Marketing Test 3

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3/10, n/30 means a 10 percent discount if paid in full within 3 days, or the net amount is due in 30 days. a 3 percent discount if paid in full within 10 days, or the net amount is due in 30 days. a 3 percent discount if paid in full within 3 days, or the net amount is due in 10 days. a 3 percent discount if paid in full within 30 days, or the net amount is due in 10 days. no discount is available on this order; the net amount is due between 10 and 30 days.

A _____ pricing strategy is attractive because it attracts two distinct market segments: those who are not price sensitive and more price-sensitive customers. cost-based high/low predatory everyday low competitor-based

A _____ pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases. predatory high/low cost-based everyday low competitor-based

Multichannel retailers are able to simply charge the same prices across all channels.

Off-price retailers specialize in having a consistent line of merchandise available at discount prices.

Price is the cash expenditure plus taxes that consumers have to pay for a good or service.

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Quick response systems allow retailers to maximize their inventory holdings.

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.

Retailers who advertise that they sell at wholesale prices are wholesalers.

Slotting allowances are used to get retailers to feature a manufacturer's product in their advertising and promotional efforts.

The Internet has decreased consumers' price sensitivity.

The only consumer advantages to shopping in a brick-and-mortar store are browsing and the ability to touch and feel the products.

Universal product codes (UPC) are used to describe products for inventory taxation purposes.

When Sony released its PlayStation 3 game machines, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy.

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To do this, she will likely use a market penetration pricing strategy.

Choosing the right retailing partners and knowing where target customers expect to find products are key to a manufacturer's success.

Cost-based pricing assumes costs will not vary much for different levels of production.

Coupons may confuse customers and therefore do little to increase store loyalty.

Economic trends that affect pricing decisions include increases in disposable income and status consciousness, a trend for customers to shop cheap, global economic conditions, and local economic conditions.

Effective multichannel operations require an integrated CRM (customer relationship management) system with a centralized customer data warehouse.

If a firm is engaged in monopolistic competition, it should seek a way to differentiate itself.

In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.

In general, prices should not be based on costs because consumers make their purchase decisions based on perceived value, not the cost of production.

In the four Ps of marketing, Place refers to all the activities required to get the right products to the right customer when that customer wants it.

It is primarily the retailer's responsibility to make sure customers' expectations are fulfilled.

Kristina sells sports equipment and wants to get customers into her store. She knows from past experience that sales generate customer traffic, particularly when she puts children's baseball equipment on sale. She may consider a leader pricing strategy.

Manufacturers might use selective distribution by granting exclusive geographic territories to a few retailers so no other retailers in the territory can sell a particular brand.

Many retailers and some manufacturers are exploring the use of a multichannel strategy in which they sell in more than one channel, for example, the Internet and stores.

Marketing channel management creates value by getting products to customers efficiently.

Marketing channel relationships evolve when the parties have complementary goals.

Odd prices suggest low quality.

One of retailers' most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market.

One of the reasons a manufacturer may decide to sell its products in a bundle is to encourage trial of a new product.

One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized information about products and services for each customer.

Price is the only part of the marketing mix that does not generate costs.

Price lining is setting a price floor and a price ceiling for a line of products and then setting price points in between to represent differences in quality.

Radio frequency identification tags (RFIDs) automatically transmit information about a container's contents or individual products.

Rarely is the lowest-price product offering the dominant brand in a given market.

Supercenters—stores that combine a supermarket with a full-line discount store—are among the fastest growing food retailer formats.

The Robinson-Patman Act does NOT apply to end consumers, at which point many forms of price discrimination occur.

The key to successful pricing is to match the product with the consumer's perception of value.

The methods used to develop pricing strategies are cost-based pricing, competitor-based pricing, and value-based pricing.

Today, large retailers dictate to their suppliers what should be made.

Value-based pricing necessitates a great deal of consumer research to be implemented successfully.

When a retail store rarely sells deeply discounted or sale products, it is known as "everyday low pricing."

When retailers extend their services to the Internet and become multichannel retailers, they are able to satisfy a broader range of customers' needs and wants.

Odd prices often suggest __________ to consumers. low quality superior quality uniqueness expired merchandise foreign-made goods

One of the difficulties associated with value-based pricing is that the way consumers perceive value constantly changes. only the creator of a new product can fully understand its value to consumers. value depends on variable costs and not fixed costs. everyday low pricing has neutralized the impact of price on consumers' purchase decisions. costs are invaluable.

One problem in relying on price elasticity and demand curves when setting prices is the way a product or service is marketed can have a profound impact on price elasticity. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. only economists can properly analyze demand curves and set prices using this tool. competitors can construct the same demand curves, so there is no advantage in using them. marketing split from economics over the ideas of demand and elasticity.

Paul's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major and he has recommended that his family's business should emphasize fresh, locally sourced perishables. target the broadest possible customer base. eliminate customer frills and extras. offer fewer private label brands. offer more national brand packaged goods and few perishables.

Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. percentage change in price divided by percentage change in quantity demanded. change in price divided by change in quantity demanded. change in quantity demanded divided by the change in price. change in quantity demanded multiplied by the change in price.

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model. innovators and early adopters early adopters and early majority early majority and late majority late majority and laggards laggards and innovators

Retailers may modify product, price, and/or promotion to attempt to increase their _____, which is the percentage of the customer's purchases made from that particular retailer. share of wallet consumer position distribution intensity retail position share of market

Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking. floor-ready flattened lead time synchronized aggregated synthesized

Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because it happens behind the scenes. it conflicts with promotion. it occurs after making pricing decisions. no one is directly in charge of place decisions. the product itself is so much more important.

Supermarkets often offer great deals on milk, beef, or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a __________ pricing tactic. leader bundling price lining cumulative quantity discount seasonal allowance

Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their manufacturers, warehouses, transportation intermediaries, stores, and suppliers. customers. competitors. buying centers. top-level executives.

The level of vertical integration of firms in a supply chain directly relates to _____, which is a major consideration for manufacturers when choosing retail partners. channel structure customer expectations channel member characteristics distribution intensity networking capabilities

Today, __________ dominate supply chains. large retailers manufacturers government agencies wholesalers distributors

A(n) __________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas. pick ticket warehouse receipt bill of lading certificate of origin RFID tag

A(n) __________ is a supply chain whose members act like a unified system. vertical marketing system independent marketing system concentrated marketing system conventional marketing system strategic marketing system

A major hotel chain found that if it was to reduce the cost of the ice cream it currently served, it would be able to save over 400 employees' jobs. Therefore, it switched from a high priced brand of ice cream to a more moderate priced ice cream. This is known as the substitution effect. income effect. brand effect. commercial effect. value effect.

A pricing strategy is a long-term approach to setting prices in a companywide integrated effort. the use of one-time seasonal discounts to reduce inventory. the use of slotting allowances to gain access to distribution channels. a short-term approach to setting prices. associated with competitive threats in the marketplace.

