Marketing Exam #4
in order to justify direct response marketing a product really needs to be prices above
$20
piggyback, fishyback and birdyback are terms usually associated with gaining efficiency in shipping through
containerization
assume a retailer purchases a can of premium dog food at 2.25 and adds 75 cents to the cost, making the price 3 dollars. what is the markup as a percentage of selling price?
25%
with respect to retailing what is the party plan
a consumer acts as a host and invites friends to view merchandise in a group setting where a salesperson demonstrates the products
what is a primary difference between an industrial distributor and a manufacturers agent
a manufacturers agent does not acquire title nor usually take possession of the products whereas an industrial distributor does
if albertsons market advertises 2 liter bottles of Coke for 89 cents to generate store traffic so that shoppers will purchase other items at regular prices the grocer is using
a price leader
Cassy and James both are buying new iPhones this week. Cassy goes to the Apple store because she wants to actually see the phone before she makes a final decision. James knows that he does not need to see the phone, because he just wants an upgrade from his older version. He simply orders it online from apple.com. Cassy is purchasing her phone through _____, while James is purchasing his through _____.
a retailer; a direct marketing channel
if other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is ___ from booth an ethical and a social responsibility perspective
acceptable
an ethical issue is
an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.
be profitable
which of the following pricing strategies sets the basic product in a product line low but the price on the items required to operate or enhance it are higher
captive pricing
which of the following pricing objectives sets prices to recover cash as quickly as possible
cash flow
michaels, pet smart and staples are all examples of
category killers
Ann is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on consumers to determine how much of different competing products she should order for her store and how much shelf space to give to each of the competing brands. Ann is working on
category management
the most popular type of vertical marketing system is the
contractual VMS
what are two common distribution related ethical issues
counterfeiting and channel stuffing
ethics relates to individual and group decisions whereas social responsibility _____
deals with the total effect of marketing decisions on society
if a product is priced based on how many or few people want it at a particular time and place ____ pricing is being used
demand based
During the hot, humid months of July and August, Pinewood Links Golf Course, located in Georgia, 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
demand based pricing
Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates _____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as _____.
demand based; differential pricing
there will be significant ethical diversity in any one organization because of
different levels of personal ethics
the fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing
differential
which of the following is not a form of direct marketing
direct selling
which of the following is the most expensive form of retailing
direct selling
which of the following does not take possession of the merchandise
drop shippers
which of the following wholesalers never take actual possession of the goods
drop shippers
that marketers have an obligation to engage in fair competition and build proper customer relationships best relates to which of the following
economic
according to your text a well implemented ___ and a strong ____ result in the greatest decrease in ethical risks for an organization.
ethics program; corporate culture
kara operates a service business that engages in systematically collecting data on brands and prices at competitors stores. for which stage of the price establishment process would this service be most appropriate
evaluating competitors prices
suppose that faust distributing has been told that it cannot carry the beers made by anhheuser-Busch because it also carries the products of the competitor, Miller Brewing Company. Faust is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?
exclusive dealing
Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) ____ in a distribution channel.
industrial distributor
when bud light orange beer was introduced as part of the anheuser busch product line the company most likely used ___ distribution
intensive
which of the following levels or market coverage is most appropriate for products that have a high replacement rate, require almost no service and are bought based on price cues
intensive distribution
____ involves developing and maintaining adequate assortments of products to meet customers needs
inventory management
vertical channel integration
is made possible by purchasing the operations of a channel member
eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesalers
in the absence of ethics and compliance programs, employees will generally make decisions based primarily on their ____
observations of how coworkers and superiors behave
which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater
product quality
all of the following are types of limited service merchant wholesalers except
specialty line wholesalers
which of the following promises consumers fair treatment when they complain to marketers about products
the right to be heard
multichannel distribution is characterized as
the use of a variety of marketing channels to ensure maximum distribution
which of the following is an advantage of using an industrial distributor
they help reduce a producers financial burdens by extending credit to customers
which of the following do codes of ethics NOT do
they take every situation into account
____ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.
codes of conduct
self service general merchandise stores such as kmart are known as
discount stores
Which of the following is wonder by the producer
sales offices
Research suggests that a relationship exists between ______ and an organizational climate that supports marketing ethics and social responsibility.
a stakeholder orientation
when a single channel member manages an integrated marketing channel to achieve low cost effective distribution for satisfying target markets ____ exists
a vertical marketing system
_____________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated.
codes of conduct
The Federal Trade Commission has established guidelines for _______. If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period.
comparison discounting
which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration
competition based pricing
according to the consumer bill of rights the right to be informed means that
consumers should have access to and the opportunity to review all relevant information about a product before buying it
At his new job, Kunal notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Kunal has made several observations about the
corporate culture
when determining markup as a percentage of cost, divide the markup amount by
cost
when a sellers costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price an organization is using ___ pricing
cost plus
in any one large metropolitan area there is usually just one ferrari luxury sports car dealer. this best illustrates _____
exclusive distribution
companies that sell products with high profit margins are more likely to use ____. companies selling products whose sales are directly related to product availability will most likely use ____
exclusive distribution; intensive distribution
which of the following is a fraction of the size of conventional discount stores and typically offer very low prices on smaller size name brand non perishable household items
extreme value stores
in the absence of government controls, pricing is a ____ and ____ way to adjust the marketing mix
flexible; convenient
one way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability?
