BMGT350 Test 2 Practice Questions
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
Which of the following is a pure tangible good?
Toothpaste
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas?
Warehousing, inventory management, transportation, and logistics information management
Which of the following statements about wholesaling is true?
Wholesalers must make decisions regarding their marketing mix
Progressive wholesalers recognize that their only reason for existing is to ____________________.
add value
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
integrated supply chain management
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________.
introduction timing
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as______________________.
modifying the market
Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale is known as ______________________.
shopper marketing
Installing an innovation management system to collect, review, evaluate, and manage new product ideas representsa(n) ______________ approach to new product development.
systematic
When setting marketing channel objectives, companies should state the objective in terms of ______.
targeted levels of customer service
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
________________________ is the first step in marketing channel design.
Analyzing consumer needs
Which of the following is NOT a product life cycle (PLC) stage?
Commercialization
Which of the following represents the four major classifications of retail organizations?
Corporate chains, voluntary chains, retailer cooperatives, and franchise organizations
_____________________ is the value of customer relationships that a brand creates.
Customer Equity
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations
Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution strategy?
Exclusive
In which of the following is vertical conflict, conflict between different levels of the same channel, common?
Franchise organizations
Many vital and key functions are performed by marketing channels. Of the following, which is NOT one of those key functions?
Manufacturing and assembly
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Which of the following represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets?
Outsourcing logistics functions
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
Private Brands
What does the phrase "omni-channel buying calls for omni-channel retailing" imply for retailers?
Retailers should integrate all available shopping channels and devices into a seamless customer shopping experience.
Which of the following indicates the length of a channel?
The number of intermediary levels in the channel
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
_______________________ is an example of horizontal channel conflict.
A Subaru dealer complaining that another Subaru dealer is advertising in its territory
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
Channels often involve long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?
Adaptability criteria
Best Buy, Home Depot, Petco, and Bed Bath & Beyond, which are actually giant specialty stores characterized by immense size and deep assortments of merchandise, are sometimes called _______________.
Category Killers
Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer?
Channel levels
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
Corporate VMS
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Groups of __________________ products consist of materials and parts, capital items, and supplies and services.
Industrial
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
Which of the following statements regarding packaging is correct?
Innovative packaging can give a company an advantage over competitors and boost sales.
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extension
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?
Maturity
Which of the following types of wholesalers are Independently owned businesses that take title to all merchandise handled?
Merchant Wholesalers
_____________________ software systems enable companies to coordinate their whole-channel marketing efforts.
Partner relationship management
________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.
Perishability
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Retailers must decide on which three major product variables?
Product Assortment, Service Mix, Store Atmosphere
Which of the following makes up the retail marketing mix?
Product and services assortment, price, promotion, and location
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
______________________ is the step of the new product development process during which a physical product is first developed.
Product development
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
Product stewards
Which of the following statements about retailer marketing decisions is correct?
Retailers identify three critical factors for retail success: location, location, and location.
Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying process?
Retailing
Which of the following does NOT represent one of the major trends and developments in retailing?
Social e-tailing
Which of the following would be an appropriate strategy during the growth stage of the product life cycle?
Spend a lot of money on product improvement, promotion, and distribution.
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________________.
The responsibilities of channel members
Which of the following is TRUE regarding omni-channel buyers?
They shift easily across online and in-store channels.
Of the following, which most closely describes the method by which companies engage and create benefits for their customers?
Value delivery network
________________________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
After market strategy is developed, the next step of the new product development process is _______________.
business analysis
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as_______________________.
dynamic pricing
Companies today see channel members as ______________ and practice strong partner relationship management.
first-line partners
Adding a new product line to an existing portfolio means that the line has __________________
increased product mix width
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________.
internal marketing
The three functions of __________ include identifying, describing, and promoting the product.
labeling
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such assoaps, lotions, and moisturizers).
product bundle
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________.
service retailers
Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of media?
social shopping retailing
Which of the following reverses the usual process of first designing a new product, determining its cost, and thenasking, "Can we sell it for that?"
target costing
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________.
the company would see rising profits
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement?
Convenience products
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cos
Customer value-based pricing
_____________________ is a retailing technique of carefully orchestrating the store's layout and displays, background music, colors, and smells.
Experiential retailing
__________________ represent an internal source of new product ideas for a company.
Intrapreneurial programs
Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse logistics, which means it ____________________________.
Involves the entire supply chain management
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?
It turned free-spending consumers into value-seeking ones.
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and higher sales volume
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketingmanagement?
Maturity
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
New brand
Which of the following retail trends is making differentiation more difficult?
Retail convergence
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
_______________________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called "high-low pricing." Which of the following correctly describes high-low pricing?
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
Which of the following statements regarding managing service quality is correct?
Unlike product quality, service quality will always vary
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
Variability
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
A(n) _____ consists of producers, wholesalers, and retailers acting as a unified system.
Vertical marketing system
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________.
a fad
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________.
acquisition
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.
an indicator of quality
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
After segmenting and defining their target markets, retailers must then ____________________.
decide how they will differentiate and position themselves
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ___________ is defined in terms of how highly consumers regard and respect the brand.
esteem
Which of the following statements is true regarding product life cycle curves?
he sales of a typical product follow an S-shaped curve made up of five stages.
Crowdsourcing is used in the _______________________ step of the new product development process.
idea generation
When a college or university charges more for out-of-state students than in-state students, it is practicing______________________.
location-based pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
The massive shift in how and where people buy calls for __________________________.
massive shifts in how store retailers operate
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
One of the primary advantages of marketing logistics is __________________.
potentially high cost savings and improved customer satisfaction
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as_______________.
price-fixing
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
