test #5 marketing

Which of the following statements best describes the benefits of supply chain integration? It makes each channel as efficient as possible, thus saving the company time, money, and human resources. It utilizes as few channel members as possible in the manufacture of the product so that a company can allocate its resources to addresses other needs in the supply chain. It reduces costs, improves customer service, makes efficient use of resources, and increases the ability to respond to changes in the marketplace. It allows a company to accurately predict production levels in order to minimize inventory carrying costs. It gives the company the freedom to choose intermediaries that share the company's mission.

It reduces costs, improves customer service, makes efficient use of resources, and increases the ability to respond to changes in the marketplace.

High Tea, a retail store, claims to sell a pack of 20 tea bags at a discounted rate of $20 from an advertised original price of $40. The original price was verified by regulators to be $25. The pricing strategy applied by High Tea is an example of: fair pricing. price discrimination. price fixing. predatory pricing. deceptive pricing.

deceptive pricing (illegal practice that involves INTENTIONALLY misleading customers)

At which point in the price-setting process does a firm decide whether it might engage in profit skimming? Define the pricing objectives. Evaluate demand. Determine the costs. Analyze the competitive environment. Choose a price.

define the pricing objectives

Which of the following is the first step in the price-setting process? a. analyze the competitive price environment b. determine the costs c. define the pricing objectives d. choose a price e. evaluate demand

define the pricing objectives

Isabella's landlord has included a clause in the rental contract that makes it possible for him to increase Isabella's monthly rent if taxes on the property go up. Which clause was included in the contract? elevator clause escalator clause variable costs clause tariffs clause elastic demand clause

escalator clause (ensures providers of goods/services dont encounter financial hardship due to uncontrollable increases-decreases in availability of something required to deliver products to customers)

A distribution center's ability to pick available goods down to a single piece allows customers to buy in quantities that make sense for their business. This exemplifies the function of product assortment. T/F

false

Godiva Chocolates pursues a _____ strategy by setting its prices high to convey increased value compared to other chocolate brands like Lindt. prestige pricing markup pricing Incorrect odd pricing price bundling seasonal discounts

prestige pricing (pricing products higher than competitors to signal better quality)

The marketers of Santé, a health drink, have decided to sell a combination package of three flavors—vanilla, chocolate, and strawberry. This package is priced marginally higher than the individual flavors. Given this information, we can come to the conclusion that the marketers of Santé have applied the _____ strategy.

price bundling

A distribution center performs all of the following activities except: product accumulation. product sortation. product removal. product allocation. product assortment.

product removal

Hyun's Handicrafts is a company that provides custom linens for both businesses and individual consumers. Hyun does not make any products until she receives an order from the customer. What type of marketing strategy does this represent? push strategy supply strategy demand strategy forecast strategy pull strategy

pull strategy

Among the Trees is a manufacturer of deck furniture and other outdoor furnishings. Typically, customers purchase the company's products as the spring season begins and as such, do not want to wait for the product to be manufactured. Which supply chain strategy would work best for Among the Trees?

push strategy

Dell builds component inventory based on its sales forecast but doesn't completely assemble computers until a customer order is received. Which supply chain strategy is Dell applying?

push-pull strategy

Supply chains add value to a business in all of the following ways except: reducing production costs. providing better logistics. making sure goods are available when required. improves oversight of goods and payment flows between production and end consumer. simplifying the environmental scanning process.

reducing production costs

The prices that consumers consider reasonable and fair for a product are termed sensitive prices. survival prices. break-even prices. markup prices. reference prices.

references prices

In order for an integrated supply chain to work, companies must embrace: distribution-based strategies. relationship-based strategies. profit-based strategies. production-based strategies. supplier-based strategies.

relationship-based strategies

All of the following are examples of common fixed costs except: sales commissions. employee salaries. rent for office space. health insurance. advertising budget.

sales commissions (fixed costs remain constant and do not vary based on number of units produced or sold)

Frozen Yummy is an ice-cream manufacturer. Its marketing strategy from the month of November to February is "buy one get one free." Which of the following best describes the strategy applied by Frozen Yummy? markup pricing odd discounts generous pricing prestige pricing seasonal discounts

seasonal discounts

Which of the following is a distinguishing characteristic of a distributor? sells products for one manufacturer. warehouses goods. resells its products to retailers. buys products for resale. buys goods from all producers or vendors.

sells products for one manufacturer

A company that practices supply chain management will: set up technology to enable the sharing of demand information with suppliers. have an inward focus on the activities and performance of other companies. recognize the importance of sharing supply and demand information with suppliers and customers. have an outward focus regarding the activities of its own company. not rely on other members of the supply chain to add value to the final product.

set up technology to enable the sharing of demand information with suppliers.

