Exam 3
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 manufacturers' agent c. A broker d. A selling agent
?
The "making/creating bulk" channel function is formally called: a. Accumulating b. Allocating c. Sorting d. Assorting e. Negotiating
A. Accumulating
Which of the following is not a key question a firm must address when deciding whether it should "go global?" A. Are the firm's domestic sales sufficient to finance a move to global markets? B. Can the firm adapt is business model to accommodate differences in global cultures and supply chain structure? C. Can the firm identify, understand, and effectively respond to differences in consumer preferences and buying behaviors in global markets? D. Does the firm have the relevant expertise and experience to target global markets? E. Is the firm capable of managing and responding to the varying legal requirements in global markets?
A. Are the firm's domestic sales sufficient to finance a move to global markets?
... 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. a. Cease and desist order b. Consent decree c. Corrective advertising d. Fines.
A. Cease and desist order
The tendency for producers to employ multiple channels of distribution to reach the same target markets is called ... a. Dual distribution b. Multiple channel distribution c. Channel adaptation d. Channel proliferation e. None of the above
A. Dual Distribution
False, misleading, and deceptive advertising are regulated by the ... a. FTC Act of 1914 b. Robinson-Patman Act c. Lanham Trademark Act d. Trademark Law Revision Act.
A. FTC act of 1914
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
When firms employ a one-product, one-message marketing mix to tap all foreign markets and this program is basically the same as their domestic marketing program, they are employing as ... A. straight extension strategy B. product adaption strategy C. promotion adaptions strategy D. dual customization strategy E. new product development strategy
A. Straight extension
... 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. a. WOM b. Opinion-leader c. Word-of-Mouth d. Peer-to-Peer e. Social media.
A. WOM
Walmart, 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. a. Administered b. Corporate c. Retailer Cooperative d. Voluntary chain e. Contractual
A. administered
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? a. Advertising and personal selling b. Personal selling and sales promotion c. Advertising and sales promotion d. Advertising and Public relations e. Personal selling and publicity.
A. advertising and personal selling
The use of ... is most appropriate for consumers engaged in low involvement decisions. a. Advertising and sales promotion b. Advertising and personal selling c. Personal selling and sales promotion d. Personal selling and publicity e. Sales promotion and publicity.
A. advertising and sales promotion
Consumers who spread positive word-of-mouth about products or brands are called ... a. Brand evangelists b. Brand missionaries c. Opinion leaders d. Innovators.
A. brand evangelists
With __________ the marketer takes over those supply chain functions initially performed by third-party providers. Risks, as well as the costs of financial investments, rise as this strategy is employed. A. Direct exporting B. Indirect Exporting C. Joint Venturing D. Licensing E. Contract manufacturing.
A. direct exporting
HP, in 2007, established two factories in India that manufactured personal computers. At about the same time, HP opened company-owned retail stores in more than 150 Indian cities. This is an example of ... for penetrating a foreign market. A. Direct exporting B. Indirect Exporting C. Direct Investment D. Joint Venturing E. Contract manufacturing.
A. direct investment
___________ 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 middlemen's buyers. a. Drop shippers b. Agents c. Commission merchants d. Merchant wholesalers e. Retailer cooperatives
A. drop shippers
... 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. a. IMC b. TTT c. WOM d. eWOM e. PLC.
A. imc
Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the ... stage of the PLC. a. Introduction b. Growth c. Maturity d. Decline e. All of the above.
A. introduction
Sales promotions, such as coupons and free samples, are employed to induce trial primarily in the ... stage of the PLC. a. Introduction b. Growth c. Maturity d. Decline e. All of the above.
A. introduction
The supermarket form of retailing normally commands profit margins, on average, of: a. Less than 5% b. 5% - 10% c. 10% - 15% d. 15% - 20% e. More than 20%
A. less than 5%
With respect to the Communications Process, physical/psychological barriers, distractions, and other impediments to successful communication are called ... a. Noise b. Encoding - decoding impediments c. Clutter d. Decryption limitations e. None of the above.
