve its _______. a.transportation b.materials handling c.warehousing d.order processing

d

The National Cattlemen's Beef Association tries to generate _______ by airing advertisements with the slogan "Beef: It's What's for Dinner." a.comparisons of types of beef b.competition c.demand elasticity d.primary demand

d

The _______ has had a strong impact on pricing decisions since it prohibits conspiracies to control prices and has led courts to rule that price-fixing among firms in an industry is illegal. a.Robinson-Patman Act b.Clayton Act c.Price Discrimination Act d.Sherman Antitrust Act

d

The breakeven point is important for firms to know and understand because if a company is unable to sell products at this point or higher, it is _______. a.creating a profit b.experiencing an increase in total costs c.experiencing a decline in marginal costs d.losing money

d

The bull logo used by Merrill Lynch is used to symbolize strength and confidence in the company's service offerings. In promoting the company, the bull is designed to address the ______ characteristic of services. a.assurance b.heterogeneity c.inseparability d.intangibility

d

The courts have held _______ to be a restraint of trade among intermediaries handling the same brands. However, courts have often adopted conflicting positions in regard to this issue and believe it can promote competition under certain circumstances. a.refusal to deal b.tying agreements c.exclusive dealing d.restricted sales territories

d

The electronics manager at Best Buy just saw an advertisement for Walmart on the iPad mini 4 for $349 and up. He contacted the regional manager for Best Buy and got approval to meet the price on the product at his Best Buy store location. What type of pricing strategy does this represent? a.Status quo pricing b.Secondary-market pricing c.Demand-based pricing d.Random discounting

d

The four factors that affect service quality are _______. a.customer expectations standards, service quality specifications, employee specifications, and management of service standards b.customer expectations standards, service standards, employee performance, and management of service standards c.analysis of customer expectations, service standards, employee training programs, and management of service expectations d.analysis of customer expectations, service quality specifications, employee performance, and management of service expectations

d

The heterogeneity characteristic of services provides marketers with tremendous opportunity to _______. a.mass produce their services, lowering the cost per customer b.assure customers about the quality and professionalism of the service c.balance supply and demand for the service d.provide customers with services that match their individual needs

d

The holiday shopping season is a busy one for retailers and shoppers alike as retailers strive to offer a selection of products that shoppers will want to purchase as gifts for friends and family members. Some consumers might shop all throughout the year to gather the various gifts for friends and family members, while the majority of shoppers will purchase items in a narrow window the three to four weeks before Christmas. Retailers face stiff competition for the consumer's gift purchasing business and may realize 40% to 50% of their annual sales during the holiday shopping frenzy. a.captive pricing b.price lining c.bait pricing d.periodic discounting

d

The level of intangibility of a service _______. a.means that manufacturers have to plan for fluctuations in demand based on the day of the week, time or day, or season b.results in employees having to undergo training programs to minimize differences in performance c.forces customers to often be present during the production of a service and cannot take the service home d.increases the importance of brand image when a customer is deciding which provider to purchase

d

The manufacturers of a tablet computer are planning to increase the price of the product above the price used during product launch to cover costs associated with product development and increased shipping costs related to overseas production. They are concerned that consumers will respond negatively to a price increase. What type of initial pricing strategy did the company most likely utilize? a.Price skimming b.Product-line pricing c.Captive pricing d.Penetration pricing

d

The popular cleaning products Tide and Downy are both brands that are part of the Procter & Gamble family. Some formulas of Tide include Downy—thus, the Tide brand would purchase Downy from the Downy division of Procter & Gamble. This purchase would involve _______ pricing. a.base-point b.zone c.multinational d.transfer

d

The price of Lenovo laptop computers is typically higher than competitive brands, such as Toshiba and Dell. Consumers often consider the Lenovo brand to be better than other brands and it's likely that Lenovo is using a _______ pricing objective. a.status quo b.cash flow c.profit d.product quality

d

The primary difference between a manufacturers' agent and an industrial distributor is that _______. a.an agent is typically unskilled and does not have technical knowledge while employees of an industrial distributor are highly trained b.an agent deals with multiple manufacturers and a distributor sells one manufacturer's product exclusively c.an agent is employed as part of the producer's sales staff, but a distributor is not employed d.an agent does not take title of a product, but a distributor does take title

d

The quality provided by a service company is judged by its _______. a.marketing team b.competitors c.investors d.customers

d

The use of advertising to create awareness for a product is most likely to occur in which stage of the product life cycle? a.Plateau b.Maturity c.Growth d.Introduction

d

To compete effectively on a price basis, which of the following must be true? a.A firm must also offer supplemental services with the product. b.The product quality must be better than the competition. c.The product must be advertised more than the competition. d.A firm should be the low-cost seller of the product.

d

Understanding the consumers' expectations of _______ helps a marketer correctly assess the target market's evaluation of price. a.reverse distribution b.price rebates c.low prices d.value and quality

d

Valpak is a company that mails out packets of coupons to consumers. These coupons mostly include discounts for local and regional businesses. Valpak is helping these companies with their _______. a.public relations b.social media c.personal selling d.sales promotions

d

ValueCut has a Haircut Club that gives customers their eighth haircut for free after they have bought seven at regular price. The primary objective of this type of program is _______. a.encouraging product trial b.stimulating demand c.reducing sales fluctuations d.retaining loyal customers

d

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 _______. a.catalog marketing b.direct selling c.telemarketing d.direct-response marketing

d

When Disney merged with Pixar, the merger gave Disney the ability to produce animated films more efficiently. This is an example of _______. a.a corporate vertical marketing system (VMS) b.an administered vertical marketing system (VMS) c.vertical channel integration d.horizontal channel integration

d

When a company is attempting to create publicity for a new product it is launching, which of the following tools is the company most likely to use? a.Press conference b.Captioned photograph c.Feature article d.News release

d

When a firm has an inventory stockout, it can result in _______. a.increased risk of damage to inventory b.higher materials handling costs c.increased warehousing costs d.brand switching among customers

d

When companies like Walgreens hire a(n) _______, Walgreens relies on them for copywriting, artwork, production, and formulation of the media plan. a.media company b.production company c.public relations firm d.advertising agency

d

When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is least likely to affect decisions regarding sales promotion methods? a.Product durability b.Customer shopping patterns c.The legal environment d.Product packaging

d

When marketers are developing pricing objectives, they should ensure that the objectives are _______. a.stated in broad and general terms b.consistent with the competition and industry standards c.easily achieved d.consistent with the firm's marketing and overall objectives

d

When sales representatives for Owens Corning meet potential customers, it offers stuffed pink panthers to promote its insulation. This example illustrates Owens Corning's use of which of the following elements of the promotion mix? a.Public relations b.Personal selling c.Social media d.Sales promotions

d

Which of the following best describes the shape of the demand curve for a prestige product? a.It has a straight-line shape showing that consumers are willing to purchase greater quantities at higher prices than lower prices. b.It has a straight-line shape showing that consumers are less willing to purchase the product at higher prices than lower prices. c.It has a straight-line shape showing that consumers' willingness to purchase the product stays the same regardless of the product's price. d.It has a curved shape showing that consumers are willing to purchase greater quantities at higher prices than lower prices. However, beyond a certain high price point, demand declines.

d

Which of the following best explains consumers' motivations to respond positively to bundle pricing? a.Consumers are able to compare the price of the items to the price charged at competing retailers. b.Consumers associate the price with prestige products and believe they are receiving a higher quality product c.Consumers respond positively to pricing based on tradition and the price they expect to pay for certain items. d.Consumers appreciate the opportunity to save time related to shopping and enjoy increased convenience.

d

Which of the following descriptions is most appropriate for price lining? a.This strategy may generate customer resentment if customers believe the retailer is setting artificially low prices in order to entice customers to the store in order to sell them higher-priced merchandise. b.This strategy tends to build market share quickly to encourage product trial. c.Marketers utilize this approach in order to appeal to price-sensitive shoppers. d.Consumer demand for products is relatively inelastic and consumers tend to concentrate their purchases without responding to slight changes in price.

d

Which of the following includes the various bases for pricing? a.Profit, status quo, and survival b.Variable, competitive, and cost c.Markup, cost, and cost-plus d.Demand-based, competition-based, and cost-based

d

Which of the following is a major goal of integrated marketing communications? a.To increase customer lifetime value b.To maximize the customer satisfaction c.To reach as many potential customers as possible d.To send a consistent message to consumersd

d

Which of the following is a way that a restaurant can address the issues of perishability of services? a.Provide training to the restaurant's staff to better standardize service b.Discard excess and unused food daily c.Update the uniforms worn by employees to signal higher quality d.Offer happy hour specials to attract customers before dinner

d

Which of the following is an example of an off-price retailer? a.Target b.Home Depot c.Foot Locker d.T.J. Maxx

d

Which of the following is not one of the benefits of television home shopping for a marketer engaged in direct marketing? a.Customers can shop at home b.Products can be demonstrated easily c.Time spent showing a product can be varied d.Consumers can seek out hard-to-find items

d

Which of the following outcomes is most correct if a marketer were to raise the price of its product when demand is inelastic? a.Total revenue will decrease. b.Demand will drop. c.The demand curve will shift to the left. d.Total revenue will increase.

d

Which of the following statements is true regarding consumers' reliance on the price-quality relationship? a.Consumers often associate higher prices with lower levels of product quality. b.Consumers are always willing to pay more for a product to have higher levels of product quality. c.Consumers are more likely to rely on the price-quality relationship when they are making purchases via the internet. d.Consumers are more likely to rely on the price-quality relationship when they cannot judge the quality of the product themselves.

d

While most _______ worry about online retailers like Amazon, Tractor Supply Co. (TSC) thinks the knowledge of its store associates will keep Amazon at bay. TSC carries products to support a rural lifestyle and at considerable depth. The products are often bulky and high shipping costs will keep customers shopping at TSC rather than Amazon. a.superstores b.convenience retailers c.warehouse clubs d.category killers

d

Xbox is releasing a new game system and will most likely utilize a _______ pricing strategy where they will charge the highest possible price they believe consumers will pay during the introductory stage of the product life cycle. However, when Frito Lay unveils a new product such as Tostitos Rolls, they utilize a _______ pricing strategy by setting a low price and build market share quickly as well as discourage competitors from entering the market. a.penetration; product-line b.captive; random discounting c.product-line; price skimming d.price skimming; penetration

d

You are leading a meeting of your marketing team during which you are deciding on the promotion mix for your flagship product. You are working your way through the various factors that should be considered when determining an appropriate promotion mix. You are currently focused on the characteristics of your target market. Because of the nature of your product, your target market represents millions of potential customers. Which of the following best describes the appropriate promotion mix for your product? a.Your promotion mix should emphasize public relations and personal selling. b.Your promotion mix should emphasize public relations only. c.Your promotion mix should emphasize personal selling only. d.Your promotion mix should emphasize advertising and sales promotion.

d

You are working with a sales management consultant to improve your company's sales performance of its line of juices. You and the consultant agree your promotional activities should include a greater attempt at inducing trial of the products being sold. Based on this information, which of the elements of promotion should you emphasize more? a.Social media b.Public relations c.Advertising d.Sales promotion

d

Zach works for a pharmaceutical company and spends most of his days visiting various doctors, pharmacists, and hospitals. He promotes his company's products by speaking with the doctors and pharmacists and leaving samples for them to give to their patients. Zach would most likely be referred to as a(n) _______. a.technical salesperson b.order getter c.field order taker d.missionary salesperson

d

_______ are photographs, drawings, graphs, charts, and tables that draw attention, encourage audiences to read or listen to the copy, communicate an idea quickly, or convey ideas that are difficult to express. a.Layouts b.Storyboards c.Artwork d.Illustrations

d

_______ 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. a.Price competition b.Differential competition c.Monopolistic competition d.Nonprice competition

d

_______ refers to customers' perceptions of how well a service meets or exceeds their expectations. a.Service excellence b.Customer insight c.Customer value d.Service quality

d

Merchandise allowances are generally used in conjunction with high-volume, low-profit items. True FalseThe primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers satisfied. True False

false

To announce a major news event, an organization should use a news release. True False

false

Most products possess a certain degree of intangibility. True False

true

The importance of price depends on the type of product, the type of target market, and the purchase situation. True False

true