MKTG Exam 3 pt2

Break Even equation

(Fixed Cost) / (Unit Price - Unit Variable Cost)

Value Equation

(Perceived Benefits) / (Price)

Which component of service quality represents the ability to provide prompt service?

...

How has The Internet affected the competitive environment for pricing?

1. Affected the companies' ability to change prices frequently 2. Affected consumers' access to pricing information from many competitors

Key Demand Factors

1. Consumer Tastes: (what they want to buy) change rapidly, nutrition is one example. 2. Price and Availability of Similar Products: (what they want to buy) if a similar competitors price falls, their demand will rise and yours will fall. 3. Consumer Income: (what they can buy) as income increases, demand for products increase as well.

What are the parts of a price?

1. List Price 2. Incentive or Allowance 3. Extra Fees

Profit Objectives

1. Maximizing Current Profits 2. Target Return 3. Managing for long-run Profits

What are the two options when choosing a price policy?

1. One-Price 2. Flexible-Price

Penetration Pricing Conditions

1. Segments of the market are price sensitive 2. A low initial price discourages competitors from entering the market 3. Unit production and marketing costs fall dramatically as production volume increases

Skimming only works when:

1. The product is protected by a patent 2. Customers recognize the value posed by the high initial price

Which type of retail store would typically have the highest labor costs?

A department store

Product Life Cycle

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the __________ ___________ cycle.

Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously?

A hair salon

Why is the selection of a retail location so critical to a store's success?

A location decision typically requires long-term commitment of resources.

Which of the following services is an example of mental stimulus processing?

A professional tennis match

James wants to open a small store that offers only products, knowledge, and advice for those who like to build Hot Rods, Street Rods, and refurbish classic cars. Which of the following types of stores would most likely support an effective launch of his business idea?

A specialty store

Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service?

A specialty store

Which type of retail store specializes in a given type of merchandise?

A specialty store

Premarket test

A(n) ______________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy or use the product again.

Standard Markup Pricing

Adds a fixed percentage to the cost of all items in a specific product class

_____ are intermediaries who facilitate the sales of a product from producer to end user by representing retailers, wholesalers, or manufacturers and providing little input as to the terms of the sale.

Agents and brokers (facilitate the sale of a product from producer to end user)

One-Price Policy

Also called fixed-pricing, is setting one price for all buyers of a product or service (ex. dollar store).

idea generation; results

Although there are numerous stages in the product development process, every firm starts to develop new products through ___________ and then finishes with an evaluation of ___________.

Break Even Analysis

Analyzes relationship between total revenue and total cost to determine profitability at various levels of output

Skimming Pricing Strategy

Appeals to those who are willing to pay a high initial price to have innovation first

This summer, college student Pat is planning on selling kites at Panama City Beach. He has found some suppliers and has preordered all of the kites he thinks he can sell this summer. What type of a distribution channel relationship does Pat have with his suppliers?

Arm's length

Which of the following types of distribution channel relationships is considered to be temporary?

Arm's length (lack of ability to develop a closer type of relationship)

Buying a car through eBay may result in a low price, but how do you know you will be getting a good car? One nice feature provided by eBay is the "feedback rating" that provides ratings and comments from people who have made purchases from that seller before. Which service quality component does the feedback rating address?

Assurance

Which service quality component is the knowledge and courtesy of employees and their ability to convey trust?

Assurance

_____ is a low-profile yet important form of retailing in which consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States.

Automatic vending

Which of the following statements about restaurants is true?

Because barriers to entry are low, the restaurant business appeals to many people.

Which form of franchising is an ongoing business relationship between a franchisor and a franchisee where the franchisor "sells" a franchisee the rights to use the franchisor's approach to doing business?

Business format franchising

Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. Which of the following is likely to occur between MLB and broadcast television?

Channel conflict

_____ is the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.

Channel partnering

Predatory Pricing

Charging a very low price for a product with the intent of driving competitors out of business

Price discrimination

Charging different prices to different buyers for goods of like grade and quality

Concept testing

Companies use different techniques to understand the wants and needs of their customers. One such technique used is _____________ testing, which is used to obtain consumers' reactions to new product ideas BEFORE a prototype is actually developed.

Price fixing

Conspiracy among firms to set prices

Kroger is the second-largest supermarket chain in the United States. Which of the following is the most likely reason why Kroger supermarkets sell all types of foodstuffs as well as nonfood products including a wide range of eyewear and accessories?

Consumer demand for one-stop shopping often leads to scrambled merchandising.

_____ carry a limited line of high-turnover, high-priced goods and resemble miniature supermarkets. These self-service stores are typically located near residential areas and are open long hours, seven days a week.

Convenience stores

Which channel relationship is less ambiguous than an arm's-length relationship but without the longer-term and/or capital investment required to achieve full integration?

Cooperative

_____ channel relationships include nonequity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliances.

Cooperative (take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals)

What are the four price approaches?

Cost-oriented, Competition-oriented, Demand-Oriented, and Profit-oriented

Bundle Pricing

Demand-Oriented; marketing of two or more products in a single package price

This approach weighs factors underlying expected customer tastes and preferences more heavily than such factors as costs, profit, and competition when selecting a price level.

Demand-oriented

_____ are stores that consumers purposely plan to visit. They are often built as freestanding stores.

Destination stores

_____ refers to the techniques used to get consumers to buy from their home. Those techniques include direct mail, catalogs and mail-order, telemarketing, and electronic retailing.

Direct marketing

Which type of retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties?

Direct retailing

_____ are retailers that compete on the basis of low prices, high turnover, and high volume.

Discount stores

Which of the following is the lack of all the items a customer needs to receive full satisfaction from a product or products?

Discrepancy of assortment

_____ distribution occurs when a producer selects two or more different channels to distribute the same products to target markets.

Dual (multiple distribution)

Correct options: Advertising Coupons

During test marketing, the potential elements of the marketing mix that may be used include which of the following?

Growth stage

During the ___________ stage of the product life cycles, firms attempt to reach new consumers by studying their preferences and producing many competing and different product variations.

Maturity stage

During the ____________ firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them.