A(n) _____ involves the computer-to-computer transmission of sales data, purchase orders, invoices, and data about returned merchandise between a retailer and its vendors. electronic data interchange electronic data warehouse stock keeping unit universal product code radio frequency identification tag

A major airline sells an aggressively low priced ticket compared to a new low-fare airline, which is trying to enter the market. The airline may be accused of engaging in the unethical practice of predatory pricing. price fixing. leader pricing. price skimming. deceptive reference prices.

A(n) __________ is a 13-digit code retailers can use to track inventory. UPC CFPR pick ticket ASN EDI

As the marketing vice president of her firm, Jana is considering implementing a companywide pricing policy that all products must achieve a target profit margin of 15% so the firm can achieve its overall growth objectives. What type of company objective is this? profit-orientation sales-orientation competitor-orientation customer-orientation market-orientation

B2B quantity discounts are legal if the discounts are available to all customers. they do not exceed 25 percent of the regular price. they are not short term. new customers can "buy up" to reach the minimum quantity. cumulative discounts do not run for more than a calendar year.

Benefits of the traditional retail store as a channel includes the ability to provide personalized and meaningful product information. offer a greater selection of products. offer an expanded market presence for all consumers. efficiently collect information about how consumers shop for a particular product. quickly compare prices across multiple channels.

Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and their prices are low. Bertone's is a(n) category specialist. extreme value retailer. off-price retailer. full-line discount retailer. warehouse club.

Betty's Bird Seed Company charges $50 for 10 pounds of bird feed, including shipping. Betty is using __________ to determine shipping costs. uniform delivered pricing zone pricing advertising allowances predatory pricing vertical price fixing

Carol's Studio, located in a shopping mall, offers zumba dance classes for all ages. Carol's Studio is known as a(n) service retailer. category specialist. specialty store. outlet studio. small box specialist.

Chandra owns a pet sitting service. He recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of M-commerce. smart retailing. cell selling. P-commerce. channel expansion.

Cindy went shopping for a new outfit. She bought a low-priced shirt at a discount store, and combined it with an expensive designer skirt. Which of the following terms best describes Cindy's actions? Cross-shopping The income effect Cross-price elasticity The substitution effect Specialty shopping

Everyone in town knows that Designer's Edge coffee costs twice as much as the average cup of coffee, but it still attracts a large following of loyal customers looking for the best. Designer's Edge uses premium pricing. competitive parity. status quo pricing. target return pricing. target profit pricing.

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a partnering relationship. shared mission statement. common marketing system. corporate vertical marketing system. linked supply chain.

For a JIT system to be successful, the firm and its vendors must cooperate. compete. participate in a vertical marketing system. put a VMI system in place. be located within 500 miles of each other.

In _____, one firm provides the product or service in a particular industry, and as such results in less price competition. a monopoly an oligopoly monopolistic competition oligopolistic competition pure competition

In _______________, many firms provide similar products that are considered substitutes for each other. pure competition oligopolistic competition monopolistic competition a monopoly a duopoly

In which of the following categories would a dry cleaning business be placed? service retailer specialty store category killer superstore discount store

Jamal was interested in getting a new flat screen television. He went to his local electronics store to view the various models and discuss the features and benefits with the sales associate, but then bought the product online from another retailer for a lower price. Jamal was engaged in showrooming. cross-shopping. competitive parity. reference shopping. target profit pricing.

John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms perform many different channel functions themselves. have less control in the channel. are generally less efficient. spend more money wastefully. use more independent salespeople.

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________________ pricing strategy. customer-oriented target profit target return status quo maximizing profits

Kohl's, JCPenney, and Bloomingdales are examples of department stores. off-price retailers. discount stores. extreme value stores. category specialist stores.

Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of the purchases she had made. purchases other customers had made that day. manufacturer clearances and overruns. products she may have returned to the company. items the retailer no longer carries.

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of providing products at the right time. providing products at the right locations. providing the right quantities. satisfying the service levels supply chain participants expect. minimizing system-wide costs.

Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT which competitors they should collaborate with. what should be made. how products should be configured. when products should be delivered. what products should cost.

Using the _____ pricing method, consumers may be willing to pay more for a particular product because, over its entire lifetime, it will eventually be less expensive to own than a cheaper alternative. cost of ownership improvement value value-based competitor-based cost-based

When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to, literally, get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product. intensive exclusive selective collective variable

When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise. floor-ready repurposed just in time quick response horizontal channel

When HP first introduced their inkjet printers, consumers could only buy refill cartridges from HP. HP made significant profits from the sale of replacement cartridges. In this situation, HP logically used a __________ pricing strategy for their printers. market penetration loss leader price fixing reference skimming

When a company offers consumers the ability to make purchases via a smart phone, this is known as M-commerce. smart retailing. cell selling. P-commerce. channel expansion.

When a manufacturer based in New York City charges more to ship to customers in Los Angeles and less to ship to customers in Memphis, it is using zone pricing. variable pricing. uniform delivered pricing. flexible delivered pricing. inflated pricing.

When a new product is not being sold at the rate originally forecasted, the retailer may reduce the price in order to reduce the inventory of the product. This reduction is known as a markdown. rebate. quantity discount. coupon. cash discount.

When customers purchase merchandise in stores, the physical presence of the store _____ their perceived risk of buying and _____ their confidence that any problems with the merchandise will be corrected. reduces; increases heightens; reduces increases; increases reduces; reduces increases; reduces

When retailers use _____ pricing, it can create excitement and attract customers through the "get them while they last" atmosphere that occurs. high/low predatory cost-based everyday low competitor-based

Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts? jewelry store convenience store liquor store second-hand clothing store bakery

Which of the following strategies is designed to place products in as many outlets as possible? intensive distribution exclusive distribution selective distribution surplus distribution contractual distribution

Which type of store is small and offers a limited merchandise assortment at very low prices? extreme value retailers specialty stores outlet stores limited assortment supermarkets convenience stores

Winston's Ice Cream Shop has been in the same location for two decades. Last week, a new ice cream shop opened up just one block down the street. Winston's decides to sell ice cream below cost in order to drive the new shop out of business. What kind of pricing is Winston's using? Predatory pricing Competitive pricing Ceiling pricing Inelastic pricing Keystoning

With a _____ marketing strategy, there is less likelihood of being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand. pull push distributed continuous programmed

With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service. market penetration bundling price fixing reference skimming

With a pull marketing strategy, orders for merchandise are generated at the store level based on sales data captured at POS terminals. there is a greater likelihood of being overstocked or out of stock than in a push supply system. merchandise is allocated to stores on the basis of demand forecasts. inventory management is less responsive to customer demand. it is more difficult to manage conditions of high uncertainty than in a push supply chain.

