Principles of MKT 340- Exam 3, chpts 5, 11, 10, 14
Width
Assortment of products offered
shopper analytics
used to understand customer shopping attitudes, emotions, and behaviors •Helps fine-tune, develop, or change market offerings
Capital intensive:
using more capital than labor in the production process
presentation
layout and atmosphere
Public service advertisement (PSA):
Announcement that promotes a program of a federal, state, or local government or of a nonprofit organization
Which of the following statements is true of the marketing strategies of nonprofit organizations? Answers: a. Their focus is often on generating enough funds to cover expenses. b. They can measure their success or failure in strictly financial terms. c. The presence of a financial "bottom line" makes it easy for nonprofit managers to make decisions. d. They seek to make a profit for redistribution to owners or shareholders.
Answer:a. Their focus is often on generating enough funds to cover expenses.
Retailer:
Channel intermediary that sells mainly to consumers
discount store
competes on the basis of low prices, high turnover, and high volume.
Franchising
is a form of licensing whereby a franchisee pays a one-time fee and a percentage of sales to the franchisor for the opportunity to sell the company's goods or services -Some have to adapt to local cultures
supermarket
is a large, departmentalized, self-service retailer that specializes in food and some nonfood items.
category killer
is a specialty discount store that heavily dominates its narrow merchandise segment.
franchisee
is an individual or business that is granted the right to sell another party's product.
Nonstore retailing
is growing faster than in-store retailing because of changes in culture and society. It adds a level of convenience for customers who wish to shop from their current locations.
independent retailer
is not operated as part of a larger retail network, is owned by an individual or group
Gross margin
is the amount of money a retailer makes as a percentage of sales after the cost of goods sold is subtracted
Culture
is the common set of values shared by the citizens of a society that determines what is socially acceptable
Retail channel omnification
is the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs.
Gross domestic product (GDP):
is the total market value of all final goods and services produced in a country for a given period. -Final refers to final products that are sold, not to intermediate products used in the assembly of a final product -GDP counts only final goods and services in its valuation of a country's production
Licensing:
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
core service
the most basic benefit the consumer is buying
atmosphere
the overall impression conveyed by a store's physical layout, décor, and surroundings
tangibles
the physical evidence of the service
Exchange rate:
the price of one's country's currency in terms of another country's currency. -If a country's currency appreciates, less of that country's currency is needed to buy another country's currency and vice versa
assurance
the knowledge and courtesy of employees and their ability to convey trust
Vast differences in the locations and quantities available of natural resources create:
-International dependencies -Huge shifts of wealth -Inflation and recession -Export opportunities if resources are abundant -Stimulus for military intervention
Search quality:
Can be easily assessed before purchase
Which of the following countries has the highest gross domestic product? Answers: a. Sparanthea, whose market value of intermediate goods is $200 billion and market value of intermediate services is $50 billion for a quarter year b. Zaneland, whose market value of final goods is $120 billion and market value of intermediate goods is $20 billion for a year c. Acquardica, whose market value of final goods is $170 billion and market value of final services is $90 billion for a yeard. d. Belwick, whose market value of final goods is $100 billion and market value of final services is $50 billion for two years
:c. Acquardica, whose market value of final goods is $170 billion and market value of final services is $90 billion for a year
Experience quality:
Can be assessed only after use
Credence quality:
Can be difficult to assess even after purchase as customers lack necessary knowledge or experience
Nonprofit organization:
Exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
Gap model:
Model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
Standardized services
More efficient and cost less
Customized services
More flexible, respond to individual customers' needs and command a higher price
Depth
Number of different brands offered within each assortment
Chain stores
Part of a group of the same stores owned and operated by a single organization are handled by a home office, which ensures consistency across different locations.
