Exam 4 MKTG Study Guide

Carla owns a candy store called "Carla's confections." She just finalized an arrangement where she will operate one of her stores next to the floral department of a local grocery store. She will pay rent for the space and will be responsible for all aspects of her business. What is this type of arrangement called?

A leased department.

When retailers use the information gathered about their customers' behavior in order to predict consumer trends, forecast demand, or identify consumer interest in products, they do so by applying?

Big data analytics.

Which statement regarding the gray market is true?

Gray market goods allow consumers to purchase items for less than they could normally.

The sale of branded products through legal but unauthorized distribution channels is referred to as the?

Gray market.

The cost to start a direct retailing business is typically very low which has led to

High turnover rates in this form of business.

Deceptive pricing involves?

Intentionally misleading customers with price promotions.

All of the following are legal under the Robinson-Patman Act except?

Large companies leveraging their buying power to purchase goods at lower prices than smaller companies.

Perhaps the most famous online retailer in the world today, Amazon.com is guided by two principles: always putting the customer first and?

Long-term. Forgoing short-term financial gains to reinvest profits into its technology.

A manager is told to acquire a particular set of goods and make them available in a way that the retailer can achieve its goals. This is called

Merchandising.

Randall notices that customers at his store prefer certain types of snack foods over others. In response to his customers' preferences, he allocates more shelf space to those types of snacks, and less shelf space to the snack items that are purchased less frequently. In this scenario, Randall is utilizing which of the following techniques?

Micro-merchandising.

A pricing tactic in which a firm prices products a few cents below the next dollar amount is called?

Odd pricing.

Which outlet is a type of non-store retailing?

Online retailing.

Which statement is true regarding non-store retailing?

Online shopping does not provide the sensory elements that can be found with in-store shopping.

Retailers that make sure their supply chain, inventory, and sales systems are able to connect with one another are concerned with which aspect of retail marketing strategy?

Operational efficiency.

If luxury brands such as Hermès clothing, Maserati automobiles, and Gucci purses wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic?

Prestige pricing.

A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as?

Price elasticity of demand.

Compare the following statements and select the one that is accurate regarding a profit maximization strategy.

Profit maximization assumes that costumers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.

What role in retailing involves evaluating vendors, negotiating prices, ordering merchandise and arranging delivery schedules?

Retail buyer.

The number-one private-sector employment category in the United States is in which industry?

Retail.

An organization purchases products with the intention of selling them to the ultimate consumer for their personal, family, or household use. This organization is a?

Retailer.

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic?

Seasonal discounts.

The Sandy Beach resort, a family resort located in Florida, promotes the months of September and October as its vacation value months. During this time, it offers reduced rates on rooms. It does this, in part, because most families don't vacation during this time due to their children being in school. The pricing tactic The Sandy Beach Resort is using to encourage vacationing during these months is most likely?

Seasonal discounts.

The price strategy of unbundling involves?

Separating out the individual goods that make up a product and pricing each one individually.

Tarik and his friends like to visit Brady's, a local bar near campus that sells drinks for low prices. What type of retail store are Tarik and his friends going to?

Service retailer.

Marketers commonly classify retailers on all of the following dimensions except?

Size of establishment.

________ refers to how consumers perceive a retailer.

Store image.

The most frequently visited retail category is?

Supermarkets.

What is marginal revenue?

The change in total revenue that results from selling one additional unit of a product.

How is the distribution of retailers along a price continuum shown?

The distribution is shown as following a bell curve.

According to Forrester Research, almost half of the goods and services that consumers ultimately purchased in a store were actually influenced by online activity.

True.

True or False? Unbundling provides value for customers who are focused on a specific price point rather than the complete product offering.

True.

True or False? Volume maximization is the same thing as penetration pricing.

True.

Charging someone less than they are willing to pay is a practice referred to as?

Underpricing.

You and a close friend have decided to open a new retail store that specializes in selling fan apparel featuring the local university. According to your textbook, what is the most important factor that the two of you should consider before opening the store?

Where the store is located in your town.

In June, the appliance store priced its French-door refrigerators at $1,199.00 and sold 50 units. In September they reduced the price to $1,099.00 and sold 53 units. Which statement is accurate regarding this situation?

Demand is inelastic and total revenue fell from June to September.

Taking a yoga class at a Lululemon store or a cooking class at Whole Foods is an example of?

Experiential retail.

True or False? Break-even analysis is an accurate measure of price sensitivity.

False.

True or False? Promotion is one of the most important strategic decisions a firm faces because it reflects the value the product delivers to consumers as well as the value it captures for the firm.

False.

True or False? Underpricing is a pricing strategy whereby companies charge an amount just below cost in order to generate sales in the introductory stage of a product's life cycle.

False.

Which of the following is not true regarding global pricing?

Firms do not encounter any unique challenges when pricing products globally.