_____ are expressed in the form of a percentage, such as "3/10, n/30," or "3%, 10 days, net 30." Cash discounts Seasonal discounts Noncumulative quantity discounts Advertising allowances Cumulative quantity discounts

_____ power is when one channel member threatens to punish or punishes another channel member for not undertaking certain tasks, such as delaying payment for a late delivery. Coercive Referent Expertise Legitimate Information

A _______________ is a facility for the receipt, storage, and redistribution of goods to company stores or customers. circulation center distribution center supply chain hub collaborative replenishment office floor-ready franchising center

A reference price is the actual price. the price against which buyers compare the actual selling price. the manufacturer's cost. a cumulative quantity discount price. the external horizontal fixed price.

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy leads the marketer to being the low-cost seller. is supported by consistent advertising and distribution strategies. challenges consumers to discard their perceptions of value. is consistent with a competitive target return strategy. does all of these.

Amazon.com was an early leader in online retailing. Part of the firm's success was due to a well-designed and efficient EDI system with book publishing companies, allowing just-in-time delivery. Even with a well-designed EDI system, Amazon.com would not have been successful without a customer rebate program. a commitment to partnering with publishing companies. cooperative advertising with brick and mortar retailers. support from government regulators. acceptance from local education unions.

As the number of transactions in the supply chain falls and transactions are eliminated, the channel and supply chain becomes _____, which impacts customers by making it _____ to purchase merchandise. less efficient; more expensive more efficient; less expensive more efficient; more difficult less efficient; convenient more complex; more difficult

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can organize cooperative agreements among competing manufacturers to reduce oversupply. reduce inventories needed to satisfy retailers' demand. use exclusive geographic territories to centralize production. effectively eliminate the need for a dispatcher. replace independent supply chains with corporate supply chains.

Because market and operating conditions are different in each target market all consumers will react similarly to the firm's pricing strategy. the choice of a pricing strategy is specific to the target market. prices need to be held constant because everything else is changing. only horizontal price fixing should be used. external reference prices will always be the best strategy.

Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store. department stores off-price retailers discount stores services retailers category specialist stores

Benton manages a building supply company. He wants to invite twenty of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ___________ to identify these customers. website CRM database specialty store sales annual sales report inventory management system

Chet knows the pro shops selling his golf photography will "keystone" his products. He also knows sales will decline significantly if the retail price is greater than $200. The maximum wholesale price Chet can charge is $200. $100. $50. $10. It cannot be determined from this information.

Clark Manufactured Housing Company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from their factory. The company is using a ____________ pricing tactic. uniformed delivered zone cumulative horizontal noncumulative

Compared to conventional supermarkets, warehouse clubs have a broader assortment of food items. a lower level of service. very comparable prices. no products appealing to small businesses. lower annual fees.

Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms with top-of-the-line machinery that make better quality cabinets, but he does well and has a constant flow of business. Dean obviously has figured out how to produce cheap products. priced his products well. reduced his variable costs by investing in fixed costs. avoided monopolistic competition, and is instead in a market with pure competition. learned how to use status quo pricing.

Dollar General and Family Dollar Stores are small, full-line discount stores that offer a limited merchandise assortment at very low prices, so they would be classified as supercenters. extreme value retailers. specialty stores. category specialists. warehouse clubs.

Firms that use a(n) _____ supply chain allocate merchandise to stores based on previous sales forecasts. pull push distributed continuous programmed

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) cross-docking exchange. electronic data interchange system. floor-ready bundling system. vertical conflict reduction system. radio frequency identification system.

For brick-and-mortar retailers, when making decisions regarding "place," a key ingredient to success is product placement promotion. convenient locations. private-label merchandise. off-price placement. customer relationship management.

Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that natural gas creates more environmental greenhouse effects than coal. an increase in the price of natural gas will increase demand for his electrical heating systems. gas heating systems and electrical heating systems are complementary goods. when the price of natural gas goes up, the quantity demanded also rises. the demand for natural gas is price elastic.

Full-line discount, category specialist, and specialty stores are all types of __________ retailers. food general merchandise price sensitive limited demand special appeal

Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase their local market share from 15 to 30 percent. Gary's pricing strategy will focus on increasing profits. increasing sales. decreasing competition. building customer satisfaction. product development.

Getting merchandise floor-ready entails distributing and dispatching. ticketing and marking. vertical supply chain wholesaling. intensive cross-docking. selective checking.

Gray markets can be a challenge to marketers because they are just as illegal as black markets. they may tarnish the manufacturer's image. they are legal in some states and illegal in others. consumers are against them, but retailers support them. they may result in price increases across the board.

In _____ marketing channels, one or more intermediaries work with manufacturers to provide goods and services to customers. modified indirect secondary ancillary direct

In marketing's four Ps, Place refers to all activities required to get the design of the terminal location for products accomplished. the right products to the right customer when that customer wants it. access to the physical space within a retail establishment. consumers to the destination. demand chain management functionally operable.

In retailing, a just-in-time delivery system is called a _____________ system. cross-docking quick response UPC CPFR lead time

In the past, __________ dominated supply chains. retailers manufacturers government agencies wholesalers distributors

In the soft drink industry only a few firms dominate, which is characterized as a monopoly. an oligopoly. pure competition. competitive parity. monopolistic competition.

In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is elastic. inelastic. price sensitive. expandable. flexible.

Internet comparison shopping sites like Shopping.com and Pricegrabber.com allow consumers to compare prices of substitute products much more easily than is possible without the Internet. These sites have reduced the price elasticity demand for individual products. increased the cross-price elasticity for substitute products. increased the income effect on price elasticity of demand. reduced the cross-price elasticity of demand for complementary goods. decreased the price elasticity of demand for groups of similar products.

Jana's firm is entering new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives? profit-orientation sales-orientation competitor-orientation customer-orientation market-orientation

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms. 100 1,500 20,000 1,000 It cannot be determined from the information provided.

Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase sales force labor costs. transportation costs. promotional costs. advertising costs. new product development costs.

Luxury goods firms such as Coach use a(n) _____ distribution strategy to limit sales to a few select, higher-end retailers in each region, because selling its product in full-line discount stores or off-price retailers would weaken its image. collective exclusive intensive selective variable

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers'__________ perceptions. fixed price reference price seasonal price leader price cost-based price

Marketers can deliver high value through high or low prices, depending on profit contribution per unit. the bundle of benefits the product or service delivers. monopolistic competition. target return pricing that is greater than variable cost per unit. the income effect.

Of the following, the best example of a category killer is Dollar General. Staples. Kohl's. Target. Costco.

One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is being price competitive. the amount of merchandise that can be carried in a physical store. competition from other retailers. common zoning restrictions limiting the kinds of merchandise that can be offered for sale. interactive customer service.

One of the problems associated with an everyday low pricing (EDLP) strategy is that stores may have to offer too many noncumulative wholesale discounts. some consumers may associate EDLP with lower quality goods. the retailer may be accused of price discrimination. too many coupons may be redeemed. it may conflict with price-based cost calculations.

Price is often the most challenging of the four Ps to manage, partly because it is often ___________________________ in developing marketing strategies. the least important aspect treated as an afterthought calculated by senior consultants difficult to calculate markups the subject of cross-shopping differentiation

Purchase data collected at the point of sale is stored in a data warehouse and can be accessed on three dimensions: age, gender, and total sales. point in time, merchandise aggregation, and level of the company. SKU, UPC, and RFID. total number of items, total dollar amount spent, type of payment. sales associate, store number, and time of transaction.

