Marketing Ch. 9-11

Which of the following is an example of horizontal channel​ conflict? A consumer complaining to a retailer about the service he received. A retailer complaining about receiving damaged goods from a wholesaler. A Ford dealer complaining that another Ford dealer is advertising in its territory. A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a​ producer's pricing.

A Ford dealer complaining that another Ford dealer is advertising in its territory

What is the most common type of a contractual​ VMS? A retailer A wholesaler A supplier A channel intermediary A franchise

A franchise

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent? Administered VMS Franchise Corporate VMS Contractual VMS Conventional distribution channel

Administered VMS

What are the two major elements in developing advertising​ strategy? Determining the advertising budget and evaluating results Determining the target audience and selecting advertising media Creating advertising messages and selecting advertising media Creating advertising messages and selecting advertising agencies Creating advertising messages and setting the advertising budget

Creating advertising messages and selecting advertising media

________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. Customer​ value-based pricing Value-added pricing Cost Cost-based pricing Good-value pricing

Customer value-based pricing

Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships? Public relations Advertising Personal selling Sales promotion Direct and digital marketing

Direct and digital marketing

Which of the following correctly describes the retail practice known as​ high-low pricing? High-low pricing means the retailer does not have to run sales on selected items. High-low pricing means retailers charge an everyday low price. High-low pricing means retailers do not have to use promotions. High-low pricing means some products are priced high and others are priced low. High-low pricing means charging higher prices on an everyday​ basis, coupled with frequent sales and other price promotions.

High-low pricing means charging higher prices on an everyday basis, coupled with frequent sales and other price promotions

Which advertising objective is used heavily when introducing a new product​ category? Reminder Attack Informative Comparative Persuasive

Informative

Which of the following is a shortcoming of advertising? a. It does not allow dramatization of the brand or company. b. It only provides one-way communication with customers. c. It can be too customized and only attracts small, niche markets. d. It reaches targeted customers too slowly in most cases. e. It is the most costly promotion tool for companies.

It only provides one-way communication with customers

Which of the following is true of an intensive distribution strategy? It strives to make products available where and when consumers want them It gives sole rights to select dealers in a given area Compared with other distribution strategies, it provides the best support for dealers of luxury products It discards traditional intermediaries and uses direct marketing to reach customers Compared with other distribution strategies, it uses the least number of intermediaries to sell products

It strives to make products available where and when consumers want them

Which of the following is a reason that producers use marketing channels and channel​ intermediaries? Marketing channel decisions only require a​ short-term commitment. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. Using channel intermediaries increases the number of contacts with customers. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. Using marketing channels allows producers to retain control over how and to whom they sell their products.

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers

Which of the following statements about major retail trends is​ true? Retail convergence has decreased competition for retailers. The green movement has not yet affected retailing. The lifecycle of new retail forms is getting longer. Online buying is growing at a much brisker pace than retail buying as a whole. The global expansion of major retailers into other countries has slowed down.

Online buying is growing at a much brisker pace than retail buying as a whole

Which type of retailer carries a narrow product line with deep assortments within those​ lines? Specialty stores Department stores Supermarkets Convenience stores Superstores

Specialty stores

Which of the following statements about public relations is​ correct? The lines between advertising and public relations are becoming more and more blurred. Trade associations do not use public relations. Public relations is only used to promote products. The impact of public relations on public awareness comes at a much higher cost than advertising. Public relations cannot be used to engage consumers.

The lines between advertising and public relations are becoming more and more blurred

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. Sole sourcing Wholesaling Franchising Showrooming Crowdsourcing

Wholesaling

Margaret 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 the cost of production an indicator of quality a type of segmented pricing an indicator of geographic pricing a limited time offer

an indicator of quality

As with other types of marketers, a primary goal in wholesaling is to ________. a. match competitors' strategies b. establish a greater number of locations c. build value-adding customer relationships d. hold prices constant e. maintain the status quo

build value-adding customer relationships

Which of the following sets the upper limit for a product's pricing? profits product costs consumer perceptions of value elements of the product mix competition

consumer perceptions of value

Owning the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned French sunglasses chain Air Optics into the world's fastest-growing glasses retailer. This is an example of a(n) ________ marketing system. a. contractual vertical b. corporate vertical c. administered vertical d. horizontal e. direct

corporate vertical

The local movie theater has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. a. time-based b. location-based c. customer-segment d. by-product e. product form

customer-segment

Macy's carries several product lineslong dashtypically clothing, home​ furnishings, and household goodslong dashwith each line operating as a separate department managed by specialist buyers or merchandisers.​ Macy's is best described as​ a(n) ________. superstore department store discount store specialty store off-price retaile​r

