BA 370 EXAM 3 UNGRADED QUIZZES COMBINED
________ refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/ service. Multiple Choice Product familiarity Brand association Brand awareness Marketing recall Cognitive association
Brand awareness
It is important to JoAnne to get value for her money, but she does not want to spend time comparison shopping. JoAnne will likely respond to ________ pricing, but not to ________ pricing. Multiple Choice high/low; EDLP premium; high/low high/low; premium price skimming; high/low EDLP; high/low
EDLP; high/low
Brands that have developed loyal customers have a higher price elasticity of demand.
FALSE
Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system.
FALSE
Consumer goods firms such as Lancôme often use reminder advertising to convince consumers to take action—switch brands, try a new product, or even continue to buy the advertised product.
FALSE
Consumer packaged-goods companies, such as Procter & Gamble, Pepsi, and Kraft, typically seek an exclusive distribution strategy.
FALSE
Convenience for the customer is seldom a factor for manufacturers when choosing a retail partner. Group starts
FALSE
Costs related to supply and costs related to demand are the two primary cost categories.
FALSE
Diane owns a boutique specializing in ball gowns. Sales are stable and Diane feels it is time she had a 20 percent increase in her salary. If Diane takes this increase in compensation, it will decrease the break-even quantity of gowns she needs to sell on a monthly basis.
FALSE
Distribution centers are always operated by distribution specialists.
FALSE
Dollar General and Dollar Tree are examples of full-price discount retailers.
FALSE
For market penetration pricing to work, the product or service must be perceived as breaking new ground in some way.
FALSE
If the marketing communication has piqued the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from "I want it" to "I like it."
FALSE
Integrated marketing communications (IMC) represents the product element of the six Ps.
FALSE
It is best if firms choose one pricing strategy to use for all its products rather than use different methods for pricing.
FALSE
Ken is trying to promote his new, self-published financial guidebook. By directly promoting it to readers in Wall Street Journal, he is using a push strategy.
FALSE
Public service advertising (PSA) represents a form of sales promotion.
FALSE
The primary federal agencies that regulate advertising activities in the United States are the Fed, FEMA, and the FCC.
FALSE
The sender of an integrated marketing communication controls the meaning individual receivers take from the message.
FALSE
The three general objectives of advertising are to select, target, and promote.
FALSE
Top-of-mind awareness is when consumers indicate that they know the brand when the name is presented to them.
FALSE
When businesses support cultural or sporting events, such as the Discover Orange Bowl football game, this is known as cause-related marketing.
FALSE
Which of the following is true of competitive parity? Multiple Choice It assumes the same percentage used in the past, or by competitors, is still appropriate for the firm. It does not take into account new plans (e.g., to introduce a new line of products in the current year). It does not allow firms to exploit the unique opportunities or problems they confront in a market. It assumes communication expenses do not stimulate sales and profit. If all competitors use this method to set communication budgets, their market shares will stay increase over time.
It does not allow firms to exploit the unique opportunities or problems they confront in a market.
___________ are specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time. Multiple Choice Coupons Rebates Contests Sweepstakes Loyalty programs
Loyalty programs
________ channels are used to reach a broad audience; ________ channels are used to reach a narrower segment of consumers. Multiple Choice Niche media; mass media Media mix; media buy Media buy; media mix Mass media; niche media Promotion; institutional
Mass media; niche media
________ refers to the process of evaluating and selecting the ________. Multiple Choice Advertising; media buy Media planning; media mix Promotion planning; advertising mix Media buying; media mix Media mixing; media buy
Media planning; media mix
________ must always be aligned with other elements of a retailer's strategy in order to accurately define the value of the product and a retailer's image. Multiple Choice Mobile commerce Transportation Distribution Price Labeling
Price
________ is a particularly good advertising medium for groceries and fast food. Multiple Choice Television Internet Direct mail Radio Newspaper
Radio
A high/low pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases.
TRUE
An advertisement stating "Buy now: no money down" is a persuasive-type ad.
TRUE
An emotional appeal aims to satisfy consumers' emotional desires rather than their utilitarian needs.
TRUE
Betsy is assessing the effect of her firm's marketing communications. She should remember that the ultimate goal is to drive the receiver to action.
TRUE
Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both.
TRUE
Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer.
TRUE
In the communication process of marketing communications, the marketing department often functions in the role of transmitter.
