Marketing Chapter 8, 9, 10, 11 test 3
In which of the following cases is crowdsourcing used for new product development?
A company creates a forum where anyone can contribute new product ideas.
18) Which of the following statements about break-even analysis is most likely true?
It fails to consider customer value and the relationship between price and demand.
Which of the following is true of a conventional distribution channel?
It has each channel member acting as a separate business unit trying to maximize its own profits.
Which of the following is true of a vertical marketing system?
It has one channel member owning all the other channel members or has contracts with all other channel members.
Which of the following is true of the product life cycle (PLC)?
It is generally difficult to forecast the sales level at each PLC stage.
Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.
seasonal discount
What is most likely the first major marketing decision that a retailer must take?
segmentation
Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost?
selling and promoting
Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.
sequential
A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
shopping center
Which of the following is true of RFID or "smart tag" technology?
"Smart shelves" can tell when it is time to reorder and can place orders automatically.
In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics.
inbound
39) ________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.
A product life cycle
Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.
A slowdown occurs in sales growth.
Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?
Abundon
________ represent buyers or sellers on a more permanent basis than brokers.
Agents
________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives.
Business analysis
________ refer to two or more outlets that are commonly owned and controlled.
Corporate chains
10) ________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.
Cost-based
5) ________ uses buyers' perceptions of what a product is worth as the key to pricing.
Customer value-based pricing
Which of the following statements is most likely true about the new product development process?
Customers, competitors, and suppliers are major sources of new product ideas.
________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume.
Discount stores
Combining several products and offering the collection at a reduced price is referred to as ________ pricing.
product bundle
Which of the following is true of an exclusive dealing arrangement between a producer and a dealer?
It does not allow other producers to sell to that dealer.
Which of the following is true of a direct marketing channel?
It does not use any intermediaries.
8) ________ pricing involves charging a constant low price with few or no temporary price discounts.
Everyday low
________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.
Exclusive
12) ________ costs are also known as overhead.
Fixed
________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products.
Full-line forcing
Which of the following statements is most likely true about the product life cycle?
Growth is a period of rapid market acceptance and increasing profits.
Which of the following is true of downstream channels in a company's supply chain?
They form an intermediary link between the company and its customers
Which statement is most likely true about idea generation in the new product development process?
Idea generation is usually followed by procedures that reduce the total number of ideas.
________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible.
Intensive
Which of the following is true of an intensive distribution strategy?
It strives to make products available where and when consumers want them.
Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler?
Jacob represents his company but is not liable for any damaged or low-quality goods.
________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.
Marketing channels
________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service.
Merchant wholesalers
________ involves combining two or more systems of transportation to move products.
Multimodal transportation
________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail.
Off-price retailers
28) A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
a market-skimming pricing
Which of the following is a disadvantage of a team-based approach to new product development?
Organizational confusion and tension are likely to affect the process.
Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true?
Posco better utilizes the services mix to differentiate itself from Campbell.
1) ________ refers to the amount of money charged for a product or service.
Price
2) ________ is the only element in the marketing mix that produces revenue.
Price
In a sequential new product development process, which of the following is true of the product development step?
Product development is usually followed by test marketing.
48) ________ prices are carried in buyers' minds and used when looking at a given product.
Reference
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
Retailing
Which of the following is true about the introduction stage of a new product?
Sales growth tends to be slow.
Which of the following is true of the growth stage of the product life cycle?
Sales start climbing quickly.
________ distribution gives producers good market coverage with more control and less cost than does intensive distribution.
Selective
Which of the following statements is true of retailing?
Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.
________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
Shopper marketing
Which of the following statements is true of shopping centers?
Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
Which of the following is a difference between storage warehouses and distribution centers?
Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.
16) ________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking.
Target return
________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.
Test marketing
Which of the following is an advantage of exclusive dealing between a seller and a dealer?
The dealer obtains a steady source of supply and more support from the seller.
Which of the following is true about trends in wholesaling?
The demand for lower prices and higher quality has increased.
Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?
The market for the product is highly price sensitive.
30) Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?
The product's quality and image support its high price.
How do firms that use captive-product pricing make up for the low prices of their main products?
They set high markups on the captive products.
14) ________ costs refer to the sum of the fixed and variable costs for any given level of production.
Total
________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.
Warehouse clubs
________ includes all the activities involved in selling goods and services to those buying them for resale or business use.