department store

For over 10 years, Choppy, a publishing and educational company that produces college textbooks, has been selling its books through off-campus bookstores. Recently, it stopped selling its books through retail stores and set up its own Web site to sell its books. This change in channel organization is called ________. a. disintermediation b. intensive distribution c. brokering d. franchising e. selective distribution

disintermediation

Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. segmented pricing psychological pricing cash rebates dynamic pricing promotional pricing

dynamic pricing

Consumers rely less on price to judge the quality of a product when they ________. are unable to research the product are unable to judge the quality of the product have prior experience with the product lack information about the product rely on cues from sellers to differentiate a high or low price

have prior experience with the product

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) __________ corporate vertical marketing system horizontal marketing system contractual vertical marketing system administered vertical marketing system direct marketing system

horizontal marketing system

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? inventory control segmentation logistics information management integrated marketing communications niche market penetration global marketing management

integrated marketing communications

Producers of convenience products typically use​ ______ distribution. franchise direct intensive selective exclusive

intensive

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? market-skimming pricing location-based pricing market-penetration pricing product-form pricing time-based pricing

location-based pricing

The first generation Samsung watch was introduced for $500. The following year the price was reduced to $450. Samsung uses a ________ strategy to price its tech products a. market-skimming b. target costing c. deceptive d. market-penetration e. predatory

market-skimming

When Apple Computer Company introduced its​ iPhone, its priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a​ ___________________ new product pricing​ strategy. ​market-skimming by-product captive-product optional-product market-penetration

market-skimming

Circuit City Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. a. product line b. optional-product c. by-product d. product bundle e. captive-product

product line

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of​ _________ pricing. segmented geographical optional product psychological promotional

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 specialty stores franchises non-retailers Wholesalers

service retailers

Scott and his fiancé visit several electronics stores in and around their hometown of Boston. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. a. warehousing b. wholesaling c. retailing d. franchising e. showrooming

showrooming

The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called​ _______. experiential retailing shopper retailing off-price retailing showrooming. mobile retailing

showrooming

The _______ style of advertising shows ordinary people using a product in a normal setting. slice of life personality symbol mood or image technical expertise testimonial evidence

slice of life

The​ _____________ message execution style shows one or more​ "typical" people using the product in a normal setting. lifestyle fantasy scientific evidence slice of life mood or image

slice of life

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. specialty store department store discount store supermarket off-price retailer

specialty store

The French Purse Company, a purse retailer, offers a deep assortment of ladies' purses. The French Purse Company is best described as a(n) ________. a. department store b. supermarket c. specialty store d. discount store e. off-price retailer

specialty store

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services. a. discount stores b. specialty stores c. factory outlets d. superstores e. off-price outlets

superstores

When setting channel​ objectives, companies should state the objectives in terms of​ ______. the length of the channel targeted levels of customer service exclusive distribution arrangements expected profitability competitor's objectives

targeted levels of customer service

A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of _________ style of advertising testimonial evidence technical expertise fantasy mood or image scientific evidence

testimonial evidence

A firm that uses direct marketing would most likely sell its products through ________. large wholesalers big-box retailers multiple intermediaries the company website one marketing intermediary

the company website

The length of a channel is indicated by​ ___________. the number of wholesalers in the channel the number of final consumers the number of intermediary levels the number of retailers in the channel the number of producers

the number of intermediary levels

One retail trend resulting from economic conditions is​ ________. the rise of megaretailers the growth of social media retailing pop-up stores tighter consumer spending green retailing

tighter consumer spending

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. a. manufacturing chain b. distribution center c. marketing intermediary d. value delivery network e. disintermediation system

value delivery network

A(n) _______ is made up of the​ company, suppliers,​ distributors, and,​ ultimately, customers who​ "partner" with each other to improve the performance of the entire system. marketing channel contact channel level value delivery network supply chain

value delivery network

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. everyday low value-added cost-plus target return high-low

value-added

Costs that change directly with the level of production are referred to as ________ costs. fixed variable payroll capital target

variable

________ advertising would most likely result in attack ads between competitors. a. Reminder b. Comparative c. Personal d. Informative e. Classified

Comparative

Which of the following is a shortcoming of advertising? It only provides one-way communication with customers It reaches targeted customers too slowly in most cases It does not allow dramatization of the brand or company It can be too customized and only attracts small, niche markets It is the most costly promotion tool for companies

It only provides one-way communication with customers

________ advertising is utilized most often by​ mature, well-known brands. Attack Persuasive Informative Reminder Comparative

Reminder

________ refers to the activities involved in selling products or services directly to final consumers for their​ personal, nonbusiness use. Warehousing Manufacturing Shopper marketing Retailing Wholesaling

Retailing

________ is a​ short-term incentive to encourage the purchase or sale of a product or service. Public relations Advertising Direct and digital marketing Sales promotion Personal selling

Sales promotion

_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. Showrooming Internal marketing Shopper marketing Retailing Warehousing

Shopper marketing

Internal factors that affect pricing include​ ________. The​ company's overall marketing​ strategy, objectives and the nature of the market The​ company's overall marketing​ strategy, objectives, and marketing mix The​ company's overall marketing​ strategy, objectives and demand The​ company's overall marketing​ strategy, the nature of the​ market, and demand. The nature of the​ market, demand, and the economy.