Laggards

During the decline stage of the product life cycle, ___________ who have not yet tried the product or service will be entering the market for the first time.

increased sales

During the growth stage of the product life cycle, the market often becomes more segmented. Consumers' preferences can be addressed by adding variations of the product such as different colors, styles, or features, which can lead a successful firm to have __________ sales.

A manufacturer that uses coupons and other small price decreases to create large changes in demand is relying on what kind of demand for the product?

Elastic; this is because products with inelastic demand would not require manufacturers to decrease their prices

Courtney's mother died of breast cancer, and she is afraid of getting cancer. When she went to get a baseline mammogram, she wanted a facility where the personnel would not think her fears were silly and would answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Courtney most likely to rate the mammogram provider?

Empathy

Service personnel who exhibit caring, individualized attention to customers are addressing which service quality component?

Empathy (understanding)

Seasonal Discounts

Encourage buyers to stock inventory earlier than their demand would require

Quantity Discounts

Encourage customers to place larger orders

Cash Discounts

Encourage retailers to pay their bill quickly

Rolex is an expensive brand of watches. The company has a policy of only having one or two dealers within a given large geographic area. Buyers of Rolex watches will travel extensively to acquire just the right watch. This is an illustration of which level of distribution intensity?

Exclusive

Which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?

Exclusive

Pricing Constraints

Factors that limit range of prices a firm may set

Demand-Oriented

Factors underlying customer tastes and preferences are weighed most heavily

First Step

Firm confirms its target market

Second Step

Firm decides how the product will be positioned

Third Step

Firm finalizes the remaining marketing mix variables for the new product.

Total Cost

Fixed Costs + Variable Costs

Which type of retail ownership is owned and operated by an individual but is licensed by a larger supporting organization?

Franchise

Which type of discount store offers consumers very limited service and carries a broad assortment of nationally branded "hard goods," such as housewares, toys, automotive parts, clothing, bedding, and maybe a limited line of nonperishable food items?

Full-line discount stores (aka mass merchandiser)

_____ occurs when products are distributed through unauthorized marketing channels.

Gray marketing

_____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.

Gross margin

Which of the following services is an example of possession processing?

Heating system repair

Community Trust Bank has always prided itself on the friendliness of its employees. However, the results of a recent mystery shopper study indicated that the bank tellers rarely greeted customers or thanked them after the transaction. As a result, all bank employees who have customer contact are going through a training program to enhance customer service. What unique aspect of services is Community Trust attempting to address?

Heterogeneity

It is difficult to achieve consistency and standardization of services because of which service characteristic?

Heterogeneity

Which unique characteristic of services is the variability of the inputs and outputs of services, which causes services to tend to be less standardized and less uniform than goods?

Heterogeneity (because services have higher heterogeneity, or variability of inputs and outputs, they tend to be less standardized

Correct options: Negative financial impacts Product may not recover from failure Company may fail

Identify potential impacts to the company when a new product launch is a failure.

Correct options: Completely exit market Create a niche segment

Identify the steps taken by firms that have products in the decline stage of the product life cycle.

It will be extremely difficult for the firm to recover.

If a company invests all its time and effort into a new product and the product fails, ____________.

fails to meet

If a concept test __________ customers' expectations, it is doubtful it would succeed if it were to be produced and marketed.

Product launch

If a firm has a positive result from the market testing the next step is known as ___________.

Reverse Engineering

In order for a firm to successfully make a new product out of a competitor's product, that firm must engage in ____________ to figure out how to bring an improved version to the market.

Which of the following statements concerning how market factors affect channel decisions is true?

Industrial customers tend to buy in larger quantities and require more customer service.

Which type of service processing uses technology or brainpower directed at customer's assets?

Information processing

Which unique characteristic of services means that consumers must be present during the production?

Inseparability (inability of the production and consumption of a service to be separated)

_____ distribution channel relationships are situations where one company, or several companies acting as one, performs all channel functions.

Integrated (highly connected, with link processes across and between firm boundaries and high levels of trust and interfirm commitment)

_____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.

Intensive distribution

Which of the following services is an example of information processing?

Investment advice

Correct options: Intense competition on price Marketing costs increase

Key characteristics of the maturity stage are ____________.

At which level of relationship marketing does the firm only use pricing incentives to encourage customers to continue doing business with it?

Level 1 (uses pricing incentives like frequent flyer programs)

Which level of relationship marketing uses pricing incentives but also seeks to build social bonds with customers?

Level 2 (meet customers needs)

_____ describes the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

Logistics

_____ is the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies.

Logistics

Which of the following manufacturers most likely uses intensive distribution?

M&M's candies

_____ is the strategy that uses technology to deliver customized services on a mass basis.

Mass customization

_____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory.

Mass merchandising

Low - Introduction Rising - Growth Peak - Maturity Dropping - Decline

Match the relative level of sales (on the left) with the stage of the product life cycle (on the right) at which this level of sales is typically observed.

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. Which category of service processing does TeamBuilds offer?

Mental stimulus processing (services directed at people's minds)

Which of the following is a main area of concern for service distribution?

Minimizing wait times

Price

Money or other considerations exchanged for ownership or use of a product/service

Shape of a typical demand curve

Negative sloping

_____ refers to the effort of nonprofit organizations to bring about mutually satisfying exchanges with their target markets.

Nonprofit organization marketing

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.

Nonstore retailing

Which of the following statements about nonstore retailing is true?

Nonstore retailing is currently growing faster than in-store retailing.

decline stage

Once a product stops generating sales or profits, or sales and profits are very low, the product is in the ______________ stage of the product life cycle and eventually exits the market.

timing

One of the most critical elements of success in new product launches is ___________ the introduction such as scheduling the release of a movie to match school holidays.

_____ is a type of shopping available to consumers with access to the Internet.

Online retailing

Which service pricing objective seeks to match supply and demand by varying prices?

Operations oriented (seeks to match supply and demand by varying prices)

A continuing problem for most Minor League Baseball (MiLB) teams is low attendance. Event and venue sponsors want to see fans in the stadiums, and the players appreciate fan support. Given this information, which pricing strategy would you recommend MiLB teams use?

Patronage-oriented pricing (aka support; tries to maximize the number of customers using the service)

Which category of service processing takes place when the service is directed at a customer?

People processing

One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites such as Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat on a specific flight after the plane takes off and hotels cannot recoup the revenue from that room for that night once the night passes. Which unique characteristic of services does this illustrate?

