Marketing 3000: Quiz and class problems

Which of the following might Nordstrom likely use? a. even number pricing b. offering rebates c. break-even pricing d. all of the above e. none of the above

a. even number pricing

Among addicted smokers, a 10% increase in price resulted in a 1% decrease in quantity demanded. For these consumers, cigarettes have a __ price elasticity demand a. elastic b. inelastic c. cross price d. income elastic e. substitution effect

b. inelastic

New product development adds value to a firm's products and services through a. early majority substitution b. innovation c. removal of laggards d. pioneer pretesting e. conceptual intermediate beta testing

b. innovation

Effective CPFR system manages: a. consumer relationship b. inventory levels c. CSR d. geographic boundary conflicts e. dispatcher distributor disputes

b. inventory levels

Type of pricing you might expect from supermarkets like Schnuck's a. cash rebates b. loss leader pricing c. even pricing d. all of the above e. none of the above

b. loss leader pricing

A sorority is raising money for charity. "Buy 2 triangles and get one free." This is: a. promoted allowance b. noncumulative quantity discount c. functional discount d. cumulative quantity discount e. triangle pushing

b. noncumulative quantity discount

Suggests a move to distribute a product more intensively a. repositioning the product to be perceived as the highest quality alternative b. reduction in price of the product c. moving from maturity to decline stage of the product life cycle d. all of the above e. none of the above

b. reduction in price of the product

What's associated with automatic vending a. selective distribution b. routine decision making c. noncumulative quantity discounting d. all of the above e. none of the above

b. routine decision making

Benefits of ___ as a channel include matching or exceeding the convenience of catalogs, providing a great deal of info about products, and collecting info about how customers shop a. store b. mail order c. direct mail d. the internet e none of the above

d. the internet

__________ and ___________ ___________ are the most important for low priced items that are purchased frequently because consumers want to minimize the effort involved in purchasing these items.

-availability -intensive distribution

Suppose a producer is able to separate customers into two groups, one having a price inelastic demand and the other having a price elastic demand. If the producer's objective is to increase total revenue, she should

-decrease the price charged to customers with the price elastic demand -increase the price charged to customers with the price inelastic demand.

Suppose you created a new innovation, a lip balm that kept lips moist and protected far longer than anything on the market today. Relative to the competition, which of the marketing mix combinations would you choose to position your product as the best lip balm?

-high price -more selective distribution -less advertising

What are the two goals of viral marketing for consumers according to the book?

-take action -forward the message

the top four global, online retailers

1. Amazon 2. Apple 3. JD.com 4. Walmart

Given the information of the previous question, now suppose the importing country imposes an ad valorem tariff of 20%. The effect of this tariff is:

The volume of trade falls to zero. Due to the prohibitive tariff (no imports), the net welfare loss for the importing country is 20

Which scheduling method would be inappropriate for the product named?

Spring-blooming bulbs continuous

Which of the following is NOT a likely problem for a manager who uses sales as a measure of advertising effectiveness?

The marketing and competitive environment have very little influence on sales.

Which of the following is likely to be distributed intensively? a. gum b. a heavily advertised offering c. a routinely purchased item d. all of the above

gum

Apple uses a ___ strategy for its hardware and a ___ strategy for its software a. high price/intensive distribution, low price/exclusive distribution b. high price/selective distribution, low price/intensive distribution c. low price/intensive distribution, high price/exclusive distribution d. low price/selective distribution, high price/intensive distribution e. low price/exclusive distribution, high price/intensive distribution

high price/selective distribution, low price/intensive distribution

moving toward a more intensive coverage strategy can also __________ the required depth of the channel, which can be expensive.

increase

When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________.

local marketing

the greater the number of outlets carrying a product, the ______ the percentage of sales made by anyone outlet

lower

Which of the following types of promotion tools requires the most interaction with a customer?

personal selling

Dr. Poor's favorite supermarket

piggly wiggly

Because of the perceived objectivity of the source, which element of the promotional mix is usually regarded as most credible?

publicity

What is associated with intensive distribution?

routine decision making

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

runner-up firms

Which of the following consists of all of a company's product lines and items?

the product mix

Which of the following concepts calls for sustainable marketing?

the societal marketing concept

Which of the following is the principle objective of a market-oriented mission statement?

to satisfy basic customer needs

Which of the following is a correct statement according to the "teaching" sales pitch? a. offering your solution is the most difficult part of the process b. to successfully teach your customers, you have to challenge their assumptions c. laying out the business case is a point-by-point review of solution needs d. it helps the customer to offer many solutions to choose from

to successfully teach your customers, you have to challenge their assumptions

Consumers view a brand as an important part of a product and branding can add ________.

value

Adverse effect of promotional pricing: a. raising of industry barriers to entry b. erosion of brand value as perceived by consumers c. may create "quality conscious" customers who won't buy sales items d. all of the above e. none of the above

b. erosion of brand value as perceived by consumers

#1 online retailer

Amazon

Which of the following is a correct statement? A. One key to enduring brand leadership is brand proliferation B. Creating brand resonance is part of the fourth step of building a strong brand C. Sam's Choice is one tip elf generic brand D. One brand management challenge is asset leverage E. Of all the brands in the world, Sunny Delight has the highest brand equity

B. Creating brand resonance is part of the fourth step of building a strong brand

Which of the following is true concerning effective teams?

