marketing exam ch 11-15
By practicing ________, today's retailers are increasingly adopting environmentally sustainable practices. A. social media retailing B. megaretailing C. mobile retailing D. retail convergence E. green retailing
E
Channel members should be selected on the basis of all of the following attributes except __________. A. reputation B. years in business C. cooperativeness D. growth and profit record E. competitiveness
E
Companies today are placing greater emphasis on logistics for several reasons, which include all of the following except __________. A. companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices B. improvements in information technology have created opportunities which did not exist before C. logistics affects the environment and a firm's environmental sustainability efforts D. improved logistics can yield tremendous cost savings to both a company and its customers E. limited product variety has created problems for logistics management
E
In __________pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs. A. promotional B. psychological C. dynamic D. discount and allowance E. segmented
E
Major factors for changing the face of today's marketing communications include all of the following except __________. A. marketing strategies are changing B. digital technology is causing remarkable changes C. consumers are changing D. digital media have provided new communication tools E. marketers are going for mass marketing
E
Market penetration prices are preferred in all of the following conditions except __________. A. the low price must help keep out the competition B. the market must be highly price sensitive so that a low price produces more market growth C. the production and distribution costs must decrease as sales volume increases D. the penetration price must maintain its low-price position E. enough buyers must want the product at a higher price
E
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing. A. optional-product B. by-product C. product line D. product bundle E. captive-product
A
As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers. To prevent this, companies have adopted the concept of __________. A. integrated marketing communications (IM B. public relations C. personal selling D. advertising E. sales promotion
A
Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing. A. product bundle B. product line C. two-part D. by-product E. captive-product
A
From the producer's point of view, a greater number of levels of marketing channel means __________. A. less control and greater channel complexity B. more control and greater channel complexity C. less control and less channel complexity D. no control and no channel complexity E. no control and greater channel complexity
A
Historically, __________ have lacked leadership and power, often resulting in damaging conflict and poor performance. A. conventional distribution channels B. corporate vertical marketing systems C. vertical marketing systems D. administered vertical marketing systems E. contractual vertical marketing systems
A
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called ________. A. retail convergence B. pop-up stores C. social media retailing D. green retailing E. megaretailing
A
L.L. Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of __________. A. experiential retailing B. targeting decision C. price decision D. segmentation decision E.services mix
A
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? A. An administered VMS B. A conventional distribution channel C. A corporate VMS D. A franchise organization E. A contractual VMS
A
Specific promotional tools used in ________ include press releases, sponsorships, events, and Web pages. A. public relations B. advertising C. personal selling D. sales promotion E. direct and digital marketing
A
The concept of __________ recognizes that providing better customer service and trimming distribution costs require teamwork. A. integrated logistics management B. physical distribution management C. supply chain management D. warehouse management E. inventory management
A
The franchise organization is the most common type of __________ VMS (vertical marketing system). A. contractual B. corporate C. conventional D. horizontal E. administered
A
The length of a channel is indicated by the number of ________. A. intermediary levels B. final consumers C. wholesalers in the channel D. retailers in the channel E. producers
A
To which category of the marketing communication mix do sales presentations, trade shows, and incentive programs belong? A. Personal selling B. Sales promotion C. Advertising D. Direct and digital E. Public relations
A
What is the goal of integrated marketing communications? A. To build clear, consistent, and compelling company and brand messages B. To build different brand messages over different communication channels C. To use only newer digital technologies to communicate with consumers D. To allow different company departments to send different brand messages E. To build a hodgepodge of brand content to consumers
A
What is the purpose of the Robinson-Putnam Act? A. To prevent unfair price discrimination B. To prevent scanner fraud C. To prevent price-fixing D. To prevent predatory pricing E. To prevent deceptive pricing
A
Which of the following is a reason that producers use marketing channels and channel intermediaries? A. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. B. Using channel intermediaries increases the number of contacts with customers. C. Marketing channel decisions require only a short-term commitment. D. Using marketing channels allows producers to retain control over how and to whom they sell their products. E. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels
A
Which of the following statements about wholesaling is true? A. Wholesalers must make decisions regarding their marketing mix. B. Wholesalers do not need to differentiate themselves. C. Wholesalers do not need to define a target market. D. Wholesalers do not need to segment their markets. E. Wholesalers do not make positioning decisions.
