BUS 312 Midterm 2 Q's

________ and ________ do not take title to goods, and they perform only a few channel functions. Full-service wholesalers; limited-service wholesalers Brokers; agents Industrial distributors; cash-and-carry wholesalers Cash-and-carry wholesalers; industrial distributors Rack jobbers; off-price retailers

Brokers; Agents

Which of the following questions is most important for product designers to consider while developing a product? Which specific features of the product do customers like most? How does the product appear to buyers? What are the product's technical specifications? How would customers use and benefit from the product? How can the product be packaged to stimulate instant purchase?

How would customers use and benefit from the product?

Which of the following is true of price skimming? It is effective in situations in which competitors are able to undercut prices easily. It can be profitably used when the product's quality and image support its price. It involves underpricing products so that companies make larger sales. It is ineffective in situations in which competitors are unable to enter the market easily. It leads to a situation in which the company makes more, though less profitable, sales.

It can be profitably used when the product's quality and image support its price.

Which of the following statements characterizes the introduction stage of the PLC? There are increased marketing outlays. Profits are nonexistent. The company incurs minimal expenses. The product achieves acceptance by most potential buyers. Promotional expenditures are zero.

Profits are nonexistent.

Why are customers often considered the most important sources of new-product ideas? Customers are close to the market and can pass along information about problems and new-product possibilities. The company can analyze customer questions and complaints to find new products that better solve consumer problems. Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. Customers estimate the minimum and maximum sales to assess the range of risk.

The company can analyze customer questions and complaints to find new products that better solve consumer problems.

Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________. line extension brand extension licensing co-branding cannibalization

brand extension

Sears, Target, and Kroger are examples of ________. voluntary chains retailer cooperatives corporate chains franchise organizations warehouse clubs

corporate chains

Azure Air, an airline company, offers attractive prices to customers with tighter budgets. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. Which of the following best describes Azure Air's pricing method? target profit pricing good-value pricing cost-based pricing break-even pricing penetration pricing

cost-based pricing

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________. trigger-based marketing mass marketing segmented marketing individual marketing concentrated marketing

individual marketing

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________. location-based pricing time-based pricing by-product pricing seasonal pricing captive product pricing

location-based pricing

Fire Up makes fireproof clothing material and licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here? manufacturer-sponsored retailer franchise system manufacturer-sponsored wholesaler franchise system service-firm-sponsored retailer franchise system service-firm-sponsored equity strategic alliance manufacturer-and-service-sponsored joint venture

manufacturer-sponsored wholesaler franchise system

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. occasion segmenting local marketing market diversification market targeting product positioning

market targeting

Companies using target costing ________. first design a new product and then determine its cost tailor their products to be in line with the marketing mix routinely neglect customer value considerations avoid determining an ideal selling price until analyzing test market results start with an ideal selling price and then target costs that will ensure that the price is met.

start with an ideal selling price and then target costs that will ensure that the price is met.

A strategy of exclusive dealing is most likely considered legal if ________. the industry is newly developed both parties have large territories competition is not substantially lessened the dealer agrees to promote the competitor's products the dealer receives a steady source of supply and support

the dealer receives a steady source of supply and support