MKTG test 3

Costs that change directly with the level of production are referred to as ________ costs a) fixed b) variable c) target d) capital e) payroll

b

Producers of convenience products typically use ______ distribution. a) franchise b) direct c) intensive d) selective e) exclusive

c

Which advertising objective is used heavily when introducing a new product category? a) Reminder b) Attack c) Informative d) Comparative e) Persuasive

c

_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. a) Showrooming b) Internal marketing c) Shopper marketing d) Retailing e) Warehousing

c

A ________ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members. a) direct marketing system b) horizontal distribution channel c) lateral marketing system d) conventional distribution channel e) vertical marketing system

e

What is the most common type of a contractual VMS? a) A retailer b) A wholesaler c) A supplier d) A channel intermediary e) A franchise

e

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. a) fixed b) variable c) target d) capital e) payroll

b

Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing. a) product line b) captive-product c) two-part pricing d) product-bundle e) by-product

b

In which of the following situations is a producer guaranteed full control over product sales? a) a corporate marketing channel b) a direct marketing channel c) a contractual distribution channel d) a horizontal marketing system e) an administered marketing system

b

Consumers rely less on price to judge the quality of a product when they ________. a) lack information about the product b) are unable to research the product c) have prior experience with the product d) are unable to judge the quality of the product e) rely on cues from sellers to differentiate a high or low price

c

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? a) geofencing b) advertainment c) product placement d) vertical integration e) subliminal advertising

c

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. a) department store b) supermarket c) specialty store d) discount store e) off-price retailer

c

The French Purse Company, a purse retailer, offers a deep assortment of ladies' purses. The French Purse Company is best described as a(n) ________. a) department store b) supermarket c) specialty stored) discount store e) off-price retailer

c

The length of a channel is indicated by ___________. a) the number of wholesalers in the channel b) the number of final consumers c) the number of intermediary levels d) the number of retailers in the channel e) the number of producers

c

The local movie theater has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. a) time-based b) location-based c) customer-segment d) by-product e) product form

c

What are the two major elements in developing advertising strategy?a) Determining the advertising budget and evaluating results b) Determining the target audience and selecting advertising media c) Creating advertising messages and selecting advertising media d) Creating advertising messages and selecting advertising agencies e) Creating advertising messages and setting the advertising budget

c

Which of the following is an example of horizontal channel conflict?a) A consumer complaining to a retailer about the service he received. b) A retailer complaining about receiving damaged goods from a wholesaler. c) A Ford dealer complaining that another Ford dealer is advertising in its territory. d) A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a producer's pricing.

c

Which of the following is an impact of the Great Recession on retailing trends? a) economic shift toward higher prices b) lower costs for retailers c) tighter consumer spending patterns d) longer retail life cycles e) prohibition on new retail forms

c

Which of the following sets the upper limit for a product's pricing? a) profits b) product costs c) consumer perceptions of valued) elements of the product mix e) competition

c

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. a) corporate vertical marketing system b) contractual vertical marketing system c) direct marketing system d) horizontal marketing system e) administered vertical marketing system

d

A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. a) marketing channel b) contact c) channel level d) value delivery network e) supply chain

d

One retail trend resulting from economic conditions is ________. a) the rise of megaretailers b) the growth of social media retailing c) pop-up stores d) tighter consumer spending e) green retailing

d

Pretty Petunias, a new fresh flower company, uses the same logo and shade of pink in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Pretty Petunias to promote its business? a) logistics information management b) inventory control segmentation c) niche market penetration d) integrated marketing communications e) global marketing management

d

The _____________ message execution style shows one or more "typical" people using the product in a normal setting. a) lifestyle b) fantasy c) scientific evidence d) slice of life e) mood or image

d

What is the goal of integrated marketing communications? a) To lower overall marketing expenditures b) To have different media carry different messages about a brand c) To integrate communications via online and mobile technologies d) To deliver clear, consistent, and compelling messages about the organization and its brands e) To maximize return on investment

d

Carefully orchestrating the store's layout and displays, background music, colors, and smells is related to ________. a) megaretailing b) online retailing c) green retailing d) social media retailing e) experiential retailing

e

Which of the following is true of an intensive distribution strategy? a) It strives to make products available where and when consumers want them. b) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. c) Compared with other distribution strategies, it provides the best support for dealers of luxury products. d) It discards traditional intermediaries and uses direct marketing to reach customers. e) It gives sole rights to select dealers in a given area.