_____ is used to market products to innovators who are willing to pay the very highest prices to obtain brand-new examples of technology advances, with exciting product enhancements. Price lining Price skimming Penetration pricing Price fixing High/low pricing

Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be: $500,000. $550,000. $650,000. $450,000. $605,000.

Retailing is where marketing is replaced by personal selling. meets the consumer. meets corporate management. sells itself to the corporation. conducts all of its transactions.

Stores are limited by their _____, which is generally not an issue when shopping on the Internet. ability to reduce shopper's perception of risk size sales staff inability to accept cash payments ability to provide a social experience

Supermarket A always waits until Thursday to price their canned beans in an effort to match Supermarket B's prices, which are advertised on Wednesday. This demonstrates what type of pricing strategy? Value-based pricing Competitor-based pricing Cost-based pricing Everyday low pricing High/low pricing

The _____ is the person who coordinates deliveries to the distribution center. planner dispatcher foreman shipping manager warehouse manager

The major objectives associated with a market penetration pricing strategy are to capture the high end of the market demand curve and lower introduction costs. quickly build sales and market share. minimize customer dissatisfaction and maximize reference price value. provide an incentive to purchase a less desirable product in order to obtain a more desirable product. match competitors' prices and communicate high quality.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that most consumers cannot remember what price they paid the last time they bought a particular product. it is easier to lose customers with a price increase than to gain customers with a price decrease. most consumers would rather skip buying a product than pay a higher price. most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes. firms gain more customers with price decreases than they lose with price increases.

The pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers is referred to as showrooming. cross-shopping. mixed competition. overlap shopping. double-dipping.

Walmart, Target, and Kmart offer a broad variety of merchandise, limited service, and low prices, which would classify them as department stores. full-line discount stores. specialty stores. category specialists. supercenters.

When choosing retail partners, a high-end cosmetics manufacturer like Estée Lauder would most likely NOT choose to sell to CVS or Dollar General due to channel structure. customer expectations. channel member characteristics. distribution intensity. networking capabilities.

When the members of a marketing channel operate to satisfy their own objectives and maximize their own profits, often at the expense of the other members, the channel operates as a vertical marketing system. an independent marketing channel. a corporate vertical marketing system. a contractual vertical marketing system. an administered vertical marketing system.

Which of the following falls into the category of being a general merchandise retailer? Bank Category specialist Supermarket Convenience store Auto rental agency

Which of the following food retailers is a self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items? Convenience store Conventional supermarket Category specialist Supercenter Warehouse club

Which of the following is considered the greatest advantage offered to consumers by brick-and-mortar stores compared to online shopping? Being able to browse for products Being able to use all five of their senses Having personal service Having both cash and credit payment options Enjoying the entertainment value of shopping in stores

Which of the following multichannel challenges has Patagonia overcome by emphasizing function, not fashion, in the descriptions of its products in all of its channels? Integrated CRM Brand image Pricing Supply chain Cannibalization

With _____ products and services, a higher price might lead to a greater quantity sold, but only up to a certain point. status quo prestige predatory price elastic substitute

Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of sales tactics. channel conflict. retail strategy tension. passive aggressive behavior. a failure of CPFR processes.

_____ distribution helps a seller maintain a particular image and control the flow of merchandise into an area which makes this approach attractive to many shopping goods manufacturers, such as most apparel items, home items like branded pots and pans or sheets and towels, branded hardware and tools, and consumer electronics. Variable Selective Intensive Exclusive Collective

_____ employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. A monopoly A gray market Pure competition A black market A price war

_____ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs. Contribution margin analysis Break-even analysis Predatory pricing Total cost calculation Fixed cost analysis

_____ occurs when parties at different levels of the same marketing channel (e.g., manufacturers and retailers) agree to control the prices passed on to consumers. Horizontal price fixing Vertical price fixing Loss leader pricing Predatory pricing Price discrimination

_____ reflects that the greater the availability of substitute products, the higher the price elasticity of demand for any given product will be. The income effect The substitution effect Cross-price elasticity Complementary products effect Sustainability of products

__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence. Convenience stores Department stores Full-line discount stores Extreme value stores Off-price retailers

__________ are subtle forms of promotion that encourage shopping in retailers' stores. Electronic signs Store credit cards and gift cards Large stocks of popular national brands Quick response and just-in-time delivery systems Extreme value offers and specialty share of the wallet programs

_________________ measures consumers' sensitivity to price changes. Cross-price elasticity of demand Price elasticity of demand Income elasticity of demand Competitive profit elasticity of demand Inelastic demand price parity

A _____, which may be operated by retailers, manufacturers, or distribution specialists, is a facility for the receipt, storage, and redistribution of goods to company stores or customers. logistics center wholesaler distribution center marketing channel supply chain

A demand curve is built assuming that income is derived from demand. price remains the same, and fixed costs change. everything but price and demand remains the same. a change in quantity demanded causes a change in price. the firm does not advertise.

A distribution center is typically operated by the marketing department. vertically integrated consumer networks. retailers, manufacturers, or distribution specialists. corporate-government joint ventures. electronic data interchange services.

A weakness associated with cost-based pricing methods is that they are too difficult to calculate. infer a cost-price ratio. do not recognize the role that consumers or competitors' prices play in the marketplace. do not allow for predatory pricing. are structurally inflexible and ignore vertical price fixing alternatives.

After installing an electronic data interchange, Kay Jewelers was able to reduce ___________, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise. quick time latency lead time currency float time supply chain conflict time

In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours. traditional combination cross-docking vertical horizontal

In a market with _______________, there are many firms providing differentiated products. pure competition oligopolistic competition monopolistic competition a monopoly a duopoly

All of the following are examples of the value provided by a supply chain in the production of kitchen stoves EXCEPT the transportation company gets the stove to the retailer. the retailer educates the customer about product features, and delivers and installs the stove. the product design team develops initial drawings for a new product offering. the stove maker turns the components into the stove. the components manufacturer helps the stove manufacturer by supplying parts and materials.

As the dominant member of the channel of distribution, Coca Cola holds a lot of power in the relationship with independent grocery stores, and as such, it performs the functions of restocking merchandise, setting up special displays and rotating merchandise. This is an example of an independent marketing channel. a horizontal marketing system. an administered vertical marketing system. a contractual vertical marketing system. a corporate vertical marketing system.

At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system. cross-docking lead time JIT CPFR UPC

At the break-even point, costs are zero. price is maximized. profits are zero. fixed costs are zero. contribution per unit is zero.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably price sensitive. price elastic. price inelastic. income elastic. cross-price elastic.

Best Buy will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using premium pricing. competitive parity. status quo pricing. target return pricing. target profit pricing.

Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as loss leader pricing. desperation selling. bait and switch. off-season deceptions. inventory reduction pricing.

