mkt test 3

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Barter is the practice of exchanging goods and services for other goods and services rather than for: a. value. b. perceptions. c. money. d. promises. e. tariffs.

Demand factors are factors that determine: a. the number of consumers who can afford to purchase a product or service. b. the price that should be charged for a given product. c. consumers' willingness and ability to pay for goods and services. d. the number of consumers who want to purchase a product. e. the number of consumers who can purchase a product.

When Kraft Foods introduced Planters Trail Mix snack food, it was a low-involvement convenience product. Which type of distribution should Kraft have used with this new product? a. exclusive distribution b. direct distribution c. intensive distribution d. dual distribution e. selective distribution

Use the five criteria for selecting a good brand name to determine which of the following is the best choice. a. Spam canned meat b. Ken's salad dressing c. Formula 409 cleaner d. Match Light charcoal e. Bayer aspirin

Which of the following statements is true with respect to setting the list or quoted price? a. One should consider that demand is unrelated to price. b. The only policy used to set list prices is the one-price policy. c. The only policy used to set list prices is the flexible-price policy. d. The step of setting the list or quoted price follows selecting an approximate price level. e. Consumers do not use price as an indication of quality.

Which of the following stores are most likely to be an anchor store at a regional shopping center? a. Old Navy, Abercrombie & Fitch, and Kay-Bee toy store b. Hickory Farms, a locally-owned jewelry store, and Radio Shack c. an antique store, Dollar General, and a bakery d. Sears, Macy's, and JCPenney e. Hallmark shop, a sporting goods consignment store, and a Barnes & Noble bookstore

Which type of product has experiences rapid sales on introduction and then an equally rapid decline of the product life cycle? a. high learning products b. low learning products c. fashion products d. fad products

A movement along the demand curve assumes: a. the availability of substitutes remains the same. b. price is the only factor that will change quantity sold. c. consumer incomes remain the same. d. consumer tastes remain the same. e. A movement along the demand curve assumes all of the above.

A(n) __________ is any intermediary between a manufacturer and end-user markets. a. dealer b. agent or broker c. retailer d. wholesaler e. middleman

Mall of America has verbalized its __________ strategy with the slogan, "A place for fun!" a. retail mix b. wheel of retailing c. retail life cycle d. distribution e. retail positioning

Many retailers advocate a(n) __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience. a. customer loyalty b. emphasize-value c. everyday low pricing d. low-margin e. everyday fair pricing

A brand name is: a. any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's goods or services. b. the part of a brand name that can be spoken. c. the part of a brand that is a symbol or design and cannot be spoken. d. the commercial, legal name under which a company does business. e. legal identification of a company's exclusive rights to use a brand name, brand mark, or trade name.

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format. Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. At this point in time the nighttime televised game show entered which stage of its product life cycle? a. growth stage b. decline stage c. commercialization stage d. maturity stage e. introduction stage

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode. Which of the following statements about televised game shows is true? a. Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered. b. Because television has been around for many years, all programs fall naturally into the maturity stage. c. Televised programs are either in the introduction stage or the growth stage and are discontinued when they move into the maturity stage. d. All televised programming uses a three-stage product life cycle--growth, maturity, and decline. e. The product life cycle is totally inapplicable to any television genre.

A form of ownership that involves multiple outlets under common ownership is referred to as a(n). a. corporate chain b. consumer cooperative c. contractual system d. independent retailer e. administered system

A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a a. business-format franchise. b. product-distribution franchise. c. business franchise venture. d. manufacturing franchise. e. general service franchise.

A maintained markup refers to a. the difference between the final selling price and the retailer's cost. b. the amount subtracted from the cost the retailer paid for a product to reach the initial selling price. c. the amount the manufacturer adds to achieve the desired suggested retail price. d. the net margin. e. the highest price listed on the product sales ticket

A product in the introduction stage of the product life cycle should have which of the following marketing objectives? a. to gain awareness and stimulate trial b. to stress differentiation c. to maintain brand loyalty d. to gain as much distribution as possible e. to reveal a marketing niche

All of the following are criteria for selecting a good brand name EXCEPT: a. suggests product features. b. suggests product benefits. c. fits the company or product image. d. is memorable, distinctive, and positive. e. is simple.

An artist can buy white blank dishes and figurines, glaze (paint) them, fire the glazed pieces in a kiln, and sell the finished work to customers. By decorating the pieces and increasing their aesthetic value, the artist creates __________ utility. a. form b. application c. possession d. time e. place

An extended introduction stage of the product life cycle occurs for which type of product? a. high learning b. low learning c. fashion d. fad e. revolutionary

At the end of a recent year, Solectron, a big Milpitas, California, electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron: a. used a system in which its suppliers determined the product amount and assortment that should be in stock. b. had its suppliers perform all materials handing activities. c. authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain. d. authorized the use of distribution centers to provide quicker customer response times. e. balanced its total logistics cost by eliminating the convenience service factor.

Before consumers see a movie, it is assigned a rating such as G or PG based on its language and content. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries? a. grading b. sorting c. risk taking d. marketing e. assorting

Breath mints, bottled water, and nail clippers would most likely use which density of distribution? a. intensive distribution b. extensive distribution c. selective distribution d. exclusive distribution e. concentrated distribution

Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices. a. benchmark b. stoplight c. point-of-purchase d. value-based e. loss-leader

Drop shippers a. own the merchandise they sell but do not physically handle, stock, or deliver it. b. perform all channel functions, and sell on consignment to retailers. c. take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. d. have a small warehouse from which they stock their trucks for distribution to retailers. e. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

During the growth stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for a specific brand due to increased competition. The consumer desire that is stimulated is referred to as __________ demand. a. selective b. primary c. derived d. generic e. secondary

During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price is referred to as: a. penetration pricing. b. cost-plus pricing. c. ROI pricing. d. market-oriented pricing. e. skimming pricing.

Gerber had tremendous brand equity with its baby food. The use of a __________ strategy to use the Gerber name on a bibs, plastic baby bottles, and pacifiers seemed logical. a. brand extension b. family branding c. co-branding d. blanket branding e. mixed branding

Godiva Chocolatier invites consumers to stop by one of their stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering? a. full-service b. limited-service c. self- service d. restricted-service e. functional-service

Imagine Post Cereal introduces a cereal bar just like the ones Kellogg's and Quaker already have on the market. Post has decided to promote the bars using ads without coupons and to price the bars at about the same price as the other brands. Post Cereal bars will also be distributed to the same stores as the Kellogg's and Quaker products. Which of the following barriers to new product adoption will most likely prevent the Post Cereal bars from being a successful product? a. value barrier b. psychological barrier c. economic barrier d. usage barrier e. social barrier

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery, but unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market. Energizer used: a. penetration pricing. b. prestige pricing. c. skimming pricing. d. price lining. e. cost plus fixed fee pricing

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery, but unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market. Was Energizer's strategy to steal market share from Duracell a success? a. No, because consumers equate quality of batteries with higher prices. b. No, because retailers did not respond appropriately to the target market pricing strategy. c. No, because consumers are price-insensitive when it comes to batteries. d. Yes, because consumers typically respond positively to cost-plus pricing. e. Yes, because the demand for batteries has unitary elasticity.

Inelastic demand exists when a(n): a. slight increase or decrease in price will not significantly affect the demand, or units sold for the product. b. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. c. an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. d. the quantity demanded increases regardless of level of price and total revenue is unchanged. e. a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

Limited- and single-line stores are often referred to as __________. a. specialty outlets b. general merchandise stores c. scrambled merchandise stores d. intertype outlets e. hypermarkets

Logistics management is organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption to: a. satisfy customer requirements. b. create maximum profit. c. maintain organizational culture. d. eliminate all competition. e. none of the above.

Manufacturers use seasonal discounts to: a. entice dealers to purchase seasonal merchandise earlier than their normal demand would require. b. rid themselves of dated merchandise. c. prolong the peak seasonal selling season. d. "load up" their dealers. e. show consumers holiday goodwill.

Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This concept of retail pricing based on _________. a. timing b. demand c. availability d. bargain hunting e. customer value

Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these kinds of meals are engaged in __________ competition. a. intertype b. institutional c. intermodal d. functional e. selective

One of the newest types of television shows is the category called reality shows. According to the product life cycle, what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle? a. to gain awareness and stimulate trial b. to stress differentiation c. to maintain brand loyalty d. to gain as much distribution as possible e. to reveal a marketing niche

One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck. There is a website where independent interstate truckers can look for loads that they can carry with them on their return trip. Because the trucks would be returning empty (and inefficiently), truckers, who use this website to get business that they would not have had without it, give a reduced shipping rate. This reduced rate is an example of: a. yield management pricing. b. penetration pricing. c. target pricing. d. cost plus pricing. e. odd-even pricing

Other things equal, if a firm finds the demand for one of its products is inelastic, it can INCREASE its total revenues by: a. raising its price. b. lowering its price. c. reducing fixed costs. d. reducing variable costs. e. reducing both fixed and variable costs.

Patty O'Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O'Rourke a fee for his services. Terry Thomas needed a haircut--the local stylist charged him $12 for her services. Aaron Mathison mowed his neighbor's lawn; in exchange, the neighbor roto-tilled Mathison's garden. The attorney fees paid by O'Rourke, the $12 charged by the hair stylist, and exchange of lawn mowing for garden tilling are examples of: a. price. b. barter. c. fee setting. d. unfair market exchanges. e. product fares.

Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be __________ of a store's image. a. functional qualities b. sociological qualities c. psychological attributes d. lifestyle attributes e. atmospheric elements

Seiko makes watches. It markets its higher quality watches under the Sieko or Lasalle name, and its lower-priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy. a. multibranding b. generic branding c. multiproduct branding d. trademarked branding e. private branding

Setting the highest initial price that customers really desiring the product are willing to pay is: a. skimming pricing. b. penetration pricing. c. price lining. d. odd-even pricing. e. prestige pricing

Ships Ahoy is a small company that makes model sailboat kits priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in sailing and hobby magazines, and $3,500 for the monthly salary of its owner. If Ships Ahoy sells 150 kits in a given month, its monthly profit will be: a. $5,300. b. $10,500. c. $12,700. d. $12,800. e. $15,700

Stores that carry a considerable assortment (depth) of a related line of items are referred to as a. limited-line stores. b. general merchandise stores. c. scrambled merchandise stores. d. hypermarkets. e. intertype outlets.

Supply chain managers balance total logistics cost factors against customer service factors. Customer service factors include: a. time, convenience, communication, and dependability. b. assurance, reliability, flexibility, and tangibles. c. tangibles, dependability, responsiveness, and flexibility. d. time, assurance, responsiveness, and tangibles. e. convenience, flexibility, time, and empathy

Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix? a. communication b. pricing c. merchandise d. goods and services factor e. location

The Hummer is an attention-getting SUV that sold for $80,000 in a limited number of outlets. Then, General Motors proved the smaller version for $50,000 could be sold in many more outlets. To cover costs and reach the market faster, the Hummer 2 shared some parts with other GM cars. To which customer effects did Hummer marketing managers need to pay particular attention? a. The original Hummer is prestige priced; therefore, the price of Hummer 2 should make sense to customers and reflect differences in the perceived value of the products offered. b. High gas mileage will be important for Hummer 2. c. Color choices will be important for Hummer 2. d. Comfort and space for families will be important for Hummer 2. e. The original Hummer was penetration priced, so that the Hummer 2 continues this pricing strategy to maximize expected profit.