Trading up
Persuading customers to buy a higher-priced item than they originally intended to buy
Big data analytics
Process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
Inseparability
Production and consumption are simultaneous, meaning the consumer takes part in production
Brand cannibalization:
Reduction of sales for one brand as the result of the introduction of a new product
Suggestion selling
Seeking to broaden customers' original purchases with related items
Beacon
Sends out connecting signals to customers' smartphones and tablets in order to bring them into a retail store or improve their shopping experience
Mass customization:
Strategy that uses technology to deliver customized services on a mass basis
Shopper marketing
Understanding how target consumers behave in different channels and formats. -Information is leveraged to generate sales or other positive outcomes
Trade Facilitation Agreement (TFA):
a World Trade Organization agreement that aims to cut customs-related red tape and ease the flow of trade between countries
Foreign direct investment:
a business investment in a foreign country, either by establishing business operations or by acquiring business assets in that country
Multinational corporation:
a company that is heavily engaged in international trade, beyond exporting and importing -Moves resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters is located
Countertrade:
a form of trade in which all or part of the payment for goods or services is in the form of other goods or services -A form of barter -Fast-growing way to conduct global business - one common type is straight barter
Group of Twenty (G-20):
a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
European Union (EU):
a free trade zone encompassing 28 European countries -One of the world's most important free trade zones -More than just a free trade zone, it is also a political and economic community. •guarantees the freedom of movement of people, goods, services, and capital between member states •Maintains a common trade policy with outside nations and a regional development policy
supplementary service
a group of services that support or enhance the core service
Exchange control:
a law compelling a company earning foreign exchange from its exports to sell it to a control agency
Quota:
a limit on the amount of a specific product that can enter a country
Floating exchange market rates:
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
Tariff:
a tax levied on goods entering a country
Dominican Republic-Central America Free Trade Agreement (CAFTA-DR):
a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
General Agreement on Tariffs and Trade (GATT):
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
Uruguay Round:
a trade agreement that has dramatically lowered trade barriers worldwide, created the World Trade Organization
World Trade Organization (WTO):
a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
Which of the following is a similarity between export brokers and export agents? Answers: a. Both allow manufacturers to retain title for products. b. Both act as hired purchasing agents for foreign customers operating in an exporter's home market. c. Both assume all risks associated with selling a manufacturer's product in the international market. d. Both live in foreign countries and assist in international trade.
a. Both allow manufacturers to retain title for products
Which of the following is a similarity between joint ventures and licensing agreements? Answers: a. Both involve joining with a foreign company to create a new entity. b. Both depend heavily on contract manufacturing. c. Both are free from risks. d. Both are free from government interference.
a. Both involve joining with a foreign company to create a new entity.
Which of the following statements is true of service failures? Answers: a. If handled effectively, they can result in higher customer loyalty. b. They can be solved by canceling return policies. c. They can be eliminated by successful market segmentation. d. Retailers cannot recover from service failures.
a. If handled effectively, they can result in higher customer loyalty.
Which of the following is a characteristic of market grouping? Answers: a. It occurs when several countries agree to work together to form a common trade area. b. It occurs when government efforts stifle imports or investment by foreign corporations. c. It occurs when a trade agreement dramatically lowers trade barriers across the world. d. It occurs when a domestic firm joins with a foreign company to create a new entity.
a. It occurs when several countries agree to work together to form a common trade area.
Which of the following is a difference between off-price retailers and specialty shops? Answers: a. Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory. b. Off-price retailers keep a greater amount of floor stock, whereas specialty shops keep a lower amount of floor stock. c. Off-price retailers focus on providing high quality customer service, whereas specialty shops de-emphasize customer service. d. Off-price retailers charge higher prices for customers, whereas specialty shops charge lower prices for customers.
a. Off-price retailers focus on lean inventory management, whereas specialty shops have an agile approach to inventory.
The owners of Fashion Spell, an apparel store based in the town of Lumberne, want to expand the store's business all over the world. In this case, which of the following strategies can help the owners of Fashion Spell achieve their objectives? Answers: a. Opening an e-commerce site b. Acting as an export broker c. Standardizing sizing of apparels d. Countertrading with foreign companies
a. Opening an e-commerce site
Laelle Airlines, an international airlines company, has a service offering that includes a core service supported by supplementary services. Given this information, which of the following is most likely to be the core service provided by Laelle Airlines? Answers: a. Providing plush seats with comfortable legroom for its passengers b. Providing personalized toiletries including wet towels and sleep masks for all passengers c. Offering souvenirs to all passengers after their travel d. Offering three-course meals for its passengers
a. Providing plush seats with comfortable legroom for its passengers
____ represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use. Answers: a. Retailing b. Manufacturing c. Production d. Product development
a. Retailing
According to the gap model of service quality, the gap between what customers want and what management thinks customers want results from: Answers: a. a lack of understanding or a misrepresentation of the customers' needs, wants, or desires. b. misleading or deceptive advertising campaigns promising more than the firm can deliver. c. management's inability to translate customers' needs into delivery systems within the firm. d. the inability of management and employees to do what should be done.
a. a lack of understanding or a misrepresentation of the customers' needs, wants, or desires.
