SmartB 15, 16, 18
An indirect marketing channel may include which of the following intermediaries? (Select all that apply.)
- Merchandise wholesaler - Retailer - Shipper
Using predatory pricing, a firm sets a very low price for one or more of its products with the goal of ______.
driving its competition out of business
Susan pays a monthly fee to use an expensive designer handbag, but her payments are not applied to the purchase price. This pricing tactic is called a ______.
lease
A contract between a manufacturer and a retailer may specify that the retailer must feature the manufacturer's products in order to receive certain discounts or allowances. The contract gives the manufacturer ______ power to require the retailer to take the agreed-upon actions.
legitimate
Which of the following best describes the target market for leasing or renting products?
less price sentitive
When marketers set communication objectives, choose media, and determine costs for each communication type chosen, they are using the ______ IMC budget method.
objective-and-task
Which of the following terms refers to consumer recognition of a brand when presented with the name?
Aided recall
There are a number of ways in which marketers can build top-of-mind brand awareness among consumers. Which of the following would NOT be an ideal strategy?
Becoming a "me-too" brand
Which of the following is true of an administered vertical marketing system?
Channel members are independent, but a dominant channel member holds power over the others.
How does penetration pricing discourage rival companies from entering the market? (Select all that apply.)
Competitors who enter the market will temporarily face higher unit costs. Usually none of the companies make much profit in this situation.
Which of the following is NOT a pricing tactic aimed at consumers?
Cumulative discounts
Which of the following IMC strategies refers to communicating specifically with target customers to elicit a response or transaction?
Direct marketing
A distribution center primarily coordinates ______.
EDI RFID
Which of the following occurs in a conventional marketing channel?
Each channel member pursues its own objectives independently, with little care about other channel members.
True or false: When first creating an IMC campaign, firms should avoid focusing on the long term.
F
Which of the following are standard marketing channels through which information flows? (Select all that apply.)
From customers to stores From manufacturers to distribution centers From stores to distribution centers
Which of the following activities does a distribution center perform? (Select all that apply.)
Getting merchandise ready for sale Cross-docking
Which of the following is an example of a search engine marketing tool?
Google Adworks
Which of the following types of power requires a contract?
Legitimate
Strategic relationships rely on which of the following to succeed? (Select all that apply.)
Mutual trust Credible commitments
Which of the following are characteristics of price bundling? (Select all that apply.)
Price bundling helps customers stock up on a product. A less popular item is sometimes bundled with a more desirable item. Several popular items are frequently sold together for a lower combined price.
Which of the following does the Sherman Antitrust Act address?
Price fixing
Which of the following occur under horizontal price fixing? (Select all that apply.)
Price is eliminated as an influence on the consumer's decision-making process. Business rivals that produce and sell the same type of merchandise scheme together.
Which of the following is a measure of how effective an ad is for the amount spent?
ROMI
Which of the following is NOT a common base for pricing strategies?
Service
Which of the following best describes the goals a firm should set for an IMC campaign?
Specific and measurable
True or false: Social shopping involves sending e-mails to specific customers about new products that may be of interest to them.
T
In March, before most consumers begin shopping for summer products, a shoe factory offers retailers a seasonal discount on sandals. What are the purposes of this pricing tactic? (Select all that apply.)
To make it easier to plan the factory's production schedule To move inventory out of the factory as soon as possible
Merchandise is marked with a black-and-white series of lines to indicate the item's manufacturer, description, packaging, and promotions. These lines are called the ______.
UPC code
When would an advertising allowance be illegal?
When it is offered to only a few customers When it blatantly favors one customer
What is the first decision to be made when considering merchandise flow?
