MKT Exam 3

What is the description of monopolistic competition

Many sellers who compete on nonprice factors

Firms that set ___________ objectives believe that increased revenues will in turn lead to increases in market share and profit

Sales

What is a category killer

Specialty discount outlets that focus on one type of product

To find the actual price, you should do what with the list price?

Subtract incentives and allowances. Add extra fees

The pricing objective known as unit volume is based on?

The quantity of product sold

What are the 4 rights of in the Consumer Bill of Rights

The right to - safety to be informed to choose to be hread

What pricing objective can be counterproductive if it is achieved by drastic price cutting that drives down profit?

Unit volume

a shift in the demand curve is a result of

a change in selling conditions

Price transparency has encouraged what type of change in the marketplace....

aggressive price changes by sellers

price deals that mislead consumers fall into the category of _______________ pricing

deceptive

the retail life cycle describes the stages of __________ and ________ for a retail outlet

growth; decline

To increase customer value for a given price, the market must............

increase perceived benefits

a ____________ policy is also known as a fixed-price policy

one-price

In a pure competition market, advertising....

only serves to inform buyers that the product is available

the ability to attract price sensitive customers and discourage competitors from entering a market make which pricing strategy appealing?

penetration

when using ____________pricing, a firm sets a very low price for one or more products with the specific intent to drive its competition out of business

predatory

What are the part of the retailing mix

retail pricing store location retail communication merchandise

a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as

supply chain

What are logistical functions?

Assorting Storing Sorting Transporting

what are the two axes on the retail positioning matrix

Breadth of product line Value added

Consumer tastes and income are among the factors that determine their willingness and ability to pay for products and services. They are known as ______________ factors

Demand factors

Many Japanese car firms are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as.....

Managing for long-run profits

What is the description of pure competition

Many sellers who follow the market price for identical, commodity products

Strategies that can be used as part of a firm's profit objectives include which two of the following?

Maximizing current profits Target return

What is the description of Pure monopoly

One seller who sets the price for a unique product

What are pricing practices that are legally restricted

Predatory pricing Price fixing

What are the three factors that influence demand

Price and availability of similar products Consumer income Consumer tastes

What is the strategy of cost oriented pricing?

Price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead, and profit.

What is the strategy of competition oriented pricing

Price setter stresses what "the market" is doing in determining a price

What are essential to consider when setting a price

What will provide a profit? What will pay for all the associated costs, including marketing? What are customers willing to pay?

Compared to other company objectives, the sales objective...

can be translated more easily into meaningful targets for marketing managers

Legal and regulatory issues and customer demand are pricing ____________

constraints

What is the wheel of retailing

describes how new forms of retail outlets enter the market. Usually enter as low-status, low margin stores

a product for which nostalgia or fad comes into play is likely to.... what in regards to price

have higher prices later in its product life cycle

What is a broker

independent entities who bring together buyers and sellers with whom they o not have continuous relationships

Movement along a demand curve implies

no changes have occurred in any demand factors except price

What is the triple bottom line

recognition of the need for organizations to improve the state of the people, the planet, and profit simultaneously

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point or consumption or use for repair, remanufacturing, redistribution or disposal is known as

reverse logistics

What are profit oriented approaches to setting a price

target return pricing target profit pricing

In an industry that has an oligopoly, price wars are likely to benefit only....

the consumer

The ratio of perceived benefits is a products ___________

value

What is a strategic channel alliance?

when one firm;s marketing channel is used to sell another firm's products

What are transactional functions?

Buying Selling Risk taking

What does the Clayton Act prohibit that might arise in channel management?

Exclusive Delaing Tying Arrangements

What is the description of Oligopoly

Few sellers who are sensitive to each other's prices

What are two factors that cause price in elasticity?

Few substitute Product is a neccesity

What are facilitating functions?

Financing Grading Marketing information and research

What are the functions performed by intermediaries in a marketing channel

Logistical functions Facilitating functions Transactionional functions

Which profit-oriented pricing objective is common in many firms because the targets can be set and performance measured quickly?

Maximizing current profit

In which type of market does the competitive market not provide a pricing constraint for the marketer

Pure monopoly

What is a selling agent

Represent a single producer and are responsible for the entire marketing function of that producer

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as.....

cost-oriented

In a pure competition market, to differentiate products firms are advised to....

decommoditize products when possible. In pure competition the price is determined by the market, so firms must find ways to change the way the customer thinks about their products.

direct selling is sometimes called _______________ retailing

door-to-door

a ____________ pricing policy allows for more responsiveness to demand, cost, and competitive factors than does a fixed-price policy

dynamic

What is the strategy of demand oriented pricing

factors underlying customer tastes and preferences are weighed most heavily

The highest level of distribution density is known as _________________ distribution

intensive

What are the three types of distribution

intensive exclusive selective

firms often pursue _____________ as a pricing objective when industry sales are relatively flat or declining

market share

A firm may set goals for its business in terms of profit, sales, or unit volume. These are types of pricing _______________

objectives

When a consumer is comparing the costs and benefits of substitute items, he or she is developing a

reference value

loss leader pricing entails

selling a product below its customary price to attract attention to it

what are the major types of agents used by producers

selling agents manufacturers agents

when a firm introduces an innoivative new product, it may choose___________ pricing, setting the highest initial price that customers who really desire the product are willing to pay

skimming

In ___________________, prices are lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices

skimming pricing

__________________ markup pricing entails adding a fixed percentage to the cost of all items in a specific product class

standard

What is the strategy of profit oriented pricing?

the price setter balance both revenues and costs to set a price.

The pricing objective based on the quantity of product sold by a firm is also called

unit volume

a price __________ involves successive price cutting by competitors to increase or maintain their unit sales or market share

war

when using competition-oriented pricing approaches, price setters stress....

what "the market" is doing

What are the types of contractual vertical marketing systems?

wholesaler sponsored voluntary chains franchising Retailer sponsored cooperatives

Firms that buy products from manufacturers and resell them to retailers are known as

wholesalers

What is a manufacturers agent

works for several producers carrying noncompetitive merchandise in an exclusive territory