MKTG 3650 Ch. 16, MKTG 3650 CH. 14 Practice Exam, UNT thompson marketing exam 3 chap. 15-16, MKTG 3650 Ch. 11-13
Wal-Mart, because of its sheer size and market position is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS.
Administered
Wal-Mart, because of its sheer size and market position, is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS. Administered Corporate Retailer Cooperative Voluntary Chain Contractual
Administered
Channel captains are associated with which type of channel structure?
Administered VMS
Channel captains are associated with which type of channel structure? Administered VMS Coporate VMS Contractual VMS Voluntary chain Franchise
Administered VMS
General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n):
Administered VMS
When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using Prestige pricing Price lining Captive product pricing Bundled pricing Bait pricing
Captive product pricing
Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met.
All you can afford
Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met.
All-You-Can-Afford
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All-you-can afford method
The method of advertising budgeting in which the budget is set based on how much money is left after covering all other expenses is the ____________ .
All-you-can afford method (correct)
Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met.
All-you-can-afford
Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate?
Allocating
Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amounts to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? Accumulating Allocating Sorting Assorting Grading
Allocating
Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function?
Allocating
The internal and external physical characteristics of stores that shape the retail store's image are referred to as:
Atmospherics
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Average available selling time in hours per sales person per period.
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Average length of each sales call (in hours)
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Average number of required visits per customer per period
A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties.
Broker
The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The Talapia producers should use a:
Broker
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Building excitement for new product launches.
Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using
Bundled pricing
Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using Flexible pricing Bait pricing Prestige pricing Bundled pricing Promotional pricing
Bundled pricing
When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using
Captive product pricing
For which of the following products is exclusive distribution most likely?
Cartier watches
For which of the following products is exclusive distribution most likely? Cartier watches Intel micro-processors Chevrolet Camaros Polo sportswear Channel perfume
Cartier watches
Retailers such as Walmart that sell both online and from fixed store-fronts are called ______.
Click and mortar retailers (correct)
Companies such as Amazon that sell only via the Internet and mobile devices are referred to as __________.
Click-only (correct)
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Click-only (correct)
The most common method of sales force compensation is:
Combination programs that include both salary and commission or bonus incentives (correct)
Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ .
Discount stores
provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers.
Discount stores
When BMW airs advertising that emphasizes the performance, driving enjoyment, and style of its M4 they are employing _____________ .
Emotional appeals
____________ attempt to elicit affective or emotional responses from target audiences using humor, fear, and sex.
Emotional appeals
____________ are employed in advertising to create a positive mood or image surrounding the product and its use. Usually there is no attempt to link the brand to any specific benefits or features.
Emotional appeals (correct)
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Emotional appeals (correct)
All of the following are important components of IMC except ___________.
Emphasis is placed on using cutting-edge digital media
All of the following are important components of IMC except ___________.
Emphasis is placed on using cutting-edge digital media.
A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers?
Employing an agent to handle sales to other intermediaries
A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? A direct channel to consumer, with sales via the internet Selling to wholesalers who, in turn, sell to furniture retailers Employing an agent to handle sales to other intermediaries Selling directly to large scale retailers of custom furniture.
Employing an agent to handle sales to other intermediaries
Noncumulative quantity discounts are primarily offered by a seller in order to:
Encourage larger individual orders.
Noncumulative quantity discounts are primarily offered by a seller in order to: Encourage the buyer to make all of his or her purchases from this seller over an extended period of time. Avoid having to offer promotional allowances. Give preferential treatment to certain customers. Encourage larger individual orders. Comply with the Robinson-Patman Act.
Encourage larger individual orders.
The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used?
Exclusive
Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use?
FOB Plant pricing
With which geographic pricing strategy is the seller likely to have the lowest freight charge?
FOB mill pricing
With which geographic pricing strategy is the seller likely to have the lowest freight charge? Freight absorption pricing FOB mill pricing Uniform delivered pricing Geographic pricing Zone-delivered pricing
FOB mill pricing
Even when production stops (i.e. no units produced), the firm still generally incurs some _________. Variable production costs Marginal costs Psychological costs Fixed production costs Total values costs
Fixed production costs
The most sever remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ .
Fines
The most severe remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ .
Fines.
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Flighting
The least expensive form of media scheduling for seasonal products is __________ media schedule.
Flighting (correct)
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Flighting (correct)
Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likelyl to be accused of ____________ .
Horizontal price fixing
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Good publicity can be used to replace most other communications tools employed by firms
Wholesaling intermediary
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ . Retailing intermediary Wholesaling intermediary Facilitating agent Broker Manufacturer's agent
Wholesaleing
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________. Retailing Wholesaleing Channel management Logistics Distribution management
Factory outlet mall
Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________. Neighborhood center Community center Regional center Power center Factory outlet mall
Which of the following is a distinct advantage of the smaller indepdent retailer over its coporate chain store competitors?
Greater flexibility in operational decision-making at the individual store level
Which of the following is not an advantage of coporate chain stores over smaller independent retailers?
Greater flexibility in operational decision-making at the individual store level
Which of the following is not an advantage of corporate chain stores over smaller independent retailers?
Greater flexibility in operational decision-making at the individual store level
Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage.
Growth
During the ____________ stage of the PLC, advertising objectives shift to communicating brand superiority by promoting the brand's differentiating characteristics relative to competing brands.
Growth
Informative messages are generally more appropriate during which stages of the PLC?
Growth and maturity
Even when production stops (i.e. no units produced), the firm still generally incurs some _________.
Fixed production costs
'Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process? 1. Commercialization. 2. Idea generation. 3. Test market. 4. Idea screening. 5. Prototype development.
Idea screening
The first step in the advertising process is to ___________ .
Identify the target audience (correct)
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Immediate market access when penetrating new markets
Sales promotions, such as coupons and free samples, are employed to induce trial primarily in the ______ stage of the PLC.
Introduction
Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced:
Inverse demand
Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced: Profit programming Expected price effects Inverse demand The law of demand None of the above
Inverse demand
Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category. 1. Late majority. 2. Early majority. 3. laggards. 4. Innovators 5. Early adopters
Laggards
Which of the following is not a federal law that regulates aspects of supply chain relationships?
Lanham Trademark Act.
Power centers
Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typically located in ____________. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls
Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians.
Materials Management
When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market.
Market penetration
When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market. Market-skimming Market absorption Market penetration Cost-plus Value-set
Market penetration
The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy.
Market-skimming
The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy. Cost-plus Market-skimming Market-absorption Marginal cost Market-penetration
Market-skimming
Party plan selling
Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all expemplify which form of direct selling? Party plan selling Door-to-door sellilng In-home selling Sponsored selling Group selling
The supply chain function in which buyers and sellers are brought together to perform exchanges is:
Matching
The supply chain function in which buyers and sellers are brought together to perform exhanges is: Allocating Assorting Accumulating Matching Batching
Matching
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Order getter (correct)
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Order getters
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Order getters (correct)
Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all expemplify which form of direct selling?
Party plan selling
____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work.
Party plan selling
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Percent of sales method
The easiest to use and most frequently employed method of advertising budgeting is the ________ .
Percent of sales method (correct)
With ___________ IMC budgeting, the magnitude of sales determines the size of the budget, rather than promotion driving sales.
Percentage of Sales and All-You-Can Afford
With the ____________ of IMC budgeting, the total budget will decline when sales decline and increase as sales go up.
Percentage of Sales and All-You-Can Afford
ABC corporation expects sales of $1,500,000 for next year and the promotion budget is limited to 5% of sales, the total promotion budget will be $75,000. ABC has employed the ______ method of budgeting.
Percentage of sales
With __________ the IMC budget is set at some fixed percentage of the previous year's sales or next year's forecasted sales.
Percentage of sales
Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale:
Periodic discounting
Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale: Random discounting Second market discounting Periodic discounting Deep discounting None of the above
Periodic discounting
The communication process inherent in _____________ is useful for ascertaining the customer's wants and needs, imparting customized information to customers about products or services, and for developing customer relationships, even if the contact does not immediately result in a "sale."
Personal selling
When promotion messages are complex or when product benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate.
Personal selling
When promotion messages are complex or when products benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate.
Personal selling
________ is the most important form of promotion for most industrial goods, particularly installations and major equipment, where product customization and demonstration are often essential.
Personal selling
_____________ is an oral, one-on-one, often face-to-face communication between prospective buyers and sellers.
Personal selling
______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the Firm.
Personal selling
______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the firm.
Personal selling
_______ is the most influential component of the promotion mix and the only component that can effectively make the sale.
Personal selling (correct)
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Personal selling. (correct)
Communications designed to convince consumers that a brand is the best solution to their purchasing problem are called ____________ communications.
Persuasive
Incentives, such as coupons, rebates, and other forms of sales promotion are best classified as _______ communications.
Persuasive
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Persuasive advertising
___________ is used during growth and maturity stages of the PLC to differentiate the firm's brand from competitors' brands.
Persuasive advertising (correct)
The physical movement of finished goods from producers to middlemen and, eventually, to consumers is:
Physical distribution
____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores.
Power centers
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Power of Promotion
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Power of Purchase.
A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described?
Prestige pricing
A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described? Prestige pricing Average cost-pricing Bait pricing Penetration pricing Experience curve pricing
Prestige pricing
A penetration pricing strategy is most likely to be used when pricing objectives focus on:
Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.
A penetration pricing strategy is most likely to be used when pricing objectives focus on: Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins. Manipulating consumers' psychological impressions of price as an indicator of product quality or status. Maximizing profits on a per unit basis. Pricing at the same level as competitors to avoid potential price wars Penetration pricing cannot be used in any of the situations suggested above.
Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.
________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more.
Price
________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more. Price Value Exchange Utility Barter
Price
_________ is the only marketing mix element that generates revenue for the firm.
Price
_________ is the only marketing mix element that generates revenue for the firm. Promotion Product Distribution Price All of the above yield substantial revenue for the firm.
Price
__________ is a measure of the utility that exists or is perceived to exist in a product.
Price
__________ is a measure of the utility that exists or is perceived to exist in a product. Price Value Exchange Utility Barter
Price
__________ is the amount of money or other form of remuneration that is charged for products or services.
Price
__________ is the amount of money or other form of remuneration that is charged for products or services. Price Value Exchange Utility Barter
Price
In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives.
Price Strategies
In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program.
Price objectives
In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above
Price objectives
Which distribution channel is the manufacturer of small fireproof safes for businesses most likely to use?
Producer to industrial distributor to user
Which distribution channel is the manufacturer of small fireproof safes for businesses most likely to use? Producer to user Producer to industrial distributor to user Producer to agent to user Agent to industrial distributor to user None of the above
Producer to industrial distributor to user
The most common channel of distribution for consumer goods is _______ .
Producer à Wholesaler à Retailer à Consumer
The most common channel of distribution for consumer goods is _______ .
Producer → Wholesaler → Retailer → Consumer
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Product advertising
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Product-based sales force organizations
___________ are more appropriate when specialized skills, knowledge, and experience are needed to sell specific products.
Product-based sales force organizations (correct)
Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________.
Retailing intermediary
For which of the following products is selective distribution most likely?
Revlon cosmetics
For which of the following products is selective distribution most likely? Revlon cosmetics Gillette razor blades Bic Pens Rolex watches Old Spice men's cologne
Revlon cosmetics
Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point. $13,000 $13,100 $13,200 $13,300 $13,400
$13,100
Rocky Mountain Gift Products sold its products through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountian Gifts Products receive on the sale of this product? (Select the closest answer) 12.00 $13.00 $14.00 $15.00 $16.00
$15.00
A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer) $214 $215 $216 $217 $218
$214
Product usage tests are commonly employed during new product development because they provide knowledge concerning (select all that apply): 1. Customers' reactions to anticipated market promotions and other forms of communication. 2. Customers' reactions to anticipated prices and marketing communications. 3. Ability of the product to deliver the benefits envisioned by the maker. 4. How the product can be abused. 5. The basic functionality of the product -- will it work as envisioned?
3, 4, and 5
Given the following data, find the break-even point in units: TFC = $1,500,000 per year; price = $.79; AVC = $.39. (Select the closest answer). 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000
3,750,000
The Gulfport Cycle Shop bought two motorcycles for a total of $2,000 and sold each one for $1,500. The markup percent(based on selling price)was closest to: 30% 43% 50% 53% 55%
30%
DrainKing produces an excellent professional drain-cleaning machine sold to plumbing businesses. The total variable costs for making each unit are $325.00. DrainKing's average selling price for the unit is $750.00. DrainKing's fixed costs of production and sales are $4,500 per month. If DrainKing desires $10,000 in profit each month, how many units must it sell each month? (Select the closest answer) 30 32 34 36 38
34
Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit). 450,000 units 300,000 units 60 units 750,000 units none of the above
450,000 units
Consider the following data: TFC = $1,500,000 per year, price = $.79; AVC = $.39. What is the Contribution Margin? (Select the closest anwswer) 39% 49% 59% 69% 79%
49%
Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers.
vertical supply chain conflict
____________ is most likely to arise when manufacturers attempt to bypass with wholesalers or retialers and sell direct to consumers.
vertical supply chain conflict
_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing.
warehouse clubs
In addition to regulating discriminatory pricing activities, the ___________ also limits firms' use of promotional allowances as they attempt to incentivize middlemen.
Robinson-Patman Act
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Route salespersons
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Slice-of-life advertising
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Slice-of-life appeals
The perceived believability, expertise, and trustworthiness of the message source can be important for assuring acceptance of the message and is called __________ .
Source credibility
Family and friends typically score high on those factors that contribute to source credibility except:
Source expertise
The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.
TRUE
The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program. TRUE FALSE
TRUE
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TV sales.
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Target audience (correct)
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Target market
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Target message
Which of the following is not a weakness of advertising in magazines?
The ability to precisely target certain demographics and geographics (correct)
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The ability to precisely target certain demographics and geographics.
When setting prices, the price floor is usually defined by ______ of producing and marketing the product.
The average total costs
When setting prices, the price floor is usually defined by ______ of producing and marketing the product. The total costs The total fixed costs The average variable costs The average total costs None of the above
The average total costs
When a seller offers a cash discount with terms of 3/10, n/60, this means:
The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.
_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product.