According to the gap model of service quality, the gap between the service that customers receive and the service they want: Answers: a. can be positive or negative depending on the quality of service that was provided. b. is the result of management's ability to translate customers' needs into delivery systems within the firm. c. can be closed by including misleading advertising campaigns promising more than the firm can deliver. d. is the result of a lack of understanding or a misinterpretation of the customers' needs, wants, or desires.
a. can be positive or negative depending on the quality of service that was provided.
A limitation of revenue-oriented pricing is that: Answers: a. determining costs can be difficult for many services. b. it cannot be used by manufacturing companies. c. it does not focus on maximizing the surplus of income over costs. d. the profit goals of a company are not taken into account.
a. determining costs can be difficult for many services.
A difference between people-processing services and possession-processing services is that possession-processing services: Answers: a. do not require customers to enter the service factory. b. focus more on training employees on employee-customer interactions. c. use technology directed at a customer's assets. d. focus more on customers and not on their physical possessions.
a. do not require customers to enter the service factory.
At the store level, the goal of tactical retailing is to: Answers: a. increase the sales of a specific item. b. increase overhead costs. c. eliminate the need for new advertising campaigns. d. eliminate the need for segmenting a market.
a. increase the sales of a specific item.
Lily's Apparel, a renowned apparel store, focuses on Gen Y customers and provides them with a customized clothing experience. Lily's Apparel has defined its target market by _____. Answers: a. psychographic characteristics b. geographic boundaries c. religion d. educational qualifications
a. psychographic characteristics
Online retailing
allows customers to shop over the Internet
product decision strategy- Product adaptation:
altering a basic product to meet local conditions
North American Free Trade Agreement (NAFTA):
an agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone. -has resulted in many low-skilled and assembly line jobs moving from the United States to Mexico
Trade agreement:
an agreement to stimulates international trade
Buyer for export:
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
Export agent:
an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market
Export broker:
an intermediary who plays the traditional broker's role by bringing buyer and seller together
World Bank:
an international bank that offers low-interest loans to developing nations
International Monetary Fund (IMF):
an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
____ is a strategy that uses technology to deliver tailor-made services on a large scale. Answers: a. Promotion strategy b. Mass customization c. Place strategy d. The service mix
b. Mass customization
Which of the following is a similarity between factory outlets and off-price retailers? Answers: a. Both follow an agile approach to inventory. b. Both sell at prices 25 percent or more below traditional department store prices. c. Both offer high levels of customized service to customers. d. Both carry multiple product lines that are considerably deep.
b. Both sell at prices 25 percent or more below traditional department store prices.
Which of the following companies is in the first stage of global business? Answers: a. Laelle Inc., which is based in Euphonia and has set up several subsidiaries to manage its business in another country b. D Feet Corp., which manufactures footwear in a small town in Lucitona and sells the footwear to several countries around the world c. Rues and West Inc., which operates online shopping sites around the world d. Fournotts Bros., which is based in Datford and opens a new line of business in a neighboring country
b. D Feet Corp., which manufactures footwear in a small town in Lucitona and sells the footwear to several countries around the world
Which of the following is a reason for practicing outsourcing in the United States? Answers: a. Rising wages in the developing world b. Increased corporate growth c. Chances of increased production delays d. Improperly designed parts and products in foreign countries
b. Increased corporate growth
_____ is defined as the inability of the production and consumption of a service to be detached. Answers: a. Heterogeneity b. Inseparability c. Intangibility d. Perishability
b. Inseparability
Which of the following statements is true of globalization? Answers: a. It leads to a monopoly of domestic producers. b. It expands economic freedom and increases the living standards of people. c. It has curbed the growth of the middle class in developing countries. d. It increases prices and decreases product and service quality.
b. It expands economic freedom and increases the living standards of people.