Where the merchandise will go
If Apple gives an electronics store a discount on its products in return for the store promoting Apple products in its flyers and on the home page of its website, this is an example of ______.
an advertising allowance
Price fixing is the illegal tactic of cooperating with other firms to ______ prices.
artificially establish
Business-to-business seasonal discounts are price reductions offered to stimulate purchases ______.
before the buying season for that product begins
Which of the following describes prepackaging merchandise cartons for a specific store?
cross docking
When firms use a penetration pricing strategy, they expect the experience________ effect to occur.
cruve
A _________________ quantity discount is based on the amount of merchandise bought during a certain span of time and most often involves more than one transaction.
cumulative
The first flow of information (Flow 1) in a supply chain occurs from ______.
customer to store
True or false: EDI in a JIT system increases lead time.
false
The improvement value method of pricing assigns a price based on how much more or less the product is perceived to be worth in comparison to comparable products. Who estimates what that price should be?
firm
The most common type of a contractual vertical marketing system is ______.
fransching
When Apple introduced the iPhone to the mobile phone marketplace, the company used customer research to estimate how much better the iPhone was. That amount is called the product's ______ value.
improvement
A retailer that decides to withhold from a supplier important details about a consumer goods market is exerting _________
information
Which of the following words best describes the advantage of using an IMC program over a single marketing communication element in order to deliver a message to the target audience?
integration
A ______ inventory system involves delivery of smaller amounts of merchandise more often.
just in time
Because EDI helps information to flow more quickly, a firm using EDI in its JIT systems will reduce ______.
lead time
After the holidays, Toys "R" Us reduces prices of popular holiday gift items to attract consumers who were unwilling to brave long lines or pay higher prices. This pricing tactic is called a ______.
markdown
When a retailer reduces the initial selling price of a product or service, the pricing tactic is called a ______.
markdown
When a firm influences the actions of a consumer, the firm has probably done so through ______.
marketing communications
Information stored in the data warehouse ______.
may be accessed by analysts from various levels of the corporation
Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of _________
mobile
Which of the following describes the use of a wireless network and portable devices that receive demand notifications to provide a speedy response?
mobile task
With a lease, the consumer does not ______ the product but merely rents it.
own
Which of the following brands would most likely NOT have top-of-mind awareness in their respective product categories with consumers?
paddywax
When a new product or service is launched, companies that use a ______ strategy will attempt to attract customers quickly by offering a very low price at first.
penetration pricing
Employees who are responsible for the financial analysis and coordination of merchandise are known as
planner
Which of the following people is responsible for allocating merchandise to stores?
planners
A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of ______.
power within a marketing channel
Tanya buys coverage for her car, home, and business from the same insurance company because she receives a substantial discount for grouping them together. The insurance company is using ______.
price bundling
Scheming with other companies to control prices is called ______.
price fixing
Adelaide's gift shop sells small, white candles for 50 cents each and elaborate scented candles for $15 each. In between are several other types of candles with different features and quality. Adelaide is using ______.
price lining
By engaging in ______, a business sets the highest and lowest prices for a product line and then sets a few more prices between them.
price lining
In preparation for introducing a new doll to the market, a toy company advertises and creates so much demand that little girls are lined up at the stores, determined to be the first to own one. The toy company sells these first dolls at twice their actual retail value. This is an example of ______.
price skimming
When Apple first introduced the iPhone, some consumers were willing to pay the premium $599 price tag. Apple was using a(n) ______ strategy.
price skimming
The five Cs of pricing are examples of pricing ______.
strategies
Just-in-time inventory systems are also referred to as ______ inventory systems.
quick response
In contrast to coupons, which are offered by retailers,__________ are discounts offered by manufacturers. The consumer purchases a product, and the manufacturer sends a cash refund for part of the price.
rebates
Merchandise is stored after it is ______.
received and checked
In a distribution system, "receiving" is ______.
recording products that have been received as trucks deliver them to a distribution center
When someone is asked to name a brand of soda, most consumers will reply back with Coca-Cola. This is an example of _____ awareness.
top-of-mind
A distribution center primarily coordinates ______.
transportation and preparation of merchandise
When leasing merchandise, the consumer pays a fee to ______.
use the product for a certain length of time and then return it.
