Marketing Ch. 13, 14, 15, and 16

A service is usually offered as part of a bundled package of services with a core service and one or more __________ services.

Supplementary

All the following products are likely to use the producer-retailer-consumer marketing channel except for

U-Pick farm produce

An inventory stockout results in

an increase in lost sales

A public warehouse is a

business that leases storage space and related facilities for distribution to other firms.

Before the release of the newest iPhone by Apple Inc., an Apple juice brand used an actor dressed up like an apple to hold a sign encouraging those waiting in line to try its juice. The brand thought this would be a creative event that would spark an interest in Apple iPhone fans as they stood waiting in line with little else to do. This is an example of

buzz marketing

__________ links the purchase of an organization's products to support of philanthropic organizations favored by the target market.

cause-related marketing

The intangibility of a service means that

consumers may have a problem evaluating service offerings.

Pepsi-Cola has just released a new line of sparkling water called bubly. To encourage customers to start adopting the new brand, Pepsi-Cola should engage in promotions that focus on

creating awareness

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called __________ quality.

credence

A goal of logistics is to reduce __________ or how long it takes to complete a process.

cycle time

In general, differences between goods and services are determined by the

degree of tangibility

An American Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American Airways flight from Chicago to Phoenix. This is an example of __________ service pricing?

demand-based

In the Sunday paper, Mary sees a flyer for a collector's edition Nativity set that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of

direct-response marketing

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to

encourage product trial

Expensive, high-quality products that are purchased infrequently often reach consumers through

exclusive distribution

If Iams forced Meijer's grocery chain to place all of its pet products in the stores' most favorable locations, it would be

exercising channel power

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

franchising

AmerisourceBergen provides a wide assortment of pharmaceutical products to health-care institutions such as hospitals. It also provides technical advice, equipment, and support for health-care institutions throughout the United States. AmerisourceBergen is best classified as a

full-service wholesaler

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as

functional middlemen

Deanna asks Beverly what housecleaning service she would recommend in Oakview. Beverly responds that Pristine Cleaning is great if you can be assured that Tasha will be the person assigned to your house. Beverly's recommendation addresses which of the following service features?

heterogeneity

The more __________ involved with delivering a service, the greater the degree of heterogeneity.

human labor

Channel cooperation can do all of the following except

increase cycle time

Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) __________ in a distribution channel.

industrial distributor

Personal trainers cannot complete their work without their clients present because of the __________ feature of service.

inseparability

Felicity recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Felicity was trying to overcome the __________ aspect of services.

intangibility

Convenience products typically use

intensive distribution

Channel capacity is determined by the

least efficient component of the communication process.

Jim owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Jim is a

merchant wholesaler

Dell makes its computers available through its own stores, its website, and some major retailers. This is an example of

multichannel distribution

Cleveland accesses Overstock.com's site on the internet and purchases a business laptop case. This is an example of

online retailing

Cole is in charge of designing a promotion campaign for Wings, a private jet service company that has a high level of service quality. In an effort to make the service more tangible to potential consumers, the ad Cole is creating will feature __________.

pictures of the exterior and interior of the planes

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of

promotion

Holden is reading a magazine ad for a new cologne. In the ad, he sees little more than a photo of a man riding horseback on a beach, and the name of the new cologne, Valor. In this situation, Holden is a __________, one who __________.

receiver; decodes.

Factors such as climate, seasons, and holidays tend to lead to the promotional objective of

reducing sales fluctuations

Tatiana finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many __________ qualities.

search

Alan is planning a trip to Playacar for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Alan is using before his trip are called __________ and those he uses during the trip are called __________.

search; experience

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

selling agent

Services are usually provided through __________ directed at people or objects.