Which of the following is true of outsourcing? Answers: a. It reduces productivity and revenue growth. b. It faces production delays due to faulty parts. c. It reduces corporate growth. d. It increases energy costs in the United States.
b. It faces production delays due to faulty parts.
Which of the following statements is true of the term boycott? Answers: a. It refers to a limit on the amount of a specific product that can enter a country. b. It refers to the exclusion of all products from certain countries or companies. c. It refers to a tax levied on the goods entering a country. d. It refers to an agreement to stimulate international trade.
b. It refers to the exclusion of all products from certain countries or companies.
The number of customers who dine at Eat and Den, a restaurant, varies on weekdays and weekends. On days when customer traffic is less, Eat and Den incurs losses because the food prepared on one day will not be fresh the next day. In this scenario, which of the following characteristics of services is the reason for Eat and Den's loss of revenue? Answers: a. Heterogeneity b. Perishability c. Intangibility d. Variability
b. Perishability
Which of the following is a difference between product invention and product adaptation? Answers: a. Product invention takes the marketing mix into consideration, while product adaptation does not take it into consideration. b. Product invention involves drastically changing an existing product, while product adaptation involves slightly altering a basic product. c. Product invention involves altering the promotional strategies for a product, while product adaptation does not involve altering such strategies. d. Product invention applies only to products that are sold in local markets, while product adaptation applies to products all around the world.
b. Product invention involves drastically changing an existing product, while product adaptation involves slightly altering a basic product.
____ is an emerging retailing trend that employs market data to best serve customers as they prepare to make a purchase. Answers: a. Cloud computing b. Shopper marketing c. Channel omnification d. Click-and-collect
b. Shopper marketing
____ is a trade agreement that has dramatically lowered trade barriers worldwide. It led to the creation of the World Trade Organization. Answers: a. The North American Free Trade Agreement b. The Uruguay Round c. General Agreement on Tariffs and Trade d. The European Agreement
b. The Uruguay Round
In a direct foreign investment, which of the following statements is true of the direct investors? Answers: a. They possess the lowest potential risk. b. They have the highest potential reward. c. They have a small minority interest in the foreign firm. d. They do not have a controlling interest in the firm.
b. They have the highest potential reward
Zeta Inc., a multinational retail corporation, uses a device that notifies the respective store managers whenever a customer is near their store. It also helps them to map customer foot traffic data. This is an example of _____. Answers: a. click-and-connect b. a beacon c. cloud computing d. shopper marketing
b. a beacon
Unlike off-price retailers, specialty shops: Answers: a. focus on lean inventory management. b. can accommodate a broader range of customer demands. c. adopt an operating model that implies low prices for customers. d. de-emphasize customer service and product selection.
b. can accommodate a broader range of customer demands.
Unlike supermarkets, convenience stores: Answers: a. charge lower prices. b. carry a much more limited line of high-turnover convenience goods. c. enable customers to shop without visiting a physical store location. d. offer no service to customers.
b. carry a much more limited line of high-turnover convenience goods.
Service delivery can be improved by: Answers: a. increasing the costs of services provided. b. choosing the right distribution channel. c. maximizing wait times for customers. d. implementing a no-return policy after sale.
b. choosing the right distribution channel.
A(n) _____ is an intermediary who brings a buyer and a seller together. Answers: a. export merchant b. export broker c. licenser d. contract manufacturer
b. export broker
A _____ is a discount store that carries a vast depth and breadth of product within a single product category. Answers: a. specialty discount store b. full-line discount store c. supercenter d. warehouse club
b. full-line discount store
Nonprofit organizations differ from profit organizations in that nonprofit organizations: Answers: a. give priority to developing those market segments that are most likely to respond to particular offerings. b. must often target those who are apathetic about or strongly opposed to receiving their services. c. target the niches that may be most profitable. d. compete with, rather than complement, the efforts of others.
b. must often target those who are apathetic about or strongly opposed to receiving their services.