Value
_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product. Price Value Exchange Utility Barter
Value
Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of:
Variable costs
Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of: Marginal costs Break even points Variable costs Fixed costs Average costs
Variable costs
When production stops (i.e. no units produced), _________becomes zero.
Variable costs of production
When production stops (i.e. no units produced), _________becomes zero. Variable costs of production Marginal costs Total costs Fixed production costs Total fixed costs
Variable costs of production
Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing?
Vending
Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage.
growth
During the ____________ stage of the PLC, advertising objectives shift to communicating brand superiority by promoting the brand's differentiating characteristics relative to competing brands.
growth
Toys "R" Us employed its purchasing power with toy producers Mattel and Hasbro to coerce them into not selling to competing retailers such as Costco and Sam's Club. Toys "R" Us actions resulted in ___________ .
horizontal channel conflict
Which of the following is being used when a manufacturers engages in "full-line forcing."
tying contracts
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Hight quality reproduction of ads (high quality paper and print).
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Home
On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer). $225 $235 $245 $255 $265
$255
A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer) $32.00 $48.00 $36.00 $24.50 $40.00
$36.00
The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. The company sells 20,000 maps and just breaks even. What is the map's selling price? (Select the closest answer). $3.75 $4.00 $4.25 $4.50 $4.75
$4.25
A manufacturer sells a product for $35 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 20%. The retailer prices the item to consumers to include a 30% markup (also based on selling price). What is the selling price to the consumer? (Select the closest answer) $60.00 $63.00 $66.00 $69.00 $71.00
$63.00
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10). $10.13 $10.35 $9.11 $9.42 None of the above is within the specified boundaries.
$9.11
Blue Ridge Knives wants to set its selling price on a custom knife so that the retail list price will be $150--taking into account markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Knives sell the item to wholesalers? (Select the closest answer). $80.00 $85.00 $90.00 $95.00 $100.00
$95.00
Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the Unit Contribution? (Select the closest answer) .39 .49 .59 .69 .79
.39
Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The total variable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. The company charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units. 1,200 1,300 1,400 1,500 1,600
1,300
Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 5% 10% 15% 20% 25%
10%
The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit). 10 11 12 13 14
11
Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed. 72 14 18 36 22
14
Selling agent
A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. Selling agent Manufacturers' agent Drop shipper Broker Commission merchant
Broker
A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties. Selling agent Manufacturers' agent Drop shipper Broker Commission merchant
For which of the following products would a retailer be LEAST likely to use odd pricing?
A designer evening dress
For which of the following products would a retailer be LEAST likely to use odd pricing? Chewing gum A designer evening dress Lean Cuisine diet meals Reams of computer paper Bic cigarette lighters
A designer evening dress
Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website?
A direct channel to consumers
Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website? A direct channel to consumers Producer to retailer to consumer Producer to agent to retailer to consumer Producer to wholesaler to retailer to consumer Producer to agent to wholesaler to retailer to consumer
A direct channel to consumers
In a corporate vertical marketing system,
A firm at one level of the channel owns the firms at the next level or owns the entire channel.
In a corporate vertical marketing system, A firm at one level of the channel owns the firms at the next level or owns the entire channel. Distribution activities are coordinated by an agent. Promotion and distribution are controlled by the strongest channel member. Independent firms operate under contracts which specify how distribution and promotion will be handled. None of the above is true.
A firm at one level of the channel owns the firms at the next level or owns the entire channel.
Specialty (limited line) wholesaler
A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a: Broker Specialty (limited line) wholesaler Truck distributor Manufacturers' agent General merchandise wholesaler
Rack jobber
A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain could use a: Cash-and-carry wholesaler Specialty wholesaler Rack jobber Manufacturers' agent Broker
Which of the following retailers is most likely to be a member of a retailer cooperative?
A hardware store
Which of the following retailers is most likely to be a member of a retailer cooperative? A hardware store A toy store A video rental store A gourmet store featuring Thai cuisine A fruit and vegetable stand
A hardware store
Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy?
A large, highly price-elastic market exists for the product
Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy? A large, highly price-elastic market exists for the product The product is protected by patents The product is associated with a high capital investment serving as a 'barrier to competitive entry' Strong brand preferences exist due to the product's unique characteristics Producer has control over a critical material needed for production of the product
A large, highly price-elastic market exists for the product
With respect to sales force performance evaluation, which of the following is not correct concerning the metric "percent quota obtained?"
A low number (<60%) suggests that reps are expending sufficient selling effort. (correct)
Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY:
A merchant wholesaler
When large-scale retailers, such as Walmart and Target, vie with one another for sales and market share, they are engaging in ____________.
A mild form of horizontal channel conflict.
Rack jobber
A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a: Cash-and-carry wholesaler Specialty wholesaler Rack jobber Manufacturers' agent Broker
The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.
A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program? The company should use sales branches everywhere, since it will cost more to use manufacturers' agents. The company will probably have to rely only on manufacturers' agents, since they will only be willing to take the widely scattered markets if they can have the good territories too. The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches. The company should use manufacturers' agents in the best territories and sales branches in the others, since good agents won't work the smaller territories. All of the above are good alternatives..
External Atmospherics
A retail store's __________ include building architecture and storefront, parking, landscaping,surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store. External Atmospherics Exterior personality Exterior position Exterior brand image
Internal atmospherics
A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores. Internal atmospherics Internal personality Interior position Interior brand image
Which of the following retailers is most likely to be a member of a voluntary chain?
A supermarket
Which of the following retailers is most likely to be a member of a voluntary chain? A supermarket A toy store A video rental store A gourmet store featuring Thai cuisine A fruit and vegetable stand
A supermarket
Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods?
A truck jobber
Which of the following is the key characteristic of IMC?
A unified message is delivered to all stakeholders. Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders. All of the above are important. (correct)
Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product?
A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon
Joanna is the buyer for a local privately-owned convenience store. She places frequent orders from a local truck distributor that delivers fresh product on a daily basis. Joanna particularly likes doing business with this distributor since he offers substantial discounts at the end of each quarter based on the amount of product purchased that quarter. Evidently, the distributor is employing a: a Cumulative quantity discount program b Seasonal discount program c Non-cumulative discount program d Cash discount program e Promotional pricing program.
A. Cumulative quantity discount program
When pricing objectives center around generating sales volume, strategies that focus on low prices are appropriate. Demand is assumed to be price elastic. a Demand generation b Premium pricing c Product line pricing d Competitive pricing.
A. Demand generation
The form of F.O.B. pricing in which the buyer fundamentally pays all shipping and handling costs is: a F.O.B. Mill b F.O.B. Destination c F.O.B. Point of Origin d F.O.B. City Limits e F.O.B. Basing Point
A. F.O.B. Mill
When employing life cycle pricing for industrial products, the which of the following costs to the buyer are not considered? a Marginal costs b Post-purchase costs c The final sales price. d Start-up costs
A. Marginal costs
The price for a gallon of 2% milk costs Kroger's $1.20 and Kroger's wants a 50% mark-up. The resulting selling price to Kroger shoppers is $1.20 + .5($1.20)=$1.80. This is an example of __ pricing. a Mark-up based on cost b Mark-up based on selling price c Value d Break-even pricing
A. Mark-up based on cost
Blue Diamond is a __ in which almond growers have established their own wholesaling and distribution system. a Producer's Coop b Retailer's Coop c Specialty wholesaler d Truck distributor.
A. Producer's Coop
In general, there is a larger change in profits associated with a $1.00 reduction in costs than for the same $1.00 increase in revenue. This phenomenon is referred to as: a Profit leverage of costs b Profit leverage of revenue c Profit elasticity of costs d Price elasticity of demand e Who knows?
A. Profit leverage of costs
Lee Gabriel Distributors, based on Denton, TX, sells fast moving hardware items to small independent grocers in rural Texas. Lee often provide the displays, stock the shelves, and monitors inventory for his clients, charging them only after sales have been made. Apparently, Lee is a __ . a Rack jobber b Retailer's Coop c Specialty wholesaler d Truck distributor.
A. Rack jobber
When employing life cycle pricing for industrial products, any training, installation, design, and retooling costs are classified as __ . a Start-up costs b Marginal costs c Post-purchase costs d Investment costs.
A. Start-up costs
The break-even point is: a The level of sales where total revenue equals total costs b The level of sales which maximizes profit c The total profit likely to be earned at a given price d Where supply equals demand
A. The level of sales where total revenue equals total costs
The first four steps in the new product development process are particularly crucial because: a These steps are relatively inexpensive compared to the fifth step in which the physical product is actually produced. b The new product test market occurs during these steps and this information is critical for making the go -no go decision to commercialize. c These steps will determine whether a concept test is required, which is the most expensive element of new product development. d These steps are important for predicting the potential life cycle of the new product. e All of the above.
A. These are relatively inexpensive compared to the fifth step in which the physical product is actually produced.
Relative new product failure rates exceed absolute failure rates. a True b False
A. True
The primary distinction between voluntary chains and retailer cooperatives is: a Whether they are set-up by wholesalers or by retailers b Voluntary chains tend to offer more benefits to members than do coops. c Retailer cooperatives tend to be more profitable than voluntary chains d Voluntary chains are limited to hardware stores, while coops serve the grocery industry.
A. Whether they are set-up by wholesalers or by retailers
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as:
AVC declines by 10% with each doubling of cumulative output
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as: AVC declines by 90% with each doubling of cumulative output AVC declines by 9% with each doubling of cumulative output AVC declines by 10% with each doubling of cumulative output AVC declines by 1% with each doubling of cumulative output None of the above is correct
AVC declines by 10% with each doubling of cumulative output
Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were dissappointing as revenues were not even high enough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ? 1. Marginal failure. 2. Relative failure. 3. Market failure. 4. Miserable performer. 5. Absolute failure.
Absolute failure
Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, Star-Kist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?
Accumulating
Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?
Accumulating
Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function? Accumulating Allocating Negotiating Assorting Sorting
Accumulating
Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called:
Accumulating
Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called: Allocating Assorting Facilitating exchange Accumulating Buying and selling
Accumulating
The "making bulk" channel function is formally called:
Accumulating
The "making bulk" channel function is formally called: Accumulating Allocating Negotiating Assorting Sorting
Accumulating
General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n): Contractual VMS Administered VMS Voluntary Chain Corporate VMS Franchise system
Administered VMS
General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n):
Administered VMS.
Which of the following is NOT true about search-initiated advertising?
Advertisers pay a large premium per-click, averaging more than $10 per click on Google. (correct)
____________ is any form of communication that is conveyed via a "non-personal medium."
Advertising
____________ is any form of paid communication that is conveyed via a "non-personal medium."
Advertising
•
Advertising
Customers who purchase higher value consumer durable products such as electronics, appliances, sporting goods equipment generally demand more information and often welcome the "expert" advice. Which forms of promotion is best suited to these products?
Advertising and personal selling
When consumers engage in high-involvement, extensive decision making, for major durable goods, which elements of the promotional mix should be emphasized?
Advertising and personal selling
When consumers engage in high-involvement, extensive decision-making, for major durable goods, which elements of the promotional mix should be emphasized?
Advertising and personal selling
Customers who purchase higher value consumer durable products such as electronics, appliances, and sporting goods equipment generally demand more information and often welcome "expert" advice. Which forms of promotion are best suited to these products?
Advertising and sales promotion
During the introductory stage of the product life cycle the promotion objectives are to stimulate primary demand by communicating product benefits, create brand awareness, and stimulate trial. The most appropriate form of promotion to accomplish these tasks are __________ .
Advertising and sales promotion
During the introductory stage of the product life cycle, promotion objectives are to stimulate primary demand by communicating product benefits, create brand awareness, and stimulating trial. The most appropriate forms of promotion to accomplish these tasks are __________ .
Advertising and sales promotion
The forms of promotion most important for lower unit value consumer convenience goods are:
Advertising and sales promotion
The use of ____________ is most appropriate for consumers engaged in low involvement decisions.
Advertising and sales promotion
•
Advertising slogan
•
Advertising theme.
•
Advocacy advertising (correct)
Firms that are pursuing a strategy of price competition are more likely to:
Aggressively use lower prices to buy market share from competitors
Firms that are pursuing a strategy of price competition are more likely to: Employ follow-the-leader pricing in order to avoid price wars in their industry Aggressively use lower prices to buy market share from competitors Set prices higher than competitors to signal greater value to buyers Set prices lower than competitors to enhance the quality images of their brands. Price their brands in a comfortable competitive range to avoid "rocking the boat."
Aggressively use lower prices to buy market share from competitors
For which of the following products would a manufacturer be most likely to offer a seasonal discount?
Air conditioning system
For which of the following products would a manufacturer be most likely to offer a seasonal discount? Aspirin Weight-training gloves Air conditioning system Microwave ovens Forklift trucks
Air conditioning system
Supermarkets
Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ . Supercenters Supermarkets Discount stores Category killers Department stores
As practiced today, telemarketing is used for which of the following?
All of the above
The AVC curve is typically 'u-shaped' because: Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above None of the above
All of the above
The key principles of effective marketing communications include:
All of the above
The television home shopping format appeals to some consumers for which of the following reasons?
All of the above
Which of the following are characteristics of comparative advertisements?
All of the above
With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects?
All of the above
With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: Demand changes by -1.5% for each 1% change in price For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above
All of the above
Which of the following is not an advantage of vertical marketing systems?
All of the above are advantages
Which of the following is not an advantage of vertical marketing systems? Improved cooperation between channel members Better service to ultimate consumers Reduced conflict in the channel Improved efficiencies and reduced cost All of the above are advantages
All of the above are advantages
Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads?
All of the above are being employed
The major benefits of sales promotion are:
All of the above are benefits. (correct)
Which of the following is the key characteristic of IMC?
All of the above are important
Memorable advertising messages that are easy to recall and remember should possess which of the following characteristics?
All of the above are important (correct)
When consumers assign "value" to products and services they take into account which of the following? The price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service All of the above are part of the value equation.
All of the above are part of the value equation.
A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that: any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges.
All of the above are possible defenses against price discrimination charges.
The likely consequences of firms choosing to engage in price competition include all of the following except __________. Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences
All of the above are potential consequences
Which of the following is a strength of TV as an advertising medium?
All of the above are strengths (correct)
Which of the following is a strength of radio as an advertising medium?
