Spring 2018 Final

Suzanne, a successful author of romance novels, recently released her seventh book. As part of her efforts to attract readers. Suzanne has a website on which customers can explore her books, write reviews about her books, discuss them with one another, and read about her life. This website can be characterized as:

A promotional website

Based on the chart below, what is the critical path for this new product launch by Dilly Dilly, Inc.? If Dilly Dilly wanted to launch 1 month sooner, which path should they try to shorten (all links are in months)?

ACEF; shorten EF link

GamePlace.com is a website where video gamers can share their game secrets and experiences with other players. The site features lively discussions and lots of advice. Although many videogame companies advertise on Gameplace, the site itself is not owned by any videogame company. What use of the internet does GamePlace.com exemplify?

Virtual community

Franchising is one form of

a contractual vertical marketing system

Dual distribution refers to

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Amazon.com uses ________ to compare each user's purchases with the purchases of other users with similar preferences to create a list of purchase recommendations. Based on a customer's desire to purchase an author's e-book for her Kindle, Amazon might recommend an e-book by a similar author within the same genre.

collaborative filtering

Which of the following is an example of the transactional function in the BiC Corporation's channel of distribution?

An external sales force selling BiC pens to retailers such as Staples

An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as

competencies.

Loss-leader pricing refers to

deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.

Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as

disintermediation.

The practice of changing prices for products in real time in response to supply and demand conditions is referred to as

dynamic pricing.

The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

economic espionage.

Which of the following is a cost-oriented approach to pricing?

experience curve pricing

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the location where the loading is to occur is referred to as

free on board (FOB) origin pricing.

People in the marketing department traditionally operate at what organizational level?

functional level

Demand for a product is likely to be more price elastic if it

has many substitutes.

There are three general forms of retail ownership: contractual system, corporate chain, and

independent retailer.

Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils under three months of age. Assuming it is marketing to a single segment of "young-pet owners," in terms of the market-product grid framework, Loving Care Pets is using a ________ strategy.

market specialization

The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as

marketing ROI (return on investment).

Carly was at the library doing her Marketing Learn Smart assignment. She didn't realize she had skipped dinner until her stomach began to make a weird noise around 8pm. Unsure of what to get to eat and short on time, Carly went to the Starbucks near the main entrance. She had $7 with her, which she thought would be just enough to buy a sandwich. Once she got up to the register and the associate scanned the sandwich, the screen read $12.99. Carly was astonished at how expensive the food was. In this situation, what was the $7 price Carly anticipated?

Internal Reference price

Jessica loves being a PetSmart cardholder. As part of their PetPerks reward program she gets advance notice of upcoming sales, free samples for her dogs, and exclusive invitations for dog training classes by PetSmart's expert trainers. This is an example of a retailer adding value through:

Providing Services

Brooke is looking for a new pair of sneakers, so she decides to go to her favorite Florida department store, Bealls. Unfortunately, when she arrives in the shoe section, she finds that they sell only one brand of sneakers, Skechers. Not a fan of Skechers, Brooke decides to try another store, which she hopes will have a better selection of sneakers. Which retail function was Bealls failing perform?

Providing assortment

Bob's Burgers is interested in finding the stockturn rate for their custom printed "Bob's Burgers" baseball caps for last year (2017). Their COGS was $230,000, their beginning inventory was $12,000 and ending inventory was $4,000. What was the stockturn rate for baseball caps in 2017 (rounded to the nearest whole number)?

QUANTITATIVE ANSWER

Coca-Cola wants to increase its market share in the soft drink market, which is growing by 2% a year. Total industry sales this past year were $319,000,000. Below are the sales for the main soft drink companies.

QUANTITATIVE ANSWER

Keke's Café, a Gainesville breakfast spot, currently has a market share of 15%. They want to expand their market share to 25% in order to take customers away from Peach Valley and Flying Biscuit. How much additional share of voice does KeKe's need in order to achieve the desired increase in market share?

QUANTITATIVE ANSWER

Leonardo's Pizza by the Slice has an annual fixed cost of $40,000. Each slice of pizza sold at Leonardo's has a variable cost of $0.40. During the 2017-2018 school year, 9,000 slices of pizza were sold. Leonardo's Pizza wanted to make a $10,000 profit. What should they have charged per slice of pizza?

QUANTITATIVE ANSWER

Megan owns a boutique in Jacksonville, Florida. She recently purchased an assortment of beaded bracelets for a cost of $1.75 each. She sells these in her store for $5.00 each. What is Megan's percentage markup?

QUANTITATIVE ANSWER

Suppose Kit-Kat holds 20% market share for candy bars, as well as 20% share of voice. Kitty, the brand manager for Kit-Kat, wants to increase her market share by 4 share points. Kit-Kat's total gross margin is $1 million. If the total industry marketing effort is $3 million, what is the short-term gain or loss by Kit-Kat if it is successful in expanding its market share by the desired amount?

