Concepts of Marketing Final

_____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists a. Advertising agencies b. Public relation firms c. Promotion experts d. Media companies e. Production companies

a. Advertising agencies

Which of the following is the most commonly used type of publicity-based public relations tool? a. News release b. Press conference c. Captioned photograph d. Letter to the editor e. Feature article

a. News release

Which of the following is not a public relations tool? a. Product sample b. News release c. Company magazine d. Feature article e. Annual report

a. Product sample

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a. Warehouse club. b. Warehouse showroom c. Catalog showroom d. Hypermarket e. Category killer

a. Warehouse club

When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) _____. a. aided recall test b. unaided recall test c. aided recognition test d. recognition test e. pretest

a. aided recall test

A major benefit of using event sponsorship is that it: a. can provide large amounts of free media coverage. b. provides excellent support for advertisements. c. neutralizes the effects of unfavorable public relations. d. enhances personal selling efforts. e. is cost-free.

a. can provide large amounts of free media coverage.

Artwork, a major part of most advertisements, consists of the: a. illustration and the layout. b. method by which all the components are put together. c. illustration and type of print used in the headlines. d. layout and the signature. e. illustration and the signature.

a. illustration and the layout.

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as _____. a. institutional advertising b. advocacy advertising c. comparative advertising d. product advertising e. public relations

a. institutional advertising

Brittany recently moved to a new city. She is looking for a mechanic to conduct a maintenance check and repair on her car. She visits several car dealers to assess their physical facility and also the cleanliness and grooming of the mechanics. After evaluation, she finally chooses a mechanic. Brittany is trying to overcome the _____ aspect of services. a. intangibility b. customer contact c. heterogeneity d. inseparability e. perishability

a. intangibility

An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n): a. lifestyle shopping center. b. outlet shopping center. c. community shopping center. d. regional shopping center. e. neighborhood shopping center.

a. lifestyle shopping center.

The width of a product mix is measured by the number of product _____. a. lines a company offers b. specialties a company offers c. items in the product line d. dimensions in the product line e. features in each brand

a. lines a company offers

If a company calls a meeting to announce a major news event, this is known as a _____. a. press conference b. news release c. media call d. press release e. public service announcement

a. press conference

Craftsman tools sold and branded by Sears is an example of a _____ brand. a. private distributor b. generic c. regional d. manufacturer e. wholesaler

a. private distributor

Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Monroe is most likely employed in _____. a. public relations b. advertising c. sales d. human resources e. digital media marketing

a. public relations

Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of _____ advertising. a. reinforcement b. defensive c. institutional d. comparative e. offensive

a. reinforcement

Order processing is defined as: a. the receipt and transmission of sales order information. b. the second stage in a physical distribution system. c. the four main tasks. d. the same as order handling. e. electronic processing of order data.

a. the receipt and transmission of sales order information.

For custom-made equipment or commercial construction projects, which pricing method is most likely used? a. Premium b. Cost-plus c. Differential d. Prestige e. Return-on-investment

b. Cost-plus

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a. Department stores b. Discount stores c. Direct marketers d. Traditional specialty retailers e. Warehouse showrooms

b. Discount stores

_____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. a. Off-price shopping centers b. Outlet shopping centers c. Regional shopping centers d. Upscale shopping centers e. Specialty shopping centers

b. Outlet shopping centers

A(n) _____ occurs when an organization uses one of its existing brands to brand a new product in a different product category. a. new-product branding b. brand-extension c. family branding d. brand-licensing e. individual branding

b. brand-extension

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the: a. elasticity of demand. b. break-even point. c. variable costs. d. the sum of fixed costs. e. price elasticity.

b. break-even point.

A Sony laptop that has an "Intel" logo on its keyboard is an example of _____. a. individual branding b. co-branding c. brand licensing d. line family branding e. brand extension

b. co-branding

A _____ is a small, self-service store that is open long hours and carries a narrow assortment of products, usually items such as soft drinks and other beverages, snacks, news-papers, tobacco, and gasoline, as well as services such as ATMs. a. category killer b. convenience store c. supermarket d. department store e. discount store

b. convenience store

The three primary bases for developing prices are: a. profit, demand, and competition. b. demand, competition, and cost. c. markup, cost, and cost-plus. d. negotiation, periodicity, and randomness. e. supply, demand, and marketing objectives.

b. demand, competition, and cost.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing. a. promotional b. differential c. price-line d. professional e. psychological

b. differential

The four major stages of a product life cycle include _____. a. decline, stabilization, exposure, and growth b. introduction, growth, maturity, and decline c. specialty, convenience, shopping, and unsought goods d. awareness, interest, trial, and adoption e. prosperity, recession, depression, and recovery

b. introduction, growth, maturity, and decline

The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a _____. a. feature article b. news release c. media bulletin d. publicity stunt e. public update

b. news release

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing: a. product competition. b. non-price competition. c. price competition. d. supply-based pricing. e. demand-based pricing.

b. non-price competition.