All of the above are strengths of radio advertising. (correct)
•
All of the above are strengths, none are weaknesses. (correct)
•
All of the above are targeted. There are no exceptions.
The key "publics" that are targeted by a firm's PR efforts include all of the following except _____.
All of the above are targeted. There are no exceptions. (correct)
•
All of the above are targeted. There are no exceptions. (correct)
The number of sales persons needed to serve the firm's customers is determined by which of the following?
All of the above must be considered. (correct)
•
All of the above must be considered. (correct)
The key "public" that is targeted by a firm's PR efforts is _____.
All of the above. (correct)
•
All of the above. (correct)
Direct selling is the cheapest form of selling because no retail store-front is required
All of the following are characteristics of direct selling except ___________. Sales commissions can be as high as 40-50% of the selling price. Sales staff tend to employ high pressure sales tactics Prices to consumers are generally inflated due to high sales commissions Direct selling is the cheapest form of selling because no retail store-front is required The negative image and high pressure tactics associated with direct selling makes it hard to recruit and retain sales personnel.
Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function? Matching Allocating Negotiating Assorting Sorting
Allocating
The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers.
Allocating
The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers. Matching Allocating Negotiating Assorting Sorting
Allocating
Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose.
Allocating
Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose. Matching Allocating Negotiating Assorting Sorting
Allocating
Retailing intermediary
Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________. Dot.com Wholesaling intermediary Internet distributor Retailing intermediary Facilitating agent
Regional center
America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides. Neighborhood center Community center Regional center Power center Factory outlet mall
Merchant wholesalers:
Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.
All of the above
As practiced today, telemarketing is used for which of the following? Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above
One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function.
Assorting
One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function. Accumulating Allocating Negotiating Assorting Sorting
Assorting
Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores.
Assorting
Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores. Accumulating Assorting Allocating Buying and selling Sorting
Assorting
When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function. Accumulating Allocating Negotiating Assorting Sorting
Assorting
When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are performing the __________ channel function.
Assorting
When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in _______ .
Assorting
When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customers want, it is engaged in _______ . Accumulating Allocating Sorting Assorting Matching
Assorting
The most common form of mark-up pricing, and the form of mark-up pricing to be used on all exams unless told otherwise is: a Mark-up based on cost b Mark-up based on selling price c Value mark-up d Break-even mark-up
B. Mark-up based on selling price
Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? a Accumulating b Allocating c Sorting d Assorting
B. Allocating
Jerry's Used Cars advertises some of its cars at prices that are "too good to be true." When potential customers visit the car lot, they are told that these cars have already been sold and try to show the prospects alternative cars at higher prices. Jerry's is using __ . a Quality pricing b Bait pricing c Skimming pricing d Captive pricing e Predatory pricing.
B. Bait Pricing
The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? a Administered vertical marketing system b Corporate vertical marketing system c Franchise system d Retailer cooperative e Voluntary chain.
B. Corporate vertical marketing system
The "law of demand" is associated with: a Demand curves in which demand increases as price increases. b Demand curves in which demand decreases as price increases. c Demand curves in which demand is only price elastic d Demand curves in which demand is only price inelastic e None of the above.
B. Demand curves in which demand decreases as price increases
New York Steel Co. is trying to sell high grade stainless steel to a customer located in Denver Colorado. However, extremely high shipping costs make New York Steel's product more expensive to buyers than steel sold by a local producer in Pueblo Colorado. New York Steel should consider using which form of F.O.B pricing? a F.O.B. Mill b F.O.B. Destination c F.O.B. Point of Origin d F.O.B. Basing Point e F.O.B. Zone
B. F.O.B. Destination
The form of F.O.B. pricing in which the seller fundamentally pays all shipping and handling costs is: a F.O.B. Mill b F.O.B. Destination c F.O.B. Point of Origin d F.O.B. City Limits e F.O.B. Basing Point
B. F.O.B. Destination
A major distinction between agent and merchant wholesaling middlemen is that agents take title to the products they sell while wholesalers do not. a True b False
B. False
Coupons, free samples, and other incentives are commonly employed for new products to stimulate consumer awareness (1st stage of the adoption process) more than in any other stage in the new product adoption process. a True b False
B. False
The adoption and diffusion of personal computers was initially slow, even given the tremendous relative advantage they offered. The major culprit may have been that computers also scored poorly on 'communicability' a True b False
B. False
The most important reason underlying new product failures is poor execution of their marketing programs. a True b False
B. False
The most important source of new product ideas (in terms of sheer number of ideas generated) is from the firm's major competitors. a True b False
B. False
The services offered by research firms such as NFO to conduct panel surveys are typically most valuable during the test market stage of new product development. a True b False
B. False
A lengthy series of past data relating sales to prices is required for constructing demand curves using: a Test market data b Historical ratios c Laboratory experiments d Buy response data e None of the above.
B. Historical ratios
The new product adopter category described as the most risk averse, with the lowest discretionary income, and most likely to adopt new products only after the product is threatened with obsolescence is the: a Innovator category b Laggard category c Late majority category d Early majority category e Early adopter category
B. Laggard Category
The value-pricing technique in which a selling price for industrial products is set by comparing the total life-time costs of the seller's product with a competing reference product is . a Cost comparison pricing b Life cycle pricing c Breakeven pricing d ROI pricing e Experience curve pricing.
B. Life cycle pricing
Navarro Electronics Instruments, a Denver-based producer of sophisticated test equipment employed in non-destructive testing, wants to tap the growing market for non-destructive testing in the Gulf states. Navarro uses its own sales force for its current market, but does not want to invest in additional sales reps in the Gulf until the market proves itself. Navarro would be wise to use a(n) to initiate sales on the Gulf states. a Commission merchant b Manufacturers' agent c Selling agents d Broker
B. Manufacturers' agent
___ specialize in selling and work on a commission basis. They operate in limited geographic areas and represent two or more non-competing producers. a Rack jobbers b Manufacturers' agents c Selling agents d Auction companies.
B. Manufacturers' agents
The movement of parts and materials from their sources of supply into the manufacturing process is ___ . a Logistics management b Materials management c Physical distribution d Supply chain management
B. Materials management
When pricing objectives suggest that price should be used as a cue or signal meant to produce a high quality or prestige image for the product, a ___ strategy is appropriate. Demand is assumed to be highly price inelastic. a) Demand generation pricing b) Premium pricing c) Product line pricing d) Competitive pricing
B. Premium pricing
The pricing strategy most appropriate for "positional products" is __ . a Penetration pricing b Prestige pricing c Product line pricing d Competitive pricing e Predatory pricing.
B. Prestige pricing
A brand is fundamentally the same as those of its competitors with little 'value added.' In addition, the product is one such that little brand loyalty tends to exist. It is most likely that when setting prices for this brand, the seller must treat demand as ___ a Price inelastic b Price elastic c Uniformly elastic d Price inflexible e Inverse.
B. Price elastic
The most common channel of distribution for consumer goods is ___ . a Direct from producer to consumer b Producer --> Wholesaler --> Retailer --> Consumer c Producer --> Retailer --> Consumer d Producer --> Agent --> Retailer --> Consumer
B. Producer --> Wholesaler --> Retailer --> Consumer
The pricing strategy that may induce price sensitive customers to periodically visit a retail store to see "what's on sales" is __ . a Systematic discounting b Random discounting c Second market discounting d Odd pricing e Penetration pricing.
B. Random discounting
The 'realistic competitive price range' is generally: a Generally at the higher end of the demand curve. b Somewhere between the price floor set by unit costs and the price ceiling set by customer demand. c Generally at the lower end of the demand curve. d Usually exactly in the middle of the demand curve. e Who knows?
B. Somewhere between the price floor set by unit costs and the price ceiling set by customer demand.
Postage stamp pricing is technically termed: a Zone Delivered pricing b Uniform Delivered pricing c F.O.B. Mill pricing d F.O.B Delivered pricing
B. Uniform Delivered Pricing
Schlitz Beer some years ago decided to modify the quality of its beer by employing lower cost ingredients in the brewing process. Changes were made incrementally a little at a time hoping that consumers would not notice the changes. Schlitz probably relied on __ to predict the amount of change that could be made. a Parkinson's Principle b Weber's Law c Pavlov's Principle d Skinner's Law e None of the above.
B. Weber's Law
•
B2C
•
B2G
__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.
Backward integration
__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise. Globalization Product-related marketing Backward integration Horizontal integration Forward integration
Backward integration
A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of:
Bait pricing
Direct response advertising
Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ . Direct mail Direct response advertising On-line retailing Direct selling Telemarketing
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Benefits similar to those offered by competitors
Category killers
Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ . Off-price retailers Specialty stores Factory outlets Category killers Department stores
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Big Idea (correct)
Consumers who spread positive word-of-mouth about products or brands are called _________.
Brand evangelists
The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand.
Brand evangelists
Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product. 1. Test market 2. Idea screening 3. Environmental audit 4. Prototype development 5. Business analysis
Business Analysis
Savanna is the buyer for a large convenience store chain. A primary supplier has offered Savanna a cash discount on her most recent purchase. The discount has been quoted as: 4/10, net 30. Savanna is wondering whether it is worth her while to take advantage of the discount. As a result, she has decided to compute the implied interest rate her firm would be paying at the invoice due date rather than paying early. Assume a 365 day year. The implied interest rate she computed is approximately (pick the closest answer): a 54% b 18% c 73% d 40% e 120%
C. 73%
Ritchie Bass Construction specializes in demolishing buildings and, as a result, recycles much of the steel recovered from these buildings. Ritchie currently has about 300 tons of steel to sell and is looking for interested buyers. Ritchie probably should seek the services of a: a A rack jobber b A scrap jobber c A broker d A selling agent.
C. A broker
Apple's introduction of the iPhone 6s is: a A discontinuous innovation b A dynamically continuous innovation c A continuous innovation d An absolute product failure e All of the above.
C. A continuous innovation
Which of the following is not consistent with employing a skimming pricing strategy? a Customer demand is price inelastic b The effects of competition on pricing can be minimized c Bait pricing d Initial production and marketing costs are high e Price connotes high quality or prestige.
C. Bait pricing
As price increases, the total revenue for that product declines. This suggests that: a Marketers have not planned very well. b Demand for the product is extremely low. c Demand for the product is essentially price elastic d Demand for the product is essentially price inelastic. e None of the above.
C. Demand for the product is essentially price elastic
Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___ . a Multi-channel marketing and distribution b Direct distribution c Dual distribution d Retail distribution.
C. Dual distribution
A small manufacturer of children's clothing wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? a A direct channel to consumer, with sales via the internet b Selling to wholesalers who, in turn, sell to furniture retailers c Employing an agent to handle sales to other intermediaries d Selling directly to large scale retailers of custom furniture.
C. Employing an agent to handle sales to other intermediaries
The mark-up pricing technique employed by manufacturers to estimate a suggested retail price (MSRP) is: a Mark-up based on cost b Mark-up based on selling price c Forward chain mark-up pricing d Backward chain mark-up pricing.
C. Forward chain mark-up pricing
The movement of finished goods from the manufacturer into the hands of final consumers is . a Logistics management b Materials management c Physical distribution d Supply chain management
C. Physical distribution
Understanding costs faced by the firm when making pricing decisions is important because: a Costs constitute the maximum possible price that can be chargedfor a product. b Prices can never be set lower than costs. c Prices must be set with a knowledge of the costs required to make and sell the product. d Prices are not related to costs. e Costs are directly proportional to prices charged by competitors.
C. Prices must be set with a knowledge of the costs required to make and sell the product.
Ralph Lauren displays its Ricky Alligator Bags ($14,000 price tag) next to its Tiffin Bags priced at only $2,500 in an attempt to make the Tiffin Bags appear to provide greater value in comparison. This is an example of ___ . a Quality pricing b Bait pricing c Reference pricing d Captive pricing e Predatory pricing.
C. Reference pricing
The Robinson-Patman Act (1936) is designed to: a Prohibit the formation of monopolies b Regulate the information required on consumer packaged goods c Regulate price discrimination between producers and their middlemen d Regulate price discrimination on prices charged consumers e Prohibit unfair business practices that may restrain trade.
C. Regulate price discrimination between producers and the middlemen
A danger with employing zone delivered pricing is that zones may be created that provide competitors in closer zones with lower delivered prices. If these competitors are in direct competition with competitors in more distant zones, competition between these competitors may be substantially damaged due to the price difference. The seller employing zone delivered pricing may be in violation of the: a Sherman Antitrust Act b Federal Trade Commission Act c Robinson-Patman Act d Clayton Act e Fair Packaging and Labeling Act
C. Robinson-Patman Act
The greatest limitation of all cost-based pricing techniques is that: a It's difficult to estimate a product's costs b The techniques are very difficult to understand c The techniques do not take into account demand considerations at the price being set d Cost-based techniques are only useful to manufacturers and cannot be employed by intermediaries
C. The techniques do not take into account demand considerations at the price being set
nnovative Technology manufacturers sophisticated electronics components. When setting its budget and projecting costs for its products, Innovative's management knows that with each doubling of cumulative output, they can expect the average variable costs of production to decline by a fixed percentage. Evidently, Innovative is predicting its costs based on _ . a Supply and demand relationships b Anticipated scale economies from production c The experience curve d Managerial judgement.
C. the experience curve
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C2B
Some consumers allow businesses to promote their products via the consumers' blogs or social media platforms for a fee. For example, a jewelry manufacturer may ask jewelry bloggers (e.g. gemgossip on Instagram) to reference or even review its new products for readers of their blogs. The online marketing domain involved is _________ .
C2B (correct)
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C2B (correct)
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C2C
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C2G
Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ .
Category killers
____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition.
Category killers
____________ are responsible for managing a group of related products stocked by a retail store.
Category managers
For which of the following products is exclusive distribution most likely?
Caterpillar Tractors
For which of the following products is exclusive distribution most likely? Caterpillar tractors Citizen watches Ford Mustangs Intel micro-processors Gillette razors
Caterpillar tractors
For which of the following products is exclusive distribution most likely?
Caterpillar tractors &/or Cartier watches
__________ are employed when advertisers refuse to engage in the consent decree. The FTC can this remedy to force Firms to remove offending communications from circulation.
Cease and desist order
__________ are employed when advertisers refuse to engage in the consent decree. The FTC can this remedy to force firms to remove offending communications from circulation.