A. noise
____________ include stores such as Ross Dress for Less, Dress Barn, TJ Maxx, DSW Designer Shoes Warehouse, and Marshalls. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
A. off-price retailers
____________ sell seconds, production overruns, discontinued, outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
A. off-price retailers
Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all exemplify which form of direct selling? a. Party plan selling b. Door-to-door selling c. In-home selling d. Group selling
A. 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. a. Party plan selling b. Direct selling c. In-home selling d. Sponsored selling e. Group selling
A. party plan selling
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. a. Percentage of sales b. Objective and task c. Competitive parity d. All-You-Can-Afford.
A. percentage of sales
With the ... of IMC budgeting, the total budget will decline when sales decline and increase as sales go up. a. Percentage of Sales and All-You-Can Afford b. Percentage of Sales and Objective and Task c. Competitive parity and Percentage of Sales d. All-You-Can-Afford and Objective and Task.
A. percentage of sales and all-you-can afford
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. a. Push b. Pull c. Primary demand d. Selective demand e. Distributor.
A. push
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
A _________ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. a. Selling agent b. Manufacturers' agent c. Drop shipper d. Broker e. Commission merchant
A. 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 activities 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 ___________. a. Selling agent b. Manufacturers agent c. Broker d. Specialty wholesaler e. Truck jobber
A. selling agent
Family and friends typically score high on those factors that contribute to source credibility except: a. Source expertise b. Source trustworthiness c. Source believability d. Source honesty.
A. source expertise
______________ 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 a. Supercenters b. Specialty stores c. Discount stores d. Category killers e. Department stores
A. supercenters
_______________ are combination supermarkets and discount stores with additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing and optical centers. a. Supercenters b. Specialty stores c. Discount stores d. Category killers e. Department stores
A. supercenters
With respect to the Communications Process, the promotional medium selected to transmit the message to the receiver is called... a. The communications channel b. Transport network c. Communications network d. Conveyance channel e. Transmission medium.
A. the communications channel
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
Which of the following is not a key question a firm must address when deciding whether it should "go global?" A. Can the firm offer products that will be competitive in global markets? B. Can the firm be sure that it can use its current business model in global markets? C. Can the firm identify, understand, and effectively respond to differences in consumer preferences and buying behaviors in global markets? D. Does the firm have the relevant expertise and experience to target global markets? E. Is the firm capable of managing and responding to the varying legal requirements in global markets?
B. *Can the firm be sure that it can use its current business model in global markets?
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
The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is ... a. Cease and desist order b. Consent decree c. Corrective advertising d. Fines.
B. Consent decree
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
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. Produce> Wholesaler> retailer> consumer
With ... promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised. a. Push b. Pull c. Primary demand d. Selective demand e. Consumer.
B. Pull
General Mills, with its line of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via its market power. This form of distribution illustrates a(n): a. Contractual VMS b. Administered VMS c. Voluntary Chain d. Corporate VMS e. Franchise system
B. administered VMS
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 ... a. Advertising and personal selling b. Advertising and sales promotion c. Advertising and publicity d. Personal selling and sales promotion e. Publicity and public relations.
B. advertising and sales promotion
The forms of promotion most important for lower unit value consumer convenience goods are: a. Advertising and personal selling b. Advertising and sales promotion c. Advertising and publicity d. Personal selling and sales promotion e. Publicity and public relations.
B. advertising and sales promotion
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
Door-to-door selling and party plan selling are both examples of ___________. a. Telemarketing b. Direct selling c. In-store retailing d. Direct retailing e. Mail order selling
B. direct selling
The term ... means that a domestic marketer ships goods or delivers professional services outside the country in which the marketer is located. A. Direct investment B. Exporting C. Joint Venture D. Licensing E. Contract manufacturing.