the application of human or mechanical efforts

Amber, a waitress at the City Grill, is angry that a customer complained that his soup was cold because of her slow service. City Grill owner Marc Devereaux reminds her that she must focus on service quality as defined by

the customer's perception

A retailer is an organization that purchases products for the purpose of reselling them to

ultimate consumers

Eva went shopping at a local store called Threadgill's but found out that if she wanted to take advantage of its low prices, she would have to become a member. Threadgill's is an example of a

warehouse club

Archer Tractor and Fence Supply is trying to optimize its methods of getting products to its customers. It has added electronic ordering systems for customers and improved the training process for workers in the warehouse who make the products ready for shipment. The improvements Archer has made are to its

order processing

__________ is a paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media.

advertising

If a product's target market consists of millions of people, marketers are most likely to focus promotional efforts on

advertising and sales promotion

Ann is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on consumers to determine how much of different competing products she should order for her store and how much shelf space to give to each of the competing brands. Ann is working on

category management

Although a radio announcer can read several hundred words a minute, a one-minute advertising message should not exceed 150 words because most announcers cannot articulate words into understandable messages at faster rates. This illustrates the ____ consideration in effective communication.

channel capacity

A single leader who controls and organizes a marketing channel is called a

channel captain

Forever 21, a clothing company, communicates to its target customers by advertising in magazines, offering clothing information on its website, creating a periodic online newsletter, and using Instagram and Twitter. These vehicles through which the coded message is transmitted from the source, Forever 21, to the receiver, the prospective customer, are called

communication channels

Firestone allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel __________ with independent Firestone dealers.

conflict

A small self-service store that is open long hours and carries a shallow product mix in convenient locations is best described as a

convenience store

H&M, which produces and retails clothing products in a coordinated channel, is an example of a(n)

corporate vertical marketing system

A marketing channel is defined as a group of individuals and organizations that

directs the flow of products from producers to consumers

Allstate Insurance uses a logo with a stylized pair of hands to communicate stability and security to consumers-"You're in good hands with Allstate." This is Allstate's attempt to help customers better understand its services by

emphasizing tangible cues in promoting the service.

If DHL decided to outsource all of its marketing efforts to the TAZ Advertising Agency, which specializes in advertising, sales promotion activities, and public relations, DHL would likely be striving to practice

integrated marketing communications

Because of the significant investment many companies have in the products they sell ton customers, they must develop and maintain adequate varieties of products to meet their customer's needs. This is called

inventory management

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________.

it allows you to customize your services to match the specific needs of individual customers.

Arjun operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Arjun's business is a

limited-line wholesaler

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

Dawkins Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion decisions. It should most likely hire a

manufacturers agent

Anything that reduces the accuracy and clarity of communication is called

noise

A significant factor in the rise of multichannel retailing is

online retailing

If a firm decides to contract its logistics functions to third parties that have no managerial authority within the marketing channel, it is using

outsourcing

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

peak demand

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

Crisis management plans should be developed and implemented to mitigate potentially damaging effects of unfavorable coverage, which best relates to

public relations

Because practically all marketers provide some services, __________ typically do not exist in today's business environment.

pure goods

Bethlehem Steel wants to install technology into its logistics management system that will enable it to gain efficiency and accuracy in inventory tracking, stocking, and electronic notifications. Bethlehem Steel is most likely using

radio frequency identification

Advertising can be cost efficient but only if it

reaches a vast number of people at a low cost per person.

Abbot Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Abbot's use of which one of the following elements of the promotion mix?

sales promotion

Companies that sell products with high profit margins are more likely to use __________. Companies selling products whose sales are directly related to the product availability will most likely use __________.

selective distribution; intensive distribution

Mikhail works on developing press releases for a nonprofit organization looking for new ways to encourage recycling among consumers and businesses. Mikhail is engaging in __________.

social marketing

A new soft drink company took out a national advertisement announcing its new butterscotch-flavored soda. However, while people in one part of the country recognized they were talking about a soft drink, others believed it was an ice cream drink. Still, others use the term to refer to something mixed with alcoholic drinks. Therefore, there was much confusion about the term and what it means. The mistake here lies with the

source

In the GEICO advertisement that claims, "15 minutes can save you 15% or more," GEICO is the communication

source

A functional and psychological picture in the consumer's mind of a retail store is called

store image

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of

superior ability to demonstrate the product

A large retailer selling food and most routinely purchased consumer products is a

superstore

If Ramada Inn bundles its rooms with services such as free local phone calls, cable television, wireless internet access, and complimentary breakfast, these services are known as __________ services.

supplementary

A merchant wholesaler

takes title to goods, assumes risk associated with ownership, and buys and resells products.

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

specialty retailer