To estimate a product's ______, consumers consider what they expect to get from the product, in addition to what they will need to sacrifice to acquire it.
value
When a new product is launched in a market where similar items are already being sold, how is the price typically determined?
value based
When parties at different levels of the same marketing channel agree to control the prices passed on to consumers,
vertical price fixing
Who schedules when merchandise will be delivered to a distribution center?
dispatcher
When using the objective-and-task method to determine a budget, marketers must take which of the following steps? (Select all that apply.)
-Establish a set of communication objectives -Identify the cost of the necessary communications -Determine which media best reach the target market
Which of the following are advantages of using a distribution center? (Select all that apply.)
-Retailers can make lower inventory investments. -Retailers are less likely to over- or understock merchandise. -Retailers no longer have to make separate sales forecasts for each individual store.
Which of the following pieces of information should be communicated to customers through a company's website? (Select all that apply.)
-Where customers can purchase products -Features of products and services
Which of the following is an example of power being exerted within a marketing channel?
Although all companies in the channel are independent, one large retailer controls what a small supplier can do.
Which of the following are traditionally the responsibility of buyers? (Select all that apply.)
Arranging joint promotions Negotiating prices Developing merchandise assortments
Pricing strategies are most often based on cost, value, or ______.
competition
What advantage is there for a company to offer products at prices below actual market value?
Customers are more likely to try the product because they are not risking as much money.
To calculate return on marketing investment, marketers need to know which of the following? (Select all that apply.)
Gross margin Marketing expenditure
Which of the following elements would be considered the most important for building a top-of-mind level of brand awareness?
Having a memorable brand
Which of the following is the best way to raise consumer interest in an ad?
Include unique attributes that appeal to the target audience.
Which of the following describes deep, long-term relationships between supply chain members that are based on mutual benefits?
Interdependence
What are the characteristics of leader pricing? (Select all that apply.)
It involves aggressive advertising. It sets a low price on something that customers often buy.
Which of the following can search engine marketing be used to accomplish?
Placing a website in the Sponsored Links section of Google
Strategic relationships are beneficial because they help members do which of the following? (Select all that apply.)
Take risks Accomplish goals Develop joint projects
In reference to cash discounts offered between two businesses, what does "6/10, n/30" mean?
The buyer gets a discount of 6% if the invoice is paid within 10 days. If the buyer does not take the discount, the full amount must be paid within 30 days.
When a customer purchases merchandise, what event causes information to begin moving through marketing channels?
The sales associate scans the UPC for the product the customer is purchasing.
Every six months, the local hardware store receives a cumulative quantity discount on the tools it buys from Ace Tool Manufacturing. Which of the following is likely true? (Select all that apply.)
The store will offer special bargains to its customers two times a year. The more tools the hardware store buys, the more the discount will increase. The store has a sales goal or quota for each six-month sales period.
Which of the following are true of pricing tactics? (Select all that apply.)
They are a widely accepted method of setting short-term prices. They can be used to counter a competitor's temporary sale prices.
What are the characteristics of quantity discounts? (Select all that apply.)
They are higher with high volumes.
Which of the following are true of pricing tactics? (Select all that apply.)
They can be used to counter a competitor's temporary sale prices. They are a widely accepted method of setting short-term prices.
Which of the following statements are true of seasonal discounts? (Select all that apply.)
They can help retailers make a larger profit. They help manufacturers plan their production schedule. They are offered to retailers so they will stock up on seasonal merchandise in advance.
Which of the following are true of coupons? (Select all that apply.)
They encourage first-time users to become regular users. They offer an immediate discount on items purchased.
What types of customers are apt to lease a product instead of buying it? (Select all that apply.)
Those who do not want to bother with selling the item after they tire of it Those who cannot afford the purchase price
Which of the following are reasons that firms implement a market penetration pricing strategy? (Select all that apply.)