focusing primarily on the external environment of the company
distribution related ethical issues arise when marketers
force channel intermediaries to behave in a specific manner
which of the following is NOT an advantage of franchising
franchises must pay to use the franchisers name products and assistance
Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.
full service merchant
customers rely on ____ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance and suitable assortments
full service wholesalers
which of the following perform the widest range of wholesaling functions
full service wholesalers
research into marketing ethics suggests that the ___ associated with an issue the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision
greater the consequences
an ethical issue in the area of promotion is ____ which occurs when products are promoted as being more environmentally friendly than they really are
greenwashing
when a producer wholesaler or retailer has the ability to influence another channel members goal achievement it _____
has channel power
if petsmart began to acquire very successful local pet stores this would be an example of ____
horizontal integration
Betty Vinson worked in accounting at WorldCom. When her bosses first approached her and asked her to make questionable accounting transactions, she balked. She knew from her training that these questionable transactions could be construed as misleading. At first, Betty Vinson held firm. But after being told by her bosses that it was the only way to save the firm's finances, she decided to comply. This is an example of
how organizational variables influence ethical decision making
companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
improved marketing performance
dell computer and harley davidson are well known for their use of the just in time (JIT) approach. To which of the following physical distribution activities does the JIT approach belong
inventory management
because of the significant investment many companies have in the products they sell to customers they must develop and maintain adequate varieties of products to meet their customers needs. this is called
inventory mangement
a product is a price leader when
it is sold at less than cost in the hope that sale of other products will increase
which of the following statements about implementing an ethics and legal compliance program is false
it rarely needs to be revised
ethical choices in marketing are most often made
jointly
adidas is establishing a ____ pricing objective to maintain or increase its products sales in relation to total industry sales
market share
ACME has a pricing objective to increase its primary products sales relative to total industry sales. this is best described as
market share objective
ACME Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes _______.
marketing citizenship
which of the following bases for pricing is most commonly used by retailers
markup pricing
when retailers use multiple distribution channels to complement their stores with catalogs, apps or websites the are using
multi channel retailing
the use of a variety of marketing channels to ensure maximum distribution is best called ____
multichannel distribution
Online retailing satisfies an increasing expectation among consumers to have ______ to obtain the goods and services they desire at their convenience.
multiple channels available
bram is planning a distribution strategy for his business. he is considering using direct marketing, direct selling and vending, which are all examples of ___ retailing
nonstore
At lunchtime, Gwyn uses an app on her phone to select and pay for items from Target. After work, she drives to a nearby Target store, where an employee loads the items into her car. This best illustrates
online retailing
____ is a rapidly growing segment that most retailers now view as vital to their business
online retailing
____ satisfy an increasing expectation among customers to have multiple channels available to obtain the goods and services they desire at their convenience
online retailing
cleveland accesses overstock.com's site on the internet and purchases a business laptop case this is an example of
online retailing
which of the following is often a better predictor of unethical activities than are personal values
opportunities
ACME is striving to foster a set of ethical values, beliefs goals norms and rituals that members of an organization share. this is best described as ____
organizational culture
all of the following are pricing strategies used by companies establishing prices of multiple products within a product line except
penetration pricing
if Kashi wants to gain a large market share quickly with its new line of reduced fat snack crackers it should use
penetration pricing
chevrolets presidents day sales are an example of
periodic discounting
A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.
philanthropic
assuming everything else is equal the most cost efficient way for conocophillips to transport crude oil from remote oil drilling sites in central alaska to shipping terminals on the alaskan coast would be
pipelines
which of the following pricing strategies often results in a retailer losing money on the product
price leader
when TI first introduced its line of graphing calculators it sets the price quite high; it has lowered the price as competitors have entered the market. the pricing strategy initially used by TI is called
price skimming
which pricing strategy provides the most flexible introductory base price
price skimming
reference pricing is
pricing a product at a moderate level and positioning it next to a more expensive model or brand
which of the following involves the processes to obtain resources to create value through sourcing, purchasing and recycling including materials and information
procurement
when you buy a new backpack from LLBean which of the following consumer marketing channels are you using
producer to consumer
which of the following business marketing channels is most likely to be used
producer to customer
services that are performed by lawyers, dentists or doctors are typically priced using ____ sometimes these prices are not based on the amount of time that is spent in each situation but are based on a flat fee regardless of the difficulty involved
professional pricing
which of the following product line pricing strategies is NOT generally used for business products?
psychological pricing
tesco is a large U.K. supermarket. The firm's supply chain operates using a number of _______ to receive, store, and redistribute its many goods. Two of these facilities are used for frozen food. Many of the facilities are designed for the rapid flow of food products. They use automation such as forklifts and hoists to collect and move products to loading docks.