Without wholesalers and other intermediaries: a.products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. b. products would likely be more expensive due to the use of less efficient channel members. c. products would be cheaper because the functions of intermediaries would be eliminated. d. many products would be more expensive because retailers would expect more profit. e. most products would be much less expensive because fewer companies would be handling the product.

b. products would likely be more expensive due to the use of less efficient channel members.

Price leaders, comparison discounting, and special-event pricing are examples of: a. professional pricing. b. promotional pricing. c. product-line pricing. d. psychological pricing. e. premium pricing

b. promotional pricing.

Which of the following is not an advantage of using publicity-based public relations tools? a. A favorable perception of being endorsed by the media b. Strong news value c. Control by media personnel of the content and timing of messages d. Follow-up word-of-mouth communications e. Credibility

c. Control by media personnel of the content and timing of messages

Which of the following types of products would Energizer batteries be classified as? a. Shopping product b. Specialty product c. Convenience product d. Unsought product e. Industrial service

c. Convenience product

Laura goes to a Walmart store and buys some clothing, a DVD, light bulbs, and all the groceries she needs for her family. What type of retailer is this particular Walmart outlet? a. Discount store b. Hypermarket c. Superstore d. Department store e. Supermarket

c. Superstore

Which of the following is an example of a category killer? a. Walmart b. Marshalls c. Toys "R" Us d. J.C. Penney e. Sams

c. Toys "R" Us

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a. containerization b. Distribution c. Transportation d. Warehousing e. Materials handling

c. Transportation

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using: a. competitive advertising. b. product advertising. c. advocacy advertising. d. public service awareness. e. public relations

c. advocacy advertising.

A product mix is best described as _____. a. similar products sold by one firm b. a group of products that are considered a unit because of market, technical, or end-use considerations c. all products offered by a firm d. product, distribution, promotion, and price e. all products of a particular type

c. all products offered by a firm

A popular branding strategy involves _____, an agreement in which a company permits another organization to use its brand on other products for an authorizing fee. a. brand extensions b. cooperative branding c. brand licensing d. co-branding e. dual-branding

c. brand licensing

Kleenex Boutique is a _____ of tissues made by the Kimberly-Clark Corporation. a. trade name b. trademark c. brand name d. brand identification e. brand mark

c. brand name

When a company that produces computer printers prices them low, but the ink required to operate the printer is priced higher per relative usage, it is using: a. premium pricing b. bait pricing. c. captive pricing. d. price lining. e. penetration pricing.

c. captive pricing.

The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of: a. periodic discounting b. penetration pricing. c. comparison discounting. d. random discounting. e. everyday low prices.

c. comparison discounting.

During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of: a. random discounting. b. incentives. c. demand-based pricing. d. differential pricing. e. competition-based pricing.

c. demand-based pricing.

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n) _____. a. off-price retailer b. category killer c. department store d. superstore e. niche retailer

c. department store

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and _____ is becoming blurred. a. superstores b. specialty stores c. department stores d. supermarkets e. category killers

c. department stores

Todd is developing a print advertisement for Afflac. He knows that the _____ is a critical component of the copy because _____. a. artwork; it takes up the most space b. slogan; it links the artwork to the signature c. headline; it is often the only part of the advertisement that is read d. tag line; it links the copy to the signature e. headline; it determines the final layout design

c. headline; it is often the only part of the advertisement that is read

The _____ design element of an advertisement is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words; the _____ is the physical arrangement of the illustration, headline, subheadline, body copy, and the signature. a. signature; layout b. layout; storyboard c. illustration; layout d. headline; layout e. layout; design

c. illustration; layout

Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is known as: a. efficiency transportation b. freight forwarding. c. intermodal transportation. d. containerized movement. e. transportation piggybacking.

c. intermodal transportation.

Stores that are in a factory outlet mall, such as Ralph Lauren, Tommy Hilfiger, Clarks' Shoes, and Samsonite Luggage are most appropriately classified as a(n) _____. a. discounter b. department store c. off-price retailer d. specialty retailer e. category killer

c. off-price retailer

Walgreen's drug stores prefer to receive refills of prescriptions through a phone-based system where customers can directly key in the information about the drug. By receiving orders in this manner rather than through a paper-based system or by a phone conversation with a pharmacy employee, Walgreen's has been able to save time and money on: a. electronic data interchange. b. materials handling. c. order entry. d. inventory management. e. order delivery.

c. order entry.

Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define: a. wholesaling. b. channel management. c. physical distribution. d. drop shipping. e. retailing.

c. physical distribution.