The first element in the retailing mix is the _____. Answers: a. retail location b. product offering c. product pricing d. retail promotion
b. product offering
A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization. Answers: a. surrogate advertisement b. public service advertisement c. retail advertisement d. commercial advertisement
b. public service advertisement
The Hunt, a liquor store, is famous for its unique and extensive collection of alcoholic beverages. Its employees possess up-to-date knowledge of the liquor available in the store, which allows them to assist customers in their purchasing decisions. The Hunt is an example of a _____. Answers: a. supermarket b. specialty store c. warehouse club d. convenience store
b. specialty store
The North Star Hotel, a luxury hotel, encourages its employees to develop strong, personal relationships with guests. It offers customized toiletries to its customers based on their preferences. It also has an entire floor dedicated to suites that have air purification systems. These value-added services make The North Star Hotel unique as these services are not available at other hotels. In this scenario, The North Star Hotel is at the _____ of relationship marketing. Answers: a. financial level b. structural level c. social level d. customization level
b. structural level
According to the gap model of service quality, the gap between what management thinks customers want and the quality specifications that management develops to provide the service results from: Answers: a. misleading or deceptive advertising campaigns promising more than the firm can deliver. b. the inability of management to translate customers' needs into delivery systems within the firm. c. a lack of understanding or a misrepresentation of the customers' needs, wants, or desires. d. the inability of management and employees to do what should be done.
b. the inability of management to translate customers' needs into delivery systems within the firm.
Hannah likes to frequent Citrus, a fine dining restaurant, as she loves the beef lasagna there and orders it every time she visits the restaurant. However, during her recent visit, the lasagna she was served was undercooked. When she informed the manager about it, she learned that the food was cooked by a replacement chef as the usual chef was on leave. In this scenario, which of the following characteristics of services is responsible for the lack of consistency and quality of the food at Citrus? Answers: a. Perishability b. Inseparability c. Heterogeneity d. Intangibility
c. Heterogeneity
Which of the following statements is true of a bundled price? Answers: a. It is a pricing strategy where customers pay only for the service elements they use. b. It is preferable when consumers are willing to pay "extra" for every part of the service. c. It is simpler for a firm to administer than pricing each element separately. d. It is a pricing strategy that does not apply for services
c. It is simpler for a firm to administer than pricing each element separately
Which of the following statements is true in the context natural resources? Answers: a. Vast differences in natural resources result in minor shifts of wealth among countries. b. The past decade has witnessed an abundance of natural resources. c. Steep declines in the price of oil had a negative impact on America's oil producers. d. Petroleum is the only natural resource that affects international marketing.
c. Steep declines in the price of oil had a negative impact on America's oil producers.
Which of the following statements is true of internal marketing? Answers: a. Different manufacturers exchange goods internally in an attempt to curb negative competitive spirit. b. Internal marketing is applicable only to the employees of goods manufacturers and not of service firms. c. The quality of a firm's employees is an important part of building long-term relationships with customers. d. Customers are treated as potential employees as they become the delivery vehicle of the purchased products.
c. The quality of a firm's employees is an important part of building long-term relationships with customers
Unlike goods, services: Answers: a. are tangible performances. b. are stored, warehoused, and inventoried. c. are more heterogeneous and less standardized and uniform. d. are produced in a centralized location and consumed in decentralized locations.
c. are more heterogeneous and less standardized and uniform.
Providing great customer service is one of the most challenging elements in the retail mix because: Answers: a. customer relations do not increase brand value. b. customers do not trust retail salespeople. c. customer expectations for service vary greatly. d. customers are indifferent to service quality.
c. customer expectations for service vary greatly.
A(n) _____ is a retail business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure. Answers: a. Factory outlet b. chain store c. franchise d. independent retail store
c. franchise
A _____ is the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product. Answers: a. wholesaler b. broker c. franchisor d. consumer
c. franchisor
Small businesses are taking slow, hesitant steps into the global market because it: Answers: a. slows down the rate at which people's living standards increase. b. limits access to advanced technologies in less developed countries. c. involves various trade laws or tariffs. d. empowers governments to abuse the freedom and property of their citizens.
c. involves various trade laws or tariffs.