QUANTITATIVE ANSWER

The former state of California has seceded from the United States and formed an independent country led by their President, Kim Kardashian. In the past year, the country has exported goods with a value of 13,250,000 Dash Dollars (their new form of currency) and imported goods with a value of 21,000,000 Dash Dollars. Based on this information, California is experiencing a:

QUANTITATIVE ANSWER

The fashion brand Tommy Hilfiger has added new technology to its store in New York. When customers enter the store, they are invited to put on virtual reality headsets that give them the illusion that they have front row seats at the latest runway fashion show. This marketing technique is groundbreaking and offers customers a unique, completely immersive digital experience. The Tommy Hilfiger brand is engaged in:

Retailtainment

The owner of Relish in Midtown wants to conduct a test to see if his employees are meeting customers' needs during their prime time of 1AM. The owner sends in a "fake customer" to order a burger and observe the employees' actions. One employee, Greg, does an outstanding job helping the customer, so he gets placed in a drawing to win free movie tickets. This approach to improving implementation is which of the following?

Reward Performance

Which of the following is true about e-commerce?

The quantity of B2B e-commerce far surpasses the quantity of B2C

Scrambled merchandising refers to

offering several unrelated product lines in a single store.

The retail positioning matrix is an analytical tool that

positions retail outlets in terms of the breadth of product line and value added.

Which term describes factors that limit the range of prices a firm may set?

pricing constraints

Italy currently has a limit on the number of motorcycles that can be imported from Japan. This restriction would be considered a(n)

quota.

Diversification refers to the marketing strategy of

selling new products to new markets.

Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) strategy, (2) execution, (3) culture, and (4) ________.

structure

Barter refers to

the practice of exchanging products and services for other products and services rather than for money.

Currency exchange rate refers to

the price of one country's currency expressed in terms of another country's currency.

Interactive marketing refers to

the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

Long-range marketing plans cover marketing activities

two to five years into the future.

The description of how new forms of retail outlets enter the market is referred to as the

wheel of retailing.

Apple's strategy for the iPad is to let its market share slowly diminish over time. Apple realizes it is better to invest in other products like the iPhone and Apple TV, but it doesn't want to shut down the iPad altogether. Apple's strategy for the iPad is:

Harvest

Lindsay is looking to expand her cosmetics brand to countries outside of the United States. Her brand includes product lines of makeup, nail, and hair products. When looking at which countries to expand to, she takes into account the countries' current use of cosmetics (since some countries tend to utilize cosmetics more than others), the median disposable income of the countries (to ensure people could afford her products), and each country's degree of access to the internet (since she has recently launched an app and does a lot of business online). Which of the following aspects of cross-country analysis did Lindsay consider? I. Economic II. Demographic III. Social/Cultural IV. Natural V. Technological

I, III, and V only

Hubba Bubba is looking to launch a new breath mint. It decides to place the new mint in as many gas stations and convenience stores across the United States as it can. What degree of channel coverage is Hubba Bubba using?

Intensive

Ines receives an email that says her Apple ID Account has been compromised and provides a link to reactivate her account. It also says that if she doesn't reactivate her account in 24 hours, Apple will shut it down. She quickly clicks on the link and enters all her personal information including her bank account information. The next day Ines realizes $500 has been stolen from her bank account. This was an example of:

Phishing

Best Pets of the West has been a prominent pet store in California for over 30 years. Yet, businesses noticed that Southern California is a great place to open pet shops, so they began to open up throughout the area. Best Pets of the West decided to lower their prices to a point that the other pet shops could not compete since they were too small. As a result, Best Pets of the West drove these other shops out of business. This illegal practice is an example of

Predatory Pricing

A local Target conducts an evaluation of their marketing plan and learns that Gator apparel yielded 40% more profit than Gator collectibles and 95% more profit than Seminole products. These finding are the result of which of the following?

Profitability Analysis

Which of the following statements regarding supply chain customer service is most accurate?

Customer service must be balanced against total logistics cost factors

ColourPop, a U.S.-based cosmetics company, has developed a new line of lipsticks called the Besitos. ColourPop decides to enter into a contract with a Colombian beauty company. Instead of manufacturing and shipping the lipsticks to Colombia. ColourPop has agreed to allow the Colombian company to use its brand name and manufacturing process in exchange for royalty payments. The Colombian firm will finance all the production, distribution, and marketing in Colombia. What global marketing strategy is ColourPop using?

E) Licensing

Lululemon is an athletic apparel company. They are trying to increase efficiency in their stores, so they put RFID chips in all of their clothes. This allows inventory to be stocked in a timely manner, and it allows customers to check out more efficiently. The use of RFID chips by Lululemon is an example of what?

Electronic Data Interchange

Starbucks has locations in numerous countries across the globe. Starbucks uses a third-party market research group to gather information about their target consumers' preferences in each country. After analyzing the data, Starbucks decides to focus its marketing efforts on promoting its wide variety of drinks in Japan, while promoting the special discounts on drinks (e.g., Half Price Happy Hour) to attract consumers in the United Kingdom. This approach is best described as:

Multinational Marketing

Kamila wants to purchase a new camera. She goes to Best Buy to take a look at different models. After she finds the camera she wants, she leaves Best Buy and logs onto Amazon to buy the camera at a lower price. What term is used to describe Kamila looking at the camera in-store, but purchasing it online?

Showrooming

MOD Pizza is a customizable pizza company located throughout the United States. The company 's goal is to make simple food for complex times. MOD Pizza is successful compared to other pizza companies because of their unlimited customization and strong relatable culture. In a S.W.O.T. analysis, MOD Pizza's unlimited customization is a(n)________.

Strength

A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native speakers.

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