a

There are more than 15 wheat farmers in Bowling Green, Ohio, that grow, package, and distribute the same quality wheat. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. a) pure competition b) monopolistic competition c) oligopolistic competition d) a pure monopoly e) a black market

a

When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy. a) market-skimming b) by-product c) captive-product d) optional-product e) market-penetration

a

Which of the following statements about public relations is correct?a) The lines between advertising and public relations are becoming more and more blurred. b) Trade associations do not use public relations. c) Public relations is only used to promote products. d) The impact of public relations on public awareness comes at a much higher cost than advertising. e) Public relations cannot be used to engage consumers.

a

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. a) Wholesaling b) Sole sourcing c) Franchising d) Crowdsourcing e) Showrooming

a

________ refers to setting price based on buyers' perception of value rather than on the seller's cost. a) Customer value-based pricing b) Value-added pricing c) Cost d) Cost-based pricing e) Good-value pricing

a

A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of the ________ style of advertising. a) scientific evidence b) testimonial evidence c) technical expertise d) mood or image e) fantasy

b

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use? a) captive-product pricing b) market-penetration pricing c) psychological pricing d) product bundle pricing e) market-skimming pricing

b

According to the text, the most logical budget-setting method in advertising is the ________ method. a) adaptive-control b) objective-and-task c) competitive-parity d) affordable e) percentage-of-sales

b

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? a) direct marketing b) exclusive dealing c) disintermediation d) horizontal integration e) vertical integration

b

Internal factors that affect pricing include ________. a) The company's overall marketing strategy, objectives and the nature of the market b) The company's overall marketing strategy, objectives, and marketing mix c) The company's overall marketing strategy, objectives and demand d) The company's overall marketing strategy, the nature of the market, and demand. e) The nature of the market, demand, and the economy.

b

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered a) convenience stores b) discount stores c) full-service retailers d) designer shops e) specialty stores

b

Macy's carries several product lineslong dashtypically clothing, home furnishings, and household goodslong dashwith each line operating as a separate department managed by specialist buyers or merchandisers. Macy's is best described as a(n) ________. a) superstore b) department store c) discount store d) specialty store e) off-price retailer

b

Maddie's Sneakers, a manufacturer of fine sneakers, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Maddie's Sneakers employ to distribute its products? a) horizontal marketing system b) multichannel distribution system c) administered vertical marketing system d) contractual vertical marketing system e) corporate vertical marketing system

b

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________. a) an indicator of the cost of production b) an indicator of quality c) a type of segmented pricing d) an indicator of geographic pricing e) a limited time offer

b

One major objective associated with a market-penetration pricing strategy is to ________. a) attract buyers willing to pay a higher price b) win a large market share c) skim off small but profitable market segments d) avoid everyday low pricing e) prevent customer dissatisfaction

b

Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. a) vertical conflict b) disintermediation c) franchising d) an administered VMS e) horizontal conflict

b

Owning the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned French sunglasses chain Air Optics into the world's fastest-growing glasses retailer. This is an example of a(n) ________ marketing system. a) contractual vertical b) corporate vertical c) administered vertical d) horizontal e) direct

b

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. a) high-low b) value-added c) target return d) everyday low e) cost-plus

b

When setting channel objectives, companies should state the objectives in terms of ______. a) the length of the channel b) targeted levels of customer service c) exclusive distribution arrangements d) expected profitability e) competitor's objectives

b

Which of the following is a shortcoming of advertising? a) It does not allow dramatization of the brand or company. b) It only provides one-way communication with customers. c) It can be too customized and only attracts small, niche markets. d) It reaches targeted customers too slowly in most cases e) It is the most costly promotion tool for companies.

