Marketing Quizzess

Value delivery network

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-based

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

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

True

Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers' desires and marketplace changes.

Captive-product

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing.

Exclusive

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use __________ distribution, giving a limited numbers of dealers the sole right to sell products in a specified geographic territory.

False

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.

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 worth.

Which of the following is true of a vertical marketing system?

It has one channel member owning all the other channel members of has contracts with all other channel members.

Which of the following is true of an intensive distribution strategy?

It strives to make products available available where and when consumers want them.

Abundon

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. There 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?

Cost-plus

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer.

Supply chain management

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ____________.

Contractual Vertical

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchises. This illustrates a(n) ____________ marketing system.

False

Most producers sell their goods directly to final users.

Product bundle

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing.

True

Some companies deemphasize price and use other marketing mix tools to create non-price positions in the marketplace.

Market penetration pricing

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as _________.

Market skimming

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation.

False

The goal of any logistics system should be to maximum sales, not profits.

Cost-based

________ 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.

Price

__________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Horizontal marketing system

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) ____________

Customer perceptions of value

Which of the following sets the upper limit for a products's pricing?

It fails to consider customer value and the relationship between price and demand

Which of the following statements about break-even analysis is most likely true?

Disintermediation

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward _________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

False

Unlike the other marketing mix elements, price plays a minor role in creating customer value and building customer relationships.

multichannel distribution system

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

Inelastic

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as _______.

"low price"

When establishing prices, it's important for a manager to understand that "good value" is not the same as ________.