The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport you can name. Even during the "off season", equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide? a. time b. convenience c. possession d. form e. performance

The combination of successive stages of production and distribution under a single ownership is called a(n): a. corporate vertical marketing system. b. integrated marketing system. c. contractual vertical marketing system. d. corporate horizontal marketing system. e. contractual horizontal marketing system.

The density of distribution whereby a firm tries to place its products or services in as many outlets as possible is called __________ distribution. a. intensive b. extensive c. selective d. exclusive e. concentrated

The four key logistics costs in a supply chain include transportation, warehousing and materials handling, inventory management and: a. order processing. b. communication between buyer and seller. c. order cycle time. d. effective handling of problems. e. on-time delivery of product

The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $400. The reduced prices of these gowns are reflected in which retail pricing strategy? a. markdowns b. original markups c. maintained markups d. inventory shrinkages e. net markups

The marketing objective for a product in the __________ stage of the product life cycle is to promote consumer awareness and gain trial. a. introduction b. growth c. maturity d. decline e. product repositioning

The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track tapes. In the 1980s, cassette tapes caused the decline of 8-track tapes. In fact, today consumers would experience difficulty in purchasing a new artist on 8-track tape. Now in the 2000s, compact discs have become very popular and are being purchased by music lovers of every age and background. As sales of compact discs continue to grow at an increasing rate, sales of cassette tapes are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tapes. Based upon this information, you can correctly conclude cassette tapes are in the __________stage, and compact discs are in the __________ stage of the product life cycle: a. decline; growth b. decline; introduction c. maturity; growth d. decline; maturity e. maturity; introduction

The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's __________. a. atmosphere b. image c. psychological attributes d. personality type e. sociological profile

The practice of replacing promotional allowances with lower manufacturer list prices is called: a. everyday low pricing. b. FOB origin pricing. c. trade-in allowances. d. single-zone pricing. e. basing-point pricing.

The prices for all fruit trees sold in Stark Bros. fruit trees and landscaping catalog end in $.99. Stark Bros. uses: a. odd-even pricing. b. dynamic pricing. c. price lining. d. bundle pricing. e. experience curve pricing

The time from ordering an item until it is received and ready for use is called: a. order cycle time. b. order handling time. c. lag time. d. purchase cycle. e. logistics cycle

Transactional function activities involve: a. buying, selling, and risk taking. b. assorting, sorting, and storing. c. financing and grading. d. transportation. e. marketing information and research.

Vending machines are a good example of the application of what type of competition-based pricing? a. customary pricing b. above-,at-,or below-market pricing c. loss-leader pricing d. penetration pricing e. bundle pricing

When a channel member bypasses another member and sells or buys products direct, this is called: a. disintermediation. b. unethical. c. channel conflict d. horizontal conflict. e. resale restrictions.

When a producer owns an intermediary at the next level down in the marketing channel, it is called: a. forward integration. b. backward integration. c. vertical channel. d. horizontal channel. e. horizontal integration.

When consumers think of Harley-Davidson, the image of a masculine, non-conformist is the likely associated with that brand name. With the Vespa motorscooters, the image is more likely to be a brainy environmentalist that wears polyester and socks that don't match. Both Vespa and Harley-Davidson: a. have brand personalities. b. have created brand mannerisms. c. are symbolic brands. d. use brand personification. e. use product personification.

When microwave ovens were in the introduction stage of the product life cycle, some consumers were willing to pay exorbitant prices for the innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price that customers with a very strong desire for the product were willing to pay. Marketers of microwave ovens were using a __________ pricing strategy. a. skimming b. penetration c. prestige d. price lining e. bundle

Which of the following are criteria for selecting a good brand name? a. should have no legal or regulatory restrictions b. suggests product features c. fits the consumer's image d. blends with the culture e. All of the above are criteria for selecting a good brand name.

Which of the following companies would be most likely to use target return-on-investment pricing? a. a public utility b. a florist shop c. a book publisher d. a veterinarian e. a farmer

Which of the following is a NOT a type of product life cycle? a. revolutionary b. low learning c. fashion d. high learning e. fad

Which of the following is true about survival pricing objectives? a. Profits, sales, and market share may be less important objectives than survival. b. Firms using survival pricing objectives need to match the unit volume demanded by customers with that demanded by competitors. c. Firms using survival pricing objectives are not seeking to improve cash flow. d. Market share pricing objectives are the same as survival pricing objectives. e. All of the above statements are true.

Which of the following statements about sales objectives is true? a. Increases in sales revenue will lead to increases in market share and profit. b. Increases in sales revenue will lead to decreases in market share and profit. c. Sales objectives are not a subset of pricing objectives. d. Sales revenues are not meaningful targets for managers. e. All of the above are true about profit objectives.

Which of the following types of vertical marketing systems is likely to experience the least channel conflict? a. corporate vertical marketing system b. wholesaler-sponsored voluntary chain c. retailer-sponsored cooperative d. franchise system e. administered vertical marketing system

Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a "twins" birthday, from my cat to yours, and many other unique occasions. This is an example of the _________ that the Hallmark retailer carries. a. depth of product line b. breadth of product line c. height of product line d. length of product line e. width of product line

Your local Target retailer carries a variety of different items. You can find everything ranging from socks and DVDs to baby items and groceries. This is an example of the __________ carried by Target. a. breadth of product line b. depth of product line c. variety of product line d. versatility of product line e. product mix

__________ arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. a. Channel conflict b. Disintermediation c. Cross-docking d. Partnership inconsistency e. Relationship variance

__________ is the integration and organization of information and logistics across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers. a. Supply chain management b. Logistics management c. Point-to-point management d. Just-in-time management e. Cost-effective flow

A __________ is most often used in marketing to study the impact on profits of changes in price, fixed costs, and variable costs. a. Gantt chart b. break-even chart c. ROI analysis d. cross-tabulation e. demand curve

A __________ policy involves setting one price for all buyers of a product or service. a. customary pricing b. one-price c. flexible-price d. standard markup e. blanket price

A break-even point is: a. the point of greatest difference between marginal revenue and marginal cost. b. the point at which total revenue and total cost are equal. c. the point at which marginal revenue equals marginal cost. d. the point at which total revenue and average revenue converge. e. the point at which profit is at a maximum.

A business in Kansas City, Missouri, looking to rent office space should use a __________ to help it locate the most suitable space at the best possible rate. a. selling agent b. broker c. manufacturer's representative d. manufacturer's agent e. administrator

A company that sets a low initial price on a new product to appeal immediately to the mass market is using: a. skimming pricing. b. penetration pricing. c. price lining. d. odd-even pricing. e. prestige pricing.

A firm's profit equation demonstrates that its profit equals: a. total cost + total revenue. b. total revenue - total cost. c. total cost - marginal cost. d. total cost - variable cost. e. total revenue x total cost

A number of U.S.-based retail chains have begun using lines and terminals that do not use clerks. This is an example of what level of retail service? a. full-service b. self-service c. limited-service d. customized-service e. functional-service

A recent innovation in marketing channels whereby one firm's marketing channel is used to sell another firm's products is called a(n): a. dual distribution. b. a strategic channel alliance. c. cooperative distribution. d. a integrated channel alliance. e. a multi-channel venture.

A shift in the demand curve means: a. the availability of substitutes remains the same. b. at a given price, more (or less) product is sold. c. consumer incomes remain the same. d. consumer tastes remain the same. e. the same thing as a movement along the demand curve

A significant difference between the Mall of America and other regional shopping centers is that a. all MOA employees are required to be multilingual because of the store's international draw. b. MOA has twice as much space devoted to specialty stores than to anchor stores. c. retail store owners can live in attached condominiums, at reduced rates, so they don't have to worry about getting to work in bad weather. d. employees can take classes on the premises offered through a local community college. e. employees get a 50% discount at all the food establishments.

A(n) __________ exists when producers and ultimate consumers deal directly with each other. a. strategic channel alliance b. direct channel c. subsidiary channel d. indirect channel e. dual distribution channel

A(n) __________ is any intermediary with legal authority to act on behalf of the manufacturer. a. dealer b. agent or broker c. retailer d. wholesaler e. disintermediary

A(n) __________ is the independent selling arm of producers, and represents a producer to industrial users. a. dealer b. agent c. retailer d. wholesaler e. industrial distributor

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as __________. a. manufacturing b. retailing c. wholesaling d. facilitating e. logistics

Bijan's in New York City has offered a five-piece set of crocodile luggage for $55,000. This is an example of __________ pricing. a. penetration b. prestige c. odd-even d. experience curve e. loss-leader

Competition for the same or similar type of product or service between very dissimilar types of retail outlets that results from a scrambled merchandising policy is referred to as __________. a. mixed merchandising b. intertype competition c. scrambled merchandising d. multi-service merchandising e. dual distribution

Conflict occurring between intermediaries at the same level in a marketing channel, such as between two or more retailers that handle the same manufacturer's brands is called __________ conflict. a. corporate b. horizontal c. vertical d. administered e. contractual

Elastic demand exists when a(n): a. a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls. b. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases. c. an increase in price causes a larger increase in quantity demanded and total revenue falls to zero. d. the quantity demanded remains the same regardless of level of price and total revenue is unchanged. e. a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

Emphasizing consistently low prices and eliminating most markdowns is referred to as __________. a. low-margin pricing b. everyday low pricing c. everyday fair pricing d. value-based pricing e. maintained pricing

Four types of price discounts are: a. quantity, trade-in, promotional, and cash. b. seasonal, functional, cash, and quantity. c. quantity, seasonal, promotional, and cash. d. cash, trade-in, seasonal, and promotional. e. trade-in, promotional, geographic, and functional.

From a marketing viewpoint, price is __________ exchanged for the ownership or use of a good or service. a. money or other considerations (including goods but not intangibles and services) b. money or other considerations (including other goods and services) c. money exclusively earmarked for the transaction d. what is recognized as barter within a particular culture e. anything of value to the buyer but not necessarily of value to the seller

Hart Schaffner & Marx is a producer of men's suits and sports coats that operates 100 menswear stores. Hart Schaffner & Marx uses__________ to distribute its suits and sports coats. a. dual distribution b. forward integration c. backward integration d. horizontal integration e. strategic alliance

If you were to buy five dwarf peach trees from the Stark Bros. fruit trees and landscaping catalog in five separate orders, you will pay $108.99, but if you order its assortment (1 each of five different dwarf peach trees), you pay $89.99. In this example, Stark Bros. uses: a. standard markup pricing. b. bundle pricing. c. prestige pricing. d. price lining. e. demand-backward pricing

Individuals and firms involved in the process of making a good or service available are considered members of a: a. distribution line. b. marketing channel. c. consortium. d. cartel. e. distribution mix.