Wholesaling
Which of the following is an example of a horizontal conflict in a distribution channel?
a Ford car dealer complaining that another Ford dealer is underpricing the same models
Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?
a conflict between Accline Cars and its dealers
Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?
a conflict between two Greystone Motors car dealerships
Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading?
a contractual vertical marketing system
A product concept is ________.
a detailed version of a product idea stated in meaningful consumer terms
Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted?
a direct marketing channel
In which of the following situations is a producer guaranteed full control over product sales?
a direct marketing channel
Which of the following would be considered an upstream partner in a company's supply chain?
a firm that provides technical expertise in the production of a product
21) In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.
a pure competition
22) There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent?
a pure competition
Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?
a style
Which group is most likely offered functional discounts by manufacturers?
a trade-channel members that perform sales tasks
Wholesalers most likely discourage less-profitable customers by ________.
adding service charges to small purchase orders
In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.
administered vertical
Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have?
administered vertical marketing system
Which mode of transportation is best for carrying perishable goods to distant markets?
air carriers
7) A value-based pricing strategy most likely begins with ________.
assessing customer needs
53) Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing.
basing-point
Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions?
both Yellowstar Trading and Stroos
An innovation management system would most likely be used by ________.
brand managers to collect, review, and evaluate new product ideas
A ________ brings buyers and sellers together and assists in negotiations.
broker
Which of the following costs is most likely associated with commercialization?
building or renting a manufacturing facility
Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?
business analysis
46) Pricing a product based on consumers' reference prices is referred to as ________ pricing.
by-product
55) Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing.
c dynamic
Setting a price for products that must be used along with a main product is known as ________ pricing.
captive-product
A convenience store ________.
carries a limited line of high-turnover goods for consumer self-service
50) When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check.
cash rebate
Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________.
category killer
Which term refers to a giant specialty store with a very deep assortment of a particular product line?
category killer
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
change the packaging of the toy
Introducing a new product into the market is called ________.
commercialization
A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
community shopping center
19) Which of the following is an external factor that affects pricing decisions?
competition
The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.
concept testing
For a retailer to be able to differentiate from competitors and match target shoppers' expectations, the retailer's product assortment should most likely be ________.
constituted by national brands on which the store holds exclusive rights
3) Which of the following sets the upper limit for a product's pricing?
consumer perceptions of value
A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements.
contractual vertical
Which type of channel arrangement does a franchise organization most likely follow?
contractual vertical marketing system
Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?
controlled test markets
A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership.
corporate vertical
6) Value-based pricing is the reverse process of ________ pricing.
cost-based
15) A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing.
cost-plus
Producers use marketing intermediaries because they ________.
create greater efficiency in making goods available to target markets
The team-based new product development approach saves times because departments work closely together in ________.
cross-functional teams
Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.
crowdsourcing
When an end user's problems and experiences define a new product, the approach is called ________.
customer-centered new product development
Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing.
customer-segment
A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years.
decline
A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.
decline
25) The relationship between the price charged for a product and the resulting demand level can be shown in a ________.
demand curve
Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.
department store
Vertical conflicts in distribution channels are conflicts that occur between ________.
different levels of the same channel
Which of the following creates the shortest distribution channel between a producer and a customer?
direct marketing
For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________.
disintermediation
A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
distribution center
When compared to merchant wholesalers, brokers and agents ________.
do not take title to goods
Internal sources of new product ideas for a company include its ________.
employees
Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers?
exclusive dealing
The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola?
exclusive dealing
When a seller requires that only certain dealers carry its products, its strategy is known as ________.
exclusive distribution
Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________.
experiential retailing
An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________.
factory outlet
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________.
factory outlet
Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________.
fad
Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?
find new market segments for the brand
11) Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs.
fixed
Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business?
franchise
Which contractual system is distinguished by the fact that it is normally based on some unique product or service?
franchise
McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example?
franchise organization
PinWheel, a renowned electronics company, has an arrangement with SoundBite, an audio equipment retailer. Through the agreement, Soundbite is to promote and sell PinWheel's audio electronics and give PinWheel products better shelf space than competitors' products. The agreement also requires that SoundBite sell additional non-audio PinWheel products at all SoundBite stores. Which term best describes PinWheel's strategy?
full-line forcing
Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.
full-service retailer
Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________.
full-service retailer
Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?
full-service stores
In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.
growth
47) Consumers rely less on price to judge the quality of a product when they ________.
have prior experience with the product
The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________.
high-low pricing
GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system.
horizontal
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________.
horizontal marketing system
TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case?