The company's overall marketing strategy, objectives, and marketing mix

Which of the following statements regarding the changing communications landscape is​ correct? Marketers today are shifting their efforts to mass marketing. The digital age has had little impact on marketing communications. The dominance of​ television, magazines, newspapers and other traditional mass media is declining. More than​ ever, consumers are relying on marketers for information. In terms of​ communication, today's consumers are less empowered.

The dominance of television, magazines, newspapers, and other traditional mass media is declining

How do firms that use captive-product pricing make up for the low prices of their main products? They reduce the cost of the captive products They provide the captive products as freebies They set high markups on the captive products They offer the captive products and main products together at a reasonable price They increase the price of the main products

They set high markups on the captive products

What is the goal of integrated marketing​ communications? To lower overall marketing expenditures To have different media carry different messages about a brand To integrate communications via online and mobile technologies To deliver​ clear, consistent, and compelling messages about the organization and its brands To maximize return on investment

To deliver clear, consistent, and compelling messages about the organization and its brands

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? Breakeven pricing Cost-plus pricing Value-added pricing High-low pricing EDLP pricing

Value-added pricing

In which of the following situations is a producer guaranteed full control over product sales? an administered marketing system a corporate marketing channel a contractual distribution channel a direct marketing channel a horizontal marketing system

a direct marketing channel

In the promotion​ mix, ________ refers to any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor. public relations advertising crowdsourcing sales promotion personal selling

advertising

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. product line captive-product two-part pricing product-bundle by-product

captive-product

A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. channel level supply chain value delivery network contact marketing channel

channel level

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered _______________. convenience stores full-service retailers designer shops specialty stores discount stores

discount stores

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. disintermediation horizontal marketing systems vertical marketing systems corporate vertical marketing systems intermediation

disintermediation

Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____. vertical conflict disintermediation franchising an administered VMS horizontal conflict

disintermediation

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? a. direct marketing b. exclusive dealing c. disintermediation d. horizontal integration e. vertical integration

exclusive dealing

Carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells is related to​ ________. megaretailing online retailing green retailing social media retailing experiential retailing

experiential retailing

What types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? discount stores off-price retailers convenience stores full-service stores self-service stores

full-service stores

Pretty Petunias, a new fresh flower company, uses the same logo and shade of pink in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Pretty Petunias to promote its business? a. logistics information management b. inventory control segmentation c. niche market penetration d. integrated marketing communications e. global marketing management

integrated marketing communications

Techgear, a sportswear equipment manufacturer, releases a new line of nutrition drinks called NutriJuice. The television ad for the drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink NutriJuice, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the NutriJuice ad? a. scientific evidence b. technical expertise c. personality symbol d. testimonial evidence e. lifestyle

lifestyle

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? ​captive-product pricing ​market-penetration pricing psychological pricing product bundle pricing market-skimming pricing

market-penetration pricing

Maddie's Sneakers, a manufacturer of fine sneakers, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Maddie's Sneakers employ to distribute its products? a. horizontal marketing system b. multichannel distribution system c. administered vertical marketing system d. contractual vertical marketing system e. corporate vertical marketing system

multichannel distribution system

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? geofencing product placement subliminal advertising vertical integration advertainment

product placement

There are more than 15 wheat farmers in Bowling Green, Ohio, that grow, package, and distribute the same quality wheat. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. a. pure competition b. monopolistic competition c. oligopolistic competition d. a pure monopoly e. a black market

pure competition

Act mouthwash has used a ________ style of advertising to convince buyers that Act is better than other brands at fighting bad breath and gingivitis since it uses a special flouride compound that adheres to your teeth. a. testimonial evidence b. technical expertise c. scientific evidence d. mood or image e. fantasy

scientific evidence

Stores that provide very limited, if any, sales assistance because they carry convenience products which customers need very little, to no, information are called ________ retailers. a. self-service b. full-service c. off-price d. limited-service e. convenience

self-service

Which of the following is an impact of the Great Recession on retailing trends? longer retail life cycles tighter consumer spending patterns economic shift toward higher prices prohibition on new retail forms lower costs for retailers

tighter consumer spending patterns

One major objective associated with a​ market-penetration pricing strategy is to​ ________. attract buyers willing to pay a higher price win a large market share skim off small but profitable market segments avoid everyday low pricing prevent customer dissatisfaction

win a large market share