Mktg 451 Test 2 Cong Ole Miss

Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack of these important factors. a. patents and capital d. products and customers b. resources and relationships e. customers and resources c. customers and partnerships

B

The basic assumption of __________ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program. a. holistic marketing d. focused marketing b. mass marketing e. single segment marketing c. market concentration

B

The consumer buying process begins when: a. marketing research discovers a new, untapped market segment. b. consumers recognize that they have unsatisfied needs. c. merchants offer goods and services for sale. d. a manufacturer develops a new product. e. consumers begin to seek information about an upcoming purchase.

B

What type of segmentation divides consumer markets into segments using individual factors such as gender, age, income, and education? a. psychographic segmentation d. behavioral segmentation b. demographic segmentation e. lifestyle segmentation c. benefit segmentation

B

Why are firms so obsessed with the pricing element of the marketing mix? a. Because pricing is the most difficult element of the marketing mix to change. b. Because the firm's pricing has a direct bearing on its ability to increase revenue. c. Because pricing is the only marketing element that matters to customers. d. Because pricing is the best part of the marketing mix in which to make an educated guess about the most appropriate strategy. e. Because pricing is directly responsible for demand.

B

__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings. a. Quality d. Breakeven cost b. Value e. Opportunity cost c. Price

B

__________ refers to the strategic combination of the four basic marketing mix elements. a. The marketing plan d. The strategic mix b. The marketing program e. Implementation c. Strategic control

B

__________ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments. a. Demographic d. Lifestyle b. Behavioral e. Geographic c. Psychographic

B

Which of the following sales promotion methods would you recommend to a packaged goods marketer who wants to stimulate trial of a new product? a. a contest or sweepstake d. a rebate b. a coupon e. a point-of-purchase display c. a free sample of the product

C

Which of the following statements about integrated marketing communications (IMC) is FALSE? a. IMC refers to the strategic, coordinated use of promotion to create one consistent message. b. IMC takes a 360-degree view of the customer. c. The role of mass television advertising is growing more important to IMC strategy. d. IMC reduces costs and increases efficiency because it can reduce or eliminate redundancies and waste. e. The key to IMC is consistency and uniformity of message across all elements of promotion.

C

Which of the following statements best describes the term "slotting allowances"? a. The amount of shelf space that a retailer grants to a specific brand or product. b. The amount of product from a specific manufacturer that a wholesaler agrees to carry. c. A fee, paid by manufacturers to retailers, to get a product placed on retail shelves. d. A fee, paid by retailers to wholesalers, to get them to carry the retailer's private label brand. e. The amount of product from a specific manufacturer that a retailer agrees to carry.

C

Which of the following statements best represents the universal goal of all sales promotion activities? a. To increase sales volume in the long term. b. To stimulate customer interest and attention. c. To induce product trial and purchase. d. To enhance the image of the firm. e. To gain the attention of members of the supply chain.

C

Which of the following statements is TRUE with respect to the relationship between price and revenue? a. When business is good, a price increase will increase revenue. b. When business is bad, a price increase will increase revenue. c. Price cuts must be offset by an increase in sales volume to keep the same level of revenue. d. In highly differentiated markets, price cuts will capture greater market share. e. In highly commoditized markets, price cuts will increase revenue.

C

Why is the demand for most services—such as popular restaurants—extremely time-and-place dependent? a. Because popular services typically lack sufficient capacity. b. Because services cannot be stored for future use. c. Because customers must be present for service to be delivered. d. Because service customers are typically unsure of their needs. e. Because competing services force customers to make tradeoffs between quality and time.

C

Why would a firm offer a wide variety of products in its product portfolio? a. To attract a wide range of customers and market segments. b. To capitalize on the firm's reputation. c. To diversify its risk. d. To maximize differentiation across its product lines. e. None of the above.