Cease and desist order
Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons?
Celebrities often score high on all of the above
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Celebrity advertising.
_________ are groups of two or more retail stores operated by th same entity.
Chain stores
Corporate chains
Chain stores with 11 or more retail units or locations are technically called as ______________ . Multi-unit chains Corporate chains Independent retailers Rack jobbers Superstores
_____ occurs when one supply chain member perceives that another supply chain member is making decisions in a manner that interferes with the ability of the first supply chain member to achieve its own objectives.
Channel Conflict
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Click and mortar
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Commission-only plans are attractive to firms with limited resources since compensation is treated as a variable cost.
Which of the following is not true about commission-only compensation plans for sales persons?
Commission-only plans tend to result in better service to customers. (correct)
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Commission-only plans tend to result in better service to customers. (correct)
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Commissions are usually set at some percent of sales that are closed.
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Communications target.
Advertising in which brands are directly compared against one another are called _______ .
Comparative ads
Advertising in which a firm's brand is directly compared against those of competitors is called:
Comparative advertising (correct)
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Comparative parity method
The method of advertising budgeting in which the budget is set based on how much competitors may be spending is the ____________ .
Comparative parity method (correct)
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Comparative parity method (correct)
Which of the following are characteristics of comparative advertisements?
Competing brands are directly compared with one another, usually by name Positives of the advertised brand are emphasized, negatives of the competing brands are highlighted Consumers already using the competing brands are more likely to pay attention to the ad Comparative ads provide consumers more information upon which to make a choice. All of the above. (correct)
With _________ IMC budgeting, the size of the promotion budget is based on industry comparisons.
Competitive parity
The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end.
Competitive price range
The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end. Price floor Price ceiling Competitive price range Demand curve Optimal price
Competitive price range
The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ .
Consent decree
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Constant
Two-sided ads present both the positives and negatives for brand and then usually attempt to refute the negatives. The effectiveness of such ads as is explained by:
Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad
Two-sided ads present both the positives and negatives for brand and then usually attempt to refute the negatives. The effectiveness of such as is explained by:
Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad
Which of the following is least associated with the concept of 'price competition?'
Consumers are more likely to be price inelastic
Which of the following is least associated with the concept of 'price competition?' There is a stronger likelihood of price wars occurring Governmental agencies are more likely to monitor and intervene in pricing activities Firms aggressively employ price as a part of the marketing mix Consumers are more likely to be price inelastic All of the above are unlikely
Consumers are more likely to be price inelastic
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Contests
______ are forms of sales promotion directed at the sales force with the objective of motivating or incentivizing extra effort and improved performance.
Contests (correct)
__________ are forms of sales promotion in which consumers or company employees compete with one another to win monetary or non-monetary prizes.
Contests (correct)
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Contextual advertising or search engine advertising (correct)
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Continuity
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Continuity (correct)
The primary benefit to consumers when buying from a vending machine is:
Convenience
__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices.
Convenience stores
Neighborhood centers
Convenience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls
In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities.
Conventional supply chain
In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities. Conventional supply chain Vertical marketing system Horizontal marketing system Traditional supply chain
Conventional supply chain
The positive rewards accruing to consumers from purchase and use of a brand along with the use of reminder advertising positively reinforce the consumer's brand purchase decision during the __________ stage of the Hierarchy of Communications Objectives.
Conviction and brand loyalty
Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n):
Corporate VMS
Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n): Contractual VMS Administered VMS Wholesaler-sponsored voluntary chain Corporate VMS Franchise system
Corporate VMS
Chain stores with 11 or more retail units or locations are technically called as ______________ .
Corporate chains
______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations.
Corporate chains
The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure?
Corporate vertical marketing system
The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? Administered vertical marketing system Corporate vertical marketing system Franchise system Retailer cooperative Voluntary chain
Corporate vertical marketing system
Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of:
Corporate vertical marketing systems
Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of:
Corporate vertical marketing systems.
Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of: Off price retailing Retailer cooperatives Administered vertical marketing systems Corporate vertical marketing systems. None of the above
Corporate vertical marketing systems.
Which of the following is the major disadvantage of nearly all cost-based pricing methods?
Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.
Which of the following is the major disadvantage of nearly all cost-based pricing methods? Costs are too difficult to determine for these pricing techniques to be truly effective. Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques. Most cost-based pricing techniques are technically too difficult to use in actual practice. Cost-based pricing techniques generally are only used by manufacturers because a manufacturer can more precisely pinpoint the exact fixed and variable costs associated with its products.
Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.
Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using? Expected pricing Experience curve pricing Marginal cost pricing Cost-plus pricing Mark-up pricing
Cost-plus pricing
Break-even analysis is normally conducted during the __________ stage of the price setting process.
Cost-volume-profit analysis
Break-even analysis is normally conducted during the __________ stage of the price setting process. Setting price objectives Identifying price strategies Setting base price Cost-volume-profit analysis Pricing management
Cost-volume-profit analysis
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Coupons
The use of ___________ has been claimed to be a mild form of price discrimination because only price-conscious consumers are likely to take the time and effort to use them.
Coupons (correct)
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Coupons (correct)
The first, critical step in the Hierarchy of Communications Objectives is _________ .
Creating awareness
Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount.
Cumulative quantity
Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount. Seasonal Cash Non-cumulative quantity Trade Cumulative quantity
Cumulative quantity
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Customer-based sales force organizations
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Customers of the firm
A retail firm that uses leader pricing is:
Cutting the regular price on a few items with the hope of attracting customers
A retail firm that uses leader pricing is: Engaged in legal, but unethical price gouging. Cutting the regular price on a few items with the hope of attracting customers. Leading the industry in pricing and encouraging its competitors to raise their prices, too. Selling its most popular products at higher prices. Raising the price of its best-selling products.
Cutting the regular price on a few items with the hope of attracting customers.
Kansas Textile Mills produces a range of high quality fabrics used in the fashion garment industry. Kansas has no desire to do its own marketing. Instead, it contracted Allied Distributors to take over its marketing functions. Apparently, Allied is : a A rack jobber b A manufacturer's agent c A broker d A selling agent.
D. A selling agent
The AVC curve is typically 'u-shaped' because: a Scale economies initially drive unit costs down as sales volume increase. b The experience curve tends to drive unit costs down as producers become more knowledgeable of how to make products. c Unit costs tend to increase after some level of output due to 'diseconomies of scale' d All of the above. e None of the above.
D. All of the above
When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in ___ . a Accumulating b Allocating c Sorting d Assorting
D. Assorting
The Gillette Fusion razor with one replacement blade can be purchased for as little as $9. However when it's time to buy replacement blades you can expect to pay $20 or more for a pack of 4 blades. Gillette is using . a Quality pricing b Prestige pricing c Skimming pricing d Captive pricing e Predatory pricing.
D. Captive pricing
_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's.
Department stores
Wilson Farms, a Colorado-based grower, is harvesting its annual sugar beet crop. Wilson has contracted with Henry Taylor & Co. to take possession of the crop, and sell it at the produce market in Denver. Taylor & Co. is empowered to negotiate prices and arrange for any shipping, inspection, and storage that may be required. Taylor & Co. probably is a(n) ___ . a Broker b Manufacturers' agent c Selling agent d Commission merchant.
D. Commission merchant
Which of the following best defines the meaning of "e" - the coefficient of elasticity? a Defines the change in total revenue for a given change in price. b Defines the percent change in price for every one percent change in revenue. c Defines the percent change in revenue for every one percent change in price d Defines the percent change in quantity demanded for every one percent change in price. e None of the above.
D. Defines the percent change in quantity demanded for every one percent change in price
Which of the following would be the least expensive way to estimate the demand curve for a new product similar to one already produced by competitors? a Using buy-response data from a survey b A controlled test market in which several prices were tested in a number of test cities c A laboratory experiment in which a sample of consumers are asked to respond to a number of test prices. d Historical ratios based on sales of similar competitors' products
D. Historical ratios based on sales of similar competitors' products
When demand is (__) total revenue tends to increase as price increases. a Price elastic b Price sensitive c Inverse d Price inelastic e Price invariant.
D. Price inelastic
Alice Garrett runs her own distribution business in which she stocks a full range of specialty gift item for resale to gift shops. Alice is probably a _ . a Drop shipper b General merchandise wholesaler c Retailer Cooperative d Specialty wholesaler
D. Specialty wholesaler
The channel of distribution for consumer products does not include which of the following? a The producer b Intermediaries, such as wholesalers and retailers c Ultimate consumers of the distributed product d Suppliers of component parts to the producer.
D. Suppliers of component parts to the producer
The geographic pricing technique in which a single price is employed for all customers regardless of geographic location and includes the average cost of shipping and handling is: a F.O.B Mill b F.O.B Destination c Zone delivered pricing d Uniform Delivered Pricing
D. Uniform Delivered Pricing
____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally) restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits.
Department stores
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Email advertising
Advertising by advocacy groups and governmental agencies that attempt to reduce demand for a product is called ________ .
De-marketing
When promotion is used to encourage consumers to purchase less, or at a later date, they are attempting to reduce demand for the advertised product. This promotion objective is called ________ .
De-marketing
With respect to the product life cycle, prices are usally lowest during the ___________ stage.
Decline
With respect to the product life cycle, prices are usally lowest during the ___________ stage. Conceptualization Introduction Growth Maturity Decline
Decline
The Communications Process from the message sender to the message receiver begins with the sender formulating the "message" and ends with _________ .
Decoding the message by the receiver
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Defending or improving the firm's image.
Which of the following best defines the meaning of "e" - the coefficient of elasticity?
Defines the percent change in quantity demanded for every one percent change in price
Which of the following best defines the meaning of "e" - the coefficient of elasticity? Defines the change in total revenue for a given change in price. Defines the percent change in price for every one percent change in revenue. Defines the percent change in revenue for every one percent change in price Defines the percent change in quantity demanded for every one percent change in price None of the above
Defines the percent change in quantity demanded for every one percent change in price
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Delivery salespersons.
The "law of demand" is associated with:
Demand decreases as price increases.
The "law of demand" is associated with: Demand curve in which demand increases as price increases. Demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above
Demand decreases as price increases.
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Demonstration advertising
___________ show the product actually being used. The specific objective is to highlight key benefits or features in a usage situation.
Demonstration advertising (correct)
A merchant wholesaler
Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY: A merchant wholesaler A drop shipper An agent middleman A manufacturer's agent A rack jobber
____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally)restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits.
Department stores
All of the above are being employed
Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads? Target upscale shoppers who are less price-elastic Focus on higher margin products such as clothing, jewelry, and cosmetics Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." All of the above are being employed Only a and b above.
During the "structuring beliefs and attitudes" stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize ___________ in promotion communications.
Determinant attributes
When __________ advertisers seek to determine the cost of advertising needed to achieve the desired objectives.
Determining the advertising budget (correct)
The _____ of a new product is the process by which an innovation is spread through a social system over time. 1. Adoption. 2. Differentiation. 3. Diversification. 4. Diffusion. 5. Osmosis.
Diffusion
A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution.
Direct
A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution. Selective Indirect Intensive Direct Administered
Direct
Direct marketing
Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ . Direct marketing Direct selling In-store retailing Soft marketing as opposed to brick and mortor retailing Distance marketing
Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ .
Direct marketing
__________ consists of messages delivered through the mail, catalogs, telephone calls, direct response advertising, and infomercials.
Direct marketing (correct)
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Direct marketing (correct)
Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ .
Direct response advertising
Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______.
Direct response advertising
Time Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________.
Direct response advertising
Time-Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________.
Direct response advertising
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Direct response marketing
Door-to-door selling and party plan selling are both examples of ________ .
Direct selling
Which of the following is true about how direct selling differs from direct marketing?
Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling
All of the following are characteristics of direct selling except ___________.
Direct selling is the cheapest form of selling because no retail store-front is required
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Display advertising
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Distance marketing.
Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.
Distribution Centers
Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________.
Distribution Centers
Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.
Distribution centers
Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner. Warehouses Distribution centers Storage facilities Cold storage warehouses Assembly facilities
Distribution centers
Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________.
Distribution centers
Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________. Warehouses Distribution centers Storage facilities Cold storage warehouses Assembly facilities
Distribution centers
A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user
Distribution channel
A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user Logistics network Production channel Distribution channel Marketing channel Wholesale channel
Distribution channel
Direct selling
Door-to-door selling and party plan selling are both examples of ________ . Telemarketing Direct selling In-store retailing Direct retailing Mail order selling
Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a:
Drop - shippers
_________ are wholesaling middleman that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers
Drop Shippers
Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a:
Drop shipper
_________ are wholesaling middleman that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemen's' buyers.
Drop shippers
_________ are wholesaling middlemen that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers. Drop shippers Agents Commission merchants Merchant wholesalers Retailer cooperatives
Drop shippers
Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Buck is a: Cash-and-carry wholesaler Manufacturers' agent Specialty wholesaler Drop-shipper Selling agent
Drop-shipper
Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a:
Drop-shipper
Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as:
Dual distribution
Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as: Dual distribution Multiple channel distribution Channel proliferation Channel adaptation Channel penetration
Dual distribution
Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ .
Dual distribution
Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ . Multi-channel marketing and distribution Direct distribution Dual distribution Retail distribution
Dual distribution
The tendency for producers to employ multiple channels of distribution to reach the same target markets is called:
Dual distribution
The tendency for producers to employ multiple channels of distribution to reach the same target markets is called: Dual distribution Multiple channel distribution Channel adaptation Channel proliferation None of the above
Dual distribution
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E-commerce
___________ includes using the Internet and mobile devices to communicate with and make sales to customers, as well using electronic media to transfer money and make financial banking transactions.
E-commerce (correct) Online marketing (correct)
A value of "e" equal to -1.5 means that: a Demand changes by -1.5% for each 1% change in price. b For every 1% change in price, demand changes by -1.5 times that amount c Demand is price elastic d Demand and price are inversely related e All of the above.
E. All of the above
Emails sent to large numbers of consumers without their permission is an acceptable form of advertising.