Members must have both strong technical and interpersonal skills.

Organisations operating in an international business environment need to have a thorough understanding of these interdependencies, especially the functions and effects of _____on their business.

Multilateral and bilateral trade agreements

Level of importance of new product development at apple a. extremely important b. somewhat important c. not important nor unimportant d. important for software, not hardware e. important for hardware, not software

a. extremely important

Favors skimming pricing strategy: a. high degree of technological change b. perishable product c. market share goal d. all of the above e. none of the above

a. high degree of technological change

Tess is the marketing manager for a fast food chain. She uses a target return pricing strategy because her firm's primary objective is: a. increase profits b. increase sales c. decrease competition d. build customer satisfaction e. achieve operational success

a. increase profits

Disadvantage (hinderer) of the internet vs a brick and mortar retailer is: a. lack of trial b. lack of accessibility c. lack of convenience d. all of the above

a. lack of trial

One advantage of outdoor advertising is which of the following? a. no competing clutter b. measurable results c. high attention d. audience selectivity e. none of the above

a. no competing clutter

Which of the following is a growing worldwide trend? a. omni-channel distribution b. psychological discounting c. discriminatory pricing d. use of cash accounts e. none of the above

a. omni-channel distribution

Julia wants her firm to be a leading brand in the US market, when adopting share pricing strategy, she knows from studying consumer brands that: a. rarely is lowest price offering the dominant brand in the market b. prestige products need to be competitively priced c. companies can gain market share by offering low quality products at a high price d.total value=total cost-variable cost leading to price escalation e. price wars are the way to become the dominant brand

a. rarely is lowest price offering the dominant brand in the market

Which of the following promotional tools has the advantage of appealing to price-sensitive customers? a. sales promotion b. personal selling c. advertising d. publicity e. lobbying

a. sales promotion

some people don't like using debit cards because they prefer cash or have a bad credit history but doesn't mean they can't afford your product. If you want your product to appear to these customers, which channel would be the focus of your attention a. store channel b. internet and street c. internet d. cash and carry e. none of the above

a. store channel

Last hurdle a new product has to pass in product development before product launch a. test marketing b. alpha testing c. beta testing d. premarket tests e. blood test

a. test marketing

Courtney is manager of day care and wants to add meals and later hours to help parents working late. While thinking about these changes, she also thinks about price changes. Strategically, Courtney will weigh: a. value of additional benefits relative to the additional cost to customers b. break even displacement cost c. prestige vs price war cost strategies d. target return vs target profit cost analysis e. price elasticity of supply chain management

a. value of additional benefits relative to the additional cost to customers

Which of the following statements about mobile marketing is correct? a. you should offer the same content for all locations b. making customers feel secure that you respect their privacy and safety is the critical first step c. it is critical that customers understand how to align their needs to that of a mobile brand d. according to Delloitte Digital, the biggest impact smartphones have is in driving online sales e. original content needs to be added monthy

b. making customers feel secure that you respect their privacy and safety is the critical first step

Many restaurants offer daily specials not listed on their standard menu. These specials provide the new product benefit of: a. keeping up in a market where sales come mostly from new products b. satisfying the changing needs of current and new customers c. avoiding market saturation from a product that has been on the market for a while d. creating diversification and reducing risk e. surprising the customer

b. satisfying the changing needs of current and new customers

U.S consumers _________ from a strong dollar, because _________ goods are more affordable.

benefit; imported

A seller who offers a lower price to a trade channel member because they store a large quantity of the seller's products is an example of which of the following a. cumulative quantity discount b. noncumulative quantity discount c. functional discount d. cash discount e. trade-in allowance

c. functional discount

At the end of summer, Smitty has a large inventory of swimsuits. He needs to sell them and not hold them for next season when the style changes so he offers them at 30% retail price. Smitty hopes demand for swimsuits at the end of the season is a. cross price elastic b. price inelastic c. price elastic d. status quo elastic e. derived demand inelastic

c. price elastic

Which of the following media has the strength of "high audience selectivity"? a. magazines b. outdoor c. radio d. TV e. none of the above

c. radio

________ _______ is marketing industry jargon for a retailer that discount, specialty and department stores find it almost impossible to compete with because of their narrow focus.

category killer

__________ _________ are also called distributors intermediares, resellers, or middlemen, and membership includes wholesalers as well as retailers.

channel members

Service retailers include all of the following EXCEPT ________.