C

__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm. a. Strengths and weaknesses d. Weaknesses and threats b. Strengths and opportunities e. Opportunities and weaknesses c. Opportunities and threats

C

As a tool of Blue Ocean Strategy, the strategy canvas provides a way to visualize the firm's strategy relative to other firms in the industry. The central portion of the strategy canvas is the __________, or the graphic representation of the firm's relative performance across its industry's factors. a. value curve d. divergence curve b. strategy line e. action diagram c. strategic focus

A

Ensuring the availability of products in the right place in the right quantities at the right time in a cost efficient manner is the main focus of: a. physical distribution. d. channel management. b. marketing networks. e. network management. c. supply chain management.

A

In terms of SWOT analysis, when does a strength become a capability of the firm? a. when the strength can be tied to satisfying a customer need b. when the strength cannot be copied by competitors c. when the strength stands alone without any corresponding weaknesses d. when the strength can be connected to a second strength e. when the strength can be supported by sufficient resources

A

In terms of setting goals and objectives, what is considered to be one of the major benefits gained from applying for the Malcolm Baldrige National Quality Award? a. It promotes the development of discontinuous objectives. b. It helps the firm to set objectives that are difficult for competitors to copy. c. It helps the firm to focus solely on customer requirements. d. It promotes the development of goals that are consistent with the firm's mission. e. It allows the firm the freedom to pursue other strategic initiatives.

A

In terms of the AIDA model, mass communication elements such as advertising and public relations tend to be very effective at: a. stimulating awareness of and interest in a product. b. explaining highly complex and technical products. c. stimulating immediate purchase of a product. d. marketing high priced products. e. closing the sale.

A

In the Mercedes dealer network, individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area. What type of distribution does Mercedes employ? a. exclusive distribution d. limited distribution b. intensive distribution e. prestige-based distribution c. selective distribution

A

One of the most successful and well-known tools of __________ segmentation is VALS™ developed by Strategic Business Insights. a. psychographic d. geoclustering b. geographic e. emotional c. demographic

A

Retailers use __________ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49." a. reference pricing d. value-based pricing b. EDLP e. sale pricing c. odd pricing

A

The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation: a. reduces the number of perceived substitutes for a product. b. makes the product more expensive than its competitors. c. increases the quality of the product making it worth the expense. d. reduces the time and effort required to obtain the product. e. increases the just noticeable differences among competing products.

A

Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so? a. Because services depend on people for their delivery. b. Because services cannot be managed due to their intangibility. c. Because services are extremely time-and-place dependent. d. Because service marketers cut corners to reduce expenses. e. Because service marketers make unrealistic promises to customers.

A

Which of the following IS NOT an example of mass customization? a. A college creates a custom degree program to match your unique needs. b. A customer orders a custom teddy bear from Build-A-BearWorkshop.com. c. Dell offers fully customized computers based on your needed configuration. d. A bank employee logs into the e-procurement system to browse a fully customized catalog of office supplies. e. You order a customized vase of flowers from 1-800-Flowers.com.

A

Which of the following IS NOT an important benefit of offering a large product portfolio? a. package differentiation d. standardization b. economies of scale e. equivalent quality beliefs c. sales and distribution efficiency

A

Why would a firm offer a deep assortment of products in its product portfolio? a. To attract a wide range of customers and market segments. b. To capitalize on the firm's reputation. c. To diversify its risk. d. To maximize differentiation across its product lines. e. None of the above.

A

With respect to the consumer buying process, __________ is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information. a. the degree of risk d. the degree of competition b. the consumer's expertise e. the extent of product differentiation c. the consumer's brand loyalty

A

__________ is paid personal communication that attempts to inform customers about products and persuade them to purchase those products. a. Personal selling d. Public relations b. Sales promotion e. Advertising c. Publicity

A

Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm's __________ must recognize that its competencies give it an advantage over the competition. a. management d. employees b. target markets e. strategic partners c. shareholders

B

In most marketing channels for consumer products, the balance of power has shifted to __________ due to their size and buying power. a. consumers d. brokers and distributors b. mass merchandise retailers e. manufacturers c. wholesalers

B

In the marketing strategy for Amazon, the following statement appears: Our strategy is designed to increase the percentage of repeat customers from 80 percent to 85 percent in the next 12 months. This statement is an example of a: a. quantitative goal. d. qualitative objective. b. continuous objective. e. discontinuous objective. c. procedural objective.