Tina is an expert gardener. She provides services like setting up new gardens, maintaining gardens, and landscaping. In the context of service processes, the services provided by Tina come under the category of _____. Answers: a. mental stimulus processing b. information processing c. possession processing d. people processing
c. possession processing
Strategic retailing goals typically focus on: Answers: a. increasing costs of goods sold. b. reducing return on assets or equity. c. reducing costs of goods sold. d. not using a retailing mix.
c. reducing costs of goods sold.
convenience store
can be defined as a miniature supermarket, carrying only a limited line of high-turnover convenience goods.
empathy
caring, individualized attention to customers
department store
carries a wide variety of products and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.
retailing mix
consists of six Ps: the four Ps of the marketing mix (product, price, promotion, and place) plus presentation and personnel.
personnel
customer service and personal selling
In the context of promotion strategies, which of the following is an example of engaging in postpurchase communication? Answers: a. An insurance company using an umbrella as its logo to convey that its customers are well-protected b. A chartered accountant firm offering a 20 percent discount to customers who avail its services in January c. An airline hiring an actor to act in a series of commercials endorsing its services d. A hotel sending an e-mail survey to its guests asking them to rate the quality of service that they received
d. A hotel sending an e-mail survey to its guests asking them to rate the quality of service that they received
Which of the following statements is true of inshoring and outsourcing? Answers: a. Inshoring occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets, while outsourcing occurs when markets throughout the world become alike. b. Inshoring refers to a strategy of providing different product features, while outsourcing refers to a strategy of using a global vision to effectively market goods and services across national boundaries. c. Inshoring occurs when several countries agree to work together to form a common trade area, while outsourcing occurs when prices of different currencies ''float'' up and down based on demand. d. Inshoring refers to a strategy of returning production jobs to the United States, while outsourcing refers to a strategy of sending United States jobs to foreign countries.
d. Inshoring refers to a strategy of returning production jobs to the United States, while outsourcing refers to a strategy of sending United States jobs to foreign countries.
The management of Irving Inc., an apparel company based in Letonia, decides to expand the company's operations to several other countries. Given this information, which of the following strategies can be adopted by the management to succeed in the foreign environment? Answers: a. It can limit personal selling to buyers in the foreign countries. b. It can solely rely on free translation software to translate slogans and instructions. c. It can sell the same clothes it sells in its home country in the other countries. d. It can modify its Web site according to the foreign countries' cultures.
d. It can modify its Web site according to the foreign countries' cultures.
Which of the following statements is a characteristic of countertrade? Answers: a. It refers to a system in which prices of different currencies move up and down based on the demand for and the supply of each currency. b. It refers to the active ownership of a foreign company or of overseas manufacturing or marketing facilities. c. It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the ''home'' market of the exporter. d. It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
d. It refers to a form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
Which of the following statements is true of a company that is in the second stage of global business? Answers: a. It runs its business entirely through the Internet. b. It bases its entire operations in its home country. c. It maintains a virtual executive suite. d. It sets up foreign subsidiaries to handle sales in one country.
d. It sets up foreign subsidiaries to handle sales in one country.
_____ is the technique used to sift through the data collected by point-of-purchase scanning equipment. Answers: a. Shopper analytics b. Big data analysis c. Shopper marketing d. Market-basket analysis
d. Market-basket analysis
Which of the following statements is true of retail channel omnification? Answers: a. Consumers are required to visit physical stores before getting access to their online store. b. Consumers are required to pick up their orders from a physical store after purchasing them online. c. Physical stores are replaced by warehouses to store goods that can be purchased online. d. Physical and online stores are combined into a single system for delivering on customer demand.
d. Physical and online stores are combined into a single system for delivering on customer demand.
In the context of service processes, _____ takes place when the service is directed at a customer. Answers: a. possession processing b. mental stimulus processing c. information processing d. people processing
d. people processing
Information processing
describes services that use technology or brainpower directed at a customer's assets. Examples include insurance and consulting.
product decision strategy- One product, one message:
developing a single product for all markets
product decision strategy- Product invention:
either creating a new product for a market or drastically changing an existing product
Click-and-collect
enables customers to buy something online and then pick up the merchandise from a physical store
Automatic vending
entails the use of machines to offer goods for sale. Self-service technologies (SST) comprise a form of automatic vending where services are the primary focus.