Both Walmart and JCPenney initially had separate organizations for their Internet channel but subsequently integrated them with stores and catalogs to address the _____ challenge of multichannel retailing. pricing brand image supply chain integrated CRM cannibalization

CPFR refers to _________ inventory management systems. collective preferential forecasting and returns collection, partnering, franchising, and receiving collaborative planning, forecasting, and replenishment corporate partnering, facilitation, and replenishment centralized planning, factoring, and receiving

Cost-based pricing assumes costs vary with the level of prices. are used to estimate value. will not vary much for different levels of production. are calculated based on historical consumer perceptions of what things should cost. will continue to decrease as production increases.

Developing pricing strategies for __________ is one of the most challenging tasks a manager can undertake. cost-based pricing seasonal rebate items new products zone pricing products quantity discounts

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? Internal pricing Profit-oriented pricing Competitor-oriented pricing Customer-oriented pricing Sales-oriented pricing

EDI reduces _____, or the time between the decision to place an order and the receipt of merchandise. cross-docking the lead time the cycle time Just-in-time inventory channel conflict

Each generation of cell phones has provided greater clarity, range, and multi-functionality. Marketers of cell phones can use these upgrades in __________ pricing. everyday low pricing odd-even improvement value reference-based cost-based

Firms using a(n) ____________ pricing method set their prices relative to what other firms are charging. improvement value value-based competitor-based reference-based cost-based

For which of the following is demand likely to be least sensitive to price increases? Spring break vacations. A specific brand of cereal. Prescription drugs. Theater tickets. Restaurant meals.

Franchising involves a(n) __________ marketing system. cooperative corporate contractual administered conventional

Generally, the _____ and _____ sophisticated the channel member, the less likely that it will use supply chain intermediaries. smaller; less smaller; more larger; more shorter; more larger; less

If Kleenex produced a new, eco-friendly personal-sized package of tissues, which it intended to get into as many retail outlets as possible, it should chose _____ distribution intensity. a variable a selective an intensive an exclusive a collective

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is cross-price elastic. price inelastic. price elastic. status quo elasticity. derived demand inelastic.

Improvement value and cost of ownership are two approaches to which method of pricing? Mark-up pricing Cost-based pricing Value-based pricing Competitor-based pricing Price elasticity

In _____ a manufacturer owns the merchandise in a retail store until it is sold by the retailer, at which time the retailer pays for the merchandise, thus reducing inventory levels and generating sales. collaborative selling programmed selling consignment selling electronic data interchange data warehouse management

In an administered vertical marketing system, no individual participant has control over the others, since a third party administrator oversees the entire supply chain. transaction selling is the norm, with the invisible hand guiding the overall functioning. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. independent firms join together formally to decide as a group how the marketing channel will operate. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

In the classic downward-sloping demand curve, as price increases, demand for the product or service increases. stays the same. decreases. levels off. doubles.

JIT inventory systems are associated with all of the following EXCEPT frequent deliveries of less merchandise. reduced lead time. more inventory to warehouse. increased product availability. lower inventory investment.

Jack works for a firm in the Northwestern regionthat is clearly the market leader, and has determined he must implement a region-wide price reduction of all product lines in order to discourage new firms from entering the lucrative market. Which of the following company objectives is involved? profit-orientation sales-orientation competitor-orientation customer-orientation market-orientation

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know if customers are using credit cards or cash to make purchases. how many employees the retailers have. where their target customers expect to find their products. whether the products will fill a customer's self-actualization needs. whether customers will find the store atmospherics appropriate to the neighborhood or location.

Liz and Sarah watched the prices of all the ingredients in their line of specialty sauces go up and up. Now, transportation costs are going through the roof. Liz suggested they could raise prices to cover these expenses because customers would understand. Which of these is the most important factor Liz and Sarah should consider before raising prices? The costs might go back down again. They will have to adjust their promotional literature. Customers do not care about the company's costs; they care about value. Rental costs for their production facility might go up next. Consumers do not think about the cost of additional items; they are concerned mostly with the total cost for a visit to a store.

Many years ago Honda's Accord and Ford's Taurus were the top two selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a ___________________ pricing strategy. maximizing profits target profit sales orientation status quo target return

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______________ pricing strategy. sales orientation target profit target return status quo competitive parity

Near the end of the summer season, Sergio still has a large inventory of bathing suits. He needs to sell them rather than holding them over till next season, because colors and styles often change. He plans to offer them at 30 percent off the retail price. Sergio hopes that demand for bathing suits at the end of the season is cross-price elastic. price inelastic. price elastic. status quo elastic. derived demand inelastic.

One of the benefits of shortened lead times associated with a JIT system is increased production efficiency. economies of scale through larger production runs. better forecasting because firms are not forecasting as far into the future. lower ticketing and marking costs. reduced tax liability.

Personal selling is particularly important for retailers selling online services. discount items. products that are complicated or expensive. to younger consumers and in big-box stores. in extreme value retailing.

Retailers' coupons, rebates, and online discounts are types of in-store promotions. specialty product displays. pricing promotions. off-price wholesaling. mass media advertising.

Retailing is defined as the set of business activities that focuses on a firm's core values. focuses on transactions, but not relationships. adds value to products and services sold to final consumers. separates wholesaling from manufacturing. only occurs in brick-and-mortar space.

Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of ______________ on demand for his service. breakeven points the price inelasticity ratio the income effect target profit pricing cross-price elasticity

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n) horizontal contractual notice. vendor-managed inventory alert. advanced shipping notice. universal product code report. CPFR tag.

Salespeople can be particularly helpful when purchasing a(n) _____ product. inexpensive standard complicated easy-to-find frequently purchased

Standardized products such as grains and chemical products, where consumers perceive them as commodities are characteristic of monopolies. oligopolies. pure competition. competitive parity. monopolistic competition.

Supermarket chains often implement _____, a pricing tactic of selling leading brands of products below their own cost in order to build store traffic. price lining value-in-use leader pricing predatory pricing cost-based pricing

The advantage of zone pricing to the seller is the shipping charges typically are not marked down during the off season. complement the advertising allowances. reflect more closely the cost of delivery. result in a cumulative quantity discount. are the same for all shipments, making it easy to calculate total price.

The basic motivating factor in designing supply chains is that collaboration creates transactional relationships. the most powerful member of the supply chain always wins. each party wants something from the others. the participants must create the best possible EDI system. retail floor salespeople need emotional support from management.

The contribution per unit is price minus total costs. price minus total variable cost. price minus variable cost per unit. total revenue minus total cost. break-even quantity divided by total fixed costs.

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing supply chain relationships. extreme value retailing efforts. loyal customers through loyalty programs. global private label brands. multichannel retailing.

The manufacturers of the early electric cars are charging relatively high prices to consumers who are willing to pay the price. They need to use a price skimming strategy because of the relatively high emissions produced by electric cars. the potential benefits of price bundling. the high costs associated with producing a small volume of cars. the slotting allowances needed to gain greater distribution. a vertical price fixing arrangement among vendors supplying the needed components.