Emails sent to large numbers of consumers without their permission is an acceptable form of advertising. (correct)
You have overheard a conversation between two co workers. Sam, who is the current sales manager, is of the opinion that new product development isn't really needed if current products are aggressively marketed. Sam has apparently forgotten that ___ . a New products provide additional benefits to firms such as enhanced image and market position. b Firm's that innovate often have a 'differential advantage' over competitors c New products can help the firm reduce risks via diversity. d Eventually, all products enter a sales decline that no amount of aggressive marketing can prevent e All of the above.
E. All of the above
Which of the following is an advantage of vertical marketing systems? a Improved cooperation between channel members b Better service to ultimate consumers c Reduced conflict in the channel d Improved efficiencies and reduced costs e All of the above are advantages.
E. All of the above are advantages
The classification scheme for new products is based on: a Degree of effort consumers expend in the buying decision process b The amount of risk consumers perceive to be attached to product purchase c Consumer involvement with the product category d Uniqueness of the technology upon which the new products are based e Amount of consumer learning or 're-learning' required.
E. Amount of consumer learning of 're-learning' required.
An experience curve constant of .95 means that: a Average variable costs decline by 95% with each doubling of output b Average fixed costs decline by 95% with each doubling of output c Average variable costs decline by 5% with each doubling of output d Average variable costs with each doubling of output are 95% of what they were with the previous doubling e C and d are both correct.
E. C and D are both correct
The new product adopter category most likely to contain 'opinion leaders' is the: a Innovator category b Laggard category c Late majority category d Early majority category e Early adopter category
E. Early adopter category
Direct channels for products are most likely for _ . a Consumer convenience goods b Consumer shopping goods c Consumer specialty goods d Industrial supplies e Industrial installation.
E. Industrial installation
The entire set of organizations that are involved in supplying component parts to producers, these producers, and the organizations involved in moving finished goods to consumers is _ . a Logistics management b Materials management c Physical distribution d The channel of distribution e The supply chain
E. The supply chain
Microwave ovens, automatic dishwashers, and instant coffee were somewhat slow to be adopted and diffuse due to: a Lacked relative advantage b Too complex to understand and use c Lacked social visibility (communicability) d Could not be sampled on a limited basis (trialability) e Were not compatible with cultural and other usage expectations.
E. Were not compatible with cultural and other usage expectations
In which of the adopter categories will opinion leaders most likely be found? 1. Late majority. 2. Early adopters. 3. Early majority. 4. Laggards. 5. Innovators.
Early Adopters
The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used? Exclusive Intensive Direct Selective Dual
Exclusive
_________ are being employed when a producer prohitits its dealers from carrying its competitors' products,
Exclusive dealing arrangements
____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations.
Exclusive distribution
____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution
Exclusive distribution
With an __________ policy, a manufacturer agrees to establish a single distributor in a restricted geographic area.
Exclusive territory
A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of:
Experience curve effects
A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of: Scale economies associated with increased manufacturing efficiency as plant capacity is approached. Reliance on the likely inelastic demand that should exist for this product. Reliance on a high quality, prestige image that can be expected to generate high levels of market demand. Experience curve effects. None of the above.
Experience curve effects.
A retail store's __________ include building architecture and storefront, parking, landscaping,surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store.
External Atmospherics
Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use? Freight absorption pricing Uniform delivered pricing FOB plant pricing Zone-delivered pricing FOB destination pricing
FOB plant pricing
False, misleading, and deceptive advertising are regulated by the __________.
FTC Act of 1914
Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailering intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________.
Facilitating agent
Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________.
Facilitating agent
Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________.
Facilitating agents
Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________.
Facilitating agents
_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently.
Facilitating agents
Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________.
Factory outlet mall
To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.
Factory outlet malls usually are located in outlying, rural areas in order to: Better serve the needs of smaller communities To avoid the higher costs of doing business in urban locations To avoid traffic congestion associated with urban locations To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands. All of the above
__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems.
Factory outlets
Normally geographic roll-out for a new product begins in geographic areas distant from the product's original test market locations in case further test marketing may be required for fine-tuning the markting mix as commercialization progresses. 1. True 2. False
False
When graphing fixed costs, the resulting fixed cost curve begins at the origin and has an upward increasing slope. True or False?
False
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Fear appeals
___________ are employed to scare people into buying or not buying and using certain products.
Fear appeals (correct)
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Features and benefits delivered by the brand.
With respect to the principles of marketing communication, FAB stands for:
Features, attributes, benefits
Which of the following is not a benefit of business format frachises for franchisees? Risk of failure is reduced Economies are obtained in purchasing and promotion Franchisees can better compete with larger corporate chains on a cost and price basis Franchisees have access to management expertise from the franchisor Franchisees are paid royalties by franchisors to offset their initial investment in the franchise
Franchisees are paid royalties by franchisors to offset their initial investment in the franchise
Which of the following is not a benefit of business format franchises for franchisees?
Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.
Which of the following is not a benefit of business format frachises for franchisees?
Franchisees are paid royalties by franchisors to offset their initial investment in the franchise. Correct Answer(s):
Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to
Freight absorption pricing
Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to Specifying "F.O.B. Dallas" in its contracts Uniform delivered pricing Freight absorption pricing Zone pricing None of the above would help Texas Cable Corporation with its problem
Freight absorption pricing
In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States.
Freight-absorption
In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States. Uniform delivered Freight-absorption Zone-delivered Market-skimming Market-penetration
Freight-absorption
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Institutional advertising.
With respect to assessing advertising effectiveness the number of times consumers comprising a target audience are repeatedly exposed to a given message during a specified period of time is called _______.
Frequency (correct)
If there is a traditional channel for consumer goods, it is:
From producer to wholesaler to retailer to consumer
If there is a traditional channel for consumer goods, it is: From producer to consumer From producer to retailer to consumer From producer to agent to retailer to consumer From producer to wholesaler to retailer to consumer From producer to agent to wholesaler to retailer to consumer
From producer to wholesaler to retailer to consumer
Which of the following is not a major trend associated with IMC?
From the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses.
When a manufacturer requires that its dealers carry its entire line or the dealer will be dropped, the manufacturer is engaged in _______
Full-line forcing.
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Functional sales force organizations
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Games
___________ are more appropriate when the sales force is divided into sales territories in which each sales person manages an exclusive territory.
Geographically organized sales forces (correct)
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Geographically organized sales forces (correct)
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Getting the firm's message to mass audiences very quickly. (correct)
For which of the following products is intensive distribution most likely to be employed?
Gillette razor blades
For which of the following products is intensive distribution most likely to be employed? Ford Mustangs Gillette razor blades Apple iPad Pros Rolex watches Mont Blanc fountain pens
Gillette razor blades
Advertisers attempt to move consumers through a series of steps beginning with becoming aware of a brand and ending with conviction and loyalty to the brand. This set of steps is referred to as _______ .
Hierarchy of Communications Objectives
Little active information search and alternative evaluation occurs with low involvement decisions. Which promotional media are most effective at reaching and influencing consumers under these conditions?
High imagery advertising media, such as TV and billboards.
The strategy of market-skimming pricing is especially suited for new products because:
High initial prices can keep demand from exceeding supply.
The strategy of market-skimming pricing is especially suited for new products because: Markets cannot be effectively segmented on an income basis. Price competition is typically most important in the introductory stage of the product life cycle. High initial prices can keep demand from exceeding supply. Profits are more important than recouping costs. All of the above are true.
High initial prices can keep demand from exceeding supply.
Products that are intended to convey prestigious or high quality images usually are priced _____________ .
Higher than other brands in the product category
Products that are intended to convey prestigious or high quality images usually are priced _____________ . Lower than other brands in the product category Higher than other brands in the product category Competitively with lower priced versions of the product To avoid accusations of predatory pricing To avoid scutiny by the FTC for possible price fixing
Higher than other brands in the product category
Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likelyl to be accused of ____________ . Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling
Horizontal price fixing
___________ entails pricing agreements between two or more firms operating at the same supply chain level.
Horizontal price fixing
___________ entails pricing agreements between two or more firms operating at the same supply chain level. Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling
Horizontal price fixing
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Humor appeals
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Hybrid.
_______ involves every department in the firm becoming involved in developing and communicating messages to customers, channel members, other stakeholders, and publics to create a unified image of the organization and its products.
IMC
Which of the following is not an advantage of vertical marketing systems?
Improved cooperation between channel members Better service to ultimate consumers Reduced conflict in the channel Improved efficiencies and reduced costs All of the above are advantages. (correct)
Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon?
Improved merchandising by expanding the merchandise mix
A vertical marketing system (VMS):
Improves the channel's operating coordination, efficiency, and effectiveness.
A vertical marketing system (VMS): Was the dominant form of distribution until the advent of the horizontal marketing system. Evolved because producers were not concerned with the needs of their middlemen. Directs that all marketing functions be performed by the wholesaler. Is an uncoordinated distribution channel in which retailers and wholesalers retain their freedom of operations. Improves the channel's operating coordination, efficiency, and effectiveness.
Improves the channel's operating coordination, efficiency, and effectiveness.
The majority of retailing establishments in the US today are:
Independent retailers
Direct channels for products are most likely for _________ . Consumer convenience goods Consumer shopping goods Consumer specialty goods Industrial supplies Industrial installation
Industrial installation
Direct channels for products are most likely for _________ .
Industrial installations
Communications designed to relay information to consumers about product characteristics, their function, and availability are called ____________ communications.
Informative
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Inside order taker
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Inside order takers
Sales staff working the sales floor in Best Buy or Dillard's are technically called ______.
Inside order takers (correc
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Inside order takers (correct)
Subsequent to the now infamous Gulf oil spill in 2010, BP employed ____________ that was intended to "clean up" its image by talking about the steps it has taken to clean up the Gulf and prevent future similar disasters.
Institutional advertising. (correct)
_______________ promotes organizations rather than products.
Institutional advertising. (correct)
The acronym IMC stands for ________.
Integrated Marketing Communications
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Intended audience
Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods.
Intensive distribution
________ attempts to achieve maximum retail exposure for a product. Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods.
Intensive distribution
__________ attempts to achieve maximum retail exposure for a product. Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution
Intensive distribution
The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ .
Intermodal transportation
The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ . Dual distribution Multi-modal transportation Intermodal transportation Bi-modal transportation
Intermodal transportation
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Internal Messages
A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores.
Internal atmospherics
Retailers work hard to design in-store sensory environments that postively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________.
Internal atmospherics
Retailers work hard to design in-store sensory environments that postively affect one or more of the consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________.
Internal atmospherics
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Introducing new products with limited associated advertising.
Advertising is used extensively during the ____________ stage of the PLC to create awareness and stimulate product trial.
Introduction
Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the __________ stage of the PLC.
Introduction
Prices for products are usually at their highest point during the ________________ stage of the product's life cycle.
Introduction
Prices for products are usually at their highest point during the ________________ stage of the product's life cycle. Conceptualization Introduction Maturity Decline Harvesting
Introduction
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It is harder for managers to control the time spent by sales persons on non-selling tasks.
The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because: 1. Is difficult to sample on a 'trial' basis. 2. It lacks value compatibility. 3. Is too complex of a vehicle to operate. 4. Lacks aesthetic appeal. 5. Lacks relative advantage.
It lacks value compatibility.
Manufacturers' agent
Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a: Rack jobber Drop-shipper Broker Manufacturers' agent Selling agent
Rack jobber
Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a: Selling agent Rack jobber Cash & carry wholesaler Truck wholesaler (jobber) Manufacturers' agent
Limited line (specialty) wholesaler
Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a: Manufacturers' agent Drop shipper Truck distributor Rack jobber Limited line (specialty) wholesaler
_________ are highly important accounts that account for a large portion of the selling firm's sales revenue.
Key accounts (correct)
The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of:
Leader pricing
Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ .
Leased department retailer
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Legislators and politicians
The supermarket form of retailing normally commands profit margines, on average, of:
Less than 5%
The supermarket form of retailing normally commands profit margins, on average, of:
Less than 5%
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Life style appeals.
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Lifestyle advertising
Direct response advertising
Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______. Direct mail Direct response advertising On-line retailing Direct selling Telemarketing
Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a
Limited line (specialty) wholesaler
____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep."
Limited line retailers
"Inventory in motion or at rest throughout the supply chain" is called:
Logistics
"Inventory in motion or at rest throughout the supply chain" is called: Channel management Materials management Physical distribution Logistics Transportation
Logistics
A truck jobber
Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods? A desk jobber A commission merchant A truck jobber A manufacturer's sales office A broker
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MRs are a variable cost on the firm's income statement
Vending
Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? Vending Direct response advertising Direct selling Mechanical marketing None of the above
The final step in the price setting process is __________.
Managing price
The final step in the price setting process is __________. Setting price objectives Managing price Identifying price strategies Setting base price Adjusting base price with various discounts and allowances
Managing price
Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a:
Manufacturers' agent
Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a:
Manufacturers' agent
Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a:
Manufacturers' agent
Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: neither handles nor owns the products she sells.
Manufacturers' agent
Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians. Physical distribution management Logistics management Materials management Channel management None of the above
Materials management
Movement of parts and materials from their sources of supply into the manufacturing process is called:
Materials management
Movement of parts and materials from their sources of supply into the manufacturing process is called: Channel management Materials management Physical distribution Logistics Transportation
Materials management
During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reach additional target segments, and demonstrate new ways that consumers could use the product.
Maturity
During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" from competitors.
Maturity
During the __________ stage of the PLC, the primary role of sales promotions is to tempt consumers into "brand switching." Coupons, point-of-sale devices, premiums, and price incentives are needed to entice consumers away from competing brands.
Maturity
Informative messages are generally more appropriate during which stages of the PLC?
Maturity and decline
Reminder communications are generally more appropriate during which stages of the PLC?
Maturity and decline
The number of different product lines carried by a retailer is its ________ .
Merchandise breadth
The number of different product lines carried by a retailer is its ________ .
Merchandise breath
The classification system for in-store retailers employed in the text is based on the ______________ of the retailer.
Merchandise mix
The entire range of products stocked by a retailer is its _______.
Merchandise mix
Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.
Merchant wholesalers: Are the smallest segment of wholesaling firms when measured by number of establishments. Are independently owned firms that engage primarily in wholesaling and take title to products being distributed. Are independently owned firms that do not take title to the products being distributed. Are manufacturer-owned organizations that perform primarily wholesaling tasks for their owner companies. Engage in both wholesaling and retailing activities for manufacturers and consumers.