Katherine was shopping for a new pair of sunglasses. While in the Marshall Field's department store in the shopping center, Katherine visited the optical department. Here she found a pair of Oakley brand sunglasses that she considered very attractive. However, the price of $225 was more than she expected to pay for sunglasses and asked the salesperson why the glasses carried such a high price tag. The salesperson informed Katherine that the $225 ensured her of the finest quality glasses featuring ultra-strong titanium frames and specially formulated lenses, which would protect Katherine from all harmful UV and blue light. Finally, the lenses would offer optimum optical clarity, and the glasses would "look great" on Katherine. The salesperson was attempting to help Katherine realize the value offered by the Oakley glasses by: a. comparing the features of the glasses to those of other glasses. b. comparing the perceived benefits of the glasses to the price of the glasses. c. creating a value analysis for Katherine. d. creating a price/cost/benefit equation. e. comparing the technology of the glasses to the price of the glasses

Leupold & Stevens, Inc. makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous at a price much lower than it has ever sold a rifle scope before. The new scope offers several different magnifications and is the only scope in the $200 range that is made in the United States. Which pricing strategy is Leupold & Stevens using to appeal to a larger market? a. skimming pricing b. penetration pricing c. price lining d. odd-even pricing e. demand-backward pricing

Lighting-One is a national ___________ that allows its members, retailers of lighting fixtures, to concentrate their buying power through wholesalers and more importantly plan collaborative promotional and pricing activities. a. service-sponsored retail system b. retailer-sponsored cooperative c. administered cooperative system d. manufacturer-sponsored cooperative e. wholesaler-sponsored voluntary chain

Loehmann's is an upscale, off-price specialty retailer for name-brand designer fashions. Loehmann's provides consumers with a. full-service. b. limited service. c. self- service. d. restricted service. e. functional service.

Logistical function activities include: a. buying and selling. b. assorting, storing, sorting, and transporting c. financing and grading. d. risk taking. e. marketing information and research.

MachineTools.com sells grinders, boring mills, and engine lathes. The website has listed goods from over 700 machinery manufacturers, 2,500 distributors of new equipment, and 650 dealers of used inventory for sale at the website. MachineTools.com relies on a well-established channel of manufacturers, distributors, and machinery dealers to provide the merchandise that is sold through this: a. internet distribution channel. b. electronic marketing channel. c. virtual marketing channel. d. consumer-responsive channel. e. product-driven channel.

Manufacturers of generic products use which method of competition-based pricing? a. demand backward pricing b. below-market pricing c. loss-leader pricing d. prestige pricing e. skimming pricing

New Balance offers shoes for men, women, and children in many sizes and foot widths. It offers running, cross training, walking, golf, and other types of shoes. This an example of the __________ that New Balance offers to its customers. a. product items b. depth of product line c. breadth of product line d. versatility of product family e. variety of product mix

Odd-even pricing is most closely related to: a. retailers' perceptions of price. b. customers' perceptions of price. c. wholesalers' markups. d. manufacturers' costs. e. cost of product facilitation to market.

Off-price retailing refers to the a. differences between the final selling price and the retailer's cost. b. sale of brand name merchandise at lower than regular prices. c. sales of merchandise at maintained markups. d. amount added by the manufacturer to achieve the desired suggested retail price. e. reduction in retail price usually expressed as the gross margin.

Organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements is called: a. physical distribution management. b. logistics management. c. customer service. d. production management. e. manufacturer distribution logistics.

Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on expected costs plus a profit for the law firm. Which pricing method are they using? a. target pricing b. cost-plus pricing c. customary pricing d. experience curve pricing e. bundle pricing

Reductions in unit cost for a larger order are: a. promotional allowances. b. quantity discounts. c. one-price policy prices. d. penetration prices. e. size of order allowances.

Rents, executive salaries, and insurance are examples of typical: a. variable costs. b. fixed costs. c. dividends. d. liquidity payments. e. total costs.

Retailers like Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of __________. a. intertype competitors b. multichannel retailers c. vertically-integrated retailers d. scrambled merchandisers e. dual distributors

Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending is referred to as __________. a. limited-line retailing b. nonstore retailing c. scrambled merchandising d. a hypermarket e. intertype competition

Several artists in Charleston, South Carolina, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Charleston so tourists and art-lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n): a. ultimate consumer. b. retailer. c. wholesaler. d. brokerage firm. e. end user.

Stores that carry a broad product line with limited depth are referred to as __________. a. limited-line stores b. general merchandise stores c. scrambled merchandise stores d. hypermarkets e. intertype outlets

Target pricing is the result of a manufacturer __________ in a product to achieve the target price. a. setting the highest costs possible b. deliberately adjusting the cost and quality of the component parts c. researching what mark-ups wholesalers will accept d. studying competitive prices and making fixed-cost adjustments e. relying on a jury of executive opinion to establish cost factors

The Mall of America is an example of which type of setting for a store location? a. central business district b. regional shopping center c. community shopping center d. strip mall e. power center

The decision an organization makes to use a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is called: a. product identification. b. branding. c. trademarking. d. copyrighting. e. licensing.

The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would suggest using a skimming pricing strategy for the tasty fat-free ice cream? a. The ice cream market is highly conservative. b. A large portion of the market has inelastic demand for ice cream—over a fairly broad range of prices. c. Economies of scale in production are substantial. d. Retailers are willing to pay for new brands of premium ice cream in an extremely overcrowded category. e. Once the initial price is set, it is nearly impossible to lower price because of the possibility of alienating early buyers.

The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing? a. direct selling and telemarketing b. direct-mail and telemarketing c. telemarketing and online retailing d. online retailing and direct-mail e. direct-mail and direct selling

The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to: a. actively search out new first time users. b. maintain existing buyers since new ones are hard to find. c. actively reinforce competitors' marketing efforts. d. maintain existing distributors and actively seek out new ones. e. shift to a skimming price strategy.

The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulated __________ demand. a. selective b. primary c. derived d. generic e. secondary

The retail life cycle refers to a. the distinct stages a product goes through before it becomes obsolete. b. the process of growth and decline that retail outlets, like products, experience. c. the cycle of a customer's buying behavior from awareness of a product to its ultimate purchase. d. the relationship between the tangible aspects of a product and the types of services that need to accompany it. e. the traditional management changes that take place as a retail outlet grows.

The two types of channel conflict are: a. divisional and organizational. b. horizontal and vertical. c. transactional and transformational. d. external and internal. e. supervisor-subordinate and subordinate-subordinate.

There is no exact time that a product takes to move through its life cycle. As a rule: a. fad products have the longest lifecycle. b. consumer products have shorter life cycles than business products. c. packaged goods have a shorter life cycle than fads. d. installations have a shorter life cycle than consumer products. e. intangibility shortens the product life cycle.

Trading up involves adding value to a product (or line) through: a. adding product features but reducing the price. b. adding product features and using higher quality product materials. c. reducing product features and using lower quality product materials. d. decreasing the number of features and quality and lowering the price of a product. e. downsizing.

Value-pricing is: a. the ratio of perceived benefits to price. b. the practice of increasing a product's benefits while maintaining or decreasing price. c. the practice of simultaneously increasing product and service benefits and increasing price. d. the ratio of price to perceived benefits. e. list price minus discounts and allowances plus extra fees

Victoria's Secret, a nationwide chain, carries great depth in women's lingerie—the only type of merchandise it carries. Victoria's Secret is an example of a(n) __________. a. limited-line stores b. single-line store c. intertype outlet d. general merchandise store e. scrambled merchandise store

When Apple Computer opened the Apple stores to allow customers to create a less stressful and more supportive environment for shopping for a new PC, Apple used: a. dual distribution. b. forward integration. c. backward integration. d. horizontal integration. e. strategic alliance.

When Sherman bought gas, he noticed the convenience store offered him a 3 percent reduction in price if he paid cash rather than used his credit card. The convenience store was offering him a: a. trade discount. b. cash discount. c. promotional allowance. d. rebate. e. functional discount.

When a retailer owns a manufacturing operation, it is called: a. forward integration. b. backward integration. c. vertical integration. d. joint venture. e. horizontal integration.

When designing the product element of the marketing mix for services marketing managers should give special attention to: a. exclusivity, advertising, and capacity management. b. exclusivity, branding, and capacity management. c. advertising, packaging, and exclusivity. d. capacity management, packaging and advertising. e. brand name, packaging, and exclusivity.

Which of the following are criteria for selecting a good brand name? a. should be complex so it stands out b. suggests product benefits c. fits the consumer's image d. blends with the culture e. All of the above are criteria for selecting a good brand name.

Which of the following customer-service components is likely to be most critical for Ford when it purchases original-issue automobile tires (tires put on new Ford cars)? a. lead time b. dependability and on-time delivery c. communication d. convenience e. none of the above

Which of the following is NOT a profit-oriented pricing method? a. target profit pricing b. below-market pricing c. target return on sales d. target return on investment e. All of the above are profit-oriented pricing methods.

Which of the following is a logistical function that a lawn and garden center provides? a. selling only ten or more trees at a time to consumers b. providing a summer patio collection of items from various producers for consumers to buy c. having trees available at their garden location, not their store, which is 30 miles outside of town d. specializing in selling a single type of tree from only one grower e. requiring customers to provide their own transportation for items they buy

Which of the following is true about the process of creating brand equity? a. Marketers have to develop positive brand awareness and an association of the brand in consumers' minds with a product color. b. A marketer must establish a brand's meaning in the minds of consumers. c. A marketer must get consumers to develop proper responses to a brand's distribution strategy. d. A deep physical bond characterizes consumer—brand. e. All of the above are true about the process of creating brand equity.

Which of the following is true about the value of brand equity? a. Brand equity is a tangible asset. b. Brand equity has an economic value to the manufacturer. c. Brand equity will not increase in value when effectively managed. d. Brand equity will not lose value when ineffectively managed. e. All of the above are true about the value of brand equity.

Which of the following statements about cost-oriented approaches is true? a. These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue. b. These methods focus on the supply side of the pricing problem and involve considerations of production and marketing expenses. c. Target return on investment is an example of a cost-based method. d. Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. e. Cost-oriented approaches are subcategories of competition-based methods so revenues are a critical factor.

Which of the following statements about profit objectives is true? a. Managers in the United States have long been praised for their insistence on managing for long-run profits. b. Profit objectives are frequently measured in terms of return on investment. c. Firms that are interested in strategic planning set their objectives to maximize current profit. d. A target return pricing objective would only be used by a company that needs to attract more customers to survive. e. Market share and unit volume are two types of profit objectives.

Which of the following statements about the factors that influence demand is true? a. As the availability of close substitutes increases, the demand for a product increases. b. As real consumer income increases, demand for a product increases. c. As the price of close substitutes increases, demand for a product declines. d. Changing consumer tastes have little impact on demand for a product. e. All of the above statements about the factors that influence demand are true.