When marketers emphasize price as an issue and match or beat the prices of other companies, they are engaging in: a. comparative pricing strategies. b. demand-based pricing. c. price competition. d. non-price competition. e. supply-based pricing.

c. price competition.

ClearChem is a producer of chemicals used in car detailing and painting. Because of the volatility of their chemical products when exposed to dirt and heat, ClearChem operates its own facilities for storing and shipping its products. ClearChem's facilities are most likely known as: a. mega warehouses. b. product storehouses. c. private warehouses. d. distribution centers. e. public warehouses.

c. private warehouses.

Consumers receive the benefits of place utility when: a. they have to travel excessively to obtain products they want. b. they make purchases with credit and debit cards. c. products are available in locations where consumers want to buy them. d. retailers remain open 24 hours a day. e. they can stock up on products they need but not use them right away.

c. products are available in locations where consumers want to buy them.

Since Victoria's Secret has decided to use non-price competition, it distinguishes its brand through all of the following except ____. a. exceptional service. b. product quality and style. c. rebates. d. variety and selection. e. distinctive product features.

c. rebates.

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ____ product. a. shopping b. unique c. specialty d. unsought e. historical

c. specialty

When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a _____. a. visual-impact process b. layout procedure c. storyboard d. commercial layout e. parallel format

c. storyboard

Price is a key element in the marketing mix because it relates directly to: a. brand image. b. the size of the sales force. c. the generation of total revenue. d. quality controls. e. the speed of an exchange.

c. the generation of total revenue.

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club, an auto repair shop, and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be a(n)_____. a. convenience good b. industrial good c. unsought good d. shopping good e. specialty good

c. unsought good

If a microchip in a computer at the Pentagon failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from New York City? a. Government vehicle b. Waterway c. Railroad d. Airway e. Truck

d. Airway

Which type of retailers are the primary competitors for specialty retailers? a. Discount stores b. Superstores c. Category killers d. Department stores e. Catalog marketers

d. Department stores

Which of the following types of shopping centers usually consists of several small convenience and specialty stores? a. Community b. Regional c. Specialty d. Neighborhood e. Convenience

d. Neighborhood

Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. At the moment, which of the following strategic retailing issues is Ariana concerned with? a. Scrambled merchandising b. Retail positioning c. Production depth d. Store location e. Product mix

d. Store location

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a. Trucks b. Airways c. Pipelines d. Waterways e. Railroads

d. Waterways

Coors Inc. advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called _____. a. comparative advertising b. advocacy advertising c. defensive advertising d. competitive advertising e. institutional advertising

d. competitive advertising

The verbal portion of an advertisement, including headlines, body, and signature, is called the _____. a. artwork b. layout c. storyboard d. copy e. script

d. copy

Nordstrom's, Macy's, and JC Penney's are all considered as: a. specialty retailers. b. discount stores. c. off-price retailers. d. department stores. e. category killers.

d. department stores.

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as: a. indirect marketing. b. direct distribution. c. producer, retailer, consumer. d. direct-marketing. e. telemarketing.

d. direct-marketing.

Self-service, general-merchandise outlets that regularly offer brand-name and private-brand products at low prices are known as _____. a. catalog showrooms b. warehouse showrooms c. specialty retailers d. discount stores e. superstores

d. discount stores

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is: a. just-in-time production. b. universal product codes. c. activity based management. d. electronic data interchange. e. web-based inventory management.

d. electronic data interchange.

The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand _____. a. association b. loyalty c. value d. equity e. share

d. equity

Brands provide all of the following benefits for buyers except that they do not _____. a. offer psychological rewards. b. help identify specific products c. help buyers evaluate the quality of products d. foster brand loyalty e. reduce perceived risk of purchase

d. foster brand loyalty

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called: a. time management. b. inventory minimization. c. reorder point maximization. d. just-in-time. e. economic order quantity.

d. just-in-time.

The target audience for an advertising campaign is the: a. geographic distribution of persons. b. sales objective to be achieved by the campaign. c. overall goal of the advertising campaign. d. people at whom advertisements are aimed. e. information base on which to develop the campaign.

d. people at whom advertisements are aimed.

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be: a. intermodal transportation. b. railroads. c. waterways. d. pipelines. e. tanker trucks.

d. pipelines.

Chris is planning three sales during the third quarter of the year at Toys R' Us. The first is at the beginning of the school year, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be: a. sales promotion pricing. b. psychological pricing. c. calendar discounting. d. special-event pricing. e. captive pricing.

d. special-event pricing.

A functional and psychological picture in a consumer's mind of a retail store is called: a. retail persona. b. interior location. c. store quality. d. store image. e. retail positioning.

d. store image.