The most common form of a quantity discount for consumers is a cash discount. markdown. size discount. coupon. rebate.

The objective of _____ is to build sales, market share, and profits quickly by providing an incentive to purchase the product immediately. price lining price skimming market penetration pricing price fixing experience curve effects

To create strong partnering relationships, supply chain members must develop mutual trust, openly communicate, have compatible goals, recognize the benefits of interdependence, and maximize market share. set out to make the most profits. be willing to invest in each other's success. minimize transportation expenditures for suppliers. maximize the profitability of the largest channel member.

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of vertical contractual notice. CPFR requirement. advanced shipping notice. universal product code report. RFID tag.

Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering when the product is produced. as recognized by competitors. as perceived by the consumer. in order to minimize bundling charges. relative to production costs.

When Suddenlink Communications offers its customers a discount when they order their television, Internet, and phone service all with Suddenlink on just one bill, it is an example of leader pricing. quantity discounting. price bundling. a markdown. a rebate.

When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is considered to be monopolistic. oligopolistic. engaging in predatory pricing. engaging in competitive parity. using the substitution effect.

When the first hybrid automobiles became available on the market, manufacturers had only minimal production capacity. They used a price skimming strategy primarily to recoup high research and development costs. signal high quality. limit demand. penetrate a market. test consumers' price sensitivity.

Which of the following is NOT required to build a successful strategic relationship? mutual trust open communications creation of a joint venture common goals credible commitments

Which of the following is the most logical example of complementary products? Hot dogs and hamburgers VCRs and DVD players Hot dogs and hot dog buns Honda cars and Toyota cars A university and a corporation

Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used to paying for quality and associates high quality with high prices. Yurgen should probably NOT use a market penetration pricing strategy because he might be missing out on customers who would pay more for his products. there are moderate barriers to competitive entry in the market. a low price might signal low quality. he would have to determine zone pricing discounts. the experience curve effect would drop unit costs too rapidly.

_____ indicates that the demand for related products can either be positively or negatively related. The income effect The substitution effect Cross-price elasticity Complementary products effect The supply curve

_____ is a form of deceptive price advertising where sellers advertise items for a very low price without intending to sell any of them because they plan to pressure sales of higher-priced items. Deceptive reference pricing Loss leader pricing Bait and switch Predatory pricing Price discrimination

_____ is an electronic document sent by a supplier to a retailer prior to the shipment of a merchandise order. A universal product code A radio frequency identification tag An advanced shipping notice An electronic data interchange A merchandise shipping confirmation

_____ pricing methods do not recognize the role that consumers or competitors' prices play in the marketplace. Value-based Improvement value Cost-based Cost of ownership Competitor-based

_____ tailor their retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise. Warehouse clubs Full-line discount stores Specialty stores Category specialists Supercenters

__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services. Warehouse clubs Supercenters Convenience stores Department stores Extreme value retailers

Dollar General and Family Dollar are examples of full-price discount retailers.

__________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages. Category killers Department stores Extreme value retailers Specialty stores Warehouse club stores

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area. Intensive Endogenous Selective Collective Variable

______________ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers. Cross-docking UPC JIT CPFR Lead time

A brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer is referred to as a category specialist. a selective brand. a category killer. an exclusive co-brand. a co-op brand.

A customer orientation toward pricing implicitly invokes the concept of knowing the dimensions of the target market. positioning. the income effect. value. None of these.

A pricing tactic is a long-term and broad-based approach to pricing. an integrative pricing approach based on the 5 Cs. an approach that can be used only with consumers. a short-term approach that often is a response to a competitive threat. an approach that can only be used in a business-to-business setting.

A(n) _____ orientation explicitly invokes the concept of value such as when a firm uses a "no-haggle" price structure to make the purchase process simpler and easier. profit sales competitor customer market

Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to the getting the products to the customers. As he chooses retail partners, which of the following is LEAST important in this process? Look at the channel structure Determining where target customers will expect to find this product Considering characteristics of channel members Encouraging new bicycling enthusiasts Considering distribution intensity

Airlines often engage in price wars in an attempt to steal customers away from other airlines. This is an example of which pricing method? Cost of ownership Cost-based pricing Value-based pricing Competitor-based pricing Predatory pricing

Although conflict is likely to occur in any supply chain, it is generally more pronounced when the supply chain members are geographically too close to each other. manufacturers pressure retailers. retailers pressure manufacturers. the supply chain members are independent entities. the economy is booming.

An everyday low pricing strategy stresses the continuity of retail prices at a level above regular retail prices and below deep-discount prices. based on horizontal price fixing. bundled with cost-based, cash discounts. at a level somewhere between the regular price and the deep-discount sale prices competitors may offer. at a price skimming level.

As noted in your text, each participant in a successful marketing channel adds time. overhead. inefficiencies. value. pricing pressure.

Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect a 10 percent decrease in quantity demanded. a 2 percent increase in quantity demanded. a 10 percent increase in quantity demanded. a 2 percent decrease in quantity demanded. a 5 percent decrease in quantity demanded.

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are difficult to define. more important than great products. always situated near supply chain members. a competitive advantage that few rivals can duplicate. almost always locations next to big box discounters.

Criticized by small manufacturers of grocery products, _____ are fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products. seasonal allowances cash discounts advertising allowances slotting allowances quantity discounts

Especially in the fashion industry where styles and trends change rapidly, a quick response system can allow retailers to better forecast long-term demand. reduce logistical overlay. increase cross-docking promotional effectiveness. align deliveries more closely with actual sales. allow manufacturers to introduce unpopular styles and still be successful.

Everyday low pricing (EDLP) provides value to consumers by continually offering items on sale. minimizing the number of options a consumer can evaluate. noncumulative quantity discounts. reducing their search costs. creative use of referencing pricing.

For retailers, promotion refers to supply chain communication. the relationship between price and product. the image a store attempts to maintain through their pricing strategy. both their in-store environment and their mass media communications. the seasonal discounts offered to move end-of-season items.

Frito Lay is an example of a company that partners with retailers by implementing a _____ system, involving taking on the responsibility of managing inventory levels at the retailers where its products are sold. stock keeping unit universal product code electronic data warehouse vendor-managed inventory radio frequency identification tag

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of mutual trust. common goals. a contractual arrangement. credible commitments. open communication.

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through department stores. category specialist stores. extreme value retailers. specialty stores. convenience stores.

If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using department stores. specialty stores. category specialists. off-price retailers. supercenters.

In addition to knowing more about the products, services, manufacturers, and retailers, Internet users know more about prices. These consumers are becoming more price insensitive. price observant. price neutral. price sensitive. adept at price negotiation for all kinds of products.

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain? A manufacturer will send and receive information from buyers, stores, and distribution centers. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers. Distribution centers will send and receive information from stores and manufacturers. Customers will send and receive information from stores and manufacturers. Buyers will send and receive information from stores and manufacturers.