convenience stores

Involves customer paying for all shipping costs from the factory to the destination a. uniform delivered pricing b. factory destination zone pricing c. freight absorption pricing d. FOB origin pricing e. freight rate pricing

d. FOB origin pricing

Legal discriminatory pricing a. VS charging more for items on west coast then in MO b. senior citizens and students getting discounts c. car dealer charging one person more than another d. all of the above e. none of the above

d. all of the above

Monitoring social media and managing customer support issues helps firms do which of the following? a. respond in real time b. gain higher customer satisfaction c. lower costs d. all of the above

d. all of the above

Flexible pricing strategy a. cars b. shampoo c. liquid body wash d. candy corn for halloween e. blank DVDs

d. candy corn for halloween

Example of market driver for Disney theme parks a. employees b. animation c. ability to produce quality cartoons d. children e. sneezy the dwarf

d. children

In high end resort markets, Westin hotels compete with Crowne plaza. Each firms weighs competitive advantages and disadvantages of their offerings to determine whether to price above, equal to, or below the other. In these markets, the hotels are using a ___ pricing strategy a. maximizing profits b. target profit c. target return d. competitive parity e. sales

d. competitive parity

The trend of improved transportation is likely to help which of the following the most? a. small businesses b. large businesses c. online retailers d. e-grocery businesses e. Amazon

d. e-grocery businesses

What type of pricing strategy should be used by a fireworks retailer? a. psychological discounting b. mark up c. penetration d. flexible e. skimming

d. flexible

According to the book, which of the following has the disadvantage that "it may be perceived as intruding"? a. radio b. direct mail c. television d. internet e. outdoor

d. internet

___ offer an inconsistent assortment of brand name merchandise at low prices a. department stores b. specialty stores c. category killers d. off price retailers e. drug stores

d. off price retailers

Which of the following is most appropriate to use when the levels of product complexity and risk are extremely high? a. pull strategy b. public relations c. advertising d. personal selling e. sales promotion

d. personal selling

Which of the following promotional tools has the advantage of offering immediate feedback? a. publicity b. sales promotion c. advertising d. personal selling e. hot-air-balloon promotion

d. personal selling

Andy learned to trust recommendations made to him by Amazon and was surprised at the books and authors he discovered this way. Amazon was creating value for Andy through: a. repeat business b. rapid delivery c. personalized customer service d. personalized offerings e. none of the above

d. personalized offerings

A manager of an upscale restaurant offers a happy hour special and sees little response for the specials. For these consumers, demand for alcoholic beverages is: a. cross price elastic b. derived demand elastic c. price elastic d. price inelastic e. status quo elastic

d. price inelastic --> demand does not change

Which of the following promotional tools often suffers the disadvantage of not help establishing or reinforcing brand image? a. publicity b. advertising c. public relations d. sales promotion e. personal selling

d. sales promotion

_________ decisions involve managing the marketing channel, which is the pipeline of organizations through which a product passes from producer to consumer.

distribution

Which of the following is a function of channel members? a. sorting b. storing c. research d. finance e. all of the above

e. all of the above

Which of the following is a key to effective mobile marketing? a. permission b. relevance c. location d. convenience e. all of the above

e. all of the above

Many small manufacturers use bookkeeping and inventory management software and communicate with customers through email. As business expands, they will use ___ to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation: a. supply chain agents b. third party processors c. consultants from their auditing firms d. mobile phone and portable scanners e. electronic data interchange

e. electronic data interchange

According to the text, one of the biggest advantages to using social media for building relationships with B2C consumers is which of the following? a. ability to use video b. nearly 100% market penetration c. higher effectiveness d. allows 24/7 "around the clock" response e. low cost

e. low cost

For the university, the Variable cost of adding another student to the class is a. cost of the instructor b. cost of energy in the classroom c. cost of adding another administrator d. cost of expanding the parking lot e. next to nothing

e. next to nothing

Which demand is likely to be most sensitive to price increases a. pharmaceutical drugs b. tuition last semester for seniors c. electricity d. hospital care e. one brand of soda

e. one brand of soda

Which of the following is necessary for customer-segment pricing to be effective? a. segments must be approachable b. there must not be high intensity of competition c. customers must have disposable income d. customers must have demographic differences e. segments must show different degrees of demand

e. segments must show different degrees of demand

For salespeople designing a customized solution for customers, which of the following is correct? a. price should always be a main focus b. the salesperson should always agree with the customer's perspective which is always correct c. the salesperson should never depend on his/her own firm for making special rules for the customer d. the main goal should be to design a profitable solution, not satisfy the customer's need e. the salesperson should start with her/his firm's own unique strengths

e. the salesperson should start with her/his firm's own unique strengths

Typically this strategy is used for items involving a routine buying decision where proximity to the customer is important

intensive distribution

offering a product via vending machine is the most extreme example of _________ __________

intensive distribution

RFID offers the participants in the supply chain a powerful tool for tracking inventory and reducing handling. The main reason why it has NOT been widely adopted is:

it's expensive

an exclusive distribution strategy ________ sales effort while minimizing coverage

maximizes

All of the following are a manufacturer's sponsorship options for a product EXCEPT ________.

multibrands

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.

national

Bob's job description had been changed. The rationale for the changes made no sense to Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in ________.

selective attention