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors? a. introduction b. growth c. maturity d. decline e. profit

Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively? a. service-sponsored retail system b. retailer-sponsored cooperative c. administered cooperative system d. manufacturer-sponsored cooperative e. wholesaler-sponsored voluntary chain

Which type of vertical marketing system is provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others? a. corporate vertical marketing systems b. service-sponsored retail franchise systems c. contractual vertical marketing systems d. administered vertical marketing systems e. interactive vertical marketing systems

Wholesalers who have a small warehouse from which they stock their trucks for distribution to retailers are referred to as __________. a. cash and carry wholesalers b. truck jobbers c. rack jobbers d. drop shippers e. manufacturer's representatives

Why would the manufacturer of a new all-natural-ingredient shampoo and conditioner put free samples of the product in Sunday newspapers? a. to simulate laggard usage of the product b. to encourage product adoption c. to control innovation diffusion d. to avoid any possibility of litigation e. to circumvent the typical adoption cycle

Williams-Sonoma is a specialty store that caters to customers who want to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is a __________ retailer. a. exclusive-service b. full-service c. upscale-service d. self-service e. limited-service

__________ is a strategy that involves altering a product's characteristic such as its quality, performance, or appearance to try to increase and extend the product's sales. a. Market modification b. Product modification c. Product repositioning d. Market-product strategy e. Diversification

__________ occurs when a company retains a product but reduces marketing support costs. a. Skimming b. Harvesting c. Profiting d. Deletion e. Divesting

__________ refers to how sensitive consumer demand and the firm's revenues are to changes in the product's price. a. Marginal revenue b. Price elasticity of demand c. Average demand d. Marginal demand e. Demand shift

A __________ involves setting different prices for products and services depending on individual buyers and purchase situation in light of demand, cost, and competitive factors. a. price lining policy b. customary pricing policy c. a flexible-price policy d. price fixing policy e. discretionary pricing policy

A bottle of shampoo shrink-wrapped with a bottle of conditioner for 10 cents more than the regular price of the shampoo is an example of __________ pricing. a. penetration b. prestige c. bundle d. odd-even e. standard mark-up

A channel member who coordinates, directs, and supports other channel members is called a: a. product champion. b. product captain. c. channel captain. d. director of distribution. e. channel coordinator.

A company that manages apartments decides to buy 17 new dishwashers at a list price of $750, each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150 per unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 17 dishwashers traded in. What is the actual price the company will pay for each dishwasher? a. $590 b. $600 c. $610 d. $730 e. $760

A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Tupperware representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of __________. a. interface marketing b. flex-marketing c. direct selling d. interactive selling e. responsive selling

A demand curve shows: a. the total number of buyers for all products in a particular industry. b. the total sales for specified product lines, usually over a three-year period. c. a maximum number of products consumers will buy at a given price. d. anticipated marginal revenue obtained under specified customer demand conditions. e. the opposing axis on a profit equation projection

A department store recently replaced its fabric-covered chairs with oversized leather couches. This was most likely done to a. reduce the need to constantly reupholster. b. create a more natural environment. c. create a more masculine ambiance for male shoppers. d. make mothers shopping with small children less nervous. e. encourage customers to linger longer

A franchise where the franchiser provides a few general guidelines to the franchisee is known as a a. business-format franchise. b. manufacturing franchise. c. product-distribution franchise. d. general service franchise. e. business franchise venture

A markup refers to a. the difference between the final selling price and how the customer values the product. b. selling brand name merchandise at lower than regular prices. c. the amount added to the cost the retailer paid for a product to reach the final selling price. d. the difference between the retail cost and initial selling price. e. the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and multiplied by 100

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Wal-Mart. The electronics company has begun production of a small line of high quality, professional studio model components. How should the small electronics company distribute its new products? a. use its established channel b. distribute directly to mass market retailers c. distribute through agents who sell to specialty electronics stores who will feature the new line d. sell directly to specialty electronics stores who will feature the new line e. cannot be determined from the information given

A supercenter refers to a. an auto service center that sells and leases cars as well as repairs them. b. a type of specialty outlet. c. a store that combines a typical merchandise store with a full-size grocery store. d. a mall with more than 100 stores and several important anchor stores. e. a store one step larger than a hypermarket.

A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a __________. a. general merchandise wholesaler b. truck jobber c. specialty merchandise wholesaler d. rack jobber e. drop shipper

Albertson's Supermarket accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with __________ utility. a. time b. place c. possession d. form e. public

Another name for a manufacturer's agent is _________. a. manufacturer's desk jobber b. manufacturer's transport vendor c. manufacturer's representative d. manufacturer's transport vendor e. manufacturer's jobber

Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound packages of Alaskan salmon. It uses a 60 percent markup on its salmon products and charges customers $48 for a postage-paid vacuum-sealed package of salmon. What type of pricing does Lady Marion Seafood use? a. target return-on-sales pricing b. cost-plus-fixed-fee pricing c. standard markup pricing d. target profit pricing e. customary pricing

Bombardier makes corporate jets. The aircraft company coordinates outside suppliers that supply design services. For its newest plane, the Continental, Bombardier has about 30 lead suppliers—about ten of those have been involved since the initial design phase. Bombardier often suggests ways in which these suppliers can reduce costs while keeping the same level of quality. Bombardier is the leading marketer of corporate jets. Bombardier is an example of a: a. product champion. b. product captain. c. channel captain. d. director of distribution. e. channel coordinator.

Boston Pizza wants to determine how effective their retail format is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets. a. gross margin b. same-store sales growth c. sales per square foot d. net profit e. net present value

Break-even analysis is: a. a process that investigates the magnitude of difference between marginal revenue and marginal cost. b. a method of determining just how much a consumer is willing to pay for a product or service. c. a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. d. the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm. e. the graph that shows the maximum number of products consumers will buy at a given price.

FOB origin pricing is a method of pricing where: a. title of goods remains with the manufacturer until sold to the ultimate consumer. b. title of goods passes to the buyer upon arrival at the final destination. c. title of goods passes to the buyer at the point of loading. d. the price the seller sets includes all transportation costs. e. title of goods passes to the buyer when the state boundary is crossed.

Facilitating function activities include: a. buying and selling. b. assorting, sorting, and storing. c. financing, grading, and marketing information and research. d. risk taking. e. transportation

Fixed cost refers to: a. the sum of the firm's expenses that vary directly with the quantity of the product produced and sold. b. the total expense incurred by a firm in producing and marketing a product or service. c. the firm's expenses that are stable and do not change with the quantity of the product that is produced and sold. d. the consideration exchanged for the ownership or use of a good or service. e. total firm expenses incurred in producing or selling one additional unit of product

Franchising is a form of: a. corporate vertical marketing systems. b. horizontal marketing systems. c. contractual vertical marketing systems. d. administered vertical marketing systems. e. wholesaler-sponsored voluntary systems.

Gillette spent $35 million in advertising to introduce the Sensor razor to consumers. Such expenditures are often made to stimulate __________, or desire for the product class, rather than for a specific brand, when there are no competitors with the same product. a. additional marketing research b. innovative sampling c. primary demand d. initial data gathering e. repeat purchase

Hallmark was the official supplier of flowers at the last Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers can buy a smaller version of this same bouquet at the Hallmark website for $74.95. The Olympic bouquet that consumers can buy contains two dozen yellow roses, yet you can buy two dozen yellow roses for less than $35 at most supermarkets. If Hallmark is treating the Olympic bouquet as an innovative product, then it is using which demand-oriented approach to pricing? a. bundle pricing b. yield management pricing c. skimming pricing d. target return-on-sales pricing e. penetration pricing

Indirect channels for consumer goods: a. occur when one firm's marketing channels are used to sell another firm's products. b. include producers and end-users dealing directly with each other. c. include intermediaries that are between the producer and consumer and perform numerous channel functions. d. are arrangements whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. e. are accurately described by none of the above.

Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as _________. a. brokers b. line brokers c. distribution brokers d. selling agents e. manufacturer's agents

Jim Smith is an avid fly fisherman who lives in Deer Key, FL. For his hobby, Jim needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies from a L. L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Jim is using a __________ to satisfy his fishing supply needs. a. home delivery retailer b. quick response retailer c. direct-mail marketer d. flexible response marketer e. regional marketer

Logistics is most closely related to which element of the marketing mix? a. product b. production c. place d. promotion e. price

Loss-leader pricing is: a. a pricing method where the price the seller quotes includes all transportation costs. b. setting the same price for similar customers who buy the same product and quantities under the same conditions. c. deliberately selling a product below its customary price to attract attention to it. d. a method of pricing based on a product's tradition, standardized channel of distribution, or other competitive factors. e. pricing based on intensity of customer demand.

Meijer is a chain of hypermarkets headquartered in Michigan, which means it a. engages in no intertype competition. b. is a disintermediator. c. uses scrambled merchandising. d. can also be referred to as a category killer. e. uses dual distribution.

Nordstrom stores typically have 50 percent more salespeople on the floor than similarly sized stores, and the salespeople are renowned for their professional and personalized attention to customers. Nordstrom would be considered a(n) __________. a. exclusive-service retailer b. limited-service retailer c. full-service retailer d. upscale-retailer e. limited-domain retailer

Odd-even pricing is: a. setting prices one way for product lines and another way for individual brands. b. setting prices of luxury items at even price points and setting the price of necessities at odd price points. c. setting prices a few dollars or cents under an even number. d. a method of pricing where price often falls following the reduction of costs associated with the firm's production experience. e. adding a fixed percentage to the cost of all items in a specific product class

Offering several unrelated product lines in a single store is referred to as __________. a. intertype competition b. multiple distribution c. scrambled merchandising d. a department store e. a specialty outlet

Often, the earlier a product is in its life cycle: a. the lower the price the firm must charge. b. the more competition it has. c. the greater the flexibility to charge a higher price. d. the lower the production costs. e. the lower the unit variable cost.

Penetration pricing is intended to appeal to which market? a. highly selective quality-seeking consumers b. price-insensitive markets c. the mass market d. specialty goods markets e. the same markets as skimming pricing

Price discrimination is: a. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. b. the practice of charging a very low price for a product with the intent of driving competitors out of business. c. the practice of charging different prices to different buyers for goods of like grade and quality. d. a conspiracy among firms to set prices for a product or service. e. a seller's requirement that the purchaser of one product also buy another product in the line

Products that are introduced, decline, and then seem to return are characteristic of the __________ type of product life cycle. a. high learning b. low learning c. fashion d. fad e. revolutionary

Promotional expenditures at the introduction stage of the product life cycle are spent on: a. contests and sweepstakes. b. creating selective demand. c. creating primary demand. d. personal endorsements. e. maintaining brand loyalty.

Saks Fifth Avenue employs a quick response system to order fast-moving fashion items. Saks' point-of-sales scanner records each sale. When stock falls below a minimum level, the system automatically sends an electronic order to the vendor (e.g., Donna Karan), which processes the order within 48 hours. This system has effectively reduced __________. a. customer response cycle. b. product flow. c. replenishment time. d. supply lag. e. logistical lag.

Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on better service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as a(n) _________. a. exclusive-service retailer b. limited-service retailer c. full-service retailer d. full-domain retailer e. limited-domain retailer

Sears operates a network of warehouses as part of its distribution system. Sears also obtains over 50 percent of its goods from companies that it partly or wholly owns. Sears is engaged in: a. dual distribution. b. forward integration. c. backward integration. d. horizontal integration. e. strategic alliance

Standard markup pricing: a. adjusts the price of a product so it is "in line" with that of its largest competitor. b. sets the price of a line of products at a number of different price points. c. adds a fixed percentage to the cost of all items in a specific product class. d. sets prices to achieve a profit that is a specified percentage of the sales volume. e. increases the price slightly to protect against undue profit losses from unforeseen environmental factors

Staples is a specialty discount retailer that focuses on one type of product—office supplies. Staples is referred to as a a. hypermarket b. national dominator c. category killer d. regional dominator e. general merchandise store

Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle. The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another. Moreover, these small firms have limited marketing expertise and little money to spend on marketing; their common strength is engineering. This industry has welcomed the entry of a giant in the mobile phone industry like Nokia because: a. the small companies could leapfrog beyond Nokia's products. b. Nokia's entry would help segment the market, establishing targets for the smaller firms. c. Nokia set standards and is generating primary demand. d. Nokia could solve the remaining technological problems. e. Nokia could acquire the small, struggling firms.

The cash payment or extra amount of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote the product is a: a. quantity discount. b. flexible pricing policy. c. promotional allowance. d. payoff. e. manufacturer's inducement.

The density of distribution whereby a firm tries to place its products in a few retail outlets in a specific geographical area is called __________ distribution. a. intensive b. extensive c. selective d. exclusive e. concentrated

The description of how new retail outlets enter the market is referred to as the __________. a. retail life cycle b. product life cycle c. wheel of retailing d. retail life matrix e. retail continuumQ

The manufacturer of a DVD-RW, a recordable DVD disk that can be erased and reused, is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVD-RW disks? a. large potential market, even at a high price b. technological problems still exist for competitors c. increasing volume reduces production costs substantially d. consumers perceive a price-quality relationship e. all of the above

The performance of activities that focus on getting the right amount of the right product to the right place at the right time at the lowest possible cost is called: a. strategic distribution. b. movement and storage. c. logistics. d. direct selling. e. logistical-assisted manufacturing (LAD

The term "bricks and clicks" refers to __________ and __________ respectively. a. catalogs; websites b. search engines; websites c. traditional retailers; online retailers d. buildings; mice e. computer savvy buyers; computer novice buyers

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as a. functional qualities b. level of service c. shopper marketing d. lifestyle attributes e. psychographic elements

The variety of different items a store carries is referred to as the a. retailing mix. b. depth of product line. c. breadth of product line. d. width of product line. e. length of product line.

Three years ago Pokémon was the hottest name in toys, but as other more high-tech toys appeared on the market, the popularity of Pokémon waned as did its sales. Some toy experts predict Pokémon will soon be only a memory for toy retailers. Pokémon is in the __________ stage of its product life cycle. a. decay b. decommercialization c. decline d. maturity e. harvested

Trade discounts are given to: a. take business away from competitors. b. reward wholesalers and retailers for functions they have performed in the past. c. resellers on the basis of where they are in the channel of distribution. d. keep the prices offered the same. e. all of the above

Using __________, many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic. a. customary pricing b. above-market pricing c. loss-leader pricing d. prestige pricing e. skimming pricing

Vending machines are no longer limited by the need for cash. In Japan, Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines via an infrared beam or a radio wave. This is an example of how vending machines can provide which type of utility? a. time b. place c. possession d. product e. form

Wells Fargo is one of the best-run banks in the United States. It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide? a. time b. possession c. place d. form e. performance

What type of pricing involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price? a. standard markup pricing b. experience curve pricing c. cost-plus pricing d. penetration pricing e. bundle pricing

When Hallmark cards introduced a line of $.99 cards (about half the price of the previously least expensive cards sold by Hallmark), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy. a. prestige b. skimming c. penetration d. demand-backward e. experience-curve

When the personal computer was first introduced, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and who were well informed began buying personal computers. While those buyers were relatively few in number, the marketers of computers were encouraged because other, less adventuresome consumers would likely adopt personal computers later. According to the product adoption classification, those first buyers of personal computers were: a. early adopters. b. early majority. c. innovators. d. product leaders. e. diffusion leaders.

When you buy a Wilson Sting tennis racket from a discount store, you are offered the product at a single price. You can buy it or not, but there is no variation in price under the seller's: a. penetration strategy. b. odd-even pricing. c. one-price policy. d. bundle-pricing policy. e. flexible-price policy.

Which of the following are criteria for selecting a good brand name? a. should be complex so it stands out b. suggests product features c. fits the company or product image d. blends with the culture e. All of the above are criteria for selecting a good brand name.

Which of the following firms has made the wisest wholesaler choice for its product? a. Sam's Coal Country uses a cash and carry wholesaler for its coal. b. Amy's Amazing Appetizers uses a rack jobber for its frozen apricot aperitifs. c. Raisha's Retros uses a rack jobber for its replica racecar radios. d. Shayna's Superior Supplies uses a desk jobber for its staplers. e. Nova's Novelties uses a truck jobber for its never-needs-a-battery night lights.

Which of the following is the best description of the product life cycle of this product? a. rapid growth followed by rapid decline b. long, level beginning, and rapid ascent c. moderately slow introduction, followed by modest growth, gradually leveling off d. high introductory sales, with rapid decline e. high initial sales followed by slow decline

Which of the following is true about the process of creating brand equity? a. Marketers have to develop positive brand awareness and an association of the brand in consumers' minds with a product color. b. A marketer must establish a brand's meaning in the minds of competitors. c. A marketer must get consumers to develop proper responses to a brand's identity and meaning. d. A deep physical bond characterizes consumer—brand connection. e. All of the above are true about the process of creating brand equity.

Which of the following is true about the value of brand equity? a. Brand equity is a tangible asset. b. Brand equity has no economic value to the manufacturer. c. Brand equity can increase in value when effectively managed. d. Brand equity cannot lose value when ineffectively managed. e. All of the above are true about the value of brand equity.

Which of the following statements is a characteristic of the maturity stage of the product life cycle? a. Often this stage is entered because of environmental or technological factors. b. During this stage companies attempt to eliminate distribution channels. c. Industry sales revenue peaks, which is one stage after industry profit peaks. d. Industry profits peak because production and distribution costs are declining. e. Industry profit peaks, which is one stage after industry sales revenue peaks.

Which stage in the product life cycle is characterized by a slowing of industry sales? a. introduction b. growth c. maturity d. decline e. comparability

With diffusion of innovation, a. once a product enters the market, very similar products will enter within a very short period of time. b. one new product will produce ancillary product invention (e.g., video cassettes created a market for cassette holders). c. not all consumers accept a new product at the same time because adoption of a product spreads slowly throughout the population. d. product changes by one competitor lead to similar product changes by another competitor. e. unique efforts are made to create primary demand.

You are president of a manufacturer of small electronic appliances company. You want to reduce your break-even quantity. Other things equal, you can do this by: a. increasing the quantity sold, while keeping price unchanged. b. reducing marginal revenue. c. reducing unit variable cost. d. increasing fixed cost. e. doing all of the above.

You can buy a General Electric dishwasher for $399, or you can buy a similar sized under-the-counter Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a product image, it is most likely using __________ pricing. a. bait and switch b. standard markup c. prestige d. penetration e. cost plus fixed-fee

You probably own several pairs of blue jeans. Further, it is highly likely you purchased those jeans at retail stores located in a shopping mall. It is quite unlikely you bought the jeans directly from the manufacturer. In fact, most goods are brought to you via a(n) __________, which consists of individuals and firms involved in the process of making a product or service available for our use as consumers. a. organizational chain of command b. organizational hierarchy c. marketing channel d. marketing hierarchy e. marketing chain of command

Your product has been suffering from steadily eroding sales and profits. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the LEAST appropriate next step? a. Delete the product from the line. b. Retain the product, but reduce its support costs. c. Stimulate primary demand. d. Contract the production of the product. e. Contract the marketing of the product.

__________ conflict occurs between different levels in a marketing channel. a. Corporate b. Horizontal c. Vertical d. Administered e. Contractual

__________ includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts, and order processing. a. Supplier service cost b. Manufacturing cost c. Total logistics cost d. Social responsibility cost e. Total marketing cost

__________ is charging different prices to maximize revenue for a set amount of capacity at any given time. a. Demand backward pricing b. Target pricing c. Yield management pricing d. Skimming pricing e. Penetration pricing

__________ is the marketing of two or more products for a single "package" price. a. Packaged pricing b. Loss-leader pricing c. Bundle pricing d. Tie-in pricing e. Multi-product pricing

__________ is the practice of changing a very low price for a product with the intent of driving competitors out of business. a. Price fixing b. Price discrimination c. Predatory pricing d. Deceptive pricing e. Geographical pricing

__________ marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. a. Integrated b. Horizontal c. Vertical d. Functional e. Cooperative

__________ specify the role of price in an organization's marketing and strategic plans. a. a business mission. b. pricing constraints. c. pricing objectives. d. a pricing plan. e. list or quoted prices.

A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of a(n) __________ retailer. a. franchise b. service c. limited -service d. full-service e. upscale

A contractual arrangement between a parent company and an individual or firm that allows the individual or firm to operate a certain type of business under an established name and according to specific rules is called: a. a corporate vertical marketing system. b. a wholesaler sponsored voluntary chain. c. a retailer sponsored cooperative. d. franchising. e. an administered vertical marketing system.

A management approach in which a manger is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as __________. a. capacity management b. product management c. retail inventory management d. category management e. automated inventory control

A method of classification that describes the degree of service provided to the customer is referred to as _________. a. product involvement b. product assortment c. merchandise line d. level of service e. form of ownership

A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup? a. $8 b. $16 c. $26 d. $34 e. $86

A strategy of dropping a product from the product line, usually in the decline stage of the product life cycle, is called: a. diversifying. b. aggregation. c. segmentation. d. deletion. e. harvesting

A type of retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a __________. a. general merchandise store b. specialty outlet c. hypermarket d. category killer e. regional dominator

A(n) __________ is a series of firms that perform activities required to create and deliver a good or service to consumers or industrial users. a. effective response system b. demand channel c. strategic information alliance d. supply chain e. product-specific delivery system

A(n) __________ is any intermediary who sells to other intermediaries, usually to retailers, and usually in consumer markets. a. dealer b. agent or broker c. retailer d. wholesaler e. disintermediary

An example of a(n) __________ occurs when Kraft Foods uses the distribution system of Ajinomoto, a major Japanese food company, to market its Maxwell House coffee in Japan. a. direct marketing channel b. industrial distributor c. dual distribution system d. strategic channel alliance e. franchising operation

Because Procter and Gamble has a broad product assortment and is able to obtain excellent cooperation from supermarkets in displaying, promoting, and pricing its products, Procter and Gamble represents which type of vertical marketing system? a. corporate vertical marketing system b. integrated vertical marketing system c. contractual vertical marketing system d. administered vertical marketing systems e. interactive vertical marketing system

Cereal Partners Worldwide (CPW) joined the manufacturing and marketing capabilities of U.S.-based General Mills with the worldwide distribution of Swiss-based Nestlé. Thus, in Paris your breakfast can include Nestlé Cheerios miel armandes as well as coffee and a croissant. CPW illustrates which recent innovation in marketing channels? a. dual distribution b. multi-channel distribution c. cooperative distribution d. a strategic alliance e. bilateral trade agreement

Chico's sells women's sportswear. A simple tank top with the Chico's label costs $48. If you know you simply want a tank top, you can buy a tank top for $5 at a Family Dollar Store, but it won't have the Chico's label. What kind of demand-oriented approach to pricing is being used by this manufacturer? a. experience curve pricing b. target market share pricing c. demand-backward pricing d. prestige pricing e. flexible pricing

College tuitions, initiation fees, bus fares, and club dues are all: a. premiums. b. bartering tools. c. mediums of exchange. d. synonyms for price. e. examples of liquidity.

Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer? a. limited-service b. full-service c. customized-service d. self-service e. restricted-service

Creative marketers engage in __________, the practice of simultaneously increasing product and service benefits and maintaining or decreasing price. a. revenue sharing b. diminishing returns c. quantitative analysis d. value-pricing e. cost-plusing

Customary pricing is: a. a pricing method where the price the seller quotes includes all transportation costs. b. setting the same price for similar customers who buy the same product and quantities under the same conditions. c. deliberately selling a product below its list price to attract attention to it. d. a method of pricing a product based on tradition, standardized channel of distribution, or other competitive factors. e. pricing based on what the market will bear.

Depth of product line refers to a. the percentage of goods stored as inventory. b. the variety of different product a store carries c. variations in price and color on specific items in a store. d. the number of items available within a product line. e. the number of different product classes owned by a corporate chain.

During the 1990s, there was a backlash against artificial colors in food and other consumer products. As a result, a lot of companies issued products that were clear. One example was Crystal Pepsi. The product never really found a market and was __________, or dropped from the Pepsi product line soon after its introduction. a. diversified b. aggregated c. segmented d. deleted e. harvested

During the maturity stage of the product life cycle, profit declines because: a. there are fewer and fewer competitors in the market. b. better products are only in the growth stage. c. production costs increase the more a firm has to manufacture the same product. d. there is fierce price competition among sellers. e. all of the above.

Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility? a. form b. product c. service d. possession e. convenience

For precision shooting competitions, Leupold & Thomas, U.S. manufacturers of rifle scopes, introduced a revolutionary new patented optical system. Competitions are won by hundredths of an inch, so the image seen through the scope is crucial. That's why the Leupold rifle scope with its new optical system is designed to offer an image that is crisp, sharp, flat and second to none in image contrast. The initial price of the Competition Series scope will be $1,605.40. Which pricing strategy will best attract price-insensitive customers and help Leupold & Stevens recoup its research and development costs? a. price lining b. experience curve pricing c. customary pricing d. skimming pricing e. target pricing

Fresh-cut flowers that only used to be available from florists can now be purchased at neighborhood supermarkets. This is an example of __________. a. dysfunctional competition b. mixed-line merchandising c. multi-product marketing d. intertype competition e. dual distribution

Hershey's chocolate bars have been marketed in the United States for more than 100 years, and are still a tremendous success, with a loyal following of consumers. The company began advertising several years ago to hold its market share, and it has introduced several distinctive new products. What stage of the product life cycle are Hershey's chocolate bars competing in? a. development b. introduction c. growth d. maturity e. decline

If the CEO of the Clorox Company were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a _____ pricing objective. a. profit b. sales c. unit volume d. market share e. social responsibility

If you were to draw a graphic representation of logistics management, it would most likely resemble a(n). a. diamond. b. abstract figure. c. pyramid. d. pipeline. e. circle.

Independently owned firms that take title to the merchandise they handle are referred to as a. brokers. b. agencies. c. virtual retailers. d. merchant wholesalers. e. merchant retailers.

John Deere manufactures and distributes industrial and farm equipment. These types equipment are considered to be specialty products. Which type of market coverage does the company use? a. intensive distribution b. extensive distribution c. selective distribution d. exclusive distribution e. concentrated distribution

Lack of profit in the introductory stage of the product life cycle is very often the result of: a. insufficient allocation of resources to the marketing mix. b. poor selection of distribution channels. c. high taxes. d. large investment costs in product development. e. ineffective execution of the marketing program.

Marketing executives must translate estimates of customer demand into estimates of: a. personnel requirements. b. advertising expenditures. c. public relations efforts. d. revenues. e. none of the above.

Most producers will not sell to consumers. It is far too expensive and time-consuming for the producer to sell one or a few items to a consumer on credit, for example. If General Mills tried to sell to consumers rather than wholesalers and supermarkets, consumers interested in purchasing their cereals would have to go to a factory to purchase just a few boxes! Clearly this would be very inefficient. By including the wholesalers and supermarkets in the marketing channel, General Mills assures consumers of time and place utility and obtains an advantage itself since it deals with far fewer individuals in order to get its cereals into consumer's homes. Intermediaries such as the wholesalers and supermarkets make the selling of goods more efficient by: a. maximizing the number of contacts necessary between producer and consumer. b. identifying target markets. c. reducing manufacturing costs. d. minimizing the number of sales contacts between producer and consumer. e. eliminating inventory costs.

Multichannel retailers are retailers that a. sell different products through entirely different channels. b. sell through different channels under different brand names. c. utilize strategic and tactical wholesalers. d. utilize and integrate a combination of traditional store formats and nonstore formats. e. combine two channels for their offerings: one for products and the other for services

Price fixing is: a. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. b. the practice of charging a very low price for a product with the intent of driving competitors out of business. c. the practice of charging different prices to different buyers for goods of like grade and quality. d. a conspiracy among firms to set prices for a product. e. a seller's requirement that the purchaser of one product also buy another product in the line

Pricing constraints are: a. barriers that must be overcome in order to set pricing objectives. b. competitive pricing advantages one firm has over another. c. different pricing strategies for each of the firm's products. d. factors that limit the range of prices a firm may set. e. another name for demand curves.

Target recently introduced its Target REDcard, where cardholders receive 5% back for each purchase. Target also allows customers to return merchandise within 30 days but still does not offer alteration services. Target offers what level of service to its customers? a. full-service b. self-service c. automated-service d. limited-service e. customized service

Target return-on-investment pricing is: a. setting the price of a line of products at a number of different price points. b. adding a fixed percentage to the cost of all items in a specific product class. c. setting prices to achieve a profit that is a specified percentage of the sales volume. d. setting prices to achieve a specified percentage return-on-investment. e. setting an annual target of a specific dollar amount of profit.

Target return-on-sales pricing is: a. adjusting the price of a product so it is "in line" with that of its largest competitor. b. setting the price of a line of products at a number of different price points. c. adding a fixed percentage to the cost of all items in a specific product class. d. setting prices to achieve a profit that is a specified percentage of the sales revenue. e. setting an annual target of a specific dollar amount of profit.

The Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other machine on the market. Based on this price, Asko determined the margins that would have to be allowed for wholesalers and retailers to give the $989 retail price. Asko used: a. prestige pricing. b. price lining. c. cost-plus pricing. d. target pricing. e. customary pricing

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the __________. a. wheel of retailing b. distribution mix c. retail life cycle d. retailing mix e. retail store positioning

The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is referred to as the __________. a. BCG growth share matrix b. MAC breadth-depth of line framework c. market-product grid d. retail positioning matrix e. wheel of retailing framework

The density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area is called __________ distribution. a. intensive b. extensive c. selective d. exclusive e. concentrated

The life cycle of a product depends on sales to customers. The shapes of life-cycle curves indicate that most sales occur after the product has been on the market for some time. The concept that some people are attracted to a product early while others buy it only after they see their friends with the product is called the: a. dissociation of sensibility. b. timed profiling. c. categories of adopters. d. diffusion of innovation. e. derivation of markets.

The price equation formula is price equals list price minus discounts and allowances plus: a. salaries. b. commissions. c. trade-ins. d. extra fees. e. taxes.

The ratio of perceived benefits to price is called: a. the price-quality relationship. b. prestige pricing. c. value-added pricing. d. value. e. value analysis.

The stage of the product life cycle when a product is first introduced to its intended target market is called the __________ stage. a. growth b. commercialization c. launch d. introduction e. awareness-trial

The strategy of trading down involves: a. adding product features and using lower quality product materials. b. adding product features and using higher quality product materials. c. reducing product features and using lower quality product materials. d. reducing the number of features, quality, or price of a product. e. seeking a less price sensitive target market.

The stylized blue and white waves in an oval shape that appear on every package of Ocean Spray brand products is an example of a: a. copyright. b. trade name. c. service market. d. brand name. e. generic brand.

There are three general forms of retail ownership: contractual system, corporate chain, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. independent retailer e. multi-national cartel

To encourage retailers to pay their bills quickly, manufacturers offer them: a. quantity discounts. b. flexible pricing policies. c. promotional allowances. d. cash discounts. e. manufacturers' inducements.

Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of: a. a market-product strategy. b. diversification. c. market modification. d. product modification. e. harvesting.

Uniform delivered pricing means: a. title of goods remains with the manufacturer until sold to the ultimate consumer. b. pricing and title of goods passes to the buyer upon arrival at final destination. c. title of the goods passes to the buyer at the point of shipment. d. the price the seller sets includes all transportation costs. e. title of goods passes to the buyer when the state boundary is crossed.

When General Mills divides the sales revenue in a single year obtained by all its breakfast cereals by the breakfast cereal sales of all its competitors plus its own for that same year, it is calculating its: a. unit volume b. long-run profit. c. current profit. d. market share. e. target return.

When Pizza Hut announced it was add going to 25 percent more toppings to its Lover's Line of pizzas without increasing the price, what consumer motivation was it appealing to? a. cost b. appearance c. reliability d. value e. prestige

When buyers and sellers are separated by vast distances, geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers. Which method of quoting prices would be chosen by a seller who wants to maximize profits? a. uniform delivered pricing b. single-zone pricing c. multiple-zone pricing d. FOB origin pricing e. FOB buyer's location

Which of the following are criteria for selecting a good brand name? a. should be complex so it stands out b. suggests product features c. fits the consumer's image d. is memorable, distinctive, and positive e. All of the above are criteria for selecting a good brand name.

Which of the following is a characteristic of the growth stage of the product life cycle? a. advertising emphasis switches to primary demand b. growing proportion of initial purchasers to repeat purchasers c. slow, steady sales d. competitors appear e. pricing is more aggressive

Which of the following is true about the process of creating brand equity? a. Marketers have to develop positive brand awareness and an association of the brand in consumers' minds with a product color. b. A marketer must establish a brand's meaning in the minds of competitors. c. A marketer must get consumers to develop proper responses to a brand's distribution strategy. d. A deep psychological bond characterizes consumer—brand connection and the personal identification consumers have with the brand. e. All of the above are true about the process of creating brand equity.