In addition to offering the potential to build sales, market share, and profits, _____ discourages competitors from entering the market because the profit margin is relatively low. price lining price skimming predatory pricing penetration pricing experience curve effects

In terms of a pricing strategy, _____ pricing adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. cost-based high/low predatory everyday low competitor-based

Joe's Boathouse uses a profit-oriented company objective, but the ultimate goal is to generate a profit margin of at least 12% rather than maximizing profits. This involves premium pricing. competitive parity. status quo pricing. target return pricing. target profit pricing.

Manufacturers trying to implement a just-in-time delivery system need to start with routing software. shipping schedules. distribution center design. information about customer demand. intensive distribution.

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and earn a cash discount. experience the experience curve effect. will not fall prey to predatory pricing. will be less likely to switch brands. will be able to take advantage of zone pricing benefits.

One of the limitations associated with break-even analysis is that it assumes fixed costs are zero. it cannot adjust for high variable costs. it only tells marketers what price is needed to break even. it assumes that there is only one price. it assumes that demand is extremely inelastic.

Pricing __________ products is especially challenging because little or nothing is known about consumers' perceptions of value. cost-based seasonal large-quantity new-to-the-world zone pricing

RFID offers participants in the supply chain a powerful tool for tracking inventories and reducing handling. The main reason why it has NOT been more widely adopted is the FCC has only recently allocated a frequency for RFID transmission. there are concerns that the transmissions might cause health problems if use were widespread. manufacturing capacity is limited at this time. RFID is risky and expensive to use. consumers object to their use.

Radio frequency identification tags are demand scheduling data tags. information tags used on floor-ready merchandise. shipping tags used to record weight limits of different types of trucks. tiny computer chips that transmit information about the contents of containers. electronic discount information tags used to provide reduced prices to select customers.

Retailers can gain valuable knowledge about their customers from the transaction process and from trade industry profiles. store brand/private label brand ratios. multichannel flow process. the insights of store personnel. end-of-aisle positioning studies.

Retailers focusing on increasing sales to their best customers are attempting to slay the category killers. compete with off-price retailers. drive their supply chain. increase their share of wallet. combat the inroads made by big-box specialty retailers.

Retailers using a high/low pricing strategy often communicate this through the creative use of _____, which is the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process. price lining the improvement value prices ending in odd numbers a reference price the cost of ownership

Savvy consumers often purchase automobiles from dealerships at the end of the quarter or at year-end since dealers who meet their quotas during a particular time period earn _____ in the form of rebates on all the cars they purchased from the manufacturer. seasonal discounts advertising allowances slotting allowances cumulative quantity discounts noncumulative quantity discounts

Sharon knew that her established customers liked her product much better than the competitors. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering a top of market strategy. the value of quality. advantageous pricing. premium pricing. differential pricing.

Some grocery retailers have invested in their own private brands, charging just slightly lower than national brands to signal the quality of the products is good, involving the use of variable costing. cost-based pricing. value-based pricing. competitor-based pricing. predatory pricing.

Steven managed an auto parts store in the 1990s. At that time, stock-outs—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely canceled orders and shifted the business to competitors. increased promotional outlays to overcome customer dissatisfaction. used exclusive geographic territories to reduce supply chain inefficiencies. stockpiled inventory, adding to the cost of providing auto parts. returned to traditional distribution center logistics.

Stores like Home Depot and Costco act as wholesalers when they take delivery in whole-lot quantities. select limited product lines and only market them to consumers who purchase the whole line. sell products for distributors. sell to contractors or restaurant owners. compete with each other.

The _____ is the price less the variable cost per unit. profit margin break-even point target return price contribution per unit fixed cost

The break-even point is estimated by multiplying revenue per unit times the quantity sold. dividing fixed contribution per unit by variable costs. multiplying fixed costs by contribution per unit. dividing fixed costs by contribution per unit. dividing variable costs by fixed costs.

The more substitutes that exist in a market, the lower the price elasticity for each product. the greater the income elasticity for each product. the easier it will be to utilize a target profit pricing strategy. the more sensitive consumers will be to changes in the price of a particular product. the more likely the market will be characterized as an oligopoly.

The old cliché claiming the three most important things in retailing are "location, location, location" corresponds to which of the following components of the retail strategy? Price Product Promotion Place Product placement

The saying "leaving money on the table" is associated with the use of odd pricing to force consumers to use their coins in making purchases. loss leader pricing. a predatory pricing strategy that results in excessive seasonal discounts. using a market penetration strategy when there is an opportunity for price skimming. vertical price fixing in markets where horizontal price fixing would be more appropriate.

Firm A has set very low prices for its products in an attempt to drive its competitor, Firm B, out of business. This is known as monopolistic pricing.

Unlike product, promotion, or place, price is the only part of the marketing mix that offers the opportunity for an oligopoly. that is subject to gray market manipulation. that leads to competition. that generates revenue. that is determined by the consumer.

Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of promotional discounts. mass media gimmicks. mobile marketing. in-store promotions. co-op advertising.

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________________ pricing strategy. maximizing profits target profit target return competitor-oriented sales oriented

When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is using the illegal practice of deceptive reference pricing. loss leader pricing. bait and switch. predatory pricing. price discrimination.

When developing strategies for working with retailers, manufacturers must consider whether they should sell in more than one outlet (e.g. store, catalog and Internet). Which of the following factors deals with this? Choosing retail partners that would likely carry their products. Identifying appropriate retailers that would likely carry their products. Coordinating efforts with retailers to develop their strategies to implement the 4Ps. Determining whether or not to use a multichannel strategy. Allocating inventory throughout the channel of distribution.

When there is disagreement among members at the same level of marketing channels such as when Best Buy and Sears engage in a price war on Maytag appliances, _____ channel conflict can occur. vertical independent competitive horizontal administered

Which of the following is NOT a common business-to-business pricing tactic? seasonal discounts slotting allowances quantity discounts loss leader pricing advertising allowances

Which of the following represents the BEST reason a manufacturer of high-end products might consider selling products in a warehouse club? There are no high-end shopping centers within a 100-mile radius of the warehouse club. The warehouse club has a good reputation. The manufacturer is trying to increase market share. The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers. The warehouse club wants to upgrade its image.

Which of the following would qualify as being a service retailer? A supermarket A drug store An off-price retailer A health spa A convenience store

Wholesalers sell to all of the following EXCEPT businesses. manufacturers. retailers. consumers. industrial users.

With a price skimming strategy, a marketer will NOT benefit from increased consumer value associated with price increases. the ability to use seasonal discounts. the opportunity to offer advertising allowances. economies of scale associated with a larger volume of production. market substitution price elasticity.

__________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise. Vertical integration Cross-channel leverage Horizontal integration Multichannel retailing Opportunistic retailing

__________ occurs when members of the marketing channel collude to control the prices passed on to consumers. Loss leader price fixing Bait and switch price fixing Horizontal price fixing Vertical price fixing Predatory pricing

If Brandon buys hats for his store for $5 each and sells them for $15 each, he is using a keystoning pricing strategy.