The key principles of effective marketing communications include:
Message must be received and understood by the receiver Marketer should emphasize FAB Identify the features, attributes, and benefits that are meaningfully different Communicate the differentiating features, attributes, and benefits
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Mission
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Missionary salesperson
The most recommended method of setting the advertising budget is the _______
Objective and task method (correct)
Teresa Wilson works for Whitman Pharmaceutical Co. Teresa provides service support to pharmacies, hospitals, and physicians, but does not actively become involved in making sales. Teresa is compensated via salary. Teresa is a(n) _________.
Missionary salesperson (correct)
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Missionary salespersons
Leased department retailer
Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ . Leased department retailer Corporate chain Franchise retailers Internet retailers Rack jobbers
When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?
Negotiating
When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function? Matching Allocating Negotiating Assorting Sorting
Negotiating
When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?.
Negotiating
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Objective and task method (correct)
Convience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.
Neighborhood centers
Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.
Neighborhood centers
With respect to the Communications Process, physical/psychological barriers, distractions, and other impediments to successful communication are called ____________ .
Noise
When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent:
Non-price competition
When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent: Price competition Economic diversification Market control Non-price competition Price fixing
Non-price competition
When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ .
Non-price competition
When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ . Price competition Monopolistic competition Non-price competition Promotion competition Competitive positioning
Non-price competition
____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending.
Non-store retailing
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None of the above are exceptions. (correct)
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None of the above.
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Number of customers to be serviced
The _____________ method of budgeting is the best approach to employ, although not normally the easiest.
Objective and task
Using the ____________ budgets are set by first identifying exactly what communications objectives are being pursued and then setting the budget to achieve them.
Objective and task
With ____________ IMC budgeting, the overall budget is built up from specific budgets allocated to each promotional activity that is needed to achieve objectives.
Objective and task
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Objective and task method
___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's.
Off-price retailers
outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise.
Off-price retailers
Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function?
Offering a noncumulative quantity discount
Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function? Specifying invoice terms of 2/10, net 30 Offering a noncumulative quantity discount Using zone pricing Offering a cash discount Setting a skimming price
Offering a noncumulative quantity discount
Manufacturers' agent
Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a: Truck jobber Manufacturers' agent Drop shipper Broker Commission merchant
Promotion messages that point out only the positive aspect of a brand are called _________.
One-sided messages
___________ includes the use of digital media, mainly the Internet and mobile devices, to communicate with consumers and make sales.
Online marketing (correct)
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Online marketing (correct)
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Online retailers
In general, one-sided ads work better when consumers:
Only b and c above
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Outside order taker
A typical Caterpillar salesperson calls on Cat's regional distributors, as well as larger agricultural and construction businesses to generate orders and maintain customer relations. This type of salesperson is a(n) ____________.
Outside order taker (correct)
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Outside order takers
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Outside order takers (correct)
Mary Kay, Tupperware, Stanley Home Products and Magic Chef all expemplify which form of direct selling?
Party plan selling
Which of the following is not a major determinant of source credibility?
Source attractiveness
The physical movement of finished goods from producers to middlemen and, eventually, to consumers is: Channel management Materials management Physical distribution Logistics Transportation
Physical distribution
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Pioneering advertising
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Pioneering advertising (correct)
Which of the following companies is least likely to function as a channel captain in their respective supply chains? Pizza Hut Apple Walmart P&G Ralston-Purina
Pizza Hut
Which of the following companies is least likely to function as a channel captain in their respective supply chains?
Pizza hut
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Placed on Promotion
The acronym "POD" stands for __________.
Point of Difference (correct)
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Point of Promotion
POP in sales promotion terminology stands for _________.
Point of Purchase (correct)
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Point of Purchase (correct)
Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typical are typically located in ____________.
Power centers
Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typically located in ____________.
Power centers
In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above
Price strategies
Costs constitute the maximum possible price that can be charged for a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs Costs are directly proportional to prices charged by competitors
Prices must be set with a knowledge of the costs required to make and sell the product.
Understanding costs faced by the firm when making pricing decisions is important because:
Prices must be set with a knowledge of the costs required to make and sell the product.
___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product.
Pricing discounts
___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product. Price objectives Pricing techniques Pricing discounts Pricing allowances Cost-volume-profit analysis
Pricing discounts
Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for product modifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likely employing which new product idea generation technique? 1. Problem analysis. 2. Brainstorming. 3. Attribute listing. 4. Test marketing. 5. Depth interviewing.
Problem analysis
The most common channel of distribution for consumer goods is _______ . Direct from producer to consumer Producer to Wholesaler to Retailer to Consumer Producer to Retailer to Consumer Producer to Agent to Retailer to Consumer
Producer to Wholesaler to Retailer to Consumer
Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use? Assume that the manufacturer is not able to afford its own sales force.
Producer to agent to retailer
Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use? Assume that the manufacturer is not able to afford its own sales force. Producer to contractor Producer to industrial distributor to contractor Producer to agent to retailer Producer to industrial distributor to agent to contractor. Producer to contractor to agent.
Producer to agent to retailer
Cajun Fire is a small producer of jalapeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use?
Producer to agent to retailer to consumer
Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use?
Producer to agent to retailer to consumer
Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use? Producer to user Agent to industrial distributor to user Producer to agent to retailer to consumer Producer to industrial distributor to user Producer to agent to industrial distributor to consumer
Producer to agent to retailer to consumer
Which distribution channel is the manufacturer of small fireprood safes for businesses most likely to use?
Producer to industrial distributor to user
A firm that wants to sustain its revenues should engage in new product development because: 1. Patent protection lasts for only 17 years and new products must be ready when patents expire. 2. Federal regulations require that a certain percentage of a company s products must be new 3. New products are always more profitable 4. Products inevitably pass through a life cycle that culminates in the demise of the product. 5. Consumers do not buy products that are not new and innovative
Products inevitably pass through a life cycle that culminates in the demise of the product.
Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of $100,000." This statement reflects:
Profit leveragin of costs
Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational cost savings of $5,000 yields the same return to the firm's bottom line as would a sales increase of $100,000." This statement reflects: Revenue leveraging Profit leveraging of costs Supply chain profit leveraging Scale economies None of the above
Profit leveraging of costs
Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of $100,000." This statement reflects:
Profit leveraging of costs
___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level.
Promotion allowances
___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level. Price objectives Pricing techniques Pricing discounts Promotion allowances Cost-volume-profit analysis
Promotion allowances
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Promotion materials
Advertising, personal selling, sales promotion, publicity, and public relations comprise the firm's __________.
Promotion mix
Which of the following is not a common criticism of promotion?
Promotion provides too much information to consumers
Which of the following is not a common criticism of promotion?
Promotion provides too much information to consumers.
For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a:
Promotional allowance
For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a: Forward dating Seasonal discount Cash discount Promotional allowance Rebate
Promotional allowance
Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a:
Promotional allowance
Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a: Promotional allowance Forward dating Seasonal discount Cash discount Quantity discount
Promotional allowance
Sales promotions are employed to solicit interest in a firm's products. The objective is to generate interest that leads to requests for further information. This step in the personal selling process is ___________.
Prospecting (correct)
With B2C sales, firms often rely on inquiries by email, social media, or inquiries made to the sellers' websites to identify potential customers. This step in the personal selling process is ___________.
Prospecting (correct)
With respect to the personal selling process, _______ is the process of identifying potential customers and is the first step in the personal selling process.
Prospecting (correct)
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Providing value-added customer services.
Typical goals of ____________ are to garner positive news releases, arrange interviews between the media and the firm's spokespersons, lobby governmental agencies, support charitable events, and engage in corporate (institutional) advertising.
Public relations
_____________ is an attempt by Firms to manage the publicity it receives by seeking to enhance the image of the firm and its products, or to communicate important company information to key publics.
Public relations
_____________ is an attempt by firms to manage the publicity it receives by seeking to enhance the image of the firm and its products, or to communicate important company information to key publics.
Public relations
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Public relations
_________ is a strategic communication process that builds mutually beneficial relationships between organizations and their publics."
Public relations (correct)
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Public relations (correct)
Managing media relations, publicity, lobbying, and investor relations are generally handled by the firm's ___________.
Public relations staff (correct)
A TV station runs a story about a company that is deemed to be "newsworthy." The company that is the subject of the news story does not pay for or directly sponsor the message. This is an example of ______ .
Publicity
______________ is any message about a product, organization, person, or event that is communicated via non-personal media and is not paid for by a sponsor.
Publicity
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Publicity
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Publicity is always positive
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Publicity is generally free
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Publicity is generally viewed as more credible because it originates from an independent source
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Publicity management.
A TV station runs a story about a company that is deemed to be "newsworthy." The company that is the subject of the news story does not pay for or directly sponsor the message. This is an example of ______ .
Publicity.
Mild claims of superiority in advertising are referred to as _________.
Puffery
A ______ promotion strategy builds sales by promoting aggressively to the final buyer, usually the ultimate consumer. By stimulating demand with the final buyer, intermediaries are forced to stock and sell the product to satisfy this demand.
Pull
Procter and Gamble employs extensive television and print advertising to create demand for its personal care products with consumers. Coupons, gifts, and premiums are employed at the point of purchase to stimulate trial and brand switching behaviors, as well as to create brand preference. P&G is employing a _________ promotion strategy.
Pull
With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised.
Pull
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Pulsing
Producers employ a wide range of promotions directed at intermediaries to motivate their selling efforts. Examples include dealer contests for middlemen's sales personnel, trade shows, slotting fees for retailers, and promotional allowances. These promotional tools are considered to be elements ____________ promotion.
Push
With ______ promotion, advertising and other promotion techniques are directed at intermediaries to convince them to stock the advertiser's products.
Push
With ________ promotion strategies producers heavily promote to wholesale and retail intermediaries. In turn, retailers actively promote the product to ultimate consumers. This strategy relies heavily on the aggressive selling efforts of the manufacturer's sales force to work with wholesalers and/or retailers.
Push
Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Cash discounts Slottine fees Trade discounts Push money Advertising allowances
Push money
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Push money
Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller.
Quantity discounts
Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller. Functional discounts Quantity discounts Seasonal discounts Promotional allowances Trade discounts
Quantity discounts
A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain could use a:
Rack jobber
A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a:
Rack jobber
Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a:
Rack jobber
With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may have unlisted numbers.
Random digit dialing
When Ford airs advertising that focuses on the functional characteristics of its cars, such as quality, reliability, gas mileage, warranties, and service they are employing ____________ in their ads.
Rational appeals
With respect to the appeals than can be employed in promotion, the type of appeal that emphasizes communicating information about concrete benefits, functions, or characteristics that are associated with the product are called ______ .
Rational appeals
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Readers tend to be highly involved with magazine's content leading to higher levels of attention to and interest in ads related to the magazine's content.
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Rebates
The likely consequences of firms choosing to engage in non-price competition include all of the following except __________.
Reduced ability to raise prices.
The likely consequences of firms choosing to engage in non-price competition include all of the following except __________. Reduced probability of price wars with other firms. Firms can differentiate based on product attributes and other elements of the marketing mix. Greater ability to build brand image and equity. Lower propensity for firms to collude with one another to maintain prices Reduced ability to raise prices.
Reduced ability to raise prices.
Which of the following is not a benefit of business format frachises for the franchisors?
Reduced exposure to potential federal and state regulation.
Which of the following is not a benefit of business format frachises for the franchisors? isk is shared with franchisees Quicker to expand the franchise geographically to other market areas Less capital is needed by the franchisor for expansion. Reduced exposure to potential federal and state regulation.
Reduced exposure to potential federal and state regulation.
Which of the following is not a benefit of business format franchises for the franchisors?
Reduced exposure to potential federal and state regulation.
Which of the following is not a response by supermarkets to improve their profit margins?
Reduced reliance on technology to cut costs
Which of the following is not a response by supermarkets to improve their profit margins?
Reduced reliance on techology to cut costs
Which of the following is not a response by supermarkets to improve their profit margins?
Reduced reliance on vendor assistance to help manage inventory and restock shelves
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Reduced sales force turnover with MRs yields higher sales and profits
_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers.
Retailing intermediaries
Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using:
Reference pricing
Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using: Captive pricing Skimming pricing Reference pricing Price lining Every-day low pricing
Reference pricing
America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides.
Regional center
The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________.
Regional center
_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups.
Regional centers
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Relationship management
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Relationship marketing
Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate. 1. Complexity. 2. Compatibility. 3. Aesthetics. 4. Trialability. 5. Relative Advantage.
Relative Advantage
John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparantley is evaluating the ___________ of the alternatives being considered.
Relative values
John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparantley is evaluating the ___________ of the alternatives being considered. Risks Relative values Utilities Merits Exchange rates
Relative values
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Reminder advertising
___________ is employed to keep the brand in consumers' minds. Letting them know that the brand is available and continues to be a viable choice.
Reminder advertising (correct)
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Retail clerk.
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Retail clerks.
Specialty stores
Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as: Off-price retailers Specialty stores Factory outlets Category killers Department stores
Internal atmospherics
Retailers work hard to design in-store sensory environments that postively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________. Internal atmospherics Internal personality Interior position Interior brand image
____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use.
Retailing
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Salary-only plans offer little motivation to sales personnel to increase their selling efforts.
Which of the following is not true with respect to using salary-only compensation plans for sales personnel?
Salary-only plans offer the best option for motivating sales personnel to increase their selling efforts. (correct)
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Salary-only plans offer the most security for risk-averse sales persons. (correct)
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Salary-only plans provide managers with more control over how sales personnel spend their time.
___________ are trained in engineering or the sciences. These sales people offer their technical expertise to advise clients on product specifications and functions, and assist with systems design and installation.
Sales engineers. (correct)
The __________ is the process of planning, implementing, and controlling sales activities.
Sales management process (correct)
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Sales personnel are only compensated for their performance.
___________ supports and augments advertising and personal selling efforts. It consists of activities that provide short-term incentives aimed at inducing desired responses from customers.
Sales promotion
____________ is a paid form of communication that is temporarily used to stimulate purchases, as well as enhance salesperson and dealer effectiveness.
Sales promotion
_____________ includes the use of coupons, games, contests, free samples, rebates, frequent-flyer programs, in-store displays, in-store product demonstrations, free gifts, and travel vacations for salespeople.