horizontal marketing system
The new product development process usually starts with ________.
idea generation
Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
idea screening
Which of the following steps of the new product development process would most likely use an R-W-W framework?
idea screening
Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n) ________.
independent off-price retailer
26) When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________.
inelastic
Which of the following is an economic factor that affects the pricing decisions of a company?
interest rates
Which of the following is an internal source of new product ideas for a company?
intrapreneurial programs
In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?
introduction
According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________.
investing in information technology systems
In a logistics system, minimizing distribution costs most likely involves ________.
large shipping lots
A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater.
lifestyle center
Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.
limited-service
Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?
location-based pricing
Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling?
management services and advice
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________.
manufacturer-sponsored retailer franchise system
C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________.
manufacturers' offices
29) The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.
market-penetration pricing
Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.
market-penetration pricing
In a sequential new product development process, concept testing is most likely to be followed by ________.
marketing strategy development
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC.
maturity
When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.
maturity
Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________.
merchant wholesaler
23) Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.
monopolistic competition
Selective distribution is a strategy in which ________.
more than one but fewer than all willing intermediaries are used by a seller
Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together?
multichannel distribution system
Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?
multichannel distribution system
Specialty stores are characterized by ________.
narrow product lines with deep assortments
Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________.
offer numerous sales or discounts
24) Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.
oligopolistic competition
Selling accessory products along with the main product is referred to as ________ pricing.
optional-product
As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.
patent laws
The use of both rail and trucks for transporting goods is called ________.
piggybacking
The second part of a marketing strategy statement describes the ________ of a new product.
planned price
Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________.
pop-up stores
4) Which of the following sets the lower limit for a product's pricing?
product costs
In a sequential new product development process, once a product or service passes the business test, it moves into ________.
product development
In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
product development
Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra?
product harvesting
A ________ is the way consumers perceive an actual or potential product.
product image
NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing.
product line
Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Outbound logistics refers to moving ________.
products from the factory to resellers
The third part of a marketing strategy statement describes the ________ of a new product.
profit goals
42) When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________.
promotional allowances
49) What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?
promotional pricing
Power centers are characterized by the ________.
provision of individual entrances to each store
Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances?
railroads
Retail convergence most likely leads to ________.
reduced differentiation
Some products that have entered the decline stage can be cycled back to the growth stage through ________.
repositioning
Which of the following is a marketing intermediary?
retailers
In a just-in-time logistics system, ________.
retailers carry small inventories of merchandise to last for only a few days
Checking out products in traditional stores and purchasing them online is referred to as ________.
showrooming
Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.
simulated test markets
GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________.
specialty store
Which type of retailer typically carries deep product assortments of narrow product lines?
specialty stores
Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?
superstores
A company's external sources of new product ideas include its ________.
suppliers
20) Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________.
target costing
The first part of a marketing strategy statement describes the ________ of a new product.
target market
17) The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing.
target return
Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
team-based
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.
team-based new product development
If a product passes both the concept test and the product test, the next step is most likely to be ________.
test marketing
Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________.
test marketing
JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario?
the blurring of distinctions between retailers and wholesalers
A firm that uses direct marketing would most likely sell its products through ________.
the company Web site
Which of the following is an impact of the Great Recession on retailing trends?
tighter consumer spending patterns
45) When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing.
time-based
Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.
trade-in allowance
From the economic system's point of view, the role of marketing intermediaries is to ________.
transform the assortments of products made by producers into the assortments wanted by consumers
Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers?
transportation
Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules?
trucks
Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing.
two-part
51) Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location?
uniform-delivered pricing
52) Which of the following pricing strategies is the opposite of FOB-origin pricing?
uniform-delivered pricing
Fads are characterized by their ________.
unusually high sales and rapid decline
Reverse logistics refers to moving ________.
unwanted, excess products from resellers to producers
A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?
use aggressive sales promotions
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
value delivery network
9) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.
value-added
13) Costs that change directly with the level of production are referred to as ________ costs.
variable
Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries.
vendor-managed inventory systems
In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate.
vertical marketing system
Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising?
voluntary chain
Which of the following is a type of off-price retailer?
warehouse club
Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?
warehousing
Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer?
when customers are willing to conduct their own locate-compare-select process
In which of the following cases is little or no test marketing most likely recommended for a new product?
when the costs of developing and introducing the product are low
A company launching a new product must first decide ________.
when to launch the product
Department stores are most likely characterized by ________.
wide varieties of product lines
54) Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing.
zone