A
Which of the following statements is true regarding initiating price increases? A. Wherever possible, the company should consider ways to meet higher costs or demand without raising prices. B. Price increases do not impact profits. C. Companies do not need to communicate to customers reasons for price increases. D. Prices should be increased when there is a lack of demand. E. Cost inflation is not a factor in price increases.
A
Which of the following statements regarding the changing communications landscape is correct? A. The dominance of television, magazines, newspapers, and other traditional mass media is declining. B. The digital age has had little impact on marketing communications. C. More than ever, consumers are relying on marketers for information. D. In terms of communication, today's consumers are less empowered. E. Marketers today are shifting their efforts to mass marketing
A
Which channel partners in a company's supply chain are upstream from a manufacturer or producer? A. Business distributors B. Suppliers C. Wholesalers D. Retailers E. Customers
B
Which one of the following statements does NOT portray the success of global expansion of major retailers? A. Adapting the operations that work well in the home country create success abroad. B. Many retailers are expanding internationally to escape saturated home markets. C. Retailers with unique formats and strong brand positions are increasingly moving into other countries. D. International retailing presents challenges as well as opportunities. E. Retailers can face dramatically different retail environments when crossing countries, continents, and cultures.
A
Wholesalers add customer value through the __________ they offer. A. products and services B. distribution C. price D. promotion E. location
A
______ carry narrow product lines with deep assortments within those lines. A. Specialty stores B. Department stores C. Convenience stores D. Discount stores E. Superstores
A
________ is the promotion mix tool that consists of any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A. Advertising B. Public relations C. Sales promotion D. Direct and digital marketing E. Personal selling
A
________ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service. A. Sales promotion B. Public relations C. Personal selling D. Advertising E. Direct and digital marketing
A
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use? A. Psychological pricing B. Market-penetration pricing C. Product bundle pricing D. Market-skimming pricing E. Captive-product pricing
B
Archer Daniels Midland Co is the world's largest processor of soybeans, corn, and wheat. In the 1990s, the Justice Department found it guilty of regularly meeting with competitors when setting prices. ADM was guilty of ________. A. predatory pricing B. price-fixing C. price discrimination D. retail price maintenance E. deceptive pricing
B
A ________ contains between 15 and 50 retail stores. It normally contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A. neighborhood shopping center B. community shopping center C. lifestyle center D. power center E. regional shopping mall
B
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ________ pricing. A. product line B. captive-product C. two-part D. by-product E. product bundle
B
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as ________. A. a type of segmented pricing B. an indicator of quality C. an indicator of geographic pricing D. an indicator of the cost of production E. a limited time offer
B
Market skimming prices are preferred in all of the following conditions except __________. A. enough buyers must want the product at that price B. an initial low price is set by the companies C. competitors should not be able to enter the market easily and undercut the high price D. the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more E. the product's quality and image must support its higher price
B
One key function performed by channel members is ________, shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. A. risk taking B. matching C. promotion D. negotiating E. contact
B
The pricing method in which sellers combine several products and offer a reduced price is known as __________. A. product line pricing B. product bundle pricing C. captive-product pricing D. optional-product pricing E. by-product pricing
B
When Apple introduced its iPhone, it priced the new product at $599, considerably higher than either its iPod or competing cellular phones. Apple Computer was pursuing a(n) ________ new product pricing strategy. A. market-penetration B. market-skimming C. optional-product D. captive-product E. by-product
B
Which of the following statements about major retail trends is true? A. Retail convergence has decreased competition for retailers. B. Online buying is growing at a much brisker pace than retail buying as a whole. C. The green movement has not yet affected retailing. D. The lifecycle of new retail forms is increasing. E. The global expansion of major retailers into other countries has slowed down.