Nisha works in a distribution center for a pharmaceuticals company. Part of her job entails gathering all goods with similar characteristics in one area of the distribution center. From there, she can facilitate the proper inventory controls to ensure that no expired pharmaceuticals are shipped to stores for sale. Nisha's job involves product: accumulation. allocation. sortation. assortment. picking.

sortation

When a company does not have enough inventory available to fill an order, this is known as: stockout. overrun. obsolete inventory. shortage. put-away.

stockout

The three basic functions of warehouse activities are: storage, shipping, and restocking. sorting, allocating, and movement. production, assembly, and storage. receiving, storage, and movement. storage, movement, and production.

storage, movement and production

Walmart's Retail Link program makes it possible for Walmart suppliers to manage their own products by allowing them to monitor such data as sales and inventory volume, in-stock percentage, gross margin, and inventory turnover. This program helps suppliers reduce low inventory risks and the costs associated with them. Walmart's Retail Link program is an example of a:

supply chain orientation

Keeping customers satisfied is essential. Therefore, one of the most important logistics function for retailers and every other member of the supply chain is managing: purchasing activities. transportation. inventory costs. operating expenses. customer service.

transportation

Once marketers have completed their analysis of demand, costs, and the competitive environment, they can use a number of different tactics to choose a final price. Which tactic to use depends on the value customers perceive the product to have, their ability to pay for it, and how they intend to use the product. true or false

true

One reason why firms may use a penetration pricing strategy in a competitive market is to drive awareness of a new location or of expanded services. T or F

true

Price discrimination is illegal only if it injures competition. T or F

true

When companies fail to consider the total system of interrelated companies in the supply chain as something that should be managed, they risk their control over the customer value they provide. T/F

true

C&S operates large businesses but is not well-known by consumers. It has more than 75 high-tech facilities in 15 states and supplies supermarkets and institutions with more than 170,000 different products. C&S is a: wholesaler. distributor. retailer. franchise. brick-and-mortar store.

wholesaler

Which of the following is true of gray markets? a. Gray market exchanges have become more difficult than ever. b. Firms find it easy to track exactly how much of their products sell in the gray market. c. Gray markets raise the prices that customers must pay for goods. d. Gray market goods can be a boon for consumers. e. Gray markets have helped to shift the balance of power from customers to companies.

D: gray market goods can be a boon for customers (allowing them to obtain legally produced items for less than they could normally)

The only element of the four Ps of the marketing mix that is affected by logistics is place. T/F

False

A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging materials to other cosmetics manufacturing companies. In addition, that same cosmetics manufacturer may sell to a retailer that buys similar cosmetics from a number of other manufacturers. This scenario illustrates:

a supply chain

Catarina purchased an antique porcelain serving set valued at $15,000. The serving set must be shipped from Pennsylvania to her home in California. What would be the best mode of transportation for this item? air transportation railroad water transportation common carrier truck contract carrier truck

air transportation

.Which of the following is a product with elastic demand? airline tickets gasoline bottled water bananas dishwashing liquid

airline tickets (nonessential items consumers dont need immediately. price decreases, demand increases fast and vice versa)

Retailers provide value to product manufacturers by

allowing manufacturers to focus on product development and production.

Pricing is one of the most important strategic decisions a firm faces because it reflects the value the product delivers to consumers... as well as the value it captures for the firm. as well as the value of the competition generated. as well as the value of the target markets generated. as well as the benefits that retailers provide. as well as the advantages that consumers provide.

as well as the value it captures for the firm.

Carla, the marketing manager at Regal Inc., is in the process of setting prices. She has finished analyzing the competitive price environment. According to the price-setting process, what should be Carla's immediate next step? a. monitor and evaluate the effectiveness of the price b. determine the costs c. define the pricing objectives d. choose a price e. evaluate demand

choose a price

Marketers may use a price bundling pricing strategy for all of the following reasons except: it allows marketers to vary the price for the bundle based on product demand of each individual element. it allows marketers to charge higher prices for the bundle than they could for each individual element. It allows a company to sell the same bundle to everyone It simplifies matters for marketers. It helps to reduce advertising and selling costs.

it allows marketers to vary the price for the bundle based on product demand of each individual element.

Service providers of haircuts, nail care, or oil changes may also use ________ pricing in a competitive market to drive awareness of a new location or for expanded services. penetration skim markup odd prestige

penetration. (setting prices low to encourage a greater volume of purchases)

Consider a situation in which a coffee chain opens across the street from a locally owned cafe. Theoretically, the prices at both stores should be similar because the costs and customer demand will be similar. However, because the coffee chain can rely on corporate backing for support, it makes the decision to radically lower prices, attracting more customers to its facility and eventually driving the competition out of business. This scenario illustrates which ethical issue in pricing? predatory pricing price discrimination price fixing deceptive pricing pricing penetration

predatory pricing (start with prices low to push out competition then raise the prices to normal)