To discourage competitors To establish market share To build sales To earn profits
Each time Eddie's Cars sells a vehicle, the company receives a larger discount from the manufacturer. At the end of the fiscal year, the company often slashes its prices by several hundred dollars per car because that amount will be more than offset by the increased discount the company receives from the manufacturer. The manufacturer is giving Eddie's Cars ______.
a cumulative quantity discount
RFID tags ______.
act as passive tracking devices
According to the AMA, ______ is "the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas."
advertising
Imagine that you are reading one of your favorite magazines. If you see a logo and recognize the brand as it is being presented to you, this is an example of ______.
aided recall
A firm can use its website well to build its __________ image and to educate customers about its product and services.
brand
When a large retailer such as Costco has substantial leverage with suppliers and can demand prices, conditions, and delivery of goods, it exhibits ___________ powers
coercive
Cost-based pricing does NOT consider the influence of ______ on the marketplace.
consumers
A(n) ______ vertical marketing system is one in which independent companies throughout the supply chain commit to their share of the work through signed agreements.
contractual
A company prices all of its products at twice what it cost to produce them. The company is using a ______-based pricing method.
cost
When retailers want to offer a discount on the price of specific items at the point of purchase, they will issue .
coupon
A national retail chain has signs throughout its stores that say things like, "Sale! 50% off our regular price!" Journalists investigate and discover that the company has never sold any merchandise at what it calls its regular price. The business has engaged in ______.
deceptive reference pricing
For one person, the Taco Bell logo might mean a dieter's worst nightmare, but for another it can mean a great meal. This exemplifies the fact that each receiver may ______ a given message differently.
decode
Consumers typically compare a firm's products and prices with those offered by ______.
direct competitors
Chain stores that use ______ can carry less merchandise in each retail outlet.
distribution centers
Information in a supply chain flows to and from which of the following? (Select all that apply.)
distribution centers manufacturers wholesalers
When a customer purchases merchandise, it triggers a flow of information that will eventually reach which elements of the supply chain? (Select all that apply.)
distribution centers*product manufacturers*suppliers of raw materials
True or false: The first decision that is necessary to make merchandise flow is to choose a transportation company.
false
In price bundling, two products or services are sold as a package ______.
for less than what they would cost individually
Some companies expand successful retail businesses by entering into contracts that give others the right to operate businesses with the same name and format. This is called ______.
franchising
Marketers measure the ______ of exposure by how often the audience is exposed to a communication within a specified period of time.
frequency
A small, isolated community has only four auto mechanics. They drink together in the local bar, where they all agree to charge the same inflated price for their services. When cars break down, customers have no choice but to pay whatever the mechanics ask. The mechanics are engaging in ______.
horizontal price fixing
A firm sets extremely low prices for its products so that most customers will stop shopping elsewhere. This will cause other companies to go out of business and leave the firm with no more competition. The firm has engaged in ______.
predatory pricing
It has been easy for Apple to find retailers to carry its popular iPad products. Because retailers are selling iPads in their stores, more customers have been shopping at those stores. This illustrates ______ power.
referent
When supply chain members realize that their goals and success are linked to others on the same team, they develop deeper long-term ______.
relationship
A contractual vertical marketing system is one in which ______.
relationships among channel members are governed by contracts
Manufacturers may offer discounts to retailers that run special promotions featuring the manufacturer's products. This is an example of ______ power.
reward
Which of the following types of power do monetary incentives represent?
reward
The information flow from the store to the buyer typically communicates ______.
sales and inventory information
A price reduction offered to encourage purchase of a product at an off-peak time of year is called a(n)
seasonal
Cash discounts are encouraged because the ______ gets the benefit from the time value of money.
seller
Using the Internet to communicate about product preferences with other shoppers is called
social shopping
Which of the following is the process of placing cartons on racks in a distribution center?
storing
In a ______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.
strategic