B
______ are the largest single group of wholesalers, accounting for roughly 50% of all wholesaling. A. Manufacturers' representatives B. Merchant wholesalers C. Manufacturers' agents D. Agents E. Brokers
B
______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. A. Warehousing B. Reverse logistics C. Inventory management D. Inbound logistics E. Outbound logistics
B
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) ________. A. contractual VMS B. corporate VMS C. direct marketing channel D. conventional distribution channel E. administered VMS
B
A retail trend resulting from weak economic conditions is ________. A. the growth of social media retailing B. pop-up stores C. tighter consumer spending D. the rise of megaretailers E. green retailing
C
A(n) __________ has no intermediary levels. A. conventional distribution channel B. indirect marketing channel C. direct marketing channel D. manufacturer-sponsored retailer franchise system E. manufacturer-sponsored wholesaler franchise system
C
Companies that make products that must be used along with a main product are using __________. A. by-product pricing B. product bundle pricing C. captive-product pricing D. optional-product pricing E. product line pricing
C
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. cash rebates B. psychological pricing C. dynamic pricing D. segmented pricing E. promotional pricing
C
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using? A. Time-based pricing B. Product-form pricing C. Location-based pricing D. Customer-segment pricing E. Promotional pricing
C
Netflix recruits "Grammasters," influencers who have large Instagram followings. They travel around the world taking photos and creating videos. This is an example of using __________ as a personal communication channel. A. display media B. broadcast media C. buzz marketing D. print media E. online media
C
One framework for designing an effective message is the AIDA model. In the AIDA model, ________. A. advertising leads to interest, which hopefully leads to desire and then action B. attention leads to interest, which hopefully leads to discussion and then action C. attention leads to interest, which hopefully leads to desire and then action D. advertising leads to interest, which hopefully leads to desire and then attention E. attention leads to interest, which hopefully leads to desire and then assimilation
C
One major objective associated with a market-penetration pricing strategy is to ________. A. avoid everyday low pricing B. skim off small, but profitable, market segments C. win a large market share D. prevent customer dissatisfaction E. attract buyers willing to pay a higher price
C
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________. A. the company should consider ways to meet higher costs or demand without raising prices B. price increases should be supported by company communications telling customers why prices C. rationing products to customers D. the company can shrink the product or substitute less-expensive ingredients instead of raising the price E. maintaining a sense of fairness surrounding any price increase
C
The Ford Mustang is offered in several different models. Ford will use ________ pricing to determine the price steps between the different models. A. two-part B. captive-product C. product line D. optional-product E. product bundle
C
The first step in developing an effective marketing communications program is to ________. A. collect feedback B. identify the consumer's buyer readiness stage C. identify the target audience D. design a message E. determine the communication objectives
C
The first task for a communicator in preparing marketing communications is to __________. A. determine the communication objectives B. select the media C. identify the target audience D. collect feedback E. find highly credible sources to deliver messages
C
What are the four major functions of logistics? A. Warehousing, inventory management, transportation, and retailing B. Inventory management, transportation, shipping, and warehousing C. Warehousing, inventory management, transportation, and logistics information management D. Retailing, inventory management, transportation, and logistics information management E. Warehousing, inventory management, retailing, and logistics information management
C
What is predatory pricing? A. A manufacturer requiring dealers to charge a specified retail price for its product B. Selling below cost to unload excess inventory C. Selling below cost with the intention of punishing a competitor D.Sellers offering the same price terms to customers at a given level of trade E. Setting prices without talking to competitors
C
When a single firm sets up two or more marketing channels to reach one or more customer segments, it is using a(n) ________. A. administered VMS B. franchise organization C. multichannel distribution system D. corporate VMS E. contractual VMS
C
Which of the following statements about retailer marketing decisions is correct? A. Retailers do not have to segment and target their markets. B. Stores do not need to differentiate and position themselves. C. Many retailers identify three critical factors for retail success: location, location, and location. D. Retailers do not differentiate themselves on their service mix. E. Most retailers seek either high markups on higher volume or low markups on lower volume.