TRUE
Mobile marketing involves marketing to customers through wireless handheld devices such as cellular telephones.
TRUE
One problem facing advertisers is that consumers screen out messages that are not relevant to them.
TRUE
Puffery is not always illegal in the United States under state and federal law.
TRUE
Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and a consumer's purchase.
TRUE
The manufacturer of Beats by Dr. Dre headphones decides to advertise in the "lifestyles" sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? Multiple Choice The message was decoded incorrectly. The message was not transmitted. The message was not received by its intended audience. The message was encoded incorrectly. The sender was not clearly identified.
The message was not received by its intended audience.
National manufacturers and retailers often pay a service provider to monitor television ads around the country, to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with Multiple Choice competing messages. lack of clarity in the message. a poor choice of medium. a flaw in the medium. an extended feedback loop.
a flaw in the medium.
Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with Multiple Choice competing messages. lack of clarity in the message. a poor choice of medium. an extended feedback loop. a flaw in the medium.
a poor choice of medium.
First Lady Michelle Obama recorded an ad encouraging parents to teach their children good nutrition habits to stem the increase in child obesity. This message is an example of Multiple Choice product-focused advertising. consumer-generated advertising. a public service announcement. reminder advertising. a flighting campaign.
a public service announcement.
For retailers, promotion refers to Multiple Choice supply chain communication. the relationship between price and product. the image a store attempts to maintain through its pricing strategy. both their in-store environment and their media communications. the seasonal discounts offered to move end-of-season items.
both their in-store environment and their media communications.
Retailers need to provide a consistent ________ across all channels. Multiple Choice availability of merchandise selling technique assortment of merchandise brand image shopping experience
brand image
Larry wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, as he knows most people enjoy them. Although he is not sure about specific products, Larry heads directly for a store selling Godiva Chocolates, because he knows this is a high-end brand. Larry can be said to have Multiple Choice brand recall. aided recall. brand preference. brand image.brand awareness.
brand image.brand awareness.
Because PSAs are a special class of advertising, Multiple Choice consumers to listen to them. court approval before they are aired. all advertisers to contribute to them. broadcasters to devote a specific amount of free airtime to them. that they use only the informative or reminder advertising appeals.
broadcasters to devote a specific amount of free airtime to them.
Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and its prices are low. Bertone's is a(n) Multiple Choice warehouse club. extreme-value retailer. off-price retailer. full-line discount retailer. category specialist.
category specialist.
Variable costs change with Multiple Choice changes in fixed costs. changes in cross-price elasticity. changes in target return pricing. changes in the quantity being produced. competitive parity.
changes in the quantity being produced.
Ned is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ned is responsible for ________ in his company. Multiple Choice checking dispatching transporting JIT quick response
checking
Firms using a(n) ________ pricing method set their prices relative to what other firms are charging. Multiple Choice improvement value value-based cost-based competition-based reference-based
competition-based
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______ pricing strategy. Multiple Choice sales orientation target profit target return status quo competitive parity
competitive parity
In general, prices should not be based on costs because: consumers are cost-conscious. producers rarely know what their costs are. Incorrect consumers make their purchase decisions based on perceived value. producers need to avoid creating a cost competitive parity debate. customers are always right.
consumers make their purchase decisions based on perceived value.
Wholesalers sell to all of the following except Multiple Choice businesses. manufacturers. retailers. consumers. industrial users.
consumers.
In integrated marketing communications, encoding involves Multiple Choice converting consumers' ideas into value propositions. differentiating noncommercial speech from commercial speech. converting the decoder into the receiver. interpreting click-through rates. converting the sender's ideas into a message.
converting the sender's ideas into a message.
Many stores now e-mail codes to their customers that can be used on their websites or printed and brought into the store to receive discounts for products purchased. In this instance, the customer is using a ________ to receive the discount. Multiple Choice size discount rebate coupon markdown seasonal discount
coupon
After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to Multiple Choice logistical support. new product development. advertising assessment. determining why they should advertise. creation of the advertisement.
creation of the advertisement.
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of Multiple Choice mutual trust. common goals. a contractual arrangement. credible commitments. open communication.
credible commitments.
