MKT 301 Test 3

What equation shows organizations the relationship between price and profit? a. (Price x Quantity Sold) - Total Costs = Profits b. Price = profit per item x number of units sold c. total costs = (price x quantity sold) - profits d. total variable costs + total fixed costs = sales - profit e. (Price - Profits) x Total Costs = Sales

(Price x Quantity Sold) - Total Costs = Profits

Customers who purchase computer laptops from manufacturer websites are acquiring products through a. the most efficient channel of distribution b. a direct-marketing channel c. the most common type of marketing channel d. a business-to-business channel of distribution e. an indirect-marketing channel

a direct-marketing channel

starbucks has an agreement with pepsi co through which pepsi distributes starbucks coffee drink, frappucino, to grocery stores and other retail outlets. this is an example of a. dual distribution b. horizontal channel integrations c. a strategic channel alliance d. exclusive distribution e. channel leadership

a strategic channel alliance

If conway school furniture company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) _______ modification. a. quality b. feature c. aesthetic d. functional e. image

aesthetic

the three major ways to modify a product include a. color, size, and quantity modifications b. extensions, generations, and upgrades c. styling, product features, and product design d. quality, quantity, and design e. aesthetic, quality, and functional changes

aesthetic, quality, and functional changes

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using _______ to maintain contact with the firms using its products. a. merchants b. brokers c. retailers d. wholesalers. e. agents

agents

Brianna owns and operates a gift and interior store called the gingerbread house. she works hard to put together beautiful arrangements and displays throughout the sore and always features a burning scented candle and light music. she hopes these efforts will encourage her customers to buy more. brianna is focusing on a. scrambled merchandising b. location c. retail positional d. atmospherics e. value-pricing

atmospherics

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a. chewing gum b. hardware c. automobiles d. saltine crackers e. tobacco

automobiles

Karla tells jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking jeff to proceed to which stage of the new-product development process? a. test marketing b. screening c. commercialization d. idea generation e. business analysis

business analysis

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

catalog-marketer

Stacey and evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new genie-vac. they are in the ______ phase of the new-product development process. a. concept testing b. commercialization c. product development d. test marketing e. business analysis

commercialization

when products in an industry are relatively homogeneous and price is a key purchase consideration, a. customary pricing is often used b. competition-based pricing becomes more important c. cost-based methods like markup pricing are dominant d. firms tend to use secondary-market pricing e. demand-based pricing dominates pricing decisions

competition-based pricing becomes more important

questions such as "how often would you buy this product?" and "which features are of little or no interest to you?" are often proposed during a. idea generation b. test marketing c. product development d. screening e. concept testing

concept testing

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a. category killer b. supermarket c. department store d. convenience store e. discount store

convenience store

When a seller's 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. a. differential b. cost-plus c. expensed-based d. markup e. demand-based

cost-plus

Best Buy differentiates its product offerings from its competition with stores like Sam's by offering delivery and installation, financing arrangements, and repairs. Best buy is differentiating through a. product ancillaries b. product features c. company features d. company styling e. customer services

customer services

Off-price retailers feature a. overstocks, designer brands, and moderate prices b. cash only sales and few customer services c. sales expertise, wide selection, and low prices d. deep discounts, few customer services, and central checkbooks e. a narrow product range and enormous product availability

deep discounts, few customer services, and central checkbooks

which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a. warehouse showrooms b. traditional specialty retailers c. department store d. direct marketers e. discount stores

discount stores

del monte markets ketchip for household use to supermarkets through grocery wholesalers. it markets ketchup for institutional use through industrial distributors and food brokers. del monte is using a. supple chain management b. an unethical marketing channel c. strategic channel alliance d. dual distribution e. industrial distribution

dual distribution

All of the following are major steps in developing new products except a. idea generation b. screening c. evaluation of competitor's efforts d. business analysis e. test marketing

evaluation of competitor's efforts

honey farms is a maker of fine chocolates. the company's latest product, fudge-dipped strawberries, is the prepier product in its fudge-dipped line. the product is very expensive and targeted to upscale consumers. which form of distribution would honey farms be likely to use for its new product? a. targeted b. exclusive c. selective d. intensive e. premier

exclusive

The three major levels of intensity at which a company can choose to distribute its products are _________ distribution. a. selective, cooperative, and conflicting b. narrow, medium, and wide c. cooperative, conflicting, and integrated d. intensive, extensive, and exclusive e. exclusive, selective, and intensive

exclusive, selective, and intensive

Which of the following products is most likely to have an inverted C-Shaped demand curve? a. maxwell house coffee b. pillsbury cake mix c. ford taurus d. levi jeans e. giorgio perfume