Sales promotion
______________ is probably the best promotional tool for stimulating impulse purchases and brand switching for low involvement consumer convenience goods.
Sales promotion
______________ is probably the best promotional tool for stimulating new product trial and encouraging brand switching for consumer convenience goods.
Sales promotion
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Sales promotion
___________ is a direct inducement that offers incentives to the sales force or distributors to sell a product, or incentives to ultimate consumers to induce an immediate purchase.
Sales promotions (correct)
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Sales promotions (correct)
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Sales tools
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Samples.
Manufacturers' agent
Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: Rack jobber Broker Truck wholesaler Selling agent Manufacturers' agent
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Significant levels of "pass-along readership."
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Search-based advertising.
Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions can cut down on the odds of failure for these smaller retailers?
Seek to become part of an established network marketing system
Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers?
Seek to become part of an established network marketing system
____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments.
Selective Distribution
____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution
Selective distribution
A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output.
Selling agent
Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a:
Selling agent
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Selling aids.
The typical markup (expressed as a percent) is the:
Selling price minus the cost of the item, divided by the selling price--times 100.
The typical markup (expressed as a percent) is the: Selling price minus the cost of the item, divided by the cost of the item--times 100. Selling price of an item, divided by its cost--times 100. Selling price minus the cost of the item, divided by the selling price--times 100. Selling price minus the cost of the item, divided by the average fixed cost--times 100. Cost of an item divided by its selling price--times 100.
Selling price minus the cost of the item, divided by the selling price--times 100.
Tide laundry detergent commercials often show the average homemaker enjoying brighter, cleaner laundry as a result of using Tide's latest formula. The advertising appeal employed is _____________.
Slice-of-life appeals (correct)
A reduction from list price given to middlemen to get shelf space for a product is a:
Slotting allowance
A reduction from list price given to middlemen to get shelf space for a product is a: Brokerage allowance Trade discount Push money allowance Self allocation Slotting allowance
Slotting allowance
Seek to become part of an established network marketing system
Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers? Seek to tailor their merchandising and customer service to the precise needs of their local market Idenfity a unique niche not targeted by competitors in which they can attain a differential advantage Seek to become part of a franchise organization Seek to become part of an established vertical marketing system Seek to become part of an established network marketing system
One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ .
So as to avoid charges of illegal price discrimination
One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ . That have the same number of customers So as to avoid charges of illegal price discrimination That are equal in dollar sales potential Such that the prices are the same for each zone That are equal in geographic size
So as to avoid charges of illegal price discrimination
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Social marketing
The firm's promotion mix consists of all of the following except _______ .
Social media
Which of the following is not a form of non-store retailing?
Social network selling
For which of the following products is a manufacturer most likely to use intensive distribution?
Soft drinks
For which of the following products is a manufacturer most likely to use intensive distribution? Vacuum cleaners Silk flowers Mountain bikes Softdrinks Latex paint
Softdrinks
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Some point of difference (POD) (correct)
Selling agent
Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a: Selling agent Manufacturers' agent Broker Specialty wholesaler Truck jobber
Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients can choose. Merril-Lynch is peforming which channel function? Accumulating Allocating Negotiating Assorting Sorting
Sorting
Merrill Lynch, an investment firm, sorts investment opportunities based on "risk" and "return" from which its clients to choose. Merrill-Lynch is performing which channel function?
Sorting
When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed?
Sorting
When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed? Accumulating Allocating Negotiating Assorting Sorting
Sorting
When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function.
Sorting
When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function. Accumulating Allocating Negotiating Assorting Sorting
Sorting
The message _________ is the apparent originator of the message and can be a person, a company, or an inanimate figure, such as a cartoon character.
Source
Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons?
Source expertise Source trustworthiness Source believability Source honesty Celebrities often score high on all of the above. (correct)
A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a:
Specialty (limited line) wholesaler
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Specialty advertising
Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as:
Specialty stores
____________ attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortemts of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff.
Specialty stores
Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________.
Spoilage of products not purchased before their expiration date.
An LA Fitness salesperson may offer to "waive your enrollment fee if you sign-up today." The sales person is using the ___________ .
Standing room only close (correct)
Drop shipper
Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a: Cash & carry wholesaler Manufacturer's agent Specialty wholesaler Drop shipper Selling agent
Which of the following is not one of the purposes of advertising?
Stimulate immediate action in retail settings (correct)
The objectives of promotion during the growth stage of the PLC are primarily to:
Stimulate selective demand
The objectives of promotion during the growth stage of the PLC are primarily to:
Stimulate selective demand.
The inventory numbers given to products stocked by retailers are called:
Stock Keeping Units
Which channel function creates time utility for consumers?
Storage
Which channel function creates time utility for consumers? Accumulating Allocating Storage Assorting Sorting
Storage
Neighborhood centers
Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls
Amanda is examining advertising, social media posts, and company websites, as well as talking to sales people to acquire information as she considers alternative DVD players for purchase. Which stage in the Hierarchy of Communications Objectives is illustrated in this example?
Structuring beliefs and attitudes
During the __________ stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize determinant attributes in promotion communications.
Structuring beliefs and attitudes
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Such plans are more appropriate for compensating sales engineers when negotiation periods can be lengthy
____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers.
Supercenters
additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers.
Supercenters
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Superior value to competitor's brands
Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ .
Supermarkets
The channel of distribution for consumer products does not include which of the following?
Suppliers of component parts to the producer.
The channel of distribution for consumer products does not include which of the following? The producer Intermediaries, such as wholesalers and retailers Ultimate consumers of the distributed product Suppliers of component parts to the producer.
Suppliers of component parts to the producer.
_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers.
Supply chains
_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers. Channels of distribution Supply chains Physical distribution Logistics channels Transportation
Supply chains
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Sweepstakes. (correct)
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Telemarketing
A commonly employed method for assessing advertising's financial performance is which of the following ______ .
Test markets to assess the campaign's effect on sales. (correct)
__________ attempt to use real persons as endorsers who appear likeable and believable to attest to the product's utility and value.
Testimonial advertising (correct)
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Testimonial advertising (correct)
The main difference between agent middlemen and merchant wholesalers is:
That agent middlemen do not own the products they sell--while merchant wholesalers do.
The sequence of organizations and individuals through which finished consumers goods move is called:
The Channel of Distribution
Regional center
The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________. Neighborhood center Community center Regional center Power center Factory outlet mall
When a seller offers a cash discount with terms of 3/10, n/60, this means: The buyer gets a discount of 10 percent if the bill is paid within 3 days; otherwise the entire amount is due in 60 days. Payment is due in 10 days, or else there is a 3 percent late-payment penalty. Payment is due in 60 days, or else there is a 3 percent late-payment penalty. The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days. If the buyer pays within 60 days, there is a 3 percent discount; beyond that is a 10-day grace period before there is a penalty.
The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.
The sequence of organizations and individuals through which finished consumer goods move is called: The channel of distribution Materials management Physical distribution Logistics Transportation
The channel of distribution
The sequence of organizations and individuals through which finished consumers goods move is called:
The channel of distribution
Merchandise mix
The classification system for in-store retailers employed in the text is based on the ______________ of the retailer. Merchandise mix Degree of effort consumers expend in visiting facilities Location Size Type of ownership
With respect to the Communications Process, the promotional medium selected to transmit the message to the receiver is called ____________ .
The communications channel
A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country.
The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.
A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program?
The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.
Merchandise mix
The entire range of products stocked by a retailer is its _______. Product mix Product portfolio Merchandise portfolio Merchandise mix Product line depth
The target audiences for a firm's public relations effort is least likely to include which of the following?
The firm's competitors
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The firm's competitors
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The firm's employees
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The firms gains a highly trained professional sales team
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The general public
Atmospherics
The internal and external physical characteristics of stores that shape the retail store's image are referred to as: Atmospherics Retail personality Retail position Retail brand image
Stock Keeping Units
The inventory numbers given to products stocked by retailers are called: Stock Keeping Units Retail Inventory Units Slotting Units Stocking Inventory Units
A primary weakness of sales promotions is:
They can easily be copied by competitors (correct)
That agent middlemen do not own the products they sell--while merchant wholesalers do.
The main difference between agent middlemen and merchant wholesalers is: That agent middlemen do not own the products they sell--while merchant wholesalers do. That no agent middlemen physically handle products--while all merchant wholesalers do. Their attitudes regarding the marketing concept. The kind of selling they do. There is no difference--an agent middleman IS a merchant wholesaler.
Whether the product will be used by an organization or by a consumer.
The major distinction between a retail and a wholesale transaction is: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a retailer or a wholesaler. Whether the product involved is sold at a wholesale or a retail price. The quantity of goods involved.
Independent retailers
The majority of retailing establishments in the US today are: Chain stores Corporate chain stores Independent retailers Internet retailers Franchise stores
Brokers
The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use: Selling agents Manufacturers' agents Drop shippers Brokers Commission merchants
In which of the following situations is a manufacturer's exclusive territory agreement with a dealer likelty to be declared illegal?
The manufacturer forbids the dealer from selling outside his territory.
Merchandise breadth
The number of different product lines carried by a retailer is its ________ . Product mix Merchandise mix Product line breadth Merchandise breadth Portfolio width
Convenience
The primary benefit to consumers when buying from a vending machine is: Lower prices Higher quality products No requirement to interface with a retail salesperson Convenience Cleanliness
The wholesaler takes title; the agent does not.
The primary factor that distinguishes between a merchant wholesaler and an agent is: The agent takes title; the wholesaler does not. The wholesaler takes title; the agent does not. The wholesaler provides many more services than does the agent. Wholesalers account for a larger sales volume than do agents None of the above
Which of the following is least likely to cause problems when employing historical data to estimate demand curves?
The seller introduced several new products that were considered to be category extensions during the time in question.
Which of the following is least likely to cause problems when employing historical data to estimate demand curves? Competitors experimented with multiple price changes during the time frame under analysis. Price controls were imposed on the industry by the Federal government during the period in which the pricing data were collected. The seller made several major changes to its promotion program during the time in question. The seller introduced several new products that were considered to be category extensions during the time in question. A consumer rights advocacy group mounted a major campaign against the company and its products during the time under analysis.
The seller introduced several new products that were considered to be category extensions during the time in question.
Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because:
The seller probably was using zone-delivered pricing.
•
They cannot "close" the sale.
Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because: The current legal interpretation of the Robinson-Patman Act required the price differential The rules and regulations of the Federal Trade Commission required the price differential The seller set pricing differentials based on the existence of inverse demand The seller probably was using zone-delivered pricing. The seller was using cash discounts.
The seller probably was using zone-delivered pricing.
Less than 5%
The supermarket form of retailing normally commands profit margins, on average, of: Less than 5% 5% - 10% 10% - 15% 15% - 20% More than 20%.
Under which of the following conditions is a tying contract likely to be declared as legal?
The supplier alone can provide products of the required quality, as in the case of some franchise situations. A new small company is entering the market and desires full line representation. Under these circumstances adverse effects on competition are minimal. A supplier carries competing lines that can be offered to buyers, thereby assuring market access to competing firms. All of the above increase the likelihood that a tying contract will be legal. (correct)
For which of the following is a legitimate (legal) reason for a manufacturer to drop or "refuse to deal" with a supply chain member?
The supply chain member fails to meet sales objectves or fails to adequatly service buyers of the producer's products.
All of the above
The television home shopping format appeals to some consumers for which of the following reasons? Prices are often perceived as lower Sales personnel are often perceived as friendlier and better informed Consumers can shop from the convenience of their own homes Consumers can see how products work and understand the benefits before they purchaseProducts can be easily demonstrated and plenty of time exists to explain the product's benefits All of the above
The primary factor that distinguishes between a merchant wholesaler and an agent is:
The wholesaler takes title; the agent does not.
•
Their use is too costly compared to other forms of promotion
A primary weakness of sales promotions is:
Their use may build customer loyalty to the deal, rather than to the brand (correct)
•
Their use may build customer loyalty to the deal, rather than to the brand (correct)
The major advantage to using the competitive parity of IMC budgeting is:
There are no real advantages
The major advantage to using the competitive parity of IMC budgeting is:
There are no real advantages.
The first four steps in the new product development process are particularly critical because: 1. These stages deal with ideas or 'concepts on paper' and are the least expensive steps. 2. These steps provide the best information for projecting whether the product will succeed or fail. 3. These steps include actually developing the physical product so that we can see how it will really function before committing to commercialization. 4. These steps are mandated by federal law we must be able to demonstrate that for all new products introduced that these steps were adequately performed. 5. None of the above is true of the first three steps.
These stages deal with ideas or 'concepts on paper' and are the least expensive steps.
•
They are less effective for stimulating trial and repeat purchase
Direct response advertising
Time-Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________. Direct mail Direct response advertising On-line retailing Direct selling Telemarketing
Factory outlet malls usually are located in outlying, rural areas in order to:
To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.
A retailer might expect a stocking allowance:
To offset the handling costs for a new product.
A retailer might expect a stocking allowance: To pass along to retail salesclerks who aggressively sell the product. To offset the handling costs for a new product. For paying the supplier's invoice before the product is delivered. If the manufacturer can't fill an order by the promised delivery date. None of the above--stocking allowances only apply to wholesalers.
To offset the handling costs for a new product.
In price determination, given a particular selling price, the break-even point is where:
Total costs of the product equals total sales revenue from the product.
In price determination, given a particular selling price, the break-even point is where: Profit is maximized Sales volume is maximized Marginal cost equals total sales Marginal cost equals marginal revenue Total costs of the product equals total sales revenue from the product.
Total costs of the product equals total sales revenue from the product.
_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform.
Trade or functional discounts
_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform. Markdowns Cash discounts Quantity discounts Slotting fees Trade or functional discounts
Trade or functional discounts
__________ involves the physical movement of finished goods, raw materials, and component parts between channel members.
Transportation
__________ involves the physical movement of finished goods, raw materials, and component parts between channel members. Accumulating Allocating Transportation Assorting Sorting
Transportation
Facilitating agents
Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________. Facilitating agents Physical distributors Logistical agents Distribution agents Vertical integrators
Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product s pain-relieving benefits were any better than the brand she was using. Janet is most likely in the ___________ stage of the new product adoption process 1. Trial. 2. Awareness. 3. Evaluation. 4. Information. 5. Adoption.