In a ________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours. Multiple Choice traditional combination cross-docking vertical horizontal
cross-docking
Traditional demand curve economic theory is used by marketers to understand _______ in the five Cs of pricing. Multiple Choice competitors channel members cost customers company objectives
customers
All of the following are advantages of using a distribution center except Multiple Choice more accurate sales forecasts are possible. retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries. it is easier to avoid running out of stock or having too much stock. use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store. customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has shown that Multiple Choice effective branding requires marketers to encode messages identically for each market. each receiver decodes IMC messages in his or her own way. action is taken before desire and interest are determined. marketers can almost always use the same message for all audiences. messages are decoded in the manner intended by the encoder.
each receiver decodes IMC messages in his or her own way.
When it comes to measuring consumers' price sensitivity, product prices are viewed as either Multiple Choice elastic or inelastic. fixed or variable. complementary or substitutable. necessary or optional. dynamic or rigid.
elastic or inelastic.
The price elasticity of demand for a teeth-whitening kit is −1.5. The market for this product is considered Multiple Choice inelastic. elastic. dynamic. saturated. a prestige market.
elastic.
Baron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to getting the products to the customers. As he chooses retail partners, which of the following is least important in this process? Multiple Choice looking at the channel structure determining where target customers will expect to find this product considering characteristics of channel members encouraging new bicycling enthusiasts considering distribution intensity
encouraging new bicycling enthusiasts
Amber has developed a line of organic lotions and handmade soaps with unique, herb-based scents and a touch of bee balm. She plans to sell these products to the wealthy residents of a nearby resort town. Which level of distribution intensity is probably best for this product? Multiple Choice intensive exclusive selective collective variable
exclusive
Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose ________ distribution intensity. Multiple Choice luxury variable monopolistic intensive exclusive
exclusive
Higher-income consumers visiting ________ feel like they are on a treasure hunt, searching for a bargain. Multiple Choice department stores extreme-value retailers big-box retailers services retailers category specialist stores
extreme-value retailers
The ________ loop allows the receiver to communicate with the sender in the IMC process and thereby informs the sender whether the message was received and decoded properly. Multiple Choice decoding pretesting precoding encoding feedback
feedback
A ________ advertising schedule uses heavy advertising during some periods followed by periods of no advertising. Multiple Choice continuous flighting pulsing penetrating purposeful
flighting
Jordan directs her salespeople to increase the company's share of wallet. Jordan is directing her salespeople to Multiple Choice focus on increasing sales to their best customers. focus on male consumers, and not female consumers. sell more store brands and fewer private-label products. become omnichannel salespeople. retailing elasticity.
focus on increasing sales to their best customers.
The advertising message "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes" suggests that advertising messages need to Multiple Choice emphasize technology. focus on quality. inform consumers about opportunities. focus on solving problems. engage in mild puffery.
focus on solving problems.
An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the ________ for this telecast. Multiple Choice frequency reach gross rating points ROI click-through rate
frequency
Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for ________ data. Multiple Choice parity and affordability sales and promotion attitude change rule-of-thumb frequency and reach
frequency and reach
Kyle is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to Multiple Choice identify the target audience. set the advertising objectives. determine the advertising budget. evaluate and select the media. create the advertisements.
identify the target audience.
How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel? Multiple Choice in use of SKU identification in quantity of items shipped in speed of order fulfillment in quality of tracking mechanisms in use of CRM technology
in quantity of items shipped
Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to Multiple Choice comply with Homeland Security requirements. shift from a general merchandise retailer to a private-label retailer. increase the share of wallet from their best customers. create traffic in their brick-and-mortar stores. reward customer loyalty.
increase the share of wallet from their best customers.
A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent? Multiple Choice horizontal vertical indirect direct simple
indirect
Generally speaking, all advertising messages are designed to Multiple Choice meet the needs of society. inform, persuade, or remind customers. comply with FCC rules combined with FTC antitrust regulations. entertain or apprise. match production scheduling with consumer demand.
inform, persuade, or remind customers.
Price skimming focuses on selling products to ________ and ________ in the consumer adoption process model. Multiple Choice innovators; early adopters early adopters; the early majority the early majority; the late majority the late majority; laggards laggards; innovators
innovators; early adopters
As firms become more sophisticated in their communication efforts, the trend is toward company blogs becoming more Multiple Choice interactive. expensive. company-controlled. consumer-controlled. entertainment-oriented.
interactive.
Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carlos must recognize that each IMC alternative Multiple Choice will stand on its own. is part of the whole. is part of noncommercial free speech. doesn't help communicate value to the consumer. is dictated by the nature of the supply chain.
is part of the whole.
A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy Multiple Choice leads the marketer to being the low-cost seller. is supported by consistent advertising and distribution strategies. challenges consumers to discard their perceptions of value. is consistent with a competitive target return strategy. is measured against the competition.
is supported by consistent advertising and distribution strategies.
One of the limitations associated with break-even analysis is that Multiple Choice it assumes fixed costs are zero. it cannot adjust for high variable costs. it tells marketers only what price is needed to break even. it assumes that there is only one price. it assumes that demand is extremely inelastic.
it assumes that there is only one price.
One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that Multiple Choice few consumers understand a penetration strategy. a price skimming strategy lowers the value for consumers. a price skimming strategy targets all product adopters equally. it is easier to lower prices than to raise them. price skimming is legal while price penetration is not.
it is easier to lower prices than to raise them.
Manufacturers trying to implement a just-in-time delivery system need to start with Multiple Choice routing software. shipping schedules. distribution center design. knowledge of customer demand. intensive distribution.
knowledge of customer demand.
The additional sales that can be attributed to an advertising campaign are known as Multiple Choice payload. impact. lift. the campaign increment. ROI.
lift.
Walmart's "Everyday low prices" selling proposition is effective primarily because it is Multiple Choice unique to the industry. meaningful to the consumer. variable over time. a one-time message. generally unsustainable.
meaningful to the consumer.
Ashley was nervous about making the _________. She knew it was likely to be the largest expense in the advertising budget. Multiple Choice publicity plan media flight plan decision media mix choice media buy monitoring and evaluation plan decision
media buy
Retailers use ________ to communicate with or sell to consumers through wireless handheld devices. Multiple Choice virtual media mobile commerce cooperative advertising share of wallet tactics social media advertising
mobile commerce
Which of the following is being used by a store owner who sends out a text message to all of her preferred customers announcing the arrival of this season's new clothing? Multiple Choice mobile marketing social marketing personal selling sales promotions advertising
mobile marketing
Special in-store displays for magazines and chewing gum are most likely to be effective if located Multiple Choice near the entrance to the store.near the restrooms. along the aisle or wall to the far right of the customer as he or she enters the store. near the checkout counter. in the window at the front of the store.
near the checkout counter.
ulia is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she determines the cost for each product to be promoted. Julia is using the ________ method of establishing an IMC budget. Multiple Choice reach and frequency track and decode objective-and-task rule-of-thumb sender-receiver
objective-and-task
Because of the way ________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store or website. Multiple Choice department stores off-price retailers discount stores services retailers category specialist stores
off-price retailers
When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated? Multiple Choice never, after the first product/service once, for each individual product and service once, by each management team member only when a product is removed from the line when the prior year's budget is exceeded
once, for each individual product and service
A(n) ________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas. Multiple Choice pick ticket warehouse receipt bill of lading certificate of origin RFID tag
pick ticket
Beverage companies often pay movie producers to have their products used and shown in movies. This is an example of product Multiple Choice placement. loyalty. deals. sampling. premiums.
placement.
A major airline sells an aggressively low-priced ticket compared to a new low-fare airline which is trying to enter the market. The major airline may be accused of engaging in the unethical practice of Multiple Choice leader pricing. price skimming. price fixing. predatory pricing. deceptive reference prices.
predatory pricing.
In omnichannel retailing, what visible element must often be adjusted because of competition faced in different channels? Multiple Choice supply chain return policies pricing distribution place
pricing
Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of Multiple Choice providing products at the right time. providing products at the right locations. providing the right quantities. satisfying the service levels supply chain participants expect. minimizing systemwide costs.
providing products at the right time.
What price competitive level would be indicated when the price is usually set according to the laws of supply and demand? Multiple Choice oligopolistic competition monopolistic competition pure competition channel competition monopoly competition
pure competition
Florida Heat Pump Manufacturing Company is offering a free, all-expenses-paid trip to Las Vegas for HVAC dealers that sell at least 20 units this year. Florida Heat Pump is using a ________ promotional strategy. Multiple Choice pull puffery publicity push post-testing
push
Everyday low pricing (EDLP) provides value to consumers by Multiple Choice continually offering items on sale. minimizing the number of options a consumer can evaluate. offering noncumulative quantity discounts. reducing their search costs. creative use of reference pricing.
reducing their search costs.
Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' ________ perceptions. Multiple Choice fixed price reference price seasonal price leader price cost-based price
reference price
Customers interacting with omnichannel retailers most desire a(n) ________ experience. Multiple Choice unique speedy distinctive inexpensive seamless
seamless
The local furniture store will purchase outdoor furniture only during the winter months because the manufacturer offers a better price to the furniture store. This type of pricing tactic is known as a Multiple Choice seasonal discount. cash discount. slotting allowance. customary discount. flexible price.
seasonal discount.
If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ________ distribution. Multiple Choice moderate compromise luxury evolutionary selective
selective
Stores like Home Depot and Costco act as wholesalers when they Multiple Choice take delivery in whole-lot quantities. sell directly to consumers. sell products for distributors. sell to contractors or restaurant owners. compete with each other.
sell to contractors or restaurant owners.
John owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this? Multiple Choice services retailer specialty store category specialist extreme value retailer off-price retailer
services retailer
The most common form of a quantity discount for consumers is a Multiple Choice cash discount. markdown. size discount. coupon. rebate
size discount.
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? Multiple Choice soybeans pens and pencils smartphone service providers men's clothing electrical service to the home
smartphone service providers
When Delta increases its average fares, American Airlines and United often follow with similar increases. This is an example of Multiple Choice competitor orientation. customer orientation. status quo pricing. customer orientation. adding value.
status quo pricing.
Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be Multiple Choice separate identities. strategic partners. supply chain intermediaries. in a corporate vertical marketing system. in an administered vertical marketing system.
strategic partners.
Brett has developed a vitamin-enriched crouton in crazy colors that can be added to children's salads to make them more nutritious and fun. She'd like to ethically advertise the product directly to the children, so she is examining Multiple Choice the complete FCC regulations.the provisions of the Children's Television Act of 1990. the Better Business Bureau's Children's Advertising Review Unit guidelines. the federal GAO regulations on advertising. the Food and Drug Administration guidelines.
the Better Business Bureau's Children's Advertising Review Unit guidelines.
All of the following are considered a major consideration in determining an advertising budget except Multiple Choice the role of advertising in overall promotional objectives. the product life cycle. the nature of the market. the budgeting method used. the nature of the product.
the budgeting method used.
Loren would like to know which, if any, of her firm's IMC efforts are working. She could use all of the following except ________ to provide feedback from her efforts. Multiple Choice sales data complaints compliments coupon redemption rates the channel
the channel
When a manufacturer chooses one or more retailing partners, the overriding consideration must be Multiple Choice if customers can participate in mobile commerce. the retailers' customary distribution intensity. the satisfaction of the retailing partners. the greatest possible customer convenience and satisfaction. the overall cost to the manufacturer.
the greatest possible customer convenience and satisfaction.
Because there are many firms in monopolistic competition markets, Multiple Choice everyone is a price taker. producers do not have to consider the reactions of rival firms. government often encourages consolidation to reduce the number of competitors. price controls may be implemented. the many competitors will focus on product differentiation.
the many competitors will focus on product differentiation.
The right communication channel to use in IMC is Multiple Choice the traditional channel used in that particular retail sector. network advertising, local newspapers, and regional radio stations. the one that will connect to the desired recipients. the one with the best encoding capabilities. the one that maximizes decoding difficulty.
the one that will connect to the desired recipients.
The sender of an IMC message hopes the receivers are Multiple Choice the people for whom the message was originally intended. the people with the most buying power. consumers who are capable of discerning value. consumers who have purchased the firm's products in the past. the market segment with the most gross rating points.
the people for whom the message was originally intended.
The IMC communication process begins with ________, who (which) must be clearly identified. Multiple Choice the integrator the sender the transmitter the communication channel the receiver
the sender
There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept? Multiple Choice the income effect the substitution effect the break-even point the target return effect cross-price elasticity
the substitution effect
One product strategy used by retailers to differentiate themselves from competitors is Multiple Choice the use of private-label brands. discount pricing. removing brand labels from their merchandise offerings. JIT product delivery. offering brand-name merchandise.
the use of private-label brands.