Perishability (services cannot be stored, inventories, or warehoused)

Correct order: Innovators Early adopters Early majority Late majority Laggards

Place each of the following categories in the order in which they adopt a product, beginning with the innovators at the top.

Which type of service processing occurs when the service is directed at customers' physical possessions, such as lawn care, dry-cleaning, and veterinary services?

Possession processing

Deceptive Pricing

Price deals that mislead consumers

Which pricing practices are legally restricted?

Price fixing and predatory pricing

Cost-Oriented

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

Competition-Oriented

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

Which form of franchising involves a dealer agreeing to sell certain products provided by a manufacturer or a wholesaler?

Product and trade name franchising (coke and pepsi)

_____ is an announcement in mass media for which no charge is made and which promotes programs, activities, or services of federal, state, or local governments or the programs, activities, or services of nonprofit organizations.

Public service advertising

FedEx advertises that your documents will "Absolutely Positively" be delivered tomorrow morning. FedEx is providing which of the following service quality aspects to its users?

Reliability

Virtual Bellhop is a company that ships awkward sporting goods to vacation destinations so its customers do not have to worry about lugging them through airports or having them damaged in transit. Thus far, its record for getting the sporting equipment to the correct destination for the vacationer is perfect. This indicates that the company excels at which component of service quality?

Reliability

Which component of a service is the ability to perform the service dependably, accurately, and consistently?

Reliability

Which of the following are examples of facilitating functions performed by wholesaling intermediaries?

Researching and financing

Jonathon had a problem when submitting an exam in his online marketing class and he received a score of zero, so he sent an e-mail to the professor explaining his problem. He was really worried because the exam was due that evening, and he was very pleased when the professor replied within an hour telling him that he scored a 90 on the exam. The professor's prompt reply to his inquiry is an example of which service quality component?

Responsiveness

Which of the following intermediaries sell mainly to consumers?

Retailers

_____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption.

Retailing

Trade Discounts

Reward channel members for future marketing efforts

Which of the following is a transactional function performed by intermediaries?

Risk taking (promoting, negotiating, and risk taking)

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?

Selective

Husqvarna Viking manufactures sewing machines. The company carefully screens its dealers to ensure a quality dealer image and service ability. Only a few dealers are chosen in any single geographic area. This is an example of _____ distribution.

Selective

Polo brand apparel is only available in fine department stores or from Polo retail stores. Which distribution strategy has Polo adopted?

Selective

_____ distribution is achieved by screening dealers to eliminate all but a few in any single geographic area. Shopping goods and some specialty products that consumers are willing to search for are sold this way.

Selective

Loss-Leader Pricing

Selling a product at an especially low price to attract attention in hopes customers will buy other products as well

A(n) _____ is the result of applying human or mechanical efforts to people or objects.

Service

Prestige Pricing

Setting a high price so that quality or status-conscious customers will be attracted to the product

Penetration Pricing

Setting a low initial price on a new product to appeal immediately to the mass market (opposite of skim pricing)

Flexible-Price Policy

Setting different prices for products and services depending on individual buyers and purchase situations. Can be considered discriminatory.

Which of the following is a logistical function performed by intermediaries?

Sorting

_____ are single-line stores that offer a nearly complete selection of one line of merchandise and use self-service, discount prices, high volume, and high turnover of merchandise to their advantage.

Specialty discount stores

Which of the following statements about specialty stores is true?

Specialty stores typically avoid price wars.

All of the following are examples of nonprofit organizations EXCEPT:

State Farm, an insurance company

Which of the following enables a company to use another manufacturer's already established channel?

Strategic channel alliances (used when creation of marketing channel are too expensive)

Allstate Insurance says "You're in good hands with Allstate," and Prudential Life Insurance shows a rock in its commercials because it wants to convey stability. These companies are using what type of promotion strategy?

Stressing tangible cues (concrete symbol, like hands or a rock, of the service)

Fixed Costs

Sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold

_____ are large, departmentalized, self-service retailers that specialize in food and some nonfood items.

Supermarkets

James recently went to a new health clinic because he had a sore throat that wouldn't go away. He was not familiar with this clinic and was a bit surprised when the doctor came in and was wearing blue jeans, a flannel shirt, and tennis shoes. The doctor and nurse took proper care of James, but it seemed strange to him that the doctor was dressed that way. Which component of service quality does this illustrate?

Tangibles

The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service, represents which component of service quality?

Tangibles (physical evidence of the service)

Which are profit-oriented approaches to setting a price?

Target return pricing and Target profit pricing

_____ is the use of the telephone to sell directly to consumers.

Telemarketing

Which country is the world's largest exporter of services?

The United States

Which graph relates quantity sold and price?

The demand curve

life cycle

The four stages -- introduction, growth, maturity, and decline --that a product passes through is called the product _____________ _________________.

Who is the originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product?

The franchisor

Which of the following statements about a retailer's promotion strategy is true?

The goal of a retail store's promotion mix is to position the store in consumers' minds.

What is Price Elasticity of Demand?

The percentage change in quantity demanded relative to a percentage change in price.

Break Even Point (BEP)

The point at which the number of units sold generates enough revenue to equal total costs

Which of the following services would be most likely to exhibit strong credence qualities?

The preparation of a dead body for burial (cannot be easily assed even after purchase and experience)

Profit-Oriented

The price setter balances both revenues and costs to set a price

diffusion of innovation

The process by which the use of an innovation, whether it be a product or service is spread throughout a market group over time and over various categories of adopters, known as _____________.

Flash Foods is the name of a chain of convenience stores with self-service gas pumps. What do you know about the convenience stores?

They carry a limited line of high-turnover goods.

Concept testing

Through the effective use of _____________ testing, firms may be able to avoid the high costs of product development for product ideas that do not meet customers' expectations.

Profit Equation

Total Revenue - Total Cost

These discounts are also known as functional discounts

Trade discounts

True

True or False: A company may choose to launch a new product without extensive test marketing and instead rely on instinct, since test marketing costs are high. Additionally. test markets may offer an advantage to competitors that have a similar product.

Apple iPod in 2001

True pioneer products are products that have never been seen before and literally create new markets. Which of the following products would be considered a pioneer product at the time it was introduced?

Many nonprofit organizations are pressured or required to serve the maximum number of people by targeting the average user, which pressures them to adopt which type of targeting strategy?

Undifferentiated (focus on average users)

Which U.S. retailer is the number one sales volume retailer in the world?

Walmart

_____ sell a limited selection of brand name appliances, household items, and groceries, usually in bulk on a cash-and-carry basis to members only.

Warehouse membership clubs

Test marketing

When Burger King introduced the new Whopper Bar to a limited geographical area prior to a national launch, it was engaging in ___________.

six stages: Idea generation Concept testing Product development Market testing Product launch Evaluation of results

When firms decide to develop new products, it is typically a long process that is broken into ____________ stages.

Timing

Which of the following factors would play an important role when launching a G-rated movie during the summer months (June, July, and August)?

Correct options: Conducting consumer research Brainstorming within the firm Researching competitors' products and services Communicating with a firm's R&D department

Which of the following processes could be considered an acceptable method for generating ideas?

Idea generation

_____________ generation refers to the first stage in the process by which firms develop a new product.

Licensing

_____________ refers to a firm buying the rights to use the technology or ideas from other research-intensive firms.

Selfridges is the second-largest department store in Great Britain. It works with House of Frasier, one of its competitors, to reduce operating costs by sharing channels of distribution to ship goods from 1,500-plus suppliers. Selfridges and House of Frasier are engaged in:

a strategic channel alliance

With respect to the sorting logistical function, _____ is the combining of similar stocks into a larger homogeneous supply.

accumulating

Breaking bulk at the wholesale level is called:

allocating (breaking a homogeneous supply into supplier and smaller lots)

Nonprofit organizations face a unique challenge because the target market of the nonprofit organization is often:

apathetic, uninterested or strongly opposed individuals

Off-price retailers:

are often able to take advantage of manufacturers' faulty sales forecasting

Anchor stores:

are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow

With the _____ channel relationship, both parties retain their independence and pursue their own interests while attempting to benefit from the goods or services provided by the other.

arm's-length

The number of different varieties of fishing lures carried by the Angler's Store refers to the store's:

assortment depth

Home Depot has selected orange as its corporate color. It's a good choice. At the gut level, orange connotes happiness and warmth. A recent article in one of the company's advertising brochures spoke about choosing colors for home decorating. It referred to this color as "joyful orange." The color orange is part of the _____ at Home Depot stores.

atmosphere

The overall impression conveyed by a store's physical layout, decor, and surroundings is referred to as the store's:

atmosphere

When you walk into an Apple store, you are immediately greeted by a clerk. The store is simply designed with layouts where you can experience products such as iMacs, iPhones, a variety of iPods, cameras, printers, and other accessories. If you have questions about the products, you can visit the Genius Bar. There is a place where kids can play and experience Mac to by sitting on big round cushy chairs. This description is of the store's:

atmosphere

If a benefit is indirect to the customer, the marketer may find a challenge in promoting a product with little:

benefit strength

Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:

better location, longer hours, and faster service

Mountain Express is a company that provides grocery delivery service to several small communities in Idaho. The company gives a 2 percent discount on all food orders to customers after they have used the service ten times. An additional percentage discount is offered for each additional 15 orders up to a maximum of 8 percent. The relationship marketing strategy used by Mountain Express is based on:

building financial bonds (includes use of price incentives)

Arby's, Jiffy-Lube, Baskin-Robbins, and Sylvan Learning Centers are examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business.

business format franchising

Domino's pizza, Hyatt Corporation, and Wendy's are all examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business.

business format franchisors (ongoing relationship between a franchisor and a franchisee in which the franchisor sells a franchisee the rights to format or approach to doing business)

Each department in a department store is usually headed by a _____ who selects the merchandise mix for the department and may also choose the promotional devices and personnel for that department.

buyer

The _____ at John Lewis, Britain's largest department store chain, selects the merchandise for his or her department and is often responsible for its promotion and for managing the personnel in that department.

buyer

Stores that are owned and operated as a group by a single organization are called _____. Under this form of ownership, many administrative tasks are handled by the home office.

chain stores

Variable Costs

change in direct relation with quantity produced and sold

A channel leader is also called a(n):

channel captain

Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates that Honda is a:

channel captain

Johns Manville is the only manufacturer to offer a complete line of formaldehyde-free fiberglass building insulation, which offers superior energy efficiency in hard-to-reach cathedral ceilings and flat roof cavities; plus it is an excellent sound control for interior floors. As the only manufacturer and patent holder of this revolutionary insulation, Johns Manville has great power over its dealers. It is an example of a:

channel captain

A situation that occurs when one marketing channel member intentionally affects another member's behavior is called:

channel control (one channel member actually affects another)

DeBeers sells most of the diamonds it produces to industry. The company controls over 90 percent of the market and has great power over its distributors. In its marketing channel, DeBeers would be considered a:

channel leader

The capacity of a particular marketing channel member to control or influence the behavior of other channel members is known as:

channel power

Wal-Mart is the largest retailer in the world, and many consumer packaged-goods manufacturers like Kraft have offices in Bentonville, Arkansas, where Wal-Mart is headquartered. Wal-Mart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers. Wal-Mart possesses:

channel power

Discount stores:

compete on the basis of low prices, high turnover, and high volume

All of the following are recommended promotional strategies for services EXCEPT:

concentrating on franchising (franchising is a distribution decision)

Some countries, such as the Peoples Republic of China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. These types of equity agreements also require the establishment of a(n) _____ channel relationship.

cooperative

In 1935, Howard Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise. Their idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee. In terms of the type of channel relationships established, this nonequity agreement would require a _____ relationship.

cooperative (include non equity agreements such as franchising and licensing as well as equity-based joint ventures and strategic alliance)

TeamBuilds is a service organization that has corporate teams pay $7,500 for an all-day team-building session with a management consultant while they work together on renovating a Habitat for Humanity home. TeamBuilds' _____ service is improved work team relationships.

core

Western Union is in the business of providing a medium for international money transfers. Through the services of Western Union, a Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. The wire transfer of funds is the _____ service the company provides.

core

The most basic benefit the consumer is buying in a service is referred to as the:

core service

All of the following are key characteristics distinguishing the pricing decisions of nonprofit organizations from those of the profit sector EXCEPT:

cost allocation

Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even though he has an incision, he really has no way of knowing if the service was actually performed even after it was allegedly performed. That is because medical services such as this exhibit _____ qualities.

credence

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as _____ quality.

credence (medical and consulting services)

All of the following are keys factor in the distribution strategy for services EXCEPT:

customization

The first task of developing a retail strategy is to:

define the target market

Housing several departments under one roof, a _____ carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.

department store

Centigon is a manufacturer of customized armored vehicles for military, private, presidential, and commercial uses. Each armored vehicle is designed to deliver security on the road while also achieving optimum levels of performance and comfort. For distribution, you would expect Centigon to use a:

direct channel

One configuration of a marketing channel entails producers selling to consumers with no intermediaries involved. This is called a:

direct channel

The only way that Jim Keeler in New Mexico can get a box of Carolyn Popwell's Festive Holiday Truffles from Washington is to order it through the mail. Popwell, who makes the candy by hand, uses a(n) _____ exclusively.

direct channel

Vutek manufactures printing machines used to print high-resolution graphics for billboards, bus cards, banners, and posters. For distribution, you would expect Vutek to use a:

direct channel (typical in business and industrial markets)

Marketers can precisely target their customers according to demographics, geographics, and psychographics with:

direct mail

Susan Adams makes children's clothing. She is also the sales representatives and sets up parties and fashion shows at homes of mothers to demonstrate the quality and value of her clothing. Susan is using:

direct retailing

The manufacturer of Cutco knives uses students as salespeople. The salespeople go into customers' homes and demonstrate the product, and the sales transactions usually occur in a home setting. This form of nonstore retailing is called:

direct retailing

Certified Grocers Midwest, Inc., the Chicago-based grocery wholesale cooperative, provides all kinds of meats, cereals, canned and fresh fruits and vegetables, beauty aids, healthcare items, and pet products to the supermarkets in its channel. Certified Grocers is aiding consumers by overcoming:

discrepancy of assortment

McKesson Wholesalers provides healthcare products to pharmacies. It purchases bandages, gauze, antibacterial cream, and ointments from a variety of different manufacturers and resells them to pharmacies so that many of the items a customer might need for a cut will be available in the store. McKesson is aiding consumers by overcoming a:

discrepancy of assortment

Kraft Foods produces millions of packages of Chips Ahoy cookies each year, but consumers only want to purchase one package at a time. This difference between the amount Kraft produces and the amount a consumer wants to buy is referred to as a:

discrepancy of quantity

After years of expansion, Starbucks recently closed 600 of its poorer performing stores. Many of the stores closed were near other Starbucks locations. In those areas, management felt that the company had too many outlets, which was boosting the company's cost unnecessarily. Decisions concerning the number of outlets are a part of the _____ strategy of service organizations.

distribution (convenience, number of outlets, direct vs indirect distribution, location, and scheduling

Jones Soda is positioned as the anti-Coke. In the early years, few mainstream retailers sold Jones Soda. Fans had to get their Jones fix in surf shops, tattoo parlors, and bookstores, adding to the brand's mystique. Jones Soda used its _____ to create a competitive advantage.

distribution channel

Agents and brokers:

do not take title to merchandise

Horizontal channel conflict occurs most often when manufacturers practice:

dual or multiple distribution (more than one channel is used to handle the same product)

When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT:

employee density

Interactivity is one of the new developments in retailing. In retailing, interactivity refers to:

entertainment for customers to get them involved

Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. There are approximately 50 Caterpillar dealers in the United States--one in each state. From this information, you can surmise that Caterpillar uses _____ distribution.

exclusive

84. When JCPenney announced it would open a 97,000-plus square foot anchor store in the new West Grand Promenade, it meant that JCPenney would be:

expected to create heavy foot traffic for the center

"Girls Just Wanna Have Funds" is a Washington, DC, support group that consists mostly of young women who offer tips on budgeting and debt relief. Since you cannot evaluate the quality of the financial advice until after you have received it, this is an example of the _____ characteristic of service.

experience quality

David and Kathy are trying to decide where to go on vacation. David has suggested a cruise. Since neither of them have been on a cruise before, they will be unable to assess the _____ of a cruise until they actually take the vacation.

experience quality

A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.

factory outlet

Well-known manufacturers such as Bose, Ralph Lauren, and Reebok have decided that the most profitable way to dispose of out-of-season and irregular stock is to open stores and sell their own merchandise. These stores are types of:

factory outlets

Relationship marketing programs that are based on _____ bonds have the strongest potential for sustaining long-term relationships with customers.

financial, social, and structural

A(n) _____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business.

franchise

Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS business systems. Rick's shipping store is a:

franchise

The party in a franchise relationship that is an individual or business granted the right to sell another party's product is called the:

franchisee

Maggie Moo's has decided that consumers will drive out of their way for the store's yummy ice cream offerings. The owner needs to keep his overhead costs (such as rent) low and wants to avoid locating near competitors. For a location, Maggie Moo's should open in a:

freestanding store

Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.

freestanding stores

The model of service quality that identifies five gaps that can cause problems in service delivery and influence customer evaluations of service quality is referred to as the _____ model.

gap

Starbucks management has been trying to refocus on the things that made the company so successful. For example, Starbucks stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure you can smell the fresh ground coffee aroma when you enter the store. However, when questioned, consumers tend to focus on the need for pricing incentives such as a frequent purchasing program. According to the _____, there may be a gap between what customers want and what Starbucks management thinks customers want.

gap model of service quality

Another name for an anchor store is a:

generator store

The predominant form of nonprofit organization in the United States is:

government

It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can't handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of sellers. These eBay sellers are engaging in:

gray marketing

Many large champagne sellers do their own importing and desire to maintain independent price points in different markets. Thus, a bottle of champagne might cost $45 in the United States, while the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants who do so would be engaging in:

gray marketing

Banana Republic stores are usually built in shopping centers, but in a few cities the company has chosen to build a stand-alone store. Its freestanding store entices customers to shop because it:

has greater visibility to customers than it would in a shopping center

A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of:

heterogeneity

As a general rule of thumb, a retailer that has a high gross margin will have:

high prices

Channel conflict that occurs among channel members on the same level is known as:

horizontal conflict

Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Walmart in addition to the exclusive dealerships it had established. The conflict that occurred at the retail level is an example of:

horizontal conflict

Paul operates Kayak.com, a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission for most customers who click through to their sites. Paul wants his users to have as short and sweet an experience on Kayak as possible. Time is of the essence in responding to any customer question, especially in this day where airfare can increase dramatically in just a couple of hours. Paul is devoted to:

improving service delivery

Around the world, most retailers are _____, operating one or a few stores in their community, owned by a single person or partnership and not operated as part of a larger retail institution.

independent

Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as home decor objects. She is the sole owner of the store, so in terms of ownership, her store would be classified as a(n):

independent retailer

Small neighborhood florists, shoe stores, and ethnic food markets are most likely to be:

independent retailers

All of the following are typical channel members in marketing channels for consumer products EXCEPT:

industrial distributors

Companies selling standardized items of moderate or low value to other businesses (not to consumers) often use:

industrial distributors (kind of like a supermarket for organizations)

Management-labor mediation, child care, and college preparation classes are all services that are produced and consumed at the same time. All of these services exhibit the service characteristic of:

inseparability

It is difficult for most of us to talk about mistakes we have made. Unfortunately, for organizations like Consumer Credit Counseling to help you work through your financial issues, you must be willing to honestly discuss your financial condition. In other words, for these organizations to help, you must be actually involved in the process of developing your financial plan, which points to the _____ nature of services.

inseparability (when services or goods are produced and consumed at the same time)

A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed and, therefore, is referred to as being:

intangible

One of the earliest, largest, and most famous examples of vertical integration was the Carnegie Steel Company. The company controlled not only the mills where the steel was manufactured but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, and the railroads that transported the coal to the factory. Carnegie Steel had a(n) _____ channel relationship.

integrated (one company, or several companies act as one and performs all channel functions)

Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is a an example of a(n) _____ distribution strategy.

intensive (used for many convenience goods and need to be available every where where the potential customer might want to buy them)

At the American Girl store in Chicago, dolls can be purchased and girls can then go to the American Girl Cafe or American Girl Theatre and even have birthday parties. This is an example of using:

interactivity

Build-a-Bear is a retailer where children can design and assemble a stuffed animal from shelves full of parts. Each child starts by choosing an animal. Then, the child moves to a place where the stuffing is added. Finally, the child moves to the area where the last accessories are added. Build-a-Bear is part of a recent trend in retailing referred to as:

interactivity

Treating employees as customers and developing systems and benefits that satisfy their needs is known as _____ marketing.

internal

Channel conflict:

is often caused by an inability of some channel members to keep up with the changing times

The merchandise mix:

is the retailer's product offering

Retail establishments are generally classified according to all of the following EXCEPT:

level of sales

The newest generation of shopping centers is:

lifestyle centers

Serenity is a manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Serenity's sales remain steady all year because it sells to wholesale distributors that stock the product. Serenity sells to wholesale distributors that perform _____ functions for the manufacturer.

logistical

Many technologically advanced retailers are using a technique called _____ to analyze the huge amounts of data collected through their point-of-purchase scanning equipment that will enable them to better meet the needs of customers.

market-basket analysis

A _____ is a business structure of interdependent organizations that reaches from the point of product origin to the consumer.

marketing channel or channel of distribution

Kayak.com is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the Web. Kayak does not make bookings but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission when customers click through to their sites. Kayak.com, travelers, the airlines, and the hotels are all part of a:

marketing channel or channel of distribution

The ability of customers to go online to design their own dining room table or sofa at Norwalkfurniture.com is an example of:

mass customization

The catalog and online retailer Lands' End offers custom-fit chinos via the Web. For a price of $54, U.S.-based customers can select their style and fit preferences, enter details about their body shape, and receive a pair of custom-made pants in their mailbox two to four weeks later. For Lands' End, this means that the company avoids stocking up to 2.8 billion different styles and sizes of garments. Instead, Lands' End orders each unit to be individually fashioned by a contract manufacturer that ships directly to the consumer. Lands' End is using:

mass customization

Kmart utilizes a strategy of moderate to low prices on large quantities of products and lower levels of service to stimulate a high turnover of inventory. Kmart offers a wide variety of different product lines. Kmart is an example of a:

mass merchandiser

The buyer who heads a department in a department store is responsible for the:

merchandise mix in that department

A(n) _____ is an institution that buys goods from manufacturers, takes title to these goods, and resells them to businesses, government agencies, and/or other wholesalers or retailers.

merchant wholesaler

Long Island Lefty provides retailers and other businesses with the latest and the best products for left-handed consumers. It buys all types of products from a variety of manufacturers and stores the merchandise in its New York warehouse until purchased by buyers. Long Island Lefty does not sell to end users and is an example of a(n):

merchant wholesaler

W.W. Grainger, Inc., is one of the world's largest business-to-business distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n):

merchant wholesaler

You are responsible for physical distribution of your company's service and should focus on:

minimizing wait times, managing service capacity, and providing delivery through distribution channels

One of the new developments in retailing is m-commerce. The "m" in m-commerce stands for:

mobile

Customers can purchase Hewlett-Packard computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. HP is using a(n) _____ distribution arrangement.

multiple

In many nonprofit situations, the consumer is not charged a tangible price yet must absorb time costs, embarrassment costs, or effort costs. These costs are called the organization's:

nonfinancial prices

A _____ seeks to achieve some goal other than the usual business goals of profit, market share, or return on investment.

nonprofit organization

Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to low-income home buyers. The organization relies on volunteers to provide the labor and funding for its renovations. Habitat for Humanity is best described as a(n):

nonprofit organization

People for the Ethical Treatment of Animals (PETA) is the largest animal rights organization in the world. PETA works for better treatment of animals instead of achieving profits, market share, or return on investment. PETA is an example of a:

nonprofit organization

A publisher of books on holiday decorating, cooking, and crafts has to find a way to dispose of its overruns and unsold end-of-season output. As a marketing consultant, you suggest the firm sell the merchandise to:

off-price discount retailers

The Cedar Store carries a full line of cedar swings, gliders, garden benches, and tables. All of its products can be purchased through its Web site. The site has done well since the Cedar Store's products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:

online retailing

Geyser Falls Water Park charges less for weekday admission than it does for weekend attendance. It also has a lower ticket price for patrons who arrive at 4 P.M. Because it is focusing on coordinating supply and demand by varying prices, it is using a(n) _____ pricing objective for service firms.

operations-oriented

Amy received a phone call last night during supper. The caller wanted her to attend a meeting to learn about timeshares. Since Amy had never thought of purchasing this type of product before she received the call, this is obviously an example of _____ telemarketing.

outbound (unsolicited selling)

Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers.

outbound; inbound

A focus on maximizing the number of customers using a service is a(n) _____ pricing objective for service firms.

patronage-oriented

Most movie theaters offer discount ticket prices to students and senior citizens. This illustrates the _____ pricing objective.

patronage-oriented

Don at North Jersey Car & Limo knows that he is in the _____ processing business. As a result, he tries to get to know his clients and their interests.

people

David and Kathy like to take their young son, Chaz, to Moe's for lunch after church on Sundays. While they like to eat at Moe's at any time, Sunday is particularly good because it's "kids-eat-free" day at Moe's southwestern grill. Until Moe's began the reduced pricing program, Sundays were very slow. Now it is one of the busiest days of the week. This price reduction was a way to contend with the service characteristic of:

perishability

Due to service _____, services cannot be stored, warehoused, or inventoried.

perishability

Sir Paul McCartney and Alicia Silverstone are two of the many celebrities serving as spokespeople for the animal rights group People for the Ethical Treatment of Animals (PETA). Both are committed to vegetarianism. In terms of promotion strategy, they will be considered a(n) _____ information source.

personal

Transactional channel functions include all of the following activities EXCEPT:

physical distribution and sorting

The Halloween Super Store is only open from September until November, usually in an otherwise vacant store. This is an example of a:

pop-up shop

Distribution channels aid in overcoming barriers to exchange that are created in the production process by overcoming all of the following types of discrepancies EXCEPT:

possession

All of the following are sorting activities EXCEPT:

possession (assorting, accumulation, sorting out, allocation)

Retailers control the six Ps of the retailing mix. The six Ps include the marketing mix plus:

presentation and personnel

All of the following are factors in creating a store's atmosphere EXCEPT:

price

The level of relationship marketing that is least likely to be effective in the long term because its advantage is easily imitated by other firms is based on:

pricing incentives

In a nonprofit organization, _____ are often concerned with partially or fully defraying costs rather than achieving a profit.

pricing objectives

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about its lack of financial, managerial, and marketing resources to support the product's introduction, then its choice of channels will largely be influenced by:

producer factors

A retailer in Winnsboro, Louisiana, is licensed to sell John Deere tractors. This retailer is a:

product and trade name franchisee

Chattanooga Bottling Company is licensed to bottle Coke products. The Chattanooga Bottling Company is an example of a:

product and trade name franchisee

A retail store can be classified according to its:

product assortment

Generally, _____ determine what type of intermediary a manufacturer should use:

product characteristics, buyer consideration, and market characteristics

Canesta Company has developed a virtual keyboard out of light to be used with cell phones and PDAs. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. If, in choosing its channel, Canesta is most concerned about the life cycle of the device, then its choice of channels will largely be influenced by:

product factors

All of the following are types of service processing that can occur EXCEPT:

product processing (4 categories: people processing, possession, processing, mental stimulus processing, and information processing)

One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment:

production and consumption are simultaneous (services are produced and consumed at the same time)

Throughout the United States, dancers are joining hands, arms, and legs to present a Virtual Kickline Performance as a sign of their unified support for National Dance Week (NDW) and its mission statement. The purpose of NDW is to educate the American public on the cultural contributions of dance to our society and raise public awareness to the benefits of dance in our culture. This Virtual Kickline Performance is an example of a _____ strategy.

promotion

The Monroe Job Training for the Disabled program wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, you plan to visit several local radio and televisions stations to request:

public service advertising

A discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy.

quantity

Because many services involve a process of continuous interaction between the service organization and the customer, _____ marketing is an important strategy.

relationship

One of the main responsibilities of sport marketers is to keep their loyal customers as heavy users and escalate lower-level users into loyal customers. An effective tool for accomplishing this goal would be _____ marketing.

relationship

Retailers such as Target and JCPenney are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their:

retailing mixes

The three categories of pricing objectives for services are:

revenue-, operations-, and patronage oriented

A focus on maximizing the surplus of income over costs is a(n) _____ pricing objective for service firms.

revenue-oriented

Determining costs can be extremely difficult for a service provider who has adopted a(n) _____ pricing objective and may limit the usefulness of the objective.

revenue-oriented

Marketing channels perform all of the following logistical activities EXCEPT:

risk taking

Safeway, Avanza (for the Hispanic market), Publix, and other supermarket chains offer a variety of nontraditional goods and services such as video rental, flower shops, dry cleaning, and banking. This practice is called:

scrambled merchandising

When supermarkets offer a wide variety of nontraditional goods and services under one roof, they are engaged in:

scrambled merchandising

A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of a mattress or the color of curtains.

search quality

All of the following are unique characteristics that distinguish services from goods EXCEPT:

searchable

"Girls Just Wanna Have Funds" is a Washington, DC, support group that consists mostly of young women who offer tips on budgeting and debt relief. As they state on their Web site, their goal is to help women break financial ceilings "one stiletto at a time." Girls Just Wanna Have Funds is providing a _____ that is helpful to women who want to be financially savvy.

service

PayPal allows you to pay for items that you buy at online sites such as eBay without exposing your credit card or bank account number. To use PayPal, you simply select "PayPal" when checking out at the online store and then allow PayPal to pay directly from a credit card or from your PayPal balance or linked bank account. PayPal would be classified as a:

service

One of the new developments in retailing is m-commerce. M-commerce refers to the ability to:

shop using wireless mobile devices

The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n):

shop-at-home network

A management consulting business stays in touch with its business customers through phone calls and greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys. This is an example of relationship marketing based on:

social bonds (includes staying in touch with customers, learning about their needs, and designing services to meet those needs)

Marketing channels make distribution simpler by reducing the number of transactions required to get products from manufacturers to consumers. This is called:

sorting

The difference between the location of a producer and the location of widely scattered markets represents a(n) _____ discrepancy.

spatial

YKK slide fasteners (zippers) are made in Macon, Georgia, yet manufactures all over the world use zippers to manufacture, clothes, luggage, shoes, and other items. Wholesalers around the world primarily help to overcome a(n) _____ discrepancy.

spatial

Marketing channels can achieve economies of scale through:

specialization and division of labor (breaking down a complex ask into smaller simpler ones)

Glen's Safety First! sells a huge assortment of firefighting equipment at greatly reduced prices. It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks. Glen's Safety First! is an example of a:

specialty discount store

Texas-based Grape Vine Market is an 18,000-square-foot store offering highly collectible food and wine—along with some other culinary perks, including a cooking school—all in a setting crafted to make shoppers feel comfortable. It stocks more than 5,500 different kinds of wine. Grape Vine Market is best described as a:

specialty store

When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. Delphi-Grundig should consider a(n):

strategic channel alliance

Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service. In this example, _____ are developed by offering value-added services that are not readily available from other hotel chains.

structural bonds

Building value-added services that are not readily available from other firms into the delivery system defines relationship marketing based on the creation of:

structural bonds (includes financial and social bonds from previous levels but adds value-added services

A common practice among most retailers that seeks to broaden customers' original purchases with related items is called:

suggestion selling

Whenever a customer opens an account at First Southern National Bank, a teller or account representative asks the customer whether he or she needs a CD, online banking, or other services. In other words, the account representative engages in:

suggestion selling

A retail operation that has a 90,000-square-foot facility and houses a florist, baker, bank, craft shop, photo finisher, dry cleaner, and pharmacy under the same roof as grocery and household items would be called a:

supercenter

Giant Eagle is a chain of retail outlets in Ohio, West Virginia, Maryland, and Pennsylvania that are described as large, departmentalized, self-service stores that specialize in food and limited nonfood items. Giant Eagle stores are:

supermarkets

Western Union is in the business of providing a medium for international money transfers. Through the services of Western Union, a Mexican working in the United States can transfer a portion of his or her earnings to family members still living in Mexico. The company is now planning to move into areas traditionally handled by banks, such as offering its customers checking accounts and loans. If it does follow through and provide these additional services, Western Union will exemplify _____ services.

supplementary

A group of services that support or enhance the core service is called:

supplementary services

Retailers and merchant wholesalers are examples of intermediaries that:

take title to a product

The major characteristic that is used to differentiate among types of intermediaries is whether they:

take title to the products they sell

When an intermediary in the channel of distribution owns the merchandise and controls the terms of the sale, this is referred to as:

taking title

A(n) _____ discrepancy is created when a product is produced but a consumer is not ready to purchase it.

temporal

Cutter & Buck is a high-end fashion sportswear company. Even though swimwear is a product category that does not sell year-round, its sales remain steady all year because Cutter & Buck sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome a(n) _____ discrepancy.

temporal

Vicobello is a major manufacturer of outdoor fountains that are popular in gardens. Even though fountains represent a product category that does not sell year-round due to inclement weather, Vicobello's sales remain steady all year because it sells to wholesale distributors that stock the product. Its wholesale distributors are primarily helping to overcome a(n) _____ discrepancy.

temporal

Pop-up shops are:

temporary retail establishments

Gifts in Kind International is a nonprofit organization that gathers new and used merchandise and distributes it to charities nationwide. Traditional promotional tools may be inadequate to motivate its target markets because of:

the absence of consumer involvement

If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. The two-week gap would illustrate a gap between:

the service customers receive and the service they want

To improve its friendliness, the First National Bank hired Joy Taylor as a greeter. Joy's job is to sit at a desk near the front lobby and greet customers as they enter with a warm, friendly smile along with a "Good Morning" or "Good Afternoon." Unfortunately, Joy is also required to answer the bank's main telephone line. Since she spends most of her day on the telephone, Joy rarely gets to flash her smile or greet anyone who is entering the bank. In fact, Joy is on the phone so much that she doesn't really even seem friendly. This is an example of a gap between:

the service quality specifications and the service that is actually provided

Specialty stores such as Best Buy, Babies "R" Us, and Bed, Bath, and Beyond are often called category killers because:

they can destroy the profit potential for a category of merchandise for other retailers

When Irvin went into Lowe's to buy his wife a small tool set she said she wanted, the sales clerk suggested a larger set with a tool kit on wheels that included a router and circular saw. In this example, the sales clerk engaged in:

trading up

Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as:

trading up (persuading)

The three basic functions channel intermediaries perform are:

transactional, logistical, and facilitating

All of the following are service components customers use to evaluate service quality EXCEPT:

validity (5 components: reliability, responsiveness, assurance, empathy, and tangibles)

Polo brand apparel can be purchased through fine department stores nationwide. However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____ conflict in the channel of distribution.

vertical (different levels of a market)

Channel conflict that occurs between different levels in a marketing channel is referred to as:

vertical conflict (typically occurs between the manufacturer and wholesaler or between the manufacturer and the retailer)

Laura buys supplies for her catering business at a retailer that stocks a limited selection of items, which are sold in bulk on a cash-and-carry basis to members only. As she browses through the huge store, she buys flour, a set of muffin pans, and a package of paper towels as well as an assortment of fresh produce. Laura is most likely shopping at a(n):

warehouse membership club

First Community Bank spent a considerable amount of money updating its lobby with plush sofas, a large-screen television, and a refreshment counter with popcorn and soft drinks. However, very few customers spend time in the lobby. In fact, most customers want to be in and out of the bank, with their financial transaction completed as quickly as possible. The gap model of service quality would suggest that a gap exists between:

what customers want and what management thinks customers want

Purchasing your clothes online can be fun, allowing you to shop from companies around the world without leaving your home. You can also often get great prices on the items you purchase. However, you could get stuck with a product that doesn't look nearly as nice in reality as it does on your computer screen. Lands' End takes this concern away with its "Guaranteed Period" promise. Lands' End will happily return your purchase price on any item you purchase for any reason. If Lands' End ever failed to follow through with this promise, it would represent a gap between:

what the company tells the customer it provides and what is actually provided