Trial
The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers are at which stage in the Hierarchy of Communications Objectives?
Trial and purchase
When marketers of automobiles offer to let consumers "take a car home" for an extended test drive and offer generous return policies, they are emphasizing objectives at which stage of the Hierarchy of Communications Objectives?
Trial and purchase
The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers are at which stage in the Hierarchy of Communications Objectives?
Trial purchase
_____ carry a select line of perishable products and deliver them by trucks to retail stores.
Truck jobbers
_____ carry a selected line of perishable products and deliver them by trucks to retail stores.
Truck jobbers
Not all prices on a given demand curve will be profitable. For example, when price is set too low, demand may be very high (many units can be sold), but the contribution per unit (contribution margin per unit) may be so low that TFC cannot be covered. True or False?
True
The major distinction between voluntary chains and retailer cooperatives is who originated the distribution system.
True
Avis in some of its early ads began by pointing out that Avis was not the largest car rental company and then essentially discounted the "deficiency" by stating "...we try harder.'' Avis was employing ___________ .
Two-sided messages
Promotional message pointing out both the positive features and negative deficiencies (and then refuting the negatives) are called ___________ .
Two-sided messages
Which method for estimating demand curves is least appropriate for the marketer of a new product.
Using historical ratios
Which method for estimating demand curves is least appropriate for the marketer of a new product. Using buy-response data Using historical ratios Using test market data Using managerial judgement
Using historical ratios
Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price.
Value
Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price. Fair trade Value Psychological Cost-plus Penetration
Value
Spoilage of products not purchased before their expiration date.
Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. Investment in equipment Upkeep on equipment Theft and vandalism of equipment Spoilage of products not purchased before their expiration date.
_____________ is when a firm operates at more than one level in a marketing channel or supply chain. Channel diversification Horizontal development Horizontal integration Vertical development Vertical integration
Vertical integration
_____________ is when a firm performs more than one set of activities in a marketing channel or supply chain.
Vertical integration
•
Virtual retailers.
The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a:
Voluntary chain
The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a: Retailer cooperative Producer cooperative Vertical wholesale systerm Voluntary chain Voluntary wholesale system
Voluntary chain
__________ communication entails any positive or negative opinions or experiences by potential, current, or former customers about products, brands, or marketing organizations transmitted through digital media.
WOM
Discount stores
Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ . Off-price retailers Specialty stores Discount stores Category killers Department stores
____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee.
Warehouse clubs
_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing.
Warehouse clubs
Facilitating agents
Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________. Storage intermediaries Facilitating agents Vertical integrators Warehousing agents Channel integrators
Facilitating agent
Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________. Investment banker Financial broker Financial agent Industrial distributor Facilitating agent
broker
When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a: Selling agent manufacturers' agent drop shipper broker commision merchant
Whether the product will be used by an organization or by a consumer.
Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a manufacturer or a wholesaler. Whether the product involved is sold at wholesale or retail price. The quantity of goods involved.
The major distinction between a retail and a wholesale transaction is:
Whether the product will be used by an organization or by a consumer.
Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on:
Whether the product will be used by an organization or by a consumer.
The primary distinction between voluntary chains and retailer cooperatives is:
Whether they are set-up by wholesalers or by retailers
The primary distinction between voluntary chains and retailer cooperatives is: Whether they are set-up by wholesalers or by retailers Voluntary chains tend to offer more benefits to members than do coops. Retailer cooperatives tend to be more profitable than voluntary chains Voluntary chains are limited to hardware stores, while coops serve the grocery industry.
Whether they are set-up by wholesalers or by retailers
Greater flexibility in operational decision-making at the individual store level
Which of the following is a distinct advantage of the smaller indepdent retailer over its coporate chain store competitors? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition
Social network selling
Which of the following is not a form of non-store retailing? Vending Party plan selling Telemarketing Direct mail Social network selling
Reduced reliance on vendor assistance to help manage inventory and restock shelves
Which of the following is not a response by supermarkets to improve their profit margins? Increased use of technology to improve customer service Reduced reliance on vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private lable brands Using promotional mechanisms to build store loyalty.
Reduced reliance on techology to cut costs
Which of the following is not a response by supermarkets to improve their profit margins? Reduced reliance on techology to cut costs Vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private lable brands Using promotional mechanisms to build store loyalty
Improved merchandising by expanding the merchandise mix
Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon? Price matching on select merchandise Adding value-enhancing services Liberal return policies Improved merchandising by expanding the merchandise mix Enhanced customer relationship management
Greater flexibility in operational decision-making at the individual store level
Which of the following is not an advantage of corporate chain stores over smaller independent retailers? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition
Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling
Which of the following is true about how direct selling differs from direct marketing? Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling Direct marketing is limited by various "Green River Ordinaces" in a large number of communities Direct selling uses traditional promotional media to encourage consumers to buy products by mail, telephone, or internet Direct selling includes a number of techniques including direct mail, telemarketing, and direct response advertising There is no differences. These are different names for the same thin
A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon
Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? A well-established, international company A large cereal manufacturer that has developed a gluten-free cereal line A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon An international sporting goods manufacturer that wants to add a line of snow toboggans A company that wants to introduce product line extensions to its current market.
The main difference between retailer cooperatives and voluntary chains is:
Who organizes them
The main difference between retailer cooperatives and voluntary chains is: Their offensive vs. defensive postures The length of the distribution channel The types of promotion used Who organizes them Their pricing strategies
Who organizes them
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________.
Wholesaleing
___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses.
Wholesaling
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ .
Wholesaling intermediary
Random digit dialing
With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may have unlisted numbers. Random digit dialing Competitors' customer call lists Purchased data bases of prospects The FTC's no-call lists On-line phone lists
All of the above
With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects? Cold-calling from existing phone lists. Random digit dialing Lists of current or past customers Lists purchased from third party vendors All of the above
The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand.
Word of mouth
___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand.
Word of mouth
The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand.
Word-of-Mouth
___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand.
Word-of-Mouth
Truck jobbers
_____ carry a select line of perishable products and deliver them by trucks to retail stores. Full-service wholesalers Rack jobbers Truck jobbers Commission merchants Drop shippers
Chain stores
_________ are groups of two or more retail stores operated by th same entity. Chain stores Independent retailers Corporate chains Internet retailers Rack jobbers
Department stores
_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's. Off-price retailers Specialty stores Factory outlets Category killers Department stores
A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution.
direct
Convenience stores
__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices. Supercenters Supermarkets Discount stores Category killers Convenience stores
Factory outlets
__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems. Off-price retailers Specialty stores Factory outlets Category killers Department stores
Wholesaling
___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses. Retailing Wholesaling Channel management Logistics Distribution management
Off-price retailers
___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's. Off-price retailers Specialty stores Factory outlets Category killers Department stores
Power centers
____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls
Category managers
____________ are responsible for managing a group of related products stocked by a retail store. Stocking managers Category managers Product line managers Inventory managers
Supercenters
____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers." Supercenters Specialty stores Discount stores Category killers Department stores
Specialty stores
____________ attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortemts of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. Off-price retailers Specialty stores Factory outlets Category killers Department stores
Warehouse clubs
____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee. Supercenters Supermarkets Discount stores Warehouse clubs Convenience stores
Party plan selling
____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work. Party plan selling Direct selling In-home selling Sponsored selling Group selling
Retailing
____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use. Wholesaling Consumption Retailing Distribution Logistics
Non-store retailing
____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. In-store retailing Non-store retailing Internet retailing Social network retailing Out-bound retailing
Department stores
____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally) restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits. Off-price retailers Specialty stores Factory outlets Category killers Department stores
Category killers
____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition. Off-price retailers Specialty stores Factory outlets Category killers Department stores
Limited line retailers
____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep." General merchandise retailers Limited line retailers Specialized line retailers Restricted line retailes
Warehouse clubs
_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing. Supercenters Supermarkets Discount stores Warehouse clubs Convenience stores
Regional centers
_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls
Facilitating agents
_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents
Corporate chains
______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations. Multi-unit chains Corporate chains Independet retailers Rack jobbers Superstores
Retailing intermediaries
_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents
The advantages of publicity include:
a and b above are correct. (correct)
•
a and b above are correct. (correct)
Supercenters
additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers. Supercenters Specialty stores Discount stores Category killers Department stores
With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects?
all of the above
Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function?
allocating
Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores.
assorting
When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function.
assorting
The principle adopted from psychology that predicts how much a stimulus must change for that change to be noticed is: a Parkinson's Principle b Weber's Law c Pavlov's Principle d Skinner's Law e None of the above.
b. Weber's Law
A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of: full-line pricing value in use pricing price lining bait pricing leader pricing
bait pricing
A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties.
broker
When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a:
broker
When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Titus and the young couple. Smalley is most likely a:
broker
The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use:
brokers
_________ are groups of two or more retail stores operated by th same entity.
chain stores
Advertising in which brands are directly compared against one another are called _______ .
comparative ads
The positive rewards accruing to consumers from purchase and use of a brand along with the use of reminder advertising positively reinforce the consumer's brand purchase decision during the __________ stage of the Hierarchy of Communications Objectives.
conviction and brand loyalty
Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n):
corporate VMS
Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using?
cost-plus pricing
The first, critical step in the Hierarchy of Communications Objectives is _________ .
creating awareness
provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers.
discount stores
A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user.
distribution channel
Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a:
drop shipper
Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a: cash-and-carry wholesaler manufacturers' agent specialty wholesaler drop-shipper selling agent
drop-shipper
Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as:
dual distribution
Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ .
dual distribution
The tendency for producers to employ multiple channels of distribution to reach the same target markets is called:
dual distribution
__________ communication entails any positive or negative opinions or experiences by potential, current, or former customers about products, brands, or marketing organizations transmitted through digital media.
eWom
Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________.
factory outlet mall
The majority of retailing establishments in the US today are:
independent retailers
Direct channels for products are most likely for _________ .
industrial installation
Advertising is used extensively during the ____________ stage of the PLC to create awareness and stimulate product trial.
introduction
Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the __________ stage of the PLC.
introduction
The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of: a single-price strategy leader pricing cost-plus pricing price lining penetration pricing
leader pricing
"Inventory in motion or at rest throughout the supply chain" is called:
logistics
The supply chain function in which buyers and sellers are brought together to perform exhanges is:
matching
Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians.
materials management
During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reach additional target segments, and demonstrate new ways that consumers could use the product.
maturity
During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" from competitors.
maturity
The classification system for in-store retailers employed in the text is based on the ______________ of the retailer.
merchandise mix
Convenience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.
neighborhood centers
Using the ____________ budgets are set by first identifying exactly what communications objectives are being pursued and then setting the budget to achieve them.
objective and task
With ____________ IMC budgeting, the overall budget is built up from specific budgets allocated to each promotional activity that is needed to achieve objectives.
objective and task
Off-price retailers
outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. Off-price retailers Specialty stores Factory outlets Category killers Department stores
The communication process inherent in _____________ is useful for ascertaining the customer's wants and needs, imparting customized information to customers about products or services, and for developing customer relationships, even if the contact does not immediately result in a "sale."
personal selling
When promotion messages are complex or when products benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate.
personal selling
________ is the most important form of promotion for most industrial goods, particularly installations and major equipment, where product customization and demonstration are often essential.
personal selling
_____________ is an oral, one-on-one, often face-to-face communication between prospective buyers and sellers.
personal selling
______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the Firm.
personal selling
The physical movement of finished goods from producers to middlemen and, everntually, to consumers is:
physical distribution
Which of the following companies is least likely to function as a channel captain in their respective supply chains?
pizza hut
Advertising, personal selling, sales promotion, publicity, and public relations comprise the firm's __________.
promotion mix
Discount stores
provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers. Off-price retailers Specialty stores Discount stores Category killers Department stores
Typical goals of ____________ are to garner positive news releases, arrange interviews between the media and the firm's spokespersons, lobby governmental agencies, support charitable events, and engage in corporate (institutional) advertising.
public relations
______________ is any message about a product, organization, person, or event that is communicated via non-personal media and is not paid for by a sponsor.
publicity
A ______ promotion strategy builds sales by promoting aggressively to the final buyer, usually the ultimate consumer. By stimulating demand with the final buyer, intermediaries are forced to stock and sell the product to satisfy this demand.
pull
Procter and Gamble employs extensive television and print advertising to create demand for its personal care products with consumers. Coupons, gifts, and premiums are employed at the point of purchase to stimulate trial and brand switching behaviors, as well as to create brand preference. P&G is employing a _________ promotion strategy.
pull
With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised.
pull
With ______ promotion, advertising and other promotion techniques are directed at intermediaries to convince them to stock the advertiser's products.
push
The major distinction between voluntary chains and retailer cooperatives is who originated the distribution system.
true
With ________ promotion strategies producers heavily promote to wholesale and retail intermediaries. In turn, retailers actively promote the product to ultimate consumers. This strategy relies heavily on the aggressive selling efforts of the manufacturer's sales force to work with wholesalers and/or retailers.
push
Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines.
push money
A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a:
rack jobber
The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________.
regional center
___________ supports and augments advertising and personal selling efforts. It consists of activities that provide short-term incentives aimed at inducing desired responses from customers.
sales promotion
_____________ includes the use of coupons, games, contests, free samples, rebates, frequent-flyer programs, in-store displays, in-store product demonstrations, free gifts, and travel vacations for salespeople.
sales promotion
______________ is probably the best promotional tool for stimulating new product trial and encouraging brand switching for consumer convenience goods
sales promotion
A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output.
selling agent
Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a:
selling agent
The firm's promotion mix consists of all of the following except _______ .
social media
Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients to choose. Merril-Lynch is peforming which channel function?
sorting
When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed?
sorting
Which channel function creates time utility for consumers?
storage
__________ exist(s) when a supplier agrees to provide a product to a supply chain member only if that member will buy additional products from the supplier.
tying arrangements
When franchisors demand that their franchisees buy all products from the franchisor in order to assure the quality of franchise's products, they are employing ______________
tying contracts
_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers.
supply chains
The target audiences for a firm's public relations effort is least likely to include which of the following?
the firms competitors
__________ involves the physical movement of finished goods, raw materials, and component parts between channel members.
transportation
___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand.
word of mouth