A customer orientation toward pricing implicitly invokes the concept of Multiple Choice knowing the dimensions of the target market. positioning. the income effect. value. profit.
value.
Consider a bakery like Entenmann's: The majority of the ___________ costs are the cost of the ingredients, primarily flour. Multiple Choice fixed incidental prestige inelastic variable
variable
An advertising plan is crucial to an ad campaign because it Multiple Choice is the basis for sales commissions. is required by the accounting department. offers insights into the creative leadership of mass media buyers. will later be used to measure the success or failure of the campaign. stimulates demand for a product category.
will later be used to measure the success or failure of the campaign.
Clark Manufactured Housing Company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from their factory. The company is using a ________ pricing tactic. Multiple Choice uniformed delivered zone cumulative noncumulative horizontal
zone
Off-price retailers specialize in having a consistent line of merchandise available at discount prices.
FALSE
Price is the cash expenditure plus taxes that consumers have to pay for a good or service.
FALSE
Quick response (QR) inventory systems allow retailers to maximize their inventory holdings.
FALSE
Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment.
FALSE
The expression "3/10, n/30" means that a business must pay 3 percent of the total invoice amount in 10 days, with the remainder due in 30 days.
FALSE
The improvement value method and the cost of ownership method are both cost-based pricing methods
FALSE
The larger and more sophisticated the channel member, the more likely that it will use supply chain intermediaries.
FALSE
The three different methods that can help develop pricing strategies are cost based, competitor based, and profit based.
FALSE
When Sony released its PlayStation 4 game console, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy.
FALSE
When a firm has a particular profit goal as its overriding concern, it will use target return pricing to meet the profit objective.
FALSE
The ________ does not apply to end consumers, at which point many forms of price discrimination occur. Multiple Choice Sherman Antitrust Act Federal Trade Commission Act MSRPClayton Act Robinson-Patman Act
Robinson-Patman Act
Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.
TRUE
Cristina sells sports equipment and wants to get customers into her store. She knows from past experience that sales generate customer traffic, particularly when she puts children's baseball equipment on sale. Cristina may consider a leader pricing strategy.
TRUE
In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high.
TRUE
In the four Ps of marketing, place refers to all the activities required to get the right product to the right customer when that customer wants it.
TRUE
Manufacturers might use selective distribution by allowing only a few selected retail customers in a territory to sell its products.
TRUE
Many retailers and some manufacturers use an omnichannel or multichannel strategy in which they sell in more than one channel, (e.g., store, catalog, Internet). Group starts
TRUE
Marketing channel relationships evolve when the parties have common goals.
TRUE
One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized offerings and services for each customer.
TRUE
Radio frequency identification (RFID) tags automatically transmit information about a container's contents or individual products.
TRUE
Rarely is the lowest-price product offering the dominant brand in a given market.
TRUE
Sheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To do this, she will likely use a penetration pricing strategy.
TRUE
Supercenters are large stores (185,000 square feet) that combine a supermarket with a full-line discount store.
TRUE
The key to successful pricing is to match the product with the consumer's perception of value.
TRUE
The vertical marketing system that exhibits the most formalization and control is the corporate vertical marketing system.
TRUE
Today, large retailers dictate to their suppliers what should be made.
TRUE
When a firm is just starting out or entering a new market, it doesn't typically have the option of designing the best marketing channel structure.
TRUE
When a retail store rarely sells deeply discounted or sale products, it is known as "everyday low pricing."
TRUE
When manufacturers such as Avon sell directly to consumers, they perform both production and retailing activities.
TRUE
When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This refers to price elasticity of demand.
TRUE
Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the electric company raised its rates by 10 percent, we would expect a 10 percent decrease in quantity demanded. a 2 percent increase in quantity demanded. a 10 percent increase in quantity demanded. a 2 percent decrease in quantity demanded. a 5 percent decrease in quantity demanded.
a 2 percent decrease in quantity demanded.
A pricing strategy is Multiple Choice a long-term approach to setting prices in a companywide integrated effort. the use of one-time seasonal discounts to reduce inventory. the use of slotting allowances to gain access to distribution channels. a short-term approach to setting prices. associated with competitive threats in the marketplace.
a long-term approach to setting prices in a companywide integrated effort.
Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as Brown Betty Dessert Boutique, but with large, powerful suppliers such as P&G, the control is more balanced between parties. Walmart's various marketing channel relationships offer examples of different forms of a(n) ________ marketing system. Multiple Choice cooperative corporate independent administered vertical conventional horizontal
administered vertical
Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering Multiple Choice as recognized by competitors. as perceived by the consumer. relative to production costs. in relationship to fixed and variable costs. in order to minimize bundling charges.
as perceived by the consumer.
A noncumulative B2B quantity discount is Multiple Choice used to encourage consumers to purchase larger quantities each time they buy. based only on the amount purchased in a single order. considered illegal under the Robinson-Patman Act. used primarily to attract new retail customers. offered only to one-time purchasers.
based only on the amount purchased in a single order.
Flo is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flo needs a(n) Multiple Choice cross-docking exchange. electronic data interchange system. vendor-managed inventory system. vertical conflict reduction system. radio frequency identification system.
electronic data interchange system.
A demand curve is built on the assumption that: income is derived from demand. price remains the same, and fixed costs change. everything but price and demand remains the same. fixed costs change with quantity demanded. the firm does not advertise.
everything but price and demand remains the same.
The ________ occurs when unit cost drops as the quantity sold increases. Multiple Choice slotting allowance benefit price fixing return improvement value effect experience curve effect cumulative bundling benefit
experience curve effect
Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ________ pricing tactic. Multiple Choice leader bundling price lining cumulative quantity discount slotting
leader
It is the responsibility of ________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit. Multiple Choice the Better Business Bureau federal regulators the American Marketing Association marketers themselves industry standards boards
marketers themselves
Felicity had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a Multiple Choice partnering relationship. shared mission statement. common marketing system. corporate vertical marketing system.l inked supply chain.
partnering relationship.
In vendor-managed inventory systems, Multiple Choice corporations send information to retail customers, bypassing wholesalers and retailers. companies send information to cooperatives. customers send information to retailers. sales reps send sales information to the retailer. retailers send sales information to the manufacturer.
retailers send sales information to the manufacturer.
Firms using a _______to set prices believe that increasing sales will help the firm more than will increasing profits. Multiple Choice sales orientation customer orientation competitive parity demand curve competitor orientation
sales orientation
Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy. maximizing profits target profit sales orientation status quo target return
sales orientation
Eddie was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Eddie perceived price as _______ for a good or service, while most consumers recognize price as the _______ made to acquire a good or service. Multiple Choice the money paid; overall sacrifice a variable cost; fixed cost a fixed cost; variable payment the overall sacrifice; monetary payment the break-even amount; total cost
the money paid; overall sacrifice
Although conflict is likely to occur in any marketing channel, it is generally more pronounced when Multiple Choice the supply chain members are geographically too close to each other. manufacturers pressure retailers. retailers pressure manufacturers. the the channel members are independent entities. the economy is booming.
the the channel members are independent entities.
Which of the following statements is true regarding distribution centers? Multiple Choice they enable retailers to carry less merchandise in individual stores. they are more expensive than retail space. they are appropriate for all retailers. they are the quickest way to get all products to retailers. they complicate the process of predicting accurate sales forecasts.
they enable retailers to carry less merchandise in individual stores.
Radio frequency identification tags are Multiple Choice selective distribution designs used to maximize geographic efficiency. electronic discount information tags used to provide reduced prices to select customers. VMI demand scheduling data tags. tiny computer chips that transmit information about a container's contents. information tags used for floor-ready merchandising.
tiny computer chips that transmit information about a container's contents.
Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase ________ costs. Multiple Choice sales force labor transportation promotional advertising new product development
transportation
The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel conflict. Multiple Choice horizontal Independent conventional coercive vertical
vertical
When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in Multiple Choice loss-leader price fixing. bait-and-switch price fixing. horizontal price fixing. vertical price fixing. predatory pricing.
vertical price fixing.
Donna works for a firm that buys products directly from the manufacturer and resells them to retailers, who then sell the products to consumers. Donna works for a Multiple Choice retail distribution center. retail jobber.store representative. wholesaler. manufacturer's representative.
wholesaler.
One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and Multiple Choice earn a cash discount. capitalize on the experience curve effect. will not fall prey to predatory pricing. will be less likely to switch brands. will be able to take advantage of zone pricing benefits.
will be less likely to switch brands.