A retailer is an organization that purchases products for the purpose of reselling them to _____. a. nonprofit organizations. b. the government. c. other retail organizations. d. the ultimate consumers. e. the wholesalers.

d. the ultimate consumers.

Bundle pricing is perceived to be of value by customers because: a. the companies selling the products can sell them at a lower price because their costs of packaging are lower. b. the prices are coordinated with advertising or sales promotions. c. they can purchase items that are consumed frequently in larger quantities. d. they prefer buying a combination of products in a single transaction, which saves time, effort, and money. e. they reduce or eliminate the use of frequent short-term price reductions.

d. they prefer buying a combination of products in a single transaction, which saves time, effort, and money.

Which of the following types of retailing began with Montgomery Ward in the late 1800s? a. Discount retailing b. Franchising c. Department stores d. Direct selling e. Catalog marketing

e. Catalog marketing

H&R Block, a major tax preparation firm, reported facing issues with regard to its employees' inconsistency in filing of returns. With which of the following characteristics of the service offering is the firm experiencing an issue? a. Perishability b. Tangibility c. Intangibility d. Inseparability e. Heterogeneity

e. Heterogeneity

Which of the following best illustrates a high-contact service? a. Dry cleaning b. Appliance repair c. Newspaper delivery d. Tax preparation e. Plastic surgery

e. Plastic surgery

Which of the following physical distribution functions involves design and operation of facilities for storing goods? a. Transportation b. Order processing c. Inventory management d. Materials handling e. Warehousing

e. Warehousing

When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of: a. price packaging. b. multiple-unit pricing. c. prestige pricing. d. price lining. e. bundle pricing.

e. bundle pricing.

A public or 3rd party warehouse is a: a. large, centralized warehouse that focuses on moving rather than storing goods. b. company that provides a complete array of logistical services for businesses. c. company-operated facility for storing and shipping products. d. warehouse used to store the personal property of many different customers. e. business that leases storage space and related facilities for distribution to other firms.

e. business that leases storage space and related facilities for distribution to other firms.

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on telephone, through mail, or online. Chadwick's is primarily a(n) _____. a. direct-response marketer b. online retailer c. direct seller d. specialty retailer e. catalog marketer

e. catalog marketer

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using ____ pricing methods? a. psychological b. demand-based c. reference d. cost-based e. competition-based

e. competition-based

Marketers generally view ____ as the minimum price a product can be sold for. a. revenue b. profits c. demand d. moderate losses e. costs

e. costs

The main objective of physical distribution should be to: a. increase service and market coverage. b. decrease costs while increasing market coverage. c. increase market coverage and channel power. d. balance costs and market coverage. e. decrease costs while increasing service.

e. decrease costs while increasing service.

While shopping at a landscaping store, Jessie sees a green bag labeled "potting soil." This is an example of _____. a. category-consistent packaging b. streamline packaging c. store branding d. individual branding e. generic branding

e. generic branding

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets _____. a. goods b. services c. tangible products d. features e. ideas

e. ideas

Personal trainers cannot make fitness assessments of their clients without the clients being physically present because of the _____ characteristic of services. a. heterogeneity b. perishability c. tangibility d. intangibility e. inseparability

e. inseparability

When a product experiences an increase in the number of competitors, it is usually in the growth stage of the product life cycle; however, when that competition becomes intense, it is in the _____ stage. a. introduction b. branding c. decline d. adoption e. maturity

e. maturity

A goal of _____ is to reduce cycle time or how long it takes to complete a process. a. time standards b. production c. processing time d. throughput measure e. physical distribution

e. physical distribution

Breyer's produces a variety of ice cream flavors and of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using ____ to price its ice cream. a. bait pricing b. captive pricing c. price baiting d. differential pricing e. premium pricing

e. premium pricing

An evaluation performed before an advertising campaign begins is a _____. a. consumer exam b. recall test c. posttest d. recognition test e. pretest

e. pretest

A measure of the sensitivity of demand in relation to changes in price is: a. quantity elasticity. b. a prestige graph. c. marginal analysis. d. a demand curve. e. price elasticity of demand.

e. price elasticity of demand.

To attract customers into a store, Safeway advertises its milk at a lower cost, hoping that customers will purchase other groceries as well. This pricing strategy is called: a. price lining. b. differential pricing. c. special-event pricing. d. comparison discounting. e. price leader pricing.

e. price leader pricing.

Greenmart Corp. is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of: a. a horizontal marketing system. b. channel conflict. c. dual distribution. d. a vertical marketing system. e. supply-chain management.

e. supply-chain management.

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) _____. a. department store b. category killer c. off-price retailer d. warehouse showroom e. traditional specialty retailer

e. traditional specialty retailer

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use _____ as its transportation mode. a. railroads b. airways c. pipelines d. waterways e. trucks

e. trucks