B

Marketing goals can be defined as: a. quantitative guidelines that help firms achieve desired results. b. broad, qualitative statements of desired accomplishments. c. performance process controls. d. specifications by which performance will be assessed. e. precise statements of desired accomplishments.

B

Microsoft's Windows platform dominates the market for personal computer operating systems. By continuously upgrading and stretching the technology underlying its Windows system, Microsoft is pursuing a strategy of: a. customer intimacy. d. total quality management. b. product leadership. e. technological leadership. c. operational excellence.

B

Most firms today compete in mature markets characterized by commoditization. In these cases, the __________ typically becomes incapable of differentiating the product offering from those of the competition. a. extended product d. experiential products b. core product e. tangible products c. supplemental products

B

Price elasticity is defined as: a. a situation where prices routinely move up and down in a short period of time. b. customers' responsiveness or sensitivity to changes in price. c. the impact on a product's demand when customers are in unique buying situations. d. the relative ease with which prices can be changed. e. price flexibility—a pricing strategy used by startup firms.

B

A __________ is an organized system of marketing institutions through which products, resources, information, funds and/or product ownership flow from the point of production to the final user. a. marketing network d. marketing channel b. distribution hub e. product network c. supply chain

D

After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from: a. too many opportunity costs. d. cognitive dissonance. b. dissatisfaction. e. poor product quality. c. choice insufficiency.

D

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why? a. Because firms want to make a profit, not just break even. b. Because customer expectations are far more important in setting prices. c. Because prices should be based on demand, not costs. d. Because different firms have different cost structures. e. Because competitor's prices are far more important in setting prices.

D

Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from: a. its superiority to competing products. b. its ability to further the image of the organization. c. its value (good quality at a low price). d. its ability to deliver benefits that solve a customer's problems. e. its easy of use and convenience.

D

By focusing on efficiency of operations and processes, lower costs, and delivering good value, Southwest Airlines attempts to build a competitive advantage based on: a. production orientation. d. operational excellence. b. customer intimacy. e. strategic efficiency. c. process improvement.

D

Despite conventional thinking, __________ accounts for the bulk of promotional spending in many firms. This is especially true for firms selling consumer products in grocery stores and mass-merchandise retailers. a. personal selling d. sales promotion b. advertising e. publicity c. public relations

D

Each of the following statements describes a unique characteristic of the business buying process EXCEPT: a. Business buyers have an easier time identifying their needs as compared to consumers. b. Business buyers must be keenly aware of both hard and soft costs. c. Groups of people, rather than individuals, often make purchase decisions. d. Business buyers are less likely to be dependent upon each other. e. Business buying is sometimes based on reciprocity where each firm buys products from the other.

D

For laptop computers, processor chips, memory chips, and hard drives are examples of __________ because they are finished items that become a part of the computer after assembly. a. raw materials d. component parts b. process materials e. specialty products c. installations

D

Hallmark is a good example of a company that uses __________ distribution as a means of offering two or more lines of the same merchandise through two or more channels a. direct d. dual b. secondary e. complementary c. split

D

In launching its new line of power tools, Black and Decker spent a considerable amount of time and resources to educate, motivate, and compensate members of its supply chain. By investing heavily in these types of promotions, Black and Decker hopes its __________ strategy will lead to a more effective product launch. a. pull d. push b. AIDA e. placement c. institutional

D

In the context of IMC strategy, what is the difference between public relations and publicity? a. Public relations deals with positive information; publicity deals with controlling negative information. b. Publicity deals with many stakeholders; public relations deals only with customers. c. Publicity is normally done via an in-house staff; public relations is typically outsourced to a specialist. d. Publicity is more narrowly defined and focused on gaining media attention. e. There is no difference between public relations and publicity.