C
_______ is the practice of pricing products below cost to harm competitors. A. Retail price maintenance B. Deceptive pricing C. Predatory pricing D. Price-fixing E. Price discrimination
C
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions? A. Operating at a loss and selling higher volume B. Higher margins and selling lower volume C. Selling higher volume and having inefficient operations D. Lower margins and selling higher volume E. Lower margins and selling lower volume
D
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is considered __________. A. public relations B. sales promotion C. direct and digital marketing D. advertising E. personal selling
D
Assume a competitor has cut prices and a company determines it should respond. Potential actions that the company could initiate include ________. A. reducing price, raising perceived value, improving quality and decreasing price, and launching a low-price "fighter brand" B. reducing price, reducing perceived value, improving quality and increasing price, and launching a low-price "fighter brand" C. reducing price, raising perceived value, decreasing quality and increasing price, and launching a low-price "fighter brand" D. reducing price, raising perceived value, improving quality and increasing price, and launching a low-price "fighter brand" E. raising price, raising perceived value, improving quality and increasing price, and launching a low-price "fighter brand"
D
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost. A. risk bearing B. selling and promoting C. buying and assortment building D. financing E. bulk-breaking
D
Channel members' performance should be evaluated against standards which include all of the following except __________. A. treatment of damaged and lost goods B. sales quotas C. customer delivery time D. channel management E. average inventory levels
D
Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners. A. distribution centers B. logistics C. channel management D. partner relationship management E. customer relationship management
D
Companies today see channel members as first-line customers and practice strong ________. A. trade promotion strategies B. consumer advertising strategies C. B2B selling D. partner relationship management E. discount pricing strategies
D
Distribution channels are more than simple collections of firms tied together by various flows. Which of the following statements is NOT a characteristic of distribution channels? A. Some channel systems consist of only informal interactions among loosely organized firms. B. They are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals. C. Some channels consist of formal interactions guided by strong organizational structures. D. Channel systems stand still, restricting formation of new intermediary systems. E. A marketing channel consists of firms that have partnered for their common good.
D
Federal legislation on __________ states that sellers must set prices without talking to competitors. A. trade-restrain B. discriminatory pricing C. interstate commerce D. price-fixing E. deceptive pricing
D
In making products and services available to consumers, channel members add value. Key functions performed by the marketing channels include all of the following except __________. A. distribution of information B. promotion C. negotiation D. pricing E. matching
D
One type of contractual retail association is a ________, which is a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts. A. corporate chain B. voluntary chain C. warehouse club D. retailer cooperative E. franchise organization
D
Retailers must decide on which three major product variables? A. Product assortment, services mix, and price B. Product assortment, price, and location C. Product assortment, services mix, and location D. Product assortment, services mix, and store atmosphere E. Product assortment, store atmosphere, and price
D
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as __________. A. segmented pricing B. geographical pricing C. promotional pricing D. psychological pricing E. dynamic pricing
D
The retail marketing mix consists of which of the following? A. Product and service assortment, retail prices, promotion, and retail segmentation B. Product and service assortment, retail prices, promotion, and store differentiation C. Product and service assortment, retail prices, promotion, and store positioning D. Product and service assortment, retail prices, promotion, and place E. Product and service assortment, retail prices, promotion, and retail targeting
D
UPS charges different prices for shipping depending on which region of the United States the item is being shipped to. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using? A. FOB origin B. Base-point pricing C. Freight-absorption pricing D. Zone pricing E. Uniform-delivered pricing
D
Using ________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries. A. RFID B. just-in-time logistics systems C. reverse logistics D. vendor-managed inventory E. piggybacking
D
What is the first step in marketing channel design? A. Evaluating major channel alternatives B. Identifying the types of intermediaries to use C. Identifying the number of intermediaries to use D. Analyzing consumer needs E. Setting channel objectives
D
Which of the following describes a just-in-time logistics system? A. Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs. B. Just-in-time logistic systems eliminate the need for forecasting. C. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. D. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. E. Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory.
D
Which of the following statements is true concerning new product pricing strategies? A. If competitors can easily enter the market, a market-skimming strategy should be used. B. A market-penetration strategy should be used if the market is not highly price sensitive. C. For a market penetration strategy to work, production and distribution costs must increase as sales volume increases. D. For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. E. When using a market-skimming strategy, marketers do not need to focus on the product's quality and image.