public warehouses
kendall sells almay cosmetics on consignment to grocery stores, maintains the display rachs and restocks when necessary. Kendalls job is best described as a
rack jobber
Anjali Ravi and Sofia Similpa are starting a business where they own and stock display racks in supermarkets, discount, and drugstores with current magazines. Ravi and Similpa's business would best be described as _______.
rack jobbers
___ is pricing a product at a moderate level and positioning it next to a more expensive model or brand
reference pricing
which of the following is often favored by intermediaries
restricted sales territories
Jo operates an upscale shop that does both pet grooming and human manicures and pedicures. She is targeting a market segment of people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Jo appear to have addressed?
retail positioning
which of the following involves identifying an unserved or undeserved market segment and reaching it through a strategy that distinguishes the retailer from others in the minds of customers in the market segment
retail positioning
when jennifer buys organic produce for her household using a channel with just one intermediary that intermediary is classified as a
retailer
for which of the following products would exclusive distribution be most appropriatee
rolls royce cars
product testing for reliability and quality helps to ensure a consumers right to
safety
which of the following levels or market coverage is desirable when a special effort such as customer service from a channel member is important to customers
selective distribution
Fahad works for a company that markets all of Celextron's products. Fahad's company acts as the marketing department for Celextron, performing all marketing functions without actually taking title to the goods. Fahad's company is a
selling agent
a channel member that markets all of a manufacturers goods has authority over price, promotion and distribution but does not take title to the product is a
selling agent
If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's
social responsibility
euan is planning three sales during the third quarter of the year at party city. the first is at a week before easter the second is the week before halloween and the third is black friday. these sales would be considered
special event pricing
which of the following offer the narrowest range of products
specialty line wolesalers
a store that offers a wide variety of shoes for men, women and children would most likely be considered a
specialty retailer
maintaining a certain market share meeting competitors prices, maintaining a favorable image and achieving price stability are all associated with a ____ pricing objective
status quo
which of the following pricing objectives can reduce a firms risks by helping them stabilize demand for its products
status quo
which pricing objective de emphasizes price and can lead to a climate of nonprice competition in an industry
status quo
safeway and supervalu are all considered
supermarkets
which of the following integrates the functions of operations management logistics management procurement and marketing channel management so that products are produced and distributed in the right quantities to the right locations and at the right times
supply chain management
which of the following is the potential for the long term well being of the natural environment including all biological as well as the interaction among nature and individuals organizations and business strategies
sustainabilit
Which of the following has become increasingly unpopular and less appealing?
telemarketing
the notion of logistics is
the activities used to move products from producers to end users
when an ethical issue arises in the supply chain which of the following is most likely to be held accountable for misconduct
the channel member managing the product
supply chain management should begin with a focus on ____
the customer
consumerism is
the efforts of independent individuals groups and organizations to protect the rights of consumers
a price skimming strategy assumes that
the initial demand is highly inelatic
Ecover, a manufacturer of personal care and beauty products, has a focus on sustainability. It has developed eco-packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to reduce waste. What major social responsibility issue is Ecover addressing?
the natural environment
which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management and information technology and can often perform these activities more efficiently
third party logistics firms
the main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to
tighten its control over distribution of its products
Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates____
time utility
jacks girlfriend tells him she wants a cashmere sweater for christmas. jack goes to a store that provides the best possible selection of sweaters. his best choice would be to shop at a ____
traditional specialty
Phydeaux and Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally owned store is best classified as a(n) _______
traditional specialty retailer
what type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection
truck wholesalers
when products are presented to tv viewers who can purchase them by calling a toll free number and paying with a credit card ____ is being used
tv home shopping
Supplies may use ____ to get rid of slow moving inventory, while a franchiser may use them to maintain quality control and protect the franchisers reputation
tying agreements
In response to organizational pressure to perform, Bao used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Bao will most likely
use the similar sales tactic again
smal standardized routinely purchased items are best suited for distribution through
vending
disney sells apparel, cookie jars, puzzles, photo albums and other items featuring its popular characters directly through its own retail outlets. this is an example of
vertical channel integration
which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates
warehousing
a channel that includes both a manufacturers agent and an industrial distributor is appropriate under which of the following circumstances
when the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
firefly space shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors prices or environmental conditions. this is best described as ___-
yield management
which of the following should be accomplished after developing pricing objectives
assessing the target markets evaluation of price
when malcom reynolds walks into his local h&m store he gets a message on his smartphone announcing that t shirts in the store are 25% off today. this illustrates the use of ____
beacons
all of the following are general merchandise retailers except
category killers
which of the following price bases is mostly likely to be used for commercial construction projects or custom made equipment
cost plus pricing
when produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers it is likely to
create channel conflict between Dole and these wholesalers
the key to success in retailing is to have a strong ____ with a retail strategy that provides the level of service, product quality, and innovation that consumers desire
customer focus
The driving force behind marketing channel decisions should be
customer satisfaction
a goal of logistics is to reduce ___ or how long it takes to complete a process
cycle time
Nordstrom macys and JCpenny are all considered
department stores