b

________ advertising would most likely result in attack ads between competitors. a) Reminder b) Comparative c) Personal d) Informative e) Classified

b

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. a) cost-based b) target costing c) value-based d) value-added e) competition-based

c

Act mouthwash has used a ________ style of advertising to convince buyers that Act is better than other brands at fighting bad breath and gingivitis since it uses a special flouride compound that adheres to your teeth. a) testimonial evidence b) technical expertise c) scientific evidence d) mood or image e) fantasy

c

As with other types of marketers, a primary goal in wholesaling is to ________. a) match competitors' strategies b) establish a greater number of locations c) build value-adding customer relationships d) hold prices constant e) maintain the status quo

c

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? a) self-service stores b) convenience stores c) full-service stores d) discount stores e) off-price stores

c

Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing. a) by-product b) two-part pricing c) product lined) product-bundle e) captive-product

d

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. a) intermediation b) disintermediation c) vertical marketing systems d) horizontal marketing systems e) corporate vertical marketing systems

d

Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. a) segmented pricing b) psychological pricing c) cash rebates d) dynamic pricing e) promotional pricing

d

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? a) logistics information management b) inventory control segmentation c) niche market penetration d) integrated marketing communications e) global marketing management

d

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using? a) Breakeven pricing b) Cost-based pricing c) Value added pricing d) Good-value pricing e) High-low pricing

d

The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called _______. a) experiential retailing b) shopper retailing c) off-price retailing d) showrooming. e) mobile retailing

d

What is the overall goal when retailers choose their product assortment? a) Offer products that will appeal to as many segments as possible. b) Offer the same products as their competitors. c) Only choose products that will maximize profits. d) Differentiate the retailer while matching target shoppers' expectations. e) Offer as many products as they can fit on the shelves.

d

Which of the following is a reason that producers use marketing channels and channel intermediaries? a) Marketing channel decisions only require a short-term commitment. b) The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. c) Using channel intermediaries increases the number of contacts with customers. d) Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. e) Using marketing channels allows producers to retain control over how and to whom they sell their products.

d

Which of the following statements about major retail trends is true? a) Retail convergence has decreased competition for retailers. b) The green movement has not yet affected retailing. c) The lifecycle of new retail forms is getting longer. d) Online buying is growing at a much brisker pace than retail buying as a whole. e) The global expansion of major retailers into other countries has slowed down.

d

Which of the following statements is true regarding oligopolistic competition? a) Many buyers and sellers trade a uniform commodity. b) The market is dominated by one seller. c) The market consists of many large sellers. d) Each seller is alert and responsive to competitors' pricing strategies and marketing moves e) The market consists of many buyers and sellers trading over a range of prices.

d

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services. a) discount stores b) specialty stores c) factory outlets d) superstores e) off-price outlets

d

________ advertising is utilized most often by mature, well-known brands. a) Attack b) Persuasive c) Informative d) Reminder e) Comparative

d

________ is a short-term incentive to encourage the purchase or sale of a product or service. a) Public relations b) Advertising c) Direct and digital marketing d) Sales promotion e) Personal selling

d

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. a) Warehousing b) Manufacturing c) Shopper marketing d) Retailing e) Wholesaling

d

Scott and his fiancé visit several electronics stores in and around their hometown of Boston. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. a) warehousing b) wholesaling c) retailing d) franchising e) showrooming

e

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________. a) contractual VMS b) administered VMS c) vertical marketing system d) conventional distribution channel e) corporate VMS

e

Techgear, a sportswear equipment manufacturer, releases a new line of nutrition drinks called NutriJuice. The television ad for the drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink NutriJuice, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the NutriJuice ad? a) scientific evidence b) technical expertise c) personality symbol d) testimonial evidence e) lifestyle

