Exam 3 Review Marketing

Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit). 450,000 units 300,000 units 60 units 750,000 units none of the above

450,000 units

The disadvantages of licensing as a means for US firms to enter foreign markets include: Reduced control over how it's products are produced and marketing in the foreign country An alternative entry strategy may have been more profitable, particularly is the product gains substantial sales After developing an expertise and market for the licensed product, the licensee may break from the licensing arrangement and become a direct competitor with the US-based firm in the foreign market All of the above

All of the above

The key "public" that is targeted by a firm's PR efforts is _____. Customers of the firm The firm's competitors The general public Legislators and politicians All of the above

All of the above

The need to understand the importance of global marketing is based on Many large corporations producing products commonly purchased in the US are headquartered in foreign countries International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets All of the above

All of the above

Which of the following is true concerning the importance of global marketing? The proportion of US goods exported to other countries has doubled in the last 10 years International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets All of the above

All of the above

Which of the following is an advantage of vertical marketing systems? Improved cooperation between channel members Better service to ultimate consumers Reduced conflict in the channel Improved efficiencies and reduced costs All of the above are advantages.

All of the above are advantages.

Memorable advertising messages that are easy to recall and remember should possess which of the following characteristics? They should be "believable" They should be distinctive in that they should stand out from similar messages offered by competitive brands They should be "determinant" in that some unique feature or benefit that is associated with the brand should be emphasized. All of the above are important Only "b and c" above are essential

All of the above are important

Which of the following is the key characteristic of IMC? A unified message is delivered to all stakeholders Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders All of the above are important

All of the above are important

When consumers assign "value" to products and services they take into account which of the following? he price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service All of the above are part of the value equation.

All of the above are part of the value equation.

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that: any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges.

All of the above are possible defenses against price discrimination charges.

The likely consequences of firms choosing to engage in price competition include all of the following except __________. Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences.

All of the above are potential consequences.

The key "publics" that are targeted by a firm's PR efforts include all of the following except _____. Customers of the firm The firm's competitors The general public The firm's employees All of the above are targeted. There are no exceptions.

All of the above are targeted. There are no exceptions.

Which of the following is considered to be joint venturing for penetrating foreign markets? Licensing Contract manufacturing Management contracting Joint ownership All of the above are types of joint ventures

All of the above are types of joint ventures

Which of the following is a key question a firm must address when deciding whether it should "go global?" Can the firm adapt is business model to accommodate differences in global cultures and supply chain structure? Can the firm identify, understand, and effectively respond to differences in consumer preferences and buying behaviors in global markets? Does the firm have the relevant expertise and experience to target global markets? Is the firm capable of managing and responding to the varying legal requirements in global markets? All of the above must be addressed.

All of the above must be addressed.

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? Accumulating Allocating Sorting Assorting

Allocating

The classification scheme for new products is based on: Degree of effort consumers expend in the buying decision process The amount of risk consumers perceive to be attached to product purchase Consumer involvement with the product category Uniqueness of the technology upon which the new products are based Amount of consumer learning or 're-learning' required.

Amount of consumer learning or 're-learning' required.

A retail firm that uses leader pricing is: Engaged in legal, but unethical price gouging. Cutting the regular price on a few items with the hope of attracting customers. Leading the industry in pricing and encouraging its competitors to raise their prices, too. Selling its most popular products at higher prices. Raising the price of its best-selling products.

Cutting the regular price on a few items with the hope of attracting customers.

All of the following are important components of IMC except ___________. A unified message is delivered to all stakeholders. Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders. Emphasis is placed on using cutting-edge digital media.

Emphasis is placed on using cutting-edge digital media.

A small manufacturer of children's clothing wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? A direct channel to consumer, with sales via the internet Selling to wholesalers who, in turn, sell to furniture retailers Employing an agent to handle sales to other intermediaries Selling directly to large scale retailers of custom furniture.

Employing an agent to handle sales to other intermediaries

Noncumulative quantity discounts are primarily offered by a seller in order to: Encourage the buyer to make all of his or her purchases from this seller over an extended period of time. Avoid having to offer promotional allowances. Give preferