MKTG Unit 3 Practice Questions, Retail Q's Exam 3, RETAIL EXAM #3
To assume that sales create advertising is incorrect. a. True b. False
a. true
Which of the following is true of sales promotions?
builds customer loyalty
The _____ is the actual sales of the merchandise less the cost of the merchandise.
maintained markup
_______, also known as stocklifts or lift-outs, are activities engaged in by vendors with retailers to get their products into retail stores.
Buybacks
How does a national retailer benefit from selling private-label brands?
By selling private-labels, a national retailer can differentiate its assortments.
Which of the following is true of personal selling?
Content control is in the hands of the salesperson
________ is the practice of pricing certain items lower than normal to increase customers' traffic flow or boost sales of complementary products.
Leader pricing
Which of the following is true of forecasting for fashion merchandise categories?
It is likely to take inputs from fashion trend services.
What is true of a retailer's backup stock?
It is the inventory used to guard against going out of stock when demand exceeds forecasts.
What is value?
It is the relationship between what consumers receive and what they paid for it.
Perpetual inventory
It takes into account the outgoing sales and the incoming merchandise to calculate an accurate inventory at the end of each day.
_______ refers to funds vendors give retailers to cover lost gross margin dollars.
Markdown money
Which of the following schemes is the correct order describing the levels of the merchandise classification scheme from the highest level to the lowest level?
Merchandise Group-Department-Classification-Category-SKU
Luke was interested in developing a communication budget for the holistic vitamin shop he will be opening in 30 days. He is planning a few promotional sales and will advertise through local newspapers. With the available information, what method would be best for Luke to pursue to develop his communication program?
Objective-and-task method
Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?
Paycheck cycle
_____ offer the consumer a product that is comparable to a manufacturer's brand quality, sometimes with modest price savings.
Premium store brand
If there are so many advantages to selling national brands, why do retailers still carry private-label brands?
Private-label brands yield higher profits to retailers.
When a push policy is used in promotion of a particular product, the producer promotes the product only to the next channel member. a. True b. False
a. true
A schedule in which advertisements run for set periods of time, alternating with periods in which no ads are run is known as: a. continuous b. flighting c. pulsing d. intervals e. skipping
b. flighting
As Will reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Will focuses his creative efforts on the: a. text b. headline c. copy d. body e. signature
b. headline
The Internet makes it possible for the marketer to communicate with consumers more effectively and more consistently at a lower cost than previously possible. Moreover the Internet has made it possible for marketers to reach new markets and to target existing markets more precisely. Digital media is the foundation of the marketer's differs from tradition marketing in which of the following ways? a. scalability b. interactivity c. convertibility d. reliability e. sensitivity
b. interactivity
In the _____ method, retailers first forecast their sales and expenses, excluding communication expenses, during the budgeting period.
affordable budgeting
The ________ method uses the difference between the forecasted sales and the expenses plus the desired profit for the communication budget.
affordable budgeting
After developing a plan for managing merchandise inventory in a category, the next step in the merchandise management process it to _____.
allocate the merchandise purchased
reverse auctions
are used to procure store-brand merchandise.
_____ is the depth of merchandise and the number of SKUs within a subcategory.
assortment
When the back up stock is large ___________.
assortment and variety increases
A bookstore is considering stocking a limited edition of Alice in Wonderland dolls at a cost of $125 each. The manager calculated the retail price with an initial markup percentage of 48 percent and plans to ticket the product with a ".00" ending. What would be the initial retail price on the doll?
$240
The retail price of a sweater is $75, and the initial markup is 51 percent. Calculate the cost of the product.
$36.75
Frankie is a buyer for a department store and is buying some handbags at a cost of $30 from a vendor. He desires to have a 60 percent markup to meet the financial goals of this category. What will be the retail price of these handbags?
$75
A costume jewelry store purchases earrings from a vendor at $6 per pair and retails the earrings for $15. What is their markup percentage?
60%
A drugstore purchases hand cream at $2 per jar and sells the jars for $15. What is the markup percentage?
87%
A(n) _____ identifies the performance of individual SKUs in the assortment plan.
ABC analysis
________ entails the placement of announcements and persuasive messages purchased by retailers and other organizations that seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas.
Advertising
________ of a retailer's merchandise is the number of SKUs within a subcategory.
Assortment
_____ is a communication among people about an entity such as a retailer or a product or service.
word of mouth
_____ would reduce retailer's price and promotion wars with competitors.
EDLP
CH.15
RETAIL COMM. MIX
_____ is when a vendor and a retailer share the costs and benefits of a pricing promotion.
cooperative advertising
Wholesale market centers:
facilitate the bulk sale of a vendor's offerings.
What is an advantage of selling private-label brands for a national retailer?
Customers can't compare prices for private-label products because of their exclusivity.
_______ refers to inventory for which the level goes up and down in response to the replenishment process.
Cycle stock
What is the first step in merchandise management planning?
Developing a forecast for sales
________ is the concept of offering customers localized promotions of retailers in close proximity of their mobile phones.
Geofencing
________ involve the flow of merchandise through distribution channels, usually across international borders, other than those authorized or intended by the manufacturer or producer.
Gray-market goods
Which of the following is true of individualized variable pricing?
It can be used as a strategic differentiator.
REI's sustainable outdoor products come with ecosensitive labels that help consumers easily track items made from a high percentage of recycled, rapidly renewable and/or organic fibers. About one-fourth of all REI locations are supplied by green energy, six of its buildings are LEED-certified, and REI's employees are encouraged to be green with biking and public transportation incentives. Plus, REI has plans to become both climate neutral and a zero-waste-to-landfill company by 2020 through emission cuts, green energy, and carbon offsets. These initiatives are best communicated through _____.
Public relations
CH.14
RETAIL PRICING
Which of the following prohibits vendors offering different retailers different prices and purchase order terms for the same merchandise and quantity?
Robinson-Patman Act
_____ is performed by retailers when they offer promotional and clearance markdowns, coupons, price bundling, and multi-unit pricing.
Self-selected variable pricing
Which of the following analysis techniques compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required?
Sell-through analysis
_____ is a process whereby retailers can tap into a variety of online chat formats to collect consumer comments and then analyze these data to identify customers' attitudes and product preferences.
Sentiment mining
________ are charges imposed by a retailer to stock a new item.
Slotting allowances
Which of the following statements holds true for the purchase of staple merchandise?
Staple merchandise is purchased using a continuous replenishment system by monitoring sales and generating replacement orders.
When Lori travels to visit friends and family, she brings along her own Starbucks coffee grounds in case her friends and family use a different kind of coffee. Based upon this scenario:
Starbucks coffee has a strong brand loyalty from Lori.
_____ prohibits vendors from offering different retailers different prices and purchase order terms for the same merchandise and quantity.
The Robinson-Patman Act
Which of the following must be considered when allocating merchandise to stores?
The allocation decision depends on the current inventory in a store.
Which of the following best describes variety?
The number of different merchandising subcategories within a store
Which of the following is a feature of a target market that is price-sensitive?
The price elasticity is more negative than -1.
A Kohl's store just celebrated the grand opening of their new store, and there was merchandise that was already promotionally priced in the store, even though it just opened. What would be the most logical answer as to why the retailer had markdown merchandise at the grand opening?
The price reduction on the merchandise was taken to promote sales.
Which of the following has the least importance when making decisions about purchasing and allocating merchandise to stores?
The quantity of the merchandise in terms of too much or too little
Which of the following results in a lower number of markdowns?
The retailer initially offered a good value for the product.
A manufacturer's representative for a prestigious apparel line finds out that a small retailer in his territory has his newly released product line in their store, but he did not sell it to them nor are they "authorized" to have the products. What most likely would explain how the store obtained the merchandise?
The unauthorized retailer may have gotten the products as diverted merchandise.
What is the drawback of utilizing category captains?
The vendor category captain could take advantage of their position and maximize their own sales.
Which of the following is a feature of mass advertising?
Transmission of limited amount of information
____ are web-based journals in which writers can editorialize and interact with other Internet users. a. Blogs b. Podcasts c. Widgets d. Apps e. Wikis
a. blogs
Domino's is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Domino's must reach consumers as efficiently as possible. What can Domino's use to evaluate various magazines? a. A cost comparison indicator b. The total circulation of the magazines c. The advertising appropriations for each magazine d. An index of advertisement exposure e. A list of the costs of a one-page ad in various magazines
a. a cost comparison indicator
The verbal portion of an advertisement, including headlines, body, and signature, is called the a. copy. b. storyboard. c. artwork. d. script. e. layout.
a. copy
Channel capacity is determined by the: a. least efficient component of the communication process b. source c. most efficient component of the communication process d. receiver e. meanings of the message
a. least efficient component of the communication process
Zach Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about: a. new-product information b. prospecting c. his customers' companies d. the company e. basic selling methods
a. new-product information
Debra has given the responsibility of determining the advertising appropriation for her firm's newest marketing campaign. At first she thinks that determining the advertising objectives and breaking them into tasks is the best way. However, Debra notices that past sales have been relatively constant, she multiples the firm's past sales by a standard percentage based on what her firm usually spends on advertising. Debra is using the __________ approach. The problem of this approach is that it assumes __________. a. percent-of-sales; sales create advertising b. objective-and-task; advertising creates sales c. percent-of-sales; advertising creates sales d. objective-and-task; sales create advertising e. objective-and-task; the effort required is minimal
a. percent-of-sales; sales create advertising
Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on: a. personal selling b. word-of-mouth communication c. public relations d. sales promotion e. advertising
a. personal selling
The two types of selling activities under the sales structure are current-customer sales and new-business sales. a. True b. False
a. true
Kimberly is a salesperson in the sales division of Hewlett-Packard. Today Kimberly is focused on researching a list of potential sales leads. Kimberly wants to look at these sales leads and determine how likely they are to buy from the company, the type of products they will likely need, and whether they have a sales history with the firm. Kimberly also wants to determine who the key decisions makers are in the buying decision-making process at these sales leads so she can identify who will have the most influence. In the process of her research, Kimberly makes extensive use of the firm's CRM system to forecast sales and manage leads. Kimberly is most likely at which stage of the personal selling process? a. Preapproach b. Following up c. Approach d. Making the presentation e. Prospecting
a. preapproach
Johnny is a high school senior and plans to attend college after graduation. Johnny enjoys playing computer games such as League of Legends and hopes to pursue a career in computer game design. He's taking computer programming classes in high school, and his teacher has been discussing recent issues related to consumer _______ and concerns that the Federal Trade Commission may develop regulations that would provide additional protection to consumers by limiting the amount of consumer information that businesses can gather online. a. privacy issues b. credit card information c. intelligence d. intellectual property
a. privacy issues
A marketer's advertising platform should consist of issues that are important to consumers. a. True b. False
a. true
Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites. a. True b. False
a. true
Generally, consumer sweepstakes are more popular than consumer contests. a. True b. False
a. true
Many consumers redeem coupons only for products they normally buy. a. True b. False
a. true
Personal selling is generally the most expensive element in the promotion mix. a. True b. False
a. true
The European Union has stricter Internet privacy laws than the United States. a. True b. False
a. true
The advertising platform is the foundation on which campaign messages are built. a. True b. False
a. true
The choice of media influences the content and form of the message. a. True b. False
a. true
The car-related website and media company, Edmunds, provides reviews and ratings of vehicles and is well respected by individuals in the car industry as a neutral source. Consumers appreciate their advice and information and know they can trust Edmunds for non-biased information. In addition to its own website and magazine, Edmunds is using the ________ Pinterest to post photos and links to recent articles as well as answer questions posed by members of Pinterest. a. wiki b. bulletin-board site c. podcast d. blog
b. bulletin-board site
An effective approach for dealing with potential unfavorable public relations resulting from a negative event is to discourage news coverage. a. True b. False
b. false
Commentators are people who comment on blogs or post ratings and reviews. a. True b. False
b. false
Discussion forums are not very popular with the online population. a. True b. False
b. false
During the 19th and early 20th centuries, promotion was about as accurate as it is today. a. True b. False
b. false
More stringent laws have made it so that deceptive advertising can no longer occur. a. True b. False
b. false
Relationship selling is used especially in consumer marketing. a. True b. False
b. false
The promotional method most commonly used for highly personal items is personal selling. a. True b. False
b. false
Twitter is useful for communications between friends, but not for communications between businesses and customers. a. True b. False
b. false
When encoding a message, the source should use signs or symbols that are new to the audience. a. True b. False
b. false
Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15%. This approach is an example of which of the following methods of determining advertising expenditure levels? a. affordability b. objective-and-task c. arbitrary d. competitive party e. percent of sales
b. objective-and-task
Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on a. word-of-mouth communication. b. personal selling. c. advertising. d. sales promotion. e. public relations.
b. personal selling
Signs, counter pieces, racks, and self-service cartons are all forms of: a. in-store attention grabbers b. point-of-purchase displays c. retail media d. demostrations e. premiums
b. point-of-purchase displays
Sierra is driving to work on I-95 and notices a billboard for new salads at Wendy's. She reads the message and sees the pictures of the new salads. In this case, Sierra is the ____ and Wendy's is the ____ of this communication. a. feedback; noise b. receiver; source c. communicatee; communicator d. audience; promoter e. decoder; coder
b. receiver; source
An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains use promotion to: a. combat competitive promotional efforts b. reduce sales fluctuations c. encourage product trial d. retain loyal cutsomers e. stimulate demand
b. reduce sales fluctuations
Which of the following is a major goal of integrated marketing communications? a. To control the firm's marketing environment. b. To send a consistent message to consumers. c. To achieve a specific return on investment. d. To dispute competitors' strengths. e. To better coordinate the firm's supply chain.
b. to send a consistent message to consumers
A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin pans, and during other weeks it sells none. A reorder takes up to three weeks. The probability of running out of pans and alienating its customers can be alleviated by maintaining
backup stock
For a retailer, which of the following steps would help in negotiating a deal with vendors effectively?
being aware of deadlines
_____ refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service.
brand awareness
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent, Stacey's method of approach is known as: a. repeat contact b. referral approach c. cold canvasing d. door-to-door selling e. ambulance chasing
c. cold canvassing
After compiling a list of potential customers, a salesperson must: a. determine whether or not each prospect is really in his target market b. develop a presentation for each of the potential customers on his list c. evaluate whether each prospect is able, willing, and authorized to buy the product d. find and analyze information about each prospect's specific needs and current brand choices e. contact each of the prospects to get an initial feel for how likely they are to purchase his products
c. evaluate whether each prospect is able, willing, and authorized to buy the product
To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80% of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a. Percent of sales b. Arbitrary allocation c. Objective-and-task d. Competition matching e. Past-year comparison
c. objective-and-task
When Sears promotes the benefits and strengths of its Kenmore brand appliances, it is attempting to build a. prospects. b. pioneer promotion. c. selective demand. d. brand awareness. e. primary demand.
c. selective demand
When retailers have high customer loyalty, they:
can reduce their reliance on price promotions.
Shoppers who go from one store to another purchasing only the items that are on sale or specially priced are referred to as _____.
cherry pickers
A _____ is a group of items targeting the same customer type, such as men's designer sweaters.
classification
A sporting goods retailer anticipates running a print advertisement campaign during the beginning of the year in support of customers' anticipated New Year's resolutions to get in physical shape. The sporting goods retailer asks its key vendors to partner with it in covering the expenses of the ad campaign. Vendors agree to support the ________ as long as they are certain that their products will be featured in the advertisements.
co-op advertising
_____ are specific goals related to the retail communication mix's effect on the customer's decision-making process.
comm. objectives
Cure, a pharmacy store, retails its own set of products that closely imitates a popular manufacturer's brand in appearance and packaging. This is an example of a _____ brand.
copycat
Popular national brands are placed next to a manufacturer's brands in a store and look like them. This kind of brand is called a(n)
copycat brand
_____ includes goods made and sold without the permission of the owner of a trademark or copyright.
counterfeit
Which of the following characteristics distinguish online media from tradition marketing? a. social networking, personal contacts, control, and salesmanship b. dynamic responsiveness, control, friendliness, and attention-getting c. experience, networking, and personal contact d. addressability, interactivity, accessibility, connectivity, and control e. environment, responsiveness, customization, and affordability
d. addressability, interactivity, accessibility, connectivity, and control
Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through a. other employees. b. trade shows. c. past sales. d. customer referrals. e. friends and coworkers.
d. customer referrals
A restaurant chain recently had several customers become sick after eating at one of their locations. In order to lessen the negative effects of the event, the restaurant should most likely: a. deny that the event occurred at the restaurant b. discourage news coverage of the event c. shut down the location until the issue is resolved d. facilitate news coverage of the event e. blame one of its suppliers for the illnesses
d. facilitate news coverage of the event
Walgreens has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website. a. linked b. controlled c. addressable d. interactive e. accessible
d. interactive
What is the primary justification marketers use for conducting recognition and recall tests? a. There is a strong link between advertisement recall/recognition and word-of-mouth communication. b. People have unfavorable views of advertising and are unlikely to purchase advertised products. c. Researchers find that recalling an advertisement has a strong link to purchasing a product. d. People are more likely to buy a product they have seen advertised than one they have not seen advertised. e. Consumers tend to enjoy participating in these tests and are likely to purchase the products as a result.
d. people are more likely to buy a product they have seen advertised than one they have not seen advertised
____ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. a. Publicity b. Selling c. A press strategy d. Public relations e. Advertising
d. public relations
An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is: a. personal selling b. public relations c. packaging d. sales promotion e. advertising
d. sales promotion
In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication: a. decoder b. receiver c. transmitter d. source e. noise
d. source
A communication program:
defines the target audience for a communication mix.
In the awareness phase in a strategic partnership, the buyer and the vendor:
do not perform any transactions
You are a vendor representative with a new line of fashion watches showing it to a new buyer. The costume jewelry buyer says she would like to buy the line but has too many lines of fashion watches in her assortment already that are not selling. She continues to complain that her worst selling brand of watches will not help her out with any markdown allowances or take any of the merchandise back. She states that she is no longer buying any more merchandise from this line and will have to wait until it sells before she can bring in a new line of watches. What might you suggest or negotiate?
doing a buyback
Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and nonprofit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 10.2. Which of the media below would be best for the American Red Cross to use in developing relationships with blood donors, and in soliciting funds for storm-ravaged communities as a result of floods and fires? a. YouTube b. Google c. TV d. Twitter e. Facebook
e. Facebook
Lady Gaga is on a concert tour and has decided to hold a contest for tonight's event. The first 10 people to answer a riddle by calling a local phone number will receive free tickets to the show and backstage passes. Which social networking site would be the best for Lady Gaga to broadcast information about this contest? a. Flickr b. Google + c. Facebook d. Skyrocket e. Twitter
e. Twitter
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and JCPenney, through its own sales force. Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the United States. Kerry has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials that demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members of the sales force will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. Refer to Scenario 18.2. Presto's use of a free trip to New York is an example of ____, while the $5 discount to its retail stores is an example of ____. a. a trade allowance; a buy-back allowance b. a dealer loader; a buy-back allowance c. a sales contest; a buying allowance d. a buying allowance; a dealer loader e. a sales contest; a buy-back allowance
e. a sales contest; a buy-back allowance
All of the following are key areas of sales force management except a. training sales personnel b. motivating sales personnel c. recruiting salespeople d. compensating salespeople e. coordinating sales promotion efforts
e. coordinating sales promotion efforts
What appears to be a major fear with moblie payment systems such as Apple Pay? a. piracy of intellectual property b. counterfeit money c. tracking consumers d. selling of information e. hacking attack
e. hacking attack
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that a. people often feel they are not being recognized enough. b. they are not taken seriously by the employees. c. many point-of-purchase display materials are needed to implement a contest. d. they are often too complicated. e. people often discontinue their positive behavior after the contest is over.
e. people often discontinue their positive behavior after the contest is over
__________ are audio or video files that can be downloaded from the Internet with a subscription that automatically delivers new content to listening devices or personal computers. a. virtual realities b. blogs c. RSS feeds d. wikis e. podcasts
e. podcasts
All of the following are reasons a company would likely emphasize advertising in its promotion mix except a. The company's products are seasonal in nature b. The company's customers are dispersed across a vast region c. The size of the product's target market consists of millions of consumers d. The company's promotion budget is extensive e. The company has chosen exclusive distribution for its products
e. the company has chosen exclusive distribution for its products
Which of the following is not true when making the sales presentation? a. The salesperson should involve the customer by having him or her hold, touch, or use the product. b. The salesperson must spark interest in the product. c. The salesperson should not only talk but also listen to the customer. d. A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments). e. The salesperson should focus on anticipating questions and answering them before they're asked.
e. the salesperson should focus on anticipating questions and answering them before they're asked
Which of the following is generally the most expensive form of communication?
personal selling
National chain stores are finding that private brands help differentiate themselves from their competitors. The size of retail companies has increased through mergers and acquisitions, making the procurement of private-label products more possible as of late through _____.
economies of scale
Selecting vendors as category captains:
enables application of knowledge got from a vendor's experience with other retailers.
The college football game played in Atlanta, Georgia's "dome" was formerly titled the Peach Bowl but is now titled the Chick-fil-A Bowl. What best describes this type of communication method?
event sponsorship
A(n) ________ strategy emphasizes the continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale price of high/low retailers.
everyday low-pricing
A(n) ________ is a brand that is developed by a national-brand vendor, often in conjunction with a retailer, and sold solely by the retailer.
exclusive brand
_____ refers to the concept in which the latest generation of price promotional offers takes into account the consumers' location accessed from their phone location or locational coding via certain sites and offers them localized promotions for retailers who are in close proximity.
geofencing
A performance measure which assesses a buyer's contribution to ROA is called the
gross margin return on investment
Retailers using a(n) ________ strategy frequently—often weekly—discount the initial prices for merchandise through sales promotions.
high/low pricing
When a retailer offers large assortments, there is a:
higher level of stimulation associated with the shopping experience.
Which of the following is an example of a price-elastic product or service?
holiday package
An agreement between retailers that are in direct competition with each other to set the same prices is called
horizontal price fixing
The illegal practice of _____ is when retailers agree to charge the same price for products or services in an effort to reduce competition.
horizontal price fixing
A cooperative program:
is a promotional program.
Marketing through a retailer's website:
is likely to be very personalized and interactive.
The approach of using a 50 percent markup is known as ________ and would result in the retail price being double the cost.
keystoning
________ is the amount of time between the recognition that an order needs to be placed and the point at which the merchandise arrives in the store and is ready for sale.
lead time
When Pottery Barn introduced their new separate stores Pottery Bard Kids and PBTeen, they were _____ to support their growth strategy.
leveraging to introduce new retail concepts
The electronic customer shopping experience:
makes customers less sensitive to price.
________ is based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution.
marginal analysis
Overbooking appointments, taking reservations for dinner, and selling advance tickets are examples of _____ by service retailers.
matching supply and demand
The _____ is the number of each SKU in an assortment plan that the buyer wants to have available for purchase in a store.
model stock plan
Mead paper products, Cover Girl cosmetics, and Apple computers are all examples of _____ brands.
national
When there is a high inventory turnover, there is an increase in sales because
new merchandise is continually available to customers.
Retailers practicing the high/low pricing strategy:
offer frequent discounts on the initial prices for merchandise through sales promotions.
Fashion merchandise:
offers less flexibility in correcting forecasting errors.
The purpose of a(n) _____ system is to keep track of what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers.
open to buy
in strategic relationships:
overall risk in investment decreases.
A large chain retailer opened a few months ago in the community where Carl lives. He was pleasantly surprised by how low their prices were compared to the local independently owned shops for the exact same items. Unfortunately, those independently owned retailers have all closed now because they were not able to compete on price with the larger new store. However, Carl has noticed that the newer large store has raised all of its prices up to where the independent stores had their products priced and some products are priced even higher now. This is an example of _____.
predatory pricing
A ________ offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing.
premium
A(n) ________ developed by a retailer is comparable with national brands on quality rather than price.
premium brand
A commonly used measure of price sensitivity is
price adaptability
Manuel's vacation to Chicago for $1,000 for three nights in a four-star hotel on Michigan Avenue included airfare and accommodation. If these services were availed individually, it would have been more expensive. This form of pricing is referred to as
price bundling
A store has coffee makers priced at $9.99, $19.99, and $29.99. Which of the following pricing practices is being utilized?
price lining
Michael, an actor, plays the protagonist in a sitcom. As per his contractual obligations, he is required to be seen drinking Fizzy Cola, a brand of soda pop, at least once in every episode. Which of the following terms best reflects this situation?
product placement
Target Corporation gives many millions of dollars to support education. Since 1962, Target has committed 5 percent of its income to support local communities. Target uses ________ to communicate their continued commitment to local communities.
public relations
The buyer of menswear was evaluating the prices of incoming orders. She decided to adjust the price of the incoming pea coats from $120 to $99.99 and use a price tag on the product that showed an original price of $120. The original price of $120 is referred to by retailers as the _____.
reference price
In a(n) _____, the retail buyer provides a specification for what they would like to be produced for their private-label products and then manufacturers bid on the opportunity to be the supplier.
reverse auction
The ________ uses past sales and communication activities to determine the present communication budget.
rule-of-thumb method
The retailer can _____ to liquidate markdown merchandise.
sell merchandise over an online auction
The _____ compares actual and planned sales to determine whether more merchandise is needed to satisfy demand or whether price reductions are required.
sell-through analysis
_____ are charges imposed by a retailer to stock a new item.
slotting fees
When Dave Carroll's $3500 guitar was damaged by United Airlines, he made a music video about it which quickly became viral on the internet mostly due to _____.
social media
Merchandise like athletic socks, soup, tape, and men's work boots are classified as _____.
staple
Merchandise like men's crew socks, canned peas, college ruled loose leaf paper, and 60-watt light bulbs would be considered ________ that are in continuous demand over an extended time period.
staple merchandise
A(n) ________ is the smallest unit available for inventory control.
stock-keeping unit
Kohl's Department store and the Vera Wang Company worked together on developing a brand called Simply Vera to be carried exclusively at Kohl's. They shared market research of what their target customer needs, likes, and dislikes were to develop the right assortment at the right price. They agree to respond to the market nuances together, share trends, and sales analysis. This describes an example of _____.
strategic relationship
Kellogg's is a family brand that is associated with the Frosted Flakes _____ brand.
sub
In the EDLP strategy, there is a(n):
surety for the customers that they will get the same prices all the time.
Which of the following is a feature of production facilities located in developing economies?
tariffs
Under the competitive parity method, the communication budget is set so that
the retailer's share of the communication expenses equals its share of the market
When Joe's guests were arriving for his Super Bowl party, they asked him if he remembered to order pizzas. Joe quickly used speed dial on his cell phone to reach his favorite Domino's. Domino's has what type of brand equity with Joe?
top of mind
The menswear buyers from Macy's is attending the "MAGIC Marketplace" to search for new trends, meet existing vendors, and talk to sales representatives as they walk through the exhibit area. The buyer is at _____.
trade show
A(n) ________ exists when a vendor and a retailer enter into an agreement that requires the retailer to take a product it doesn't necessarily desire to ensure that it can buy a product that it does desire.
tying contract
_____ is the breadth of a retailer's merchandise and the number of different merchandising categories within a store or department.
variety