A _________________ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen. sales orientation target profit target return status quo maximizing profits

Although the number of their physical stores is limited, L.L. Bean is widely known for offering unique, high-quality merchandise. Adding an Internet channel was particularly attractive because it allowed the company to _____ without having to build new stores. deepen and broaden its selection personalize offerings gain consumer insights increase customer satisfaction and loyalty expand its market presence

Ben owns a lawn care business. From experience, Ben has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Ben's perception about its products makes __________ pricing possible. improvement value odd-even everyday low pricing reference-based cost of ownership

By reducing the number of transactions needed to move a product from the manufacturer to the consumer, wholesalers and retailers make a supply chain longer. floor-ready. vertically integrated. selectively collaborative. more efficient.

Cosmetic retailers often have one price for each item but another price for three or four similar items with the same brand, all attractively packaged together. These retailers are using price lining. slotting allowances. cumulative quantity discounts. loss leaders. price bundling.

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is less certain. The bookstore's primary inventory management challenge is how to get the author to sign copies of the book. whether to price the books in the distribution center or at the retail store. which other books to promote along with this book. whether or not to display the book at the checkout counter. having enough books to satisfy customer demands versus the cost of having the inventory.

For _____ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products. price lining loss leader pricing penetration pricing price fixing price skimming

Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity. luxury variable monopolistic intensive exclusive

If firms price their products too low, it may result in lower costs. create a premium pricing effect. increase contribution per unit. result in inelastic demand. signal poor quality.

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is 100 units. 4,000 units. 20 units. 1,000 units. 250 units.

In a corporate vertical marketing system, conflict tends to be a major problem. transaction selling is the norm, with the invisible hand guiding the overall functioning. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. independent firms join together formally to decide how the marketing channel will operate. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

In a(n) __________ marketing channel, none of the participants has any control over the others. cooperative corporate contractual administered conventional

In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using __________ pricing. improvement value odd-even everyday low pricing reference-based cost of ownership

In addition to the product-specific and firm-specific factors that affect pricing, there are two broader factors: the Internet and sociocultural factors.

In vendor-managed inventory systems, corporations send information to retail customers, bypassing wholesalers and retailers. companies send information to cooperatives. customers send information to retailers. manufacturers send sales information to the retailer. retailers send sales information to the manufacturer.

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because they do not carry enough merchandise. consumers no longer recognize brand equity. big-box food retailers are shifting into specialty store product lines. there is not enough merchandise to go around. competitors can purchase and sell many of the same popular brands.

Manufacturers like _____ because it allows them to offer price cuts to consumers directly, rolling them out and shutting them off quickly. markdowns quantity discounts seasonal discounts coupons rebates

Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow wholesalers to evaluate promotional discounts. retailers to improve the shopping experience through an improved product line assortment. customers to increase their share of wallet spending. retailers to avoid competition from knock-off products. customers to try before they buy.

Marketers of products and services associated with the wedding industry know that customers often do not care what the price is. They just want the wedding to be perfect. For these customers, demand is likely to be cross-price elastic. derived demand elastic. price elastic. status quo elastic. price inelastic.

Offering live, online chat options to shoppers is a way of increasing the value of online shopping because it provides enhanced browsing. entertainment value. personalized offerings. deeper and broader selection. personalized customer service.

One of the difficulties associated with value-based pricing is that costs are impossible to compute. only the creator of a new product can fully understand its value to consumers. value depends on variable costs and not fixed costs. everyday low pricing has neutralized the impact of price on consumers' purchase decisions. it necessitates a great deal of consumer research to be implemented successfully.

Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often the responsibility of the dispatcher. too complex for sales personnel to manage. done in conjunction with supply chain promotional allowances. the responsibility of the logistics department and not the marketing department. inefficient and distracting.

Shorter lead times allow retailers to better forecast demand. access to a more diverse supply chain. to replace intensive distribution with franchise distribution. to skip advanced shipping notices. to reduce the needed level of inventories.

The international fashion retailer Zara's parent company, Inditex, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of an independent marketing channel. a vertical marketing system. an administered vertical marketing system. a contractual vertical marketing system. a corporate vertical marketing system.

The most common form of competition is _____ where many firms compete for customers in a given market with differentiated products. oligopolistic competition market saturation pure competition competitive parity monopolistic competition

Traditionally, retailers treated all their customers with suspicion. as unique competitive opportunities. based on their demographics. based on share of wallet strategy. the same way.

When Apple Computer Company introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy. market penetration slotting allowance price fixing reference price skimming

When Clarissa sells the jewelry she makes at craft fairs or on her personal website, she is utilizing a _____ marketing channel. modified indirect secondary ancillary direct

When Greenbelt Construction Company began building houses in a large subdivision with many other builders, they priced their homes slightly higher than their competitors and promoted the added quality features in their homes. Greenbelt was using a(n) __________ pricing strategy. improvement value value-based everyday low pricing reference-based competitor-based

When using a market penetration strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. This is due to markdowns. price lining. seasonal discounts. improvement value. experience curve effects.

With more frequent shipments associated with quick response (QR) systems, a retailer is likely to have lower shipping costs. more likely to add extra floor-ready merchandise. less likely to use radio frequency identification tags. more likely to engage in predatory pricing behavior. more likely to have what customers want.

Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is doing 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a(n) __________ pricing method. improvement value value-based everyday low pricing reference-based cost-based

_____ are large retailers (100,000-150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses. Convenience stores Conventional supermarkets Category specialists Supercenters Warehouse clubs

_____ is a practice in which merchandise cartons are prepackaged by the vendor for a specific store. Pick-ticketing Just-in-time inventory Radio-frequency identification Cycle time Cross-docking

Manufacturers like rebates because it provides them with information they can use in developing new products.

_____ means the firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best, or for whom price does not matter. Target return pricing Target profit pricing Status quo pricing Competitive parity Premium pricing

_____ measures how changes in price affect the quantity of the product demanded. Break-even analysis Competitive parity Target return pricing Market-oriented pricing Price elasticity of demand

A demand curve shows the relationship between income and demand.

At the break-even point, profits are maximized.

Because market and operating conditions are all very similar, marketers' pricing strategies should be uniform.

Brands that have developed loyal customers have a higher price elasticity of demand.

CPFR refers to cost, profit, frequency, and return in an inventory management system.

Competitor-based pricing is when a company determines the final price of a good based on the cost.

Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.

Consumers prefer to research complicated products on the Internet rather than talking directly to sales associates in a retail store.

Diana owns a boutique specializing in ball gowns. Sales are stable and Diana feels it is time she had a 20 percent increase in her salary. If Diana takes this increase in compensation, it will decrease the breakeven quantity of gowns she needs to sell on a monthly basis.

3/10, n/30 means a 3 percent discount if paid in full within 10 days, or the net amount is due in 30 days.

A gray market employs irregular but not necessarily illegal methods of distributing products.

A marketing channel and a supply chain are virtually the same.

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Marketing Test 3

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