Supercenters
extend the full-line concept to include groceries and a variety of services such as pharmacies, dry cleaning, hair salons, optical shops, and restaurants.
revenue oriented pricing
focuses on maximizing the surplus of income over costs
Intangibility
inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
Direct marketing
includes techniques used to elicit purchases from consumers' homes, offices, and other convenient locations. Telemarketing, direct mail, and shop-at-home television networks are forms
Boycott:
the exclusion of all products from certain countries or companies
Global marketing:
marketing that targets markets throughout the world
strategic alliances
multinational partnerships
Market grouping (also known as a common trade alliance):
occurs when several countries agree to work together to form a common trade area that enhances trade opportunities
Possession processing
occurs when the service is directed at customers' physical possessions. Examples include lawn care, dry cleaning, and veterinary services.
Specialty discount stores
offer a nearly complete selection of merchandise within a single category
Full-line discount stores
offer consumers very limited service and carry a vast assortment of well-known, nationally branded goods.
Perishability
the inability of services to be stored, warehoused, or inventoried
franchisor
originates the trade name, product, and methods of operation and grants operating rights to another party to sell its products.
Contract manufacturing:
private-label manufacturing by a foreign company
Global marketing standardization:
production of uniform products that can be sold the same way all over the world
Global vision:
recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets -The foundation of a successful global vision is a corporate structure that provides a continual flow of fresh ideas
Mental stimulus processing
refers to services directed at people's minds. Examples are theater performances and education
frachise
relationship in which business rights to operate and sell a product are granted by the franchisor to the franchisee
Direct retailing
representatives sell products door-to-door, in offices, or at in-home sales parties.
Inshoring:
returning production jobs to the United States -Rapid consumer product innovation forces the need to keep product designers, marketing researchers, logistic experts, and manufacturers in close proximity Shrinking development and manufacturing timelines have further contributed
operations oriented pricing
seeks to match supply and demand by varying price
Warehouse clubs
sell bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee.
Off-price retailers
sell products at prices 25 percent or more below traditional department store prices because they buy inventory with cash and do not require return privileges. •Factory outlets and used goods retailers are types of off-price retailers.
Exporting:
selling domestically produced products to buyers in other countries
Outsourcing:
sending U.S. jobs abroad -Leads to corporate growth, efficiency, productivity, and revenue growth
specialty store
specializes in a given type of merchandise.
drugstore
stocks pharmacy-related products and services as its main draw. It also carries an extensive selection of cosmetics, health and beauty aids, seasonal merchandise, greeting cards, toys, and some non-refrigerated convenience foods
destination stores
stores in isolated locations must become these in order to be successful stores that consumers purposely plan to visit
restaurant
straddles the line between retailing establishments and service establishments.
People processing
takes place when the service is directed at a customer. Examples are transportation services and health care.
reliability
the ability to perform a service dependably, accurately, and consistently
responsiveness
the ability to provide prompt service
Balance of payments:
the difference between a country's total payments to other countries and its total receipts from other countries
Balance of trade:
the difference between the value of a country's exports and the value of its imports over a given period
Dumping:
the sale of an exported product at a lower price than that charged for a similar product in the "home" market of the exporter •May occur as a result of exporter business strategies that include: -Trying to increase an overseas market share -Temporarily distributing products to overseas markets to offset slack demand at home -Lowering unit costs by exploiting large-scale production -Attempting to maintain stable prices during periods of exchange rate fluctuations
heterogeneity
the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
patronage oriented pricing
tries to maximize the number of customers by varying price
Joint venture:
when a domestic firm buys part of a foreign company to create a new entity
Multidomestic strategy:
when multinational firms enable individual subsidiaries to compete independently in domestic markets -Companies with separate subsidiaries in other countries can be said to operate using a multidomestic strategy
costs of globalization
•Countries restrict trade and create barriers to boost exports and limit imports •Globalization leads to people being laid off from their jobs -Workers do not always find jobs in other industries -Payments made to workers who have lost their jobs to foreign competition is called trade adjustment assistance
Benefits of Globalization
•Expands economic freedom •Spurs competition •Raises a nation's productivity and living standards if it opens itself to the global market •Offers access to foreign capital, global export markets, and advanced technology •Promotes higher labor and environmental standards •Acts as a check on government power
Promotion adaptation
•Maintain the same basic product but alter the promotional strategy •Language barriers, translation problems, and cultural differences have generated numerous headaches for international marketing managers
services
•Result of applying human or mechanical efforts to people or objects •Involve a deed, a performance, or an effort that cannot be physically possessed