Which of the following is true about the value of brand equity? a. Brand equity is a tangible asset. b. Brand equity has no economic value to the manufacturer. c. Brand equity cannot increase in value when effectively managed. d. Brand equity can lose value when ineffectively managed. e. All of the above are true about the value of brand equity.

Which of the following pricing techniques is most sensitive to customers' responses to price? a. cost-plus-percentage-of-cost pricing b. experience curve pricing c. cost plus fixed fee pricing d. target pricing e. standard markup pricing

Which of the following products is the best example of a product that might experience an introduction, a decline, and a reintroduction as part of its normal product life cycle? a. cat food b. veterinarian services c. cake mixes d. fishnet hose e. paperclips

Which of the following statements about penetration pricing is true? a. Penetration pricing is a profit-oriented approach to pricing. b. Penetration pricing is a cost-based pricing method. c. Penetration pricing encourages competitors to enter a market. d. A penetration pricing strategy is more effective in a marketplace with price-sensitive consumers. e. Because penetration pricing is a high initial-price strategy, it will not attract competitors

Which of the following would be an example of a variable cost for a publication like SHAPE magazine that is targeted to young women seeking a healthier lifestyle? a. increase in women in targeted demographics b. salary of publisher c. rent for parking deck used by employees d. paper and ink e. advertising purchased by new accounts

Which type of distribution density is used by Rolls Royce when the car manufacturer maintains only one dealership in any large metropolitan area? a. intensive distribution b. extensive distribution c. selective distribution d. exclusive distribution e. private label distribution

Which type of vertical marketing system achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership? a. corporate vertical marketing system b. integrated vertical marketing system c. contractual vertical marketing system d. administered vertical marketing systems e. interactive vertical marketing system

Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience. a. replenishment b. distribution management c. stockout creation d. customer service e. lead time

Woodsgift Farm sells floral jellies—jellies made from pansies, honeysuckle, wisteria, and other flowers. To price its jellies, the owners of the farm, add 30 percent to the cost of everything that goes into making the jellies including their salaries, jars, sugar, and pectin. What is this pricing method called? a. target return-on-sales pricing b. flexible pricing c. cost-plus-fixed-fee pricing d. standard markup pricing e. customary pricing

__________ are commonly used in the automobile industry. With this system, a manufacturer licenses dealers to sell its cars subject to various sales and service conditions. a. Service-sponsored producer franchise systems b. Service-sponsored retail franchise systems c. Manufacturer-sponsored wholesale systems d. Manufacturer-sponsored retail franchise systems e. Administered vertical marketing systems

__________ is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. a. A strategic channel alliance b. Multiple level selling c. Parallel distribution d. Dual distribution e. Multi-layered distribution

"Hypermarket" refers to a. category killers that specialize in electronics. b. a form of intertype competition general merchandise store. c. shopping malls anchored by four or more department stores such as Sears or Nordstrom's. d. a form of limited-service outlets focusing on general merchandise like that offered in department stores. e. a form of scrambled merchandising, which consists of large stores (more than 200,000 square feet) that offer everything in a single outlet, eliminating the need for consumers to shop at more than one location.

A __________ is an inventory-management system whereby the supplier determines the product amount and assortment a customer, such as a retailer needs and automatically delivers the appropriate items. a. supplier-managed inventory b. supply chain inventory c. logistics-managed inventory d. just-in-time system e. vendor-managed inventory

A computer retailer shrink-wraps Microsoft Works to his private label Pentium IV computer and sells the microcomputer and software for $2,500.00. This pricing scenario might best be described as: a. price lining. b. loss-leader pricing. c. customary pricing. d. prestige pricing. e. bundle pricing.

A manufacturer using __________ is setting a high price so that status-conscious consumers will be attracted to the product and buy it. a. skimming pricing. b. penetration pricing. c. price lining. d. odd-even pricing. e. prestige pricing

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a __________. a. product mix b. service level c. product assortment d. store composition e. merchandise line

A skimming pricing policy is likely to be most effective when: a. consumers perceive your product to be similar to other products on the market. b. a lower price will have a major effect on reducing unit costs. c. competitors will be attracted to the market due to the potential for high sales revenues. d. consumers tend to be price sensitive. e. none of the above is true

A specialty retail store carries a broad selection of small kitchen appliances. It has an informed staff and will even gift-wrap your purchases free of charge. It also offers a shop for repairs should your appliances need maintenance. This store offers __________ to its customers. a. exclusive-service b. upscale-service c. self-service d. limited-service e. full-service

A(n) __________ is an intermediary that performs a variety of marketing channel functions involving selling, stocking, and delivering a full product assortment as well as providing financing for industrial goods and services. a. agent b. wholesaler c. disintermediary d. channel captain e. industrial distributor

At the Christmas Tree Shop, customers can shop for Christmas gifts at any time of year. What type of utility does this store primarily provide for its customers? a. place and conformance b. possession and form c. form d. performance e. time

CarMax dealers have adopted a "no-hassle, no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide? a. product b. form c. convenience d. service e. possession

Carla's Cards uses a __________ to sell and market the entire line of greeting cards. They design promotional plans, set prices, determine distribution policies, and make recommendations to Carla on product strategy. a. manufacturer's agent b. broker c. manufacturer's branch office d. manufacturer's sales office e. selling agent

IBM has long been perceived as the leader in computer technology. As such, for many years IBM computers were available only from selected, authorized IBM retailers. Currently, IBM has changed its distribution strategy. Consumers can now purchase IBM computers at several well-known department and discount stores, including Wal-Mart and K-Mart, located throughout the country. Initially, IBM employed __________ distribution and made its products available only through a single retail outlet in specific locations. Currently, as computers have become more of a shopping good, IBM is using __________ distribution, as it seeks to broaden the degree of its distribution and make its computers available in several retail outlets in specific areas. a. intensive; exclusive b. exclusive; intensive c. intensive; selective d. selective; exclusive e. exclusive; selective

International Products, a Burlington, New Jersey, firm that sells industrial cleansers and lubricants wanted to sell its product to factories, hospitals and labs in China, but it did not have the necessary expertise. As a result International Products hired Asia Marketing & Management to sell, stock, and deliver a full assortment of products to the Chinese market. Asia Marketing & Management is an example of a(n): a. agent. b. wholesaler. c. disintermediary. d. retailer. e. industrial distributor.

Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob, however, has limited operating capital and yet, still wants a wide distribution of his new product. Which of the following options might he choose? a. He might develop an administered vertical marketing system in order to achieve distribution. b. He might establish a corporate vertical marketing system to control the distribution system established. c. He might open up branch offices around the country to provide the exposure he needs. d. He could establish a wholesaler-sponsored vertical marketing system to obtain greater economies of scale. e. He can establish a contractual vertical marketing system (franchise

Many organizations have realized that customer service is a key element of supply chain management. Firms the world over have discovered that customer service is closely related to customer satisfaction and the sale of goods and services. The logistics manager who seeks to provide clients with complete customer service must satisfy those clients in terms of: a. dependability of product replenishment. b. communication between buyer and seller. c. convenience for the buyer. d. time between placing an order and receiving the order. e. all of the above.

Mike's Camera is a retailer that carries a full line of professional and amateur camera equipment, develops all types of film and digital photos, and sells darkroom equipment. Mike's Camera is an example of a(n) __________. a. hypermarket b. general merchandise store c. scrambled merchandise store d. intertype outlet e. specialty outlet

Most consumers realize the quality of diamonds varies, and most believe the higher the price of the diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and __________ to consumers. a. acceptable cost b. perceptual investment c. barter potential d. return on investment e. value

Saks Fifth Avenue has a point-of-sale scanner system to record each sale. When stock of fashion merchandise, such as a Donna Karan jacket, falls below a minimum level, the system automatically generates a replenishment order. When the Donna Karan vendor receives it, the electronic order is processed within 48 hours. This is an example of a(n): a. efficient manufacturing program. b. customer service policy. c. customer loyalty program. d. manufacturing and distribution alliance. e. efficient consumer response delivery system

Sales and profits both exhibit a steady downward trend throughout which stage of the product life cycle? a. introduction b. growth c. maturity d. decay e. decline

Stores that carry tremendous depth in one primary line of merchandise are referred to as a. hypermarkets. b. intertype outlets. c. scrambled merchandise stores. d. limited-line stores. e. single-line stores

Target profit pricing is: a. adjusting the price of a product so it is "in line" with that of its largest competitor. b. setting the price of a line of products at a number of different price points. c. adding a fixed percentage to the cost of all items in a specific product class. d. setting prices to achieve a profit that is a specified percentage of the sales volume. e. setting an annual target of a specific dollar amount of profit.

The _________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. a. product involvement b. service level c. merchandise line d. product assortment e. form of ownership

The demand curve for which type of pricing method slopes downward and to the right, then turns back to the left? a. skimming pricing b. penetration pricing c. price lining d. demand-backward pricing e. prestige pricing

The difference between the retailer's cost and the initial selling price is referred to as __________. a. markup b. maintained markup c. markdown d. differential markup e. original markup

The practice of exchanging goods and services for other goods and services rather than for money is called: a. pricing. b. pricing substitution. c. debt restructuring. d. value-pricing. e. barter.

The sum of fixed and variable costs is called: a. marginal cost. b. value added. c. average cost. d. total administrative overhead. e. total cost.

The use of brand names is especially important for services because of which unique characteristic of services? a. inventory costs b. inseparability c. inconsistency d. invisibility e. intangibility

There are three general forms of retail ownership: contractual system, independent retailer, and __________. a. dual ownership b. industry consortium c. retailing cooperative d. multi-national cartel e. corporate chain

Variable cost is the: a. total expense incurred by a firm in producing and marketing a product or service. b. sum of the expenses of the firm that are stable and do not change with the quantity of the product that is produced and sold. c. money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service. d. change in total cost that results from producing and marketing one additional unit of product. e. sum of the expenses of the firm that vary directly with the quantity of products that is produced and sold.

Which of the following factors would act as a constraint on pricing? a. The product is in high demand. b. The product is in the maturity stage of its product life cycle. c. The cost of the product to the firm is $100. d. Competitors' prices average $300 per unit. e. All of the above factors would act as constraints on pricing.

Which of the following is NOT a competition-oriented pricing approach? a. loss-leader pricing b. below-market pricing c. customary pricing d. above-market pricing e. penetration pricing

Which of the following is NOT a demand-oriented approach to pricing? a. prestige pricing b. bundle pricing c. odd-even pricing d. penetration pricing e. customary pricing

Which of the following is a major pricing objective? a. profit b. unit volume c. market share d. survival e. All of the above are major pricing objectives.

Which of the following is true about unit volume pricing objectives? a. Firms using unit volume pricing objectives often sell multiple products t very different prices. b. Firms using unit volume pricing objectives need to match the unit volume demanded by customers with production capacity. c. Firms using unit volume pricing objectives need to match the unit volume demanded by customers with the price. d. A unit volume pricing objective can be achieved and profit can decrease. e. All of the above statements are true.