D

Many products, such as candy, soft drinks, and gum are sold via intensive distribution. However, this strategy has a major drawback. What is it? a. It maximizes profit margin rather than sales volume. b. It encourages customers to shop around for the lowest price. c. It promotes a very high degree of brand switching. d. The manufacturer must give up a good degree of control over pricing and product display. e. It gives customers fewer opportunities to find the product.

D

May firms, like the Altria Group, focus on diversification in their marketing strategies because they possess: a. many internal strengths and many external opportunities. b. many internal weaknesses and many external opportunities. c. many internal strengths and few external opportunities. d. many internal strengths and many external threats. e. many internal weaknesses and many external threats.

D

The Club is a local hair salon and day spa that caters to an upper-middle class clientele. Although price competition in the local area has been increasing, the owners of The Club have decided to focus their marketing efforts on quality, service, and value, and to resist the temptation to compete on price. In pursuing this non-price strategy, managers of The Club are ascribing to which of the following assumptions? a. Customers see all salons as being about the same. b. The market for salon services is very price sensitive. c. Customers of The Club are so loyal that price competition is not necessary. d. It is difficult for competitors to copy The Club's differentiating characteristics. e. The managers are ascribing to all of these assumptions.

D

The Fairmont Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly, the Fairmont sets prices at the top end of all competing hotels. Which pricing strategy is the Fairmont using? a. exclusive pricing d. prestige pricing b. image pricing e. service-based pricing c. psychological pricing

D

The phrase "Unused service capacity is lost forever" refers to which major challenge associated with the marketing of services? a. client-based relationships b. limited standardization c. simultaneous production and consumption d. perishability e. heterogeneity

D

Which of the following IS NOT a situation that can cause customers to be less sensitive to price increases? a. When customers have few product choices. b. When products are highly differentiated. c. When the product is a real or a perceived necessity. d. When the total expenditure is high. e. When the product is considered to be "worth it".

D

Which of the following IS NOT a typical basis used to segment business markets? a. type of organization d. organizational culture b. organizational characteristics e. relationship intensity c. benefits sought

D

Which pricing objective is associated with the phrase "charging what the market will bear"? a. volume-oriented d. market demand b. profit-oriented e. status quo c. cash flow

D

With respect to the text's advice in conducting a SWOT analysis, which of the following best describes "Look for Causes, Not Characteristics"? a. Break down clichés into meaningful customer-oriented issues. b. Refrain from conducting a single generic analysis for the entire organization. c. Gauge the actual perceptions of customers that give rise to the firm's strengths and weaknesses. d. Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm's strengths, weaknesses, opportunities, and threats. e. Clearly differentiate internal issues from external issues.

D

Your supervisor repeatedly informs you that "Goals without objectives are essentially meaningless." What is the rationale for such a philosophy? a. Goals are necessary to provide specific benchmarks that are used to gauge performance. b. Objectives provide a theoretical benchmark rather than a practical benchmark. c. A goal is not a goal unless it contains one or more objectives. d. Progress is impossible to track without measurable performance targets. e. Objectives are necessary to provide qualitative benchmarks that are used to gauge performance.

D

Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation? a. individualized marketing d. focused marketing b. niche marketing e. one-to-one marketing c. pinpointed marketing

E

In terms of marketing channel functions, which of the following statements describes the concept of discrepancy of quantity? a. Manufacturers make one or a few product(s)—customers need variety and assortment. b. Channels must make products available in convenient locations. c. Channels add value to products by standardizing the exchange process. d. Channels must provide for the storage of products for future purchase and use. e. Manufacturers produce large quantities; customers usually want only one item.

E

Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a: a. convenience product. d. influential product. b. shopping product. e. specialty product. c. supplemental product.

E

Only the largest firms can execute __________, which involves the development of multiple marketing programs to serve all customer segments simultaneously. a. single segment targeting d. product specialization b. market specialization e. mass market targeting c. selective targeting

E

Overall, what is the major disadvantage associated with the use of public relations and publicity? a. It is normally very expensive. b. The amount of negative publicity always outweighs the good. c. Few, if any, customers pay attention to public relations messages. d. Most people find it to be less credible than advertising. e. The firm has limited control over how the message will be delivered or interpreted.