D
Which wholesaler channel function helps reduce inventory holding costs and the risks of suppliers and customers? A. Risk bearing B. Financing C. Buying and assortment building D. Warehousing E. Transportation
D
_______ 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 line. A. Exclusive territorial agreements B. Exclusive dealing C. Intensive distribution D. Full-line forcing E. Exclusive distribution
D
________ is a strategy in which the seller requires that dealers not handle competitors' products. A. Full-line forcing B. Intensive distribution C. Exclusive distribution D. Exclusive dealing E. Exclusive territorial agreements
D
__________ are the largest single group of wholesalers. A. Agents B. Brokers C. Retailers' branches D. Merchant wholesalers E. Manufacturers' branches
D
__________ have shifted the balance of power between retailers and producers. A. Showrooms B. Omni-channel retailing C. Pop-up stores D. Megaretailers E. Green retailing
D
One reason there is a need for integrated marketing communications is that ________. A. consumers can easily distinguish brand content from different sources B. communication channels today are less fragmented than in the past C. messages from companies come from a single source D. companies often integrate their various communication channels E. consumers don't distinguish between content sources the way marketers do
E
Producers of ________ typically use intensive distribution for their products. A. home appliance brands B. luxury brands C. furniture D. consumer electronics E. convenience goods
E
Specific promotional tools used in ________ include direct mail, catalogs, online and social media, mobile marketing, and more. A. personal selling B. advertising C. public relations D. sales promotion E. direct and digital marketing
E
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________. A. increase prices B. reduce prices C. improve perceived value D. adjust quality E. low-price fighter items
E
Tiffany and Neiman Marcus are classified as __________ retailers. A. omni-channel B. limited-service C. service D. self-service E. full-service
E
When setting channel objectives, companies should state the objectives in terms of ________. A. the length of the channel B. competitor's objectives C. exclusive distribution arrangements D. expected profitability E. targeted levels of customer service
E
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and ________. A. whether to use intensive or exclusive distribution B. the profitability of the channel C. economic criteria D. consumer needs E. the responsibilities of channel members
E
Which of the following is a potentially effective action a company could take in response to a competitor's price cut? A. Reduce both the price and quality. B. Decrease the perceived value. C. Launch a high-price "fighter brand." D. Raise the price. E. Reduce the price.
E
Which of the following is an example of horizontal channel conflict? A. A retailer complaining about a producer's pricing B. A consumer complaining to a producer about the quality of a product C. A consumer complaining to a retailer about the service he or she received D. A retailer complaining about receiving damaged goods from a wholesaler E. A Ford dealer complaining that another Ford dealer is advertising in its territory
E
Which of the following statements is true regarding advertising in the new marketing communications model? A. Advertisers are spending more on television broadcast media. B. Advertising spending in magazines, radio, and newspapers has increased. C. Advertisers are using less targeted media to reach consumers. D. Advertisers are using more traditional mass media because costs have declined and audience size has increased. E. Advertisers are shifting toward digital media.
E
Which of the following statements is true regarding initiating price cuts? A. Cutting price has no effect on costs. B. Firms never cut prices; they only raise them. C. If faced with excess capacity, a firm should not cut its price. D. When faced with falling demand, firms should not cut prices. E. Cutting prices in an industry loaded with excess capacity might lead to price wars.
E
_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. A. Omnichannel buying B. Full-service retailing C. Wholesaling D. Retailing E. Shopper marketing
E
_______ occurs when retailers set an artificially high "regular price" and then advertise a "sale price," which is actually close to their everyday price. A. Predatory pricing B. Retail price maintenance C. Price-fixing D. Price discrimination E. Deceptive pricing
E
_________ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores. A. Neighborhood shopping centers B. Community shopping centers C. Regional shopping centers D. Lifestyle centers E. Power centers
E
_________ retailing refers to the creation of a seamless cross-channel buying experience. A. Self-service B. Service C. Full-service D. Limited-service E. Omni-channel
E