Which of the following is true when selecting an approximate price level? a. The marketing manager must understand the marketing environment. b. The marketing manager must understand the goals of the firm. c. A balance must be struck between factors that might drive a price higher and other forces that may drive a price down. d. Marketing managers consider pricing objectives and constraints first, before choosing the general pricing approach they will use to arrive at an approximate price level. e. All of the above statements are true when selecting an approximate price level.

Which of the following statements about Gatorade is true? a. Michael Jordan has been a Gatorade spokesperson. b. International opportunities were vigorously pursued. c. Distribution of Gatorade expanded first to include convenience stores and supermarkets. d. The original Gatorade was a liquid with a lemon-lime flavor. e. All of the above statements about Gatorade are true.

Which of the following statements about a flexible-price policy is true? a. Dell Computer uses a flexible-price policy. b. A flexible-price policy may be used when selling a house. c. This flexible-price policy may be used when selling a car. d. Flexible pricing may result in race and gender discrimination. e. All of the above statements about a flexible-price policy are true.

Which of the following statements about packaging is true? a. Packaging can have brand equity benefits for the company. b. Consumer protection is an important function of packaging. c. Packaging can give the idea of status, economy, and product quality. d. Packaging can be used to extend shelf life. e. All of the above statements about packaging are true.

Which of the following statements about the introduction stage of the product life cycle is true? a. During the introduction stage, efforts are made to increase primary demand. b. During the introduction stage, firms may choose a skimming pricing strategy. c. During the introduction stage, firms may choose a penetration pricing strategy. d. Generally the promotional message is to inform and educate the consumer. e. All of the above statements about the introduction stage of the product life cycle are true.

Which type of an intermediary is a dealer? a. a middleman b. a wholesaler c. a retailer d. a distributor e. any of the above

Which type of contractual vertical marketing system involves a contractual relationship between a wholesaler and small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts? a. service-sponsored retail franchise system b. retailer-sponsored cooperative c. administered vertical marketing system d. manufacturer-sponsored retail franchise system e. wholesaler-sponsored voluntary chain

While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers. a. transactional function b. horizontal integration c. horizontal innovation d. cross-docking e. disintermediation

__________ is a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks, which will deliver the products to specific stores. a. Dual distribution b. Intermodal distribution c. An effective merchandise response (EMR) system d. Piggy-backing e. Cross-docking

Which of the following is true about the process of creating brand equity? a. Marketers have to develop positive brand awareness and an association of the brand in consumers' minds with a product class or need to give the brand an identity. b. A marketer must establish a brand's colors in the minds of consumers. c. A marketer must get consumers to develop proper responses to a brand's distribution strategy. d. A deep physical bond characterizes consumer—brand connection. e. All of the above are true about the process of creating brand equity.

Which of the following is true about the value of brand equity? a. Brand equity is an intangible asset. b. Brand equity does not have an economic value to the manufacturer. c. Brand equity will not increase in value when effectively managed. d. Brand equity will not decrease in value when ineffectively managed. e. All of the above are true about the value of brand equity.

Which of the following statements about Gatorade is true? a. Gatorade began as a rehydration beverage for a football team. b. Gatorade has plans to expand to the Latin American market before the end of this decade. c. Gatorade was first only available through catalogs or mail order. d. The Federal Trade Commission protects the Gatorade brand name from becoming generic. e. All of the above statements about Gatorade are true.

__________ is a set of human characteristics associated with a brand name. a. Brand personality b. A brand mannerism c. A symbolic brand d. Brand personification e. Product personification

___________ is a strategy used when a company tries to find new customers, increase a product's use among existing customers, or create new use situations. a. Market modification b. Product modification c. Product repositioning d. Market-product strategy e. Diversification

A concept that describes the stages a new product goes through in the marketplace—introduction, growth, maturity, and decline— is called: a. the retail life cycle. b. the product life cycle. c. the marketing mix. d. the product growth cycle. e. product commercialization

All of the following occur during the decline stage of the product life cycle EXCEPT: a. sales decrease substantially. b. the firm chooses the wrong marketing strategy, which results in an inappropriate marketing program for the target market. c. the uncontrollable environment changes. d. promotional support for the product becomes minimal. e. the number of competitors is reduced

An alternative product life cycle that results from products that are easily imitated by competitors, consumers who readily understand their benefits, and for which the appropriate marketing strategy is to gain strong distributor outlets is characteristic of __________ products. a. high learning b. low learning c. fashion d. fad e. substitute

At which stage in the product life cycle do industry profits usually peak? a. introduction b. growth c. maturity d. decline e. commercialization

During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand. The consumer desire that is stimulated is referred to as __________ demand. a. selective b. primary c. derived d. generic e. secondary

With __________, the producer dictates the brand name using either a multiproduct or multibrand approach. a. retailer branding b. intermediary c. licensing d. manufacturer branding e. co-branding

During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with: a. reducing inventory costs. b. gaining distribution outlets. c. guaranteeing there is adequate demand if a skimming pricing strategy is used. d. building storage warehouses and distribution centers. e. using an intermodal logistics system.

Interactive television with video on-demand capabilities will change how people watch television and how consumers access the Internet. What type of a product life cycle would be associated with this product? a. revolutionary b. high learning c. low learning d. fashion e. fad

Promotional expenses at the maturity stage of the product life cycle are often directed towards: a. creating demand for the product class. b. reminding the consumer to use the product. c. creating primary demand. d. gaining new distributors. e. eliminating distribution channels.

A technology company has just begun to make a profit on its DVD-R discs (DVD discs in a recordable format). Its promotional expenditures are aimed at trying to persuade potential customers of the merits of its DVD-R discs. Even more money is being spent to develop the firm's distribution system for its DVD-R discs. Since Apple's iMac now comes with a DVD recorder as a standard part, several other companies have started producing DVD-R discs for the market. What stage of the product life cycle is the DVD-R in? a. commercialization stage b. maturity stage c. growth stage d. decline stage e. introduction stage

All products are assumed to have a complete product life cycle. Which of the following is NOT a reason why products ultimately decline? a. poor marketing b. emergence of superior competitive products c. all consumers' wants and needs inevitably change d. non-marketing failures of firms e. all the above are reasons for decline

Changing the place a product occupies in a consumer's mind relative to competitive products is called: a. market modification. b. product modification. c. product repositioning. d. product development. e. differentiation.

Cracker Barrel is a leader in the market of family restaurants located alongside major highways. Its marketing mix includes a down-home atmosphere, a shop through which customers pass on the way to and from the restaurant, a menu of American home cooking, and a friendly staff. Which aspect of the product component of the marketing mix will be particularly helpful to travelers looking for a place to eat lunch? a. capacity management b. pricing strategy c. brand name and identifying logo d. exclusivity e. all of the above

The primary benefit of branding for consumers is branding makes: a. products higher in quality. b. products lower in price. c. consumers more efficient shoppers. d. products higher in value. e. advertising unnecessary.

The videocassette recorder (VCR) was introduced to the market in the late 1970s. Ninety-one percent of American homes own at least one VCR. To maintain market share in the VCR market and to get customers to purchase additional VCRs, its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs. Because the goal of VCR manufacturers is to maintain brand loyalty and market share, the product category is in the __________ stage of its product life cycle. a. introduction b. growth c. maturity d. decline e. harvesting

To handle products in the decline stage of the product life cycle, companies often use either: a. diversification or harvesting. b. harvesting or contracting. c. deletion or harvesting. d. diversification or harvesting. e. building or contracting.

A ___________ is any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services. a. copyright b. trade name c. brand mark d. brand name e. generic brand

All of the following are factors that trigger product repositioning as a marketing action EXCEPT: a. changing the value offered to consumers relative to competitive products by adding or deleting features. b. catching a rising trend due to changes in consumer preferences relative to competitive products. c. reaching a new market due to sluggish sales in the currently targeted market. d. reacting to a competitor's entrenched product position that is adversely affecting the firm's sales and market share. e. copying competitors' sales promotion strategies to increase the trial and repeat purchase behavior of consumers relative to the firm's product.

Brand equity is: a. the resources invested to create a name, phrase, design, symbol, or combination of these to identify a firm's products and distinguish them from those of its competitors. b. adding customer value to the product brand through additional features or higher-quality materials, or reducing its price. c. increasing the content contained within the brand's package without changing its size or increasing its price. d. the net present value of the royalties the firm receives as a result of licensing its brand to other firms to manufacture and/or market. e. the added value a given brand name gives to a product beyond the functional benefits provided.

During the introduction stage of the product life cycle, __________ may be used used. This pricing strategy charges a high price to recoup the costs of product development. a. penetration pricing b. cost-plus pricing c. ROI pricing. d. market-oriented pricing e. skimming pricing

Generally, the average length of time it takes for a product category to move from the introduction stage of its product life cycle to the decline stage is: a. 18 months. b. 5-10 years. c. 20 years. d. 30 years. e. unpredictable.

Imagine the President of Black Stoves, Inc. is thinking about developing a new brand name for the company's line of wood stoves with catalytic converters. The stove because of its design also conserves wood because it burns slowly. The brand name he is considering is The Fast One. Why is this brand name choice NOT the best one? a. The name should be distinctive and memorable. b. The name should fit the company image. c. The name should have no legal restrictions. d. The name should be simple. e. The name should suggest the product benefits.

Opera.com introduced a new Web browser that can be easily customized to do what you want it to do—such as suppress all pop-up ads and retrieve previously visited websites quickly. Opera is spending a lot of money to make potential consumers aware of the existence of a Web browser that can be customized. Sales have been slow to rise over the past year, and profit has yet to be achieved. In what stage of the product life cycle is this product category? a. growth stage b. decline stage c. commercialization stage d. maturity stage e. introduction stage

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion, where a product is dropped from a firm's product line. Another less drastic choice is to retain the product in the product line, but to reduce marketing costs. When this option called __________ is selected, advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product. a. decline maintenance b. customer need maintenance c. divestment d. maturity re-development e. harvesting

Which of the following are criteria for selecting a good brand name? a. should have no legal or regulatory restrictions b. suggests product benefits c. fits the company or product image d. is memorable, distinctive, and positive e. All of the above are criteria for selecting a good brand name.

Which of the following is true about the process of creating brand equity? a. Marketers have to develop positive brand awareness and an association of the brand in consumers' minds with a product class or need to give the brand an identity. b. A marketer must establish a brand's meaning in the minds of consumers. c. A marketer must get consumers to develop proper responses to a brand's identity and meaning. d. A deep psychological bond characterizes consumer—brand connection and the personal identification consumers have with the brand. e. All of the above are true about the process of creating brand equity.

Which of the following is true about the value of brand equity? a. Brand equity is an intangible asset. b. Brand equity has an economic value to the manufacturer. c. Brand equity can increase in value when effectively managed. d. Brand equity can lose value when ineffectively managed. e. All of the above are true about the value of brand equity.

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