BUSA 330 Exam 3

What is true of conventional distribution channels?

Channel members seek to maximize their own profits.

Shifting away from mass marketing, marketers are developing _______ which are designed to build relationships with customers in more narrowly defined micro markets.

focused marketing programs

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop?

full-service retailer

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ___________ pricing.

location-based

A __________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

Of the various digital marketing categories, _________ is the fastest-growing category.

mobile

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________.

off-price retailer

What is true about optimal-product pricing?

It involves pricing products that can be added to the base product.

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

Product line pricing

What is one of the four major communication functions?

Response

___________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailing

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

Self-service

The term supply chain is considered limited because it ________.

Suggests that planning begins with raw materials and factory capacity

What is true about product line pricing?

The price steps take cost differences between products in the line into account.

A company's channel decisions directly affect the prices of its products. (T/F)

True

A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective. (T/F)

True

Advertising is a good way to engage, inform, and persuade, regardless of the objective of the message. (T/F)

True

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. (T/F)

True

Pricing strategies tend to change and evolve as the average product passes through its life cycle. (T/F)

True

When amusement parks charge customers for admission and later for food and beverages, they are following a __________ pricing strategy.

Two-part

Advertising objectives should be based on the marketing mix, positioning, and __________.

past decisions about the target market

___________ includes sales presentations, trade shows, and incentive programs.

personal selling

Encouraging customers to switch brands is most likely the objective of ___________ advertising.

persuasive

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.

product assortment

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

product bundle pricing

Pepsi being prominently featured on episodes of Empire is an example of _________.

product placement

Keeping the brand in a customer's mind during off-seasons is most likely a goal of _________ advertising.

reminder

What promotion category is most likely to include the use of displays, discounts, coupons, and demonstrations?

sales promotion

After determining its advertising objectives, a company's next step in developing an advertising program is to _________.

set an advertising budget

Today, ________ are flourishing due to the increased use of market segmentation and market targeting.

specialty stores

What is the most frequently visited type of retail store?

supermarket

Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________________.

supply chain

A __________ VMS integrates successive stages of production and distribution under single ownership.

corporate

Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. (T/F)

False

While using integrated marketing communications, the communications process should start with a(n) __________.

audit of all potential touch points

Display media includes __________.

billboards

Advertising is used most by ____________.

business firms

Using ____________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

by-product

When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________.

comparative advertising

In recent years, service differentiation among retailers has ___________.

decreased

What is a disadvantage of adding new channels in a multichannel distribution system?

decreasing control over the system

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?

department store

In a(n) __________ channel, the same member both produces and distributes a product or service to consumers.

direct

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a ________.

discount

HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________.

encoding

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

horizontal

When McDonald's offers its products inside of a Walmart store, it is using a(n) ____________.

horizontal marketing system

When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?

informative advertising

A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools?

the promotion mix

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and __________.

the relative prices they charge

Which brand most likely requires heavy advertising in order to be set apart from similar products?

undifferentiated brands