e

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? a) location-based pricing b) market-skimming pricing c) product-form pricing d) time-based pricing e) market-penetration pricing

a

Circuit City Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. a) a. product line b) b. optional-product c) c. by-product d) d. product bundle e) e. captive-product

a

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. a) pure competition b) monopolistic competition c) oligopolistic competition d) a pure monopoly e) a pure monopsony

a

Stores that provide very limited, if any, sales assistance because they carry convenience products which customers need very little, to no, information are called ________ retailers. a) self-service b) full-service c) off-price d) limited-service e) convenience

a

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. a) slice of life b) mood or image c) testimonial evidence d) technical expertise

a

Which type of retailer carries a narrow product line with deep assortments within those lines? a) Specialty stores b) Department stores c) Supermarkets d) Convenience stores e) Superstores

a

In the promotion mix, ________ refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. a) public relations b) advertising c) crowdsourcing d) sales promotion e) personal selling

b

How do firms that use captive-product pricing make up for the low prices of their main products? a) They reduce the cost of the captive products. b) They provide the captive products as freebies. c) They set high markups on the captive products. d) They increase the price of the main products. e) They offer the captive products and main products together at a reasonable price.

c

Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using? a) time-based pricing b) customer-segment pricing c) location-based pricing d) promotional pricing e) product form pricing

c

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? a) Breakeven pricing b) Cost-plus pricing c) Value-added pricing d) High-low pricing e) EDLP pricing

c

Which of the following statements regarding the changing communications landscape is correct? a) Marketers today are shifting their efforts to mass marketing. b) The digital age has had little impact on marketing communications. c) The dominance of television, magazines, newspapers and other traditional mass media is declining. d) More than ever, consumers are relying on marketers for information. e) In terms of communication, today's consumers are less empowered.

c

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. a) manufacturing chain b) distribution center c) marketing intermediary d) value delivery network e) disintermediation system

d

A firm that uses direct marketing would most likely sell its products through ________. a) one marketing intermediary b) big box retailers c) large wholesalers d) multiple intermediaries e) the company Web site

e

Advertising appeals should have three characteristics. These characteristics are: a) to be meaningful, to be distinctive, and to use scientific evidence. b) to be meaningful, to be believable, and to be humorous. c) to be meaningful, to be believable, and to use scientific evidence. d) to be believable, to be distinctive and to be consumer generated. e) to be meaningful, to be believable, and to be distinctive.

e

A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing. a) optional-product b) product-bundle c) captive-product d) by-product e) product line

a

A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. a) channel level b) supply chain c) value delivery network d) contact e) marketing channel

a

For over 10 years, Choppy, a publishing and educational company that produces college textbooks, has been selling its books through off-campus bookstores. Recently, it stopped selling its books through retail stores and set up its own Web site to sell its books. This change in channel organization is called ________. a) disintermediation b) intensive distribution c) brokering d) franchising e) selective distribution

a

Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________. a) service retailers b) specialty stores c) franchises d) non-retailers e) Wholesalers

a

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? a) Administered VMS b) Franchise c) Corporate VMS d) Contractual VMS e) Conventional distribution channel

a

The first generation Samsung watch was introduced for $500. The following year the price was reduced to $450. Samsung uses a ________ strategy to price its tech products. a) market-skimming b) target costing c) deceptive d) market-penetration e) predatory

a

Which of the following correctly describes the retail practice known as high-low pricing? a) High-low pricing means the retailer does not have to run sales on selected items. b) High-low pricing means retailers charge an everyday low price. c) High-low pricing means retailers do not have to use promotions. d) High-low pricing means some products are priced high and others are priced low. e) High-low pricing means charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

e

Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships? a) Public relations b) Advertising c) Personal selling d) Sales promotion e) Direct and digital marketing

e

retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of _________ pricing. a) segmented b) geographical c) optional product d) psychological e) promotional

e