giorgio perfume

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a. hypermarket b. general merchandise retailer c. super store d. discount store e. department store

hypermarket

Outback Steakhouse wants to expand its line of food products. the manager sends surverys to customer to determine which food items would appeal to them. outback is currently in the ________ phase of new-product development. a. idea generation b. product development c. screening d. test marketing e. business analysis

idea generation

Hair stylists find it challenging to market their services because the customer must be involved in production. This illustrates which of the following unique features of services? a. intangibility b. homogeneity c. inseparability d. heterogeneity e. perishability

inseparability

When busch light beer was introduced as part of the anheuser-busch product line, the company most likely used _______ distribution. a. agent b. selective c. horizontal d. intensive e. exclusive

intensive

For most products, a(n) _______ relationship exists between the price of a particular product and teh quantity demanded. a. positive b. inelastic c. elastic d. unknown e. inverse

inverse

Cocoa-Cola has expanded to Diet Coke, Cheery Coke, and Caffeine-free Coke, to name a few. These are examples of a. product lining b. functional modifications c. product modifications d. aesthetic modifications e. line extensions

line extensions

Jannette Down 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. Which strategic retailing issue is she concerned with at the time? a. retail positioning b. location c. product mix d. production depth e. scrambled merchandising

location

If nabisco had established a pricing objective of selling one out of every three crackers consumer in the world, it would have established an objective based on a. market share b. cash flow c. return on investment d. dollar sales volume e. demand-based pricing dominates pricing decisions

market share

what links producers to consumers through the purchase and reselling of products or contractual agreements? a. distributors b. suppliers c. middle marketers d. marketing channels e. marketing intermediaries

marketing intermediaries

A cost-based pricing method commonly used in retail is called a. cost discounting b. value pricing c. differential pricing d. cost-plus pricing e. markup pricing

markup pricing

safe auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." safe auto is engaging in a. demanding-based pricing b. prestige pricing c. price competition d. non-price competition e. price differentiation

non-price competition

Eliminating a wholesaler from a marketing channel will a. reduce channel conflict b. cut costs and lower prices c. not eliminate the functions performed by that wholesaler d. eliminate the functions performed by that wholesaler e. lead to lower costs but higher prices

not eliminate the functions performed by that wholesaler

if nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should be a. random discounting b. price skimming c. every day low prices d. captive pricing e. penetration pricing

penetration pricing

The face that services cannot be inventoried and then sold at a later date is called a. heterogeneity b. perishability c. inseparability d. nonstorability e. intangibility

perishability

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a. retailer, consumer b. producer, wholesaler, agent, retailer, consumer c. producer, consumer d. producer, wholesaler, retailer, consumer e. producer, retailer, consumer

producer, wholesaler, retailer, consumer

If kraft general foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of ________ manager. a. product b. sales c. area d. brand e. marketing

product

If hewlett-packard provides its customers with a help line for computer questions and problems, it is differentiating itself through a. a help line feature b. product support services c. customer requests d. product features e. support of its level of quality

product support services

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n) a. line extension b. quality modifaction c. functional modification d. aesthetic modification e. material adjustment

quality modification

A shopping center containing a macy's, marshall fields, and jc penney's as well as dozens of specialty shops, retaurants, and entertainment is most likely a a. mall of america b. community shopping center c. regional shopping center d. complete business district e. hypermarket

regional shopping center

Walmart, macys, nordstorms, and toys r us are examples of a. retailers b. agents c. manufacturers d. end-users e. merchant wholesalers

retailers

Which of the following products is most likely to involve personal selling a. riding lawn mowers b. footballs c. blenders d. Fresh peaches e. picture frames

riding lawn mowers

Using only some of the available outlets to distribute a product is called a. selective distribution b. channel conflict c. exclusive distribution d. vertical channel integration e. intensive distribution

selective distribution

When a company adjusts price levels so that it can increase sales volumes to levels that match organization's expenses, it is said to employ a ________ objective. a. return on investment b. cash flow c. market share d. profit e. survival

survival

What do all of the following have in common; tuition, fee, premium, retainer, dues? a. they all must be paid in cash b. they are different terms for the concept of price c. they have nothing in common d. they are forms of exchange similar to, but no identical with, barter e. they are forms of exchange similar to, but no identical with, money

the are different terms for the concept of price

The point at which the costs of producing a product equal the revenue earned from selling the product is a. elasticity of demand b. the breakeven point c. price elasticity d. the sum of fixed variable costs e. variable costs

the breakeven point

having products available when the customer wants them is called a. time utility b. possession utility c. chronavailability d. place utility e. availability

time utility

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

ultimate consumers