E

The creation of an extended enterprise in the supply chain depends heavily on the ability of channel members to integrate their operations. Which of the following IS NOT a key factor in successful supply chain integration? a. trust d. mutual benefit b. interdependence e. coercive power c. cooperation

E

The failure to understand the difference between internal and external issues is one of the major reasons for a poorly conducted SWOT analysis. This happens because managers: a. see opportunities and threats as being the same thing. b. confuse weaknesses with threats. c. see strengths as the only meaningful issue in a SWOT analysis. d. confuse strengths with opportunities. e. list their marketing options or strategies as opportunities.

E

The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment. a. focused marketing d. multisegment marketing b. unidimensional marketing e. market concentration c. mass marketing

E

The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its: a. marketing strategy. d. marketing thrust. b. operational focus. e. strategic focus. c. strategic posture.

E

To be successful, firms must move potential customers beyond mere interest in the product. Good promotion will stimulate __________ by convincing potential customers of the product's superiority and its ability to satisfy specific needs. a. dedication d. action b. investigation e. desire c. attention

E

To compete in the fast-growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. The Civic Hybrid was based on the traditional Honda Civic. Which product development strategy has Honda implemented? a. repositioning d. product improvement b. new product line e. product line extension c. product innovation

E

To successfully utilize SWOT analysis as a catalyst for strategic planning, the marketing manager must focus on several important issues. Which of the following IS NOT one of these issues? a. The manager must look beyond the firm's current product offerings. b. The manager must find ways to connect the firm's strengths to its opportunities. c. The manager must strive to convert weaknesses into strengths. d. The manager must attempt to minimize the firm's limitations. e. The manager must find ways to transform key threats into strengths.

E

Today, though cutting expenses is still a main factor, the desire of many firms to focus on core competencies is a driving force behind the increase in: a. category management. d. product differentiation. b. channel integration. e. outsourcing. c. referent power.

E

What is the key to using behavioral segmentation successfully in consumer markets? a. The firm must clearly link behavioral characteristics with risk profiles. b. The firm must clearly link behavioral characteristics to demographic characteristics. c. The firm must determine whether consumers see their behaviors as being distinct from other behavioral segments. d. The firm must clearly link behavioral information with geography. e. The firm must clearly understand the basic needs and benefits sought by different consumer groups.

E

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop, or when after-sale services are important? a. exclusive distribution d. comparative distribution b. service-based distribution e. selective distribution c. intensive distribution

E

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions? a. manufacturers d. customers b. wholesalers e. It does not matter. c. retailers

E

Which of the following is the best example of an unsought product? a. gasoline d. luxury products b. clothing e. insurance c. antiques

E

Which sales force compensation system is best suited to situations where salespeople are responsible for pre- and post-sale service and sales managers want maximum control over selling expenses? a. straight commission d. geographic allocation b. a combination approach e. straight salary c. direct compensation

E

Why is it important that marketing goals involve some degree of intangibility? a. It makes it more difficult for competitors to determine the firm's marketing strategy. b. It makes goals more consistent with the objectives that follow. c. It makes goals easier to achieve. d. It promotes learning by forcing employees to ask questions about the strategy. e. It makes the goal more motivational and promotes continuous improvement

E

With regard to Blue Ocean Strategy, the Four-Actions Framework is designed to challenge traditional assumptions about marketing strategy by asking four key questions. Which of the following IS NOT one of these questions? a. Which factors should be reduced well below the industry's standard? b. Which factors should be raised well above the industry's standard? c. Which factors should be created that the industry has never offered? d. Which factors that the industry takes for granted should be eliminated? e. Which factors used throughout the industry should be copied?

E

__________ is/are the primary reason why the consumer buying process varies across customers, products, and situations. a. Individual influences d. Social influences b. Situational influences e. The complexity of the purchase c. The cost of the product

E

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel? a. legitimate power d. reward power b. coercive power e. logistical power c. referent power

B

Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems. a. single segment targeting d. product specialization b. market specialization e. mass market targeting c. selective targeting

B

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a: a. merchandise credit. d. push money allowance. b. buying allowance. e. cooperative incentive. c. selling incentive.

B

All of the following are benefits of SWOT analysis EXCEPT: a. It is simple to use. b. Its structured nature ensures that data and information are correctly categorized. c. It promotes managerial collaboration. d. It can synthesize and integrate diverse information. e. It can reduce costs.

B

Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called: a. individualization. d. customized marketing. b. one-to-one marketing. e. permission marketing. c. mass customization.

C

Although a market segment can meet all criteria for viability, a firm may choose to not pursue the segment. Which of the following is a reason why this might occur? a. A competitor has already targeted the segment. b. Targeting the segment could lead to antitrust concerns. c. The segment has no synergy with the firm's mission. d. The segment is difficult to reach via communication and/or distribution. e. The segment's members are not easily identifiable.

C

Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process? a. idea generation d. test marketing b. development e. commercialization c. screening and evaluation

C

Expansion and growth, with new products and new markets, are the keys to Google's __________ approach to marketing strategy. Google uses this approach because it possesses many different strengths that coincide with key market opportunities. a. defensive d. proactive b. focused e. diversified c. aggressive

C

Firestone carefully watches the automotive market to ascertain the demand for cars, SUVs, and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________. a. synergistic demand d. product line demand b. shopping demand e. price elasticity c. derived demand

C

From the viewpoint of the consumer buying process, what is the difference between a need and a want? a. Needs are absolute necessities, whereas wants are discretionary. b. Needs are related to specific products, whereas wants occur only when the consumer has the ability to purchase the product. c. Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need. d. Needs focus on specific elements of a product's quality, whereas wants are related to the "extras" that add value to the product. e. Needs and wants are essentially the same, except that consumers will pay more for products they need.

C

If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP. a. brand set d. target group b. purchase set e. shopping list c. evoked set

C

In business markets, __________ is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller. a. transfer pricing d. logistics pricing b. countertrade e. GPS pricing c. geographic pricing

C

In today's economy, personal selling has evolved to take on elements of customer service and marketing research. Why is this the case? a. It is less expensive to deliver service and conduct research with the sales staff. b. It is more time efficient because salespeople are already interacting with customers. c. Personal selling focuses more on developing customer relationships than on generating transactions. d. It allows salespeople to earn higher commissions for doing more work. e. None of the above is correct.

C

Overall, the trends occurring in marketing channels today (growth in e-commerce, outsourcing, growth of nontraditional channels) have one major theme in common. What is that theme? a. Enhancing the reputation of the supply chain. b. Reducing the risk of legal action in the supply chain. c. Increasing channel efficiency by reducing waste, overhead, and other costs. d. Securing more power and control for manufacturers. e. All of the above are common themes.

C

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price. a. price skimming d. first-mover pricing b. odd pricing e. market acceptance pricing c. penetration pricing

C

The most basic benefit of marketing channels is __________ where channels reduce the number of contacts necessary to exchange products. a. contraction d. contact creation b. time efficiency e. accumulation c. contact efficiency

C

When firms use a(n) __________ strategy, they focus their promotional efforts toward stimulating demand among final customers, who then exert pressure on the supply chain to carry the product. a. pressurization d. guerilla b. IMC e. push c. pull

C

Which of the following is perhaps the main advantage associated with the use of advertising? a. It takes little time to develop an advertising campaign. b. The total dollar layout in advertising is usually low. c. It is an extremely cost efficient way to reach a large number of people. d. It can quickly convey a large amount of technical information. e. It can be quite memorable.

C

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to: a. control costs. b. control demand through effective advertising strategies. c. establish fair guidelines for overbooking capacity. d. shift customer demand to other firms that can handle the excess business. e. balance price and revenue considerations with their need to fill unused capacity.

E

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services. a. penetration pricing d. relational pricing b. market equity pricing e. value-based pricing c. prestige pricing

E