B. exporting
Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage. a. Introduction b. Growth c. Maturity d. Decline
B. growth
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 mostly likely be distributed by a ____________. a. Truck jobber b. Manufacturers' agent c. Drop shipper d. Broker e. Commission merchant
B. manufacturers' agent
____________ occurs when products are sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. a. In-store retailing b. Non-store retailing c. Internet retailing d. Social network retailing e. Out-bound retailing
B. non-store retailing
The ... method to IMC budgeting is realistically the best approach to employ because it is the only approach that specifically allocates promotion dollars to achieve specific objectives. A. percentage of sales B. objective and task C. competitive parity D. all-you-can-afford
B. objective and task
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." a. Advertising b. Personal selling c. Sales promotion d. Public relations e. Publicity.
B. personal selling
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. a. Push b. Pull c. Primary demand d. Selective demand e. Distributor.
B. pull
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 to display, and monitors the inventory for his customers. Joe is a _______________. a. Selling agent b. Rack jobber c. Cash and carry wholesaler d. Truck wholesaler / jobber e. Manufacturers' agent
B. rack jobber
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 ____________. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
B. specialty stores
___________ attempt to avoid price competition, preferring instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortments of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
B. specialty stores
Albertsons, Kroger's, Safeway, H.E.B, and A&P are nationally located corporate chains of ____________. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Department stores
B. supermarkets
The primary factor that distinguishes between a merchant wholesaler and an agent middleman is: a. The agent takes title, the merchant wholesaler does not. b. The merchant wholesaler takes title, the agent does not. c. The merchant wholesaler provides many more services than does the agent. d. Wholesalers account for a larger sales volume than do agents. e. None of the above.
B. the merchant wholesaler takes title, the agent does not
Marmite's My Mate and I Hate commercial shows a promotional message pointing out both the positive features and negative deficiencies. This sounds like an example of ... A. one-sided messages B. two-sided messages C. positive-point messages D. single-point messages E. benefit-oriented messages
B. two-sided messages
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
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
When producers and channel intermediaries separate products into categories based on differences in some aspect of "quality" they are performing the ... channel function. a. Accumulating b. Allocating c. Sorting d. Assorting
C. Sorting
Which channel function creates time utility for consumers? a. Accumulating b. Allocating c. Storage d. Assorting e. Sorting
C. Storage
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. A desk jobber b. A commission merchant c. A truck jobber / distributor d. A manufacturer's sales office e. A broker
C. a truck jobber / distributor
The Communications Process from the message sender to the message receiver begins with the sender formulating the "message" and ends with ... a. Encoding the message by the receiver b. Transmitting the message via a communications channel c. Decoding the message by the receiver d. Acting on the decoded information
C. decoding the message by the receiver
With ... firms invest in and establish their own foreign-based assembly or manufacturing facilities. A. Direct exporting B. Indirect Exporting C. Direct Investment D. Joint Venturing E. Contract manufacturing.
C. direct investment
Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as __________. a. Off price retailers b. Specialty stores c. Discount stores d. Category killers e. Department stores
C. discount stores
______________ offer a wide assortment of product lines, each 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 a. Off price retailers b. Specialty stores c. Discount stores d. Category killers e. Department stores
C. discount stores
______________ 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. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
C. factory outlets
With respect to the principles of marketing communication, FAB stands for: a. Function, attitudes, beliefs b. Function, attributes, beliefs c. Features, attributes, benefits d. Function, attributes, benefits e. Features, attitudes, benefits.
C. features, attributes, benefits
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 a. Cash and carry wholesaler b. Specialty wholesaler c. Rack jobber d. Manufacturers agent e. Broker
C. 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 _____________. a. Cash and carry wholesaler b. Specialty wholesaler c. Rack jobber d. Manufacturers agent e. Broker
C. rack jobber
... is probably the best promotional tool for stimulating impulse purchases and brand switching for low involvement consumer convenience goods. a. Advertising b. Personal selling c. Sales promotion d. Public relations e. Publicity.
C. sales promotion
All of the following are considered to be economic factors affecting a firm's global marketing strategy except ... A. Gross domestic product B. Per capita income of individuals C. Trade barriers D. Infrastructure E. Exchange rates.
C. trade barriers
______________ carry a select line of perishable products and deliver them by trucks to retail stores. a. Full-service wholesalers b. Rack jobbers c. Truck jobbers / Truck Distributors d. Commission merchants e. Drop shippers
C. truck jobbers/ truck distributors
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 most severe remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is ... a. Cease and desist order b. Consent decree c. Corrective advertising d. Fines.
D. Fines
Marriott intends to add hotel operations in Belize and Honduras. It would like to partner with local investors who would own the hotels, but rely on Marriott to provide management services. Ultimately, Marriott wants to buy out the foreign investors. Marriott probably should be advised to use which method of entering a foreign market? A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership.
D. Management contracting
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 she represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a ________________. a. Rack jobber b. Drop shipper c. Broker d. Manufacturers agent e. Sellers agent
D. Manufacturers' agent
The supply chain function in which buyers and sellers are brought together to perform exchanges is: a. Allocating b. Assorting c. Accumulating d. Matching e. Batching
D. Matching
Which of the following is not a common criticism of promotion? A. Promotion is misleading B. Promotion is unjustifiably expensive C. Promotion can classically condition some groups D. Promotion provides too much information to consumers
D. Promotion provides too much information to consumers
The firm's promotion mix consists of all of the following except ... a. Advertising b. Personal selling c. Sales promotion d. Social media e. Publicity and public relations
D. Social Media
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
... are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing. a. Supercenters b. Supermarkets c. Discount stores d. Warehouse clubs e. Convenience stores
D. Warehouse clubs
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? a. Target upscale shoppers who are less price-elastic b. Focus on higher margin products such as clothing, jewelry and cosmetics c. Individual departments may operate as upscale specialty stores stressing enhanced 'Atmospherics' d. All of the above are being employed e. Only a and b above
D. all of the above
Which of the following is a common criticism of promotion? A. promotion is misleading B. promotion is unjustifiably expensive C. promotion can classically condition some groups D. All of the above.
D. all of the above
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 __________. a. Selling agent b. Manufacturers agent c. Drop shipper d. Broker e. Commission merchant
D. 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 Talapia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use: a. Selling agents b. Manufacturers' agents c. Drop shippers d. Brokers e. Commission merchants
D. brokers
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 ______________. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
D. 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. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
D. category killers
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
Polo (Ralph Lauren) not only manufactures clothing, but also operates its own retail stores (factory outlets). Polo is an example of a(n): a. Contractual VMS b. Administered VMS c. Wholesaler-sponsored voluntary chain d. Corporate VMS e. Franchise system
D. corporate VMS
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: a. Off-price retailing b. Retailer cooperatives c. Administered vertical marketing systems d. Corporate vertical marketing systems e. None of the above
D. corporate vertical marketing systems
Steve Johnson sells fiberglass resins and figerglass fabrics to 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 _____________. a. Cash & carry wholesaler b. Manufacturers agent c. Specialty wholesaler d. Drop shipper e. Selling agent
D. drop-shipper
McDonald's product menu and its promotions vary greatly across the different countries in which it operates. The firm sensibly focuses substantial marketing mix attention on delivering products and messages that are popular and culturally acceptable across various nations and regions. McDonald's is using an ... A. straight extension strategy B. product adaption strategy C. promotion adaptions strategy D. dual customization strategy E. new product development strategy
D. dual customization strategy
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? a. Price matching on select merchandise b. Adding value-enhancing services c. Liberal return policies d. Improved merchandising by expanding the merchandise mix e. Enhanced customer relationship management
D. improved merchandising by expanding the merchandise mix
A ____________ for penetrating international markets by US firms occurs when the US-based firm combines forces with a host firm in the foreign market to produce or market products or services in the host country. A. Direct exporting B. Indirect Exporting C. Direct Investment D. Joint Venturing E. Contract manufacturing
D. joint venturing
Which of the following is NOT a benefit of business format franchises for the franchisors? a. Risk is shared with franchisees b. Quicker to expand the franchise geographically to other market areas c. Less capital is needed by the franchisor for expansion d. Reduced exposure to potential federal and statue regulation
D. reduced exposure to potential federal and statue regulation
The perceived believability, expertise, and trustworthiness of the message source can be important for assuring acceptance of the message and is called ... a. Message source effect b. Source acceptance c. Source importance d. Source credibility e. None of the above.
D. source credibility
The target audiences for a firm's public relations effort is least likely to include which of the following? a. Existing and potential customers b. Government agencies and regulatory bodies c. The general public d. The firm's competitors e. Company employees.
D. the firm's competitors
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. a. Conventional supply chain b. Vertical marketing system c. Horizontal marketing system d. Traditional supply chain
D. traditional supply chain
The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a ____________. a. Retailer cooperative b. Producer cooperative c. Vertical wholesale system d. Voluntary chain e. Voluntary wholesale system
D. voluntary chain
The main difference between retailer cooperatives and voluntary chains is ______________. a. Their offensive vs. defensive postures b. The length of the distribution channel c. The types of promotion used d. Who organizes them e. Their pricing strategies
D. who organizes them
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 _____________. a. Cash & carry wholesaler b. Manufacturers agent c. Specialty wholesaler d. Drop shipper e. Selling agent
D: drop shipper
Which of the following are considered to be economic factors affecting a firm's global marketing strategy? A. Gross domestic product B. Per capita income of individuals C. Exchange rates D. Infrastructure E. All of the above.
E. All of the above
Which of the following is considered to be joint venturing for penetrating foreign markets? A. Licensing B. Contract manufacturing C. Management contracting D. Joint ownership E. All of the above are types of joint ventures
E. All of the above
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 ... a. Manufacturers agent b. Drop shipper c. Truck distributor /jobber d. Rack jobber e. Limited line (specialty) wholesaler
E. Limited line (specialty) wholesaler
In general, one-sided ads work better when consumers: a. Are better educated, b. Already agree with the advertiser's position c. Already prefer the advertiser's brand d. All of a, b, c above e. Only b and c above.
E. Only B and C above
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 ... a. Advertising b. Personal selling c. Sales promotion d. Public relations e. Publicity
E. Publicity
The benefits of direct investment as a means of entering foreign markets include all of the following except: A. Greater control of operations and marketing activities B. Lower operational and production costs C. Enhanced brand image and brand power in the host country D. Easier to adopt products to local tastes and desires E. Reduced risk of foreign governmental restrictions on operations.
E. Reduced risk of foreign governmental restrictions on operations.
The objectives of promotion during the growth stage of the PLC are primarily to: a. Stimulate primary demand b. Create brand awareness c. Induce product trial d. Convince intermediaries to stock and promote the product e. Stimulate selective demand.
E. Stimulate selective demand
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
Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons? a. Source expertise b. Source trustworthiness c. Source believability d. Source honesty e. Celebrities often score high on all of the above.
E. all of the above
The benefits of direct investment as a means of entering foreign markets include: A. Greater control of operations and marketing activities B. Lower operational and production costs C. Enhanced brand image and brand power in the host country D. Easier to adopt products to local tastes and desires E. All of the above.
E. all of the above
The need to understand the importance of global marketing is based on ... A. Many large corporations producing products commonly purchased in the US are headquartered in foreign countries B. International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets C. American-made goods are favorably perceived in many foreign countries D. Marketing via the Internet has become increasingly easy and has opened international markets E. All of the above.
E. all of the above
Which of the following is true concerning the importance of global marketing? A. The proportion of US goods exported to other countries has doubled in the last 10 years B. International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets C. American-made goods are favorably perceived in many foreign countries D. Marketing via the Internet has become increasingly easy and has opened international markets 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
Which of the following is the key characteristic of IMC? A. A unified message is delivered to all stakeholders. B. Two-way communications are employed to solidify relationships with stakeholders C. All elements of the communications program are fully coordinated D. Marketing research is employed to understand the needs of stakeholders. E. All of the above are important.
E. all of the above are important
7-Eleven, Quick-Trip and Circle K, and On the Run are all examples of _________. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Convenience stores
E. 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. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Convenience stores
E. convenience 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. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
E. 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 is inside the store and operates as an autonomous unit that is responsible for its own buying, merchandising, revenue, and profits. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores
E. department stores
Which of the following is NOT a benefit of business format franchises for franchisees? a. Risk of failure is reduced b. Economies of scale are obtained in purchasing and promotion c. Franchisees can better compete with larger corporate chains on a cost and price basis d. Franchisees have access to management expertise from the franchisor e. Franchisees are paid royalties to offset their initial investment in the franchise
E. franchisees are paid royalties to offset their initial investment in the franchise
US-based firms can enter into arrangements with foreign firms to create local businesses in foreign markets. Both firms share ownership and control of the venture. This arrangement is termed ... A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership.
E. joint ownership
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 ______________. a. Rack jobber b. Broker c. Truck wholesaler d. Selling agent e. Manufacturers agent
E. manufacturers agent
Which of the following is not a form of non-store retailing? a. Vending b. Party plan selling c. Telemarketing d. Direct mail e. Social network selling Feedback Hint: Although substantial sales are made via social networks outside of brick and mortar facilities, it is not one of the formal categories of non-store retailing.
E. social network selling
A major distinction between agent and merchant wholesaling middlemen is that wholesaling Agents take title to the products they sell while Merchant wholesalers do not. (T/F)
False
Which stage of the hierarchy of communications do you think this advertisement is for? a) Create Awareness b) Structure Beliefs (develop consumer knowledge) c) Create Preferences and Desire d) Stimulate Trial and Purchase e) Establish Brand Loyalty
No wrong answer
Which stage of the hierarchy of communications do you think this advertisement is for? a) Create Awareness b) Structure Beliefs (develop consumer knowledge) c) Create Preferences and Desire d) Stimulate Trial and Purchase e) Establish Brand Loyalty
No wrong answer
In addition to regulating discriminatory pricing activities, the ... also limits firms' use of promotional allowances as they attempt to incentivize middlemen. a. FTC Act of 1914 b. Robinson-Patman Act c. Lanham Trademark Act d. Trademark Law Revision Act.
Robinson-Patman Act
Channel captains are associated with which type of channel structure? a. Administered VMS b. Corporate VMS c. Contractual VMS d. Voluntary chain e. Franchise
VMS
Two-sided ads present both the positives and negatives for brands and then usually attempt to refute the negatives. The effectiveness of such ads as is explained by: a) Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad b) The "recency effect" in which the negatives are presented first and, therefore, overwhelmed by the positive points presented last c) The "primacy effect" in which the positives are emphasized more than the negatives d) None of the above. There is no evidence that two-sided ads work any better than one-sided ads.
a) Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad
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? a. High imagery advertising media, such as TV and billboards. b. Print media, such as magazines and newspapers c. Publicity gleaned from newspapers and TV d. Strong public relations programs e. Social media advertising.
a. High imagery advertising media, such as TV and billboards.
With ... IMC budgeting, the magnitude of sales determines the size of the budget, rather than promotion driving sales. a. Percentage of Sales and All-You-Can Afford b. Percentage of Sales and Objective and Task c. Competitive parity and Percentage of Sales d. All-You-Can-Afford and Objective and Task.
a. Percentage of Sales and All-You-Can Afford
Which of the following is NOT a response by supermarkets to improve their profit margins? a. Reduced reliance on technology to cut costs b. Vendor assistance to help manage inventory and restock shelves c. Adding higher margin non-food product lines and services d. Adding private label brands e. Using promotional mechanisms to build store loyalty
a. Reduced reliance on technology to cut costs
An understanding of traditions, preferences, and dos and don'ts in foreign counties helps domestic firms avoid embarrassing marketing mistakes. Equally important, these insights can also provide opportunities to exploit important differences in wants, needs, values, and perceptions. These considerations reflect the importance of understanding how ... impact a firm's potential global marketing strategy. A. Cultural differences B. Economic factors C. Political factors D. Trade barriers E. Exchange rates.
a. cultural differences
With ... a US firm reaches an agreement with another firm in the targeted foreign market. In exchange for a royalty payment or fee, the foreign-based firm acquires the right to use a US firm's manufacturing process, brand or trademark, trade secret or patent, or some other item that delivers differentiating value. A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership.
a. licensing
Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? a. Vending b. Direct response advertising c. Direct selling d. Mechanical marketing e. None of the above
a. vending
Most firms begin their global marketing efforts using ... This is the simplest and least risky method for entering foreign markets. A. Direct exporting B. Indirect Exporting C. Joint Venturing D. Licensing E. Contract manufacturing.
b. indirect exporting
Which of the following is not considered to be joint venturing for penetrating foreign markets? A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership
b. indirect exporting
Mild or subjective claims of superiority in advertising are referred to as ... a. False advertising b. Puffery c. Misleading advertising d. Deceptive advertising
b. puffery
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. a. Push b. Pull c. Primary demand d. Selective demand e. Distributor.
b. pull
Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? a. A well established, international company b. A large cereal manufacturer that has developed a gluten-free cereal line c. 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 d. An international sporting goods manufacturer that wants to add a line of snow toboggans. e. A company that wants to introduce product line extensions to its current market
c. 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
When Sears decided to enter Mexico with its retail facilities it engaged in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. This is an example of ... for entering a foreign market. A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership.
c. contract manufacturing
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. a. Gossip b. Opinion-leader c. Word-of-Mouth d. Peer-to-Peer
c. word-of-mouth
Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. a. Investment in equipment b. Upkeep on equipment c. Theft and vandalism of equipment d. Spoilage of products not purchased before their expiration date
d. Spoilage of products not purchased before their expiration date
The disadvantages of licensing as a means for US firms to enter foreign markets include: A. Reduced control over how it's products are produced and marketing in the foreign country B. An alternative entry strategy may have been more profitable, particularly is the product gains substantial sales C. After developing an expertise and market for the licensed product, the licensee may break from the licensing arrangement and become a direct competitor with the US-based firm in the foreign market. D. All of the above.
d. all of the above
The primary benefit to consumers when buying from a vending machine is: a. Lower prices b. Higher quality products c. No requirement to interact with a retail salesperson d. Convenience e. Cleanliness
d. convenience
The Hilton hotel chain recently opened a Doubletree in Dubai, the capital of the United Arab Emirates. Local investors own the facility. Hilton manages the property for these local investors. This is an example of ... for entering a foreign market. A. Licensing B. Indirect exporting C. Contract manufacturing D. Management contracting E. Joint ownership.
d. management contracting
A vertical marketing system (VMS): a. Was the dominant form of distribution until the advent of the horizontal marketing system. b. Evolved because producers were not concerned with the needs of their middlemen c. Directs that all marketing functions be performed by the wholesaler d. Is an uncoordinated distribution channel in which retailers and wholesalers retain their freedom of operations e. Improves the channel's operating coordination, efficiency, and effectiveness
e. Improves the channel's operating coordination, efficiency, and effectiveness
Which stage of the hierarchy of communications do you think this advertisement is for? a) Create Awareness b) Structure Beliefs (develop consumer knowledge) c) Create Preferences and Desire d) Stimulate Trial and Purchase e) Establish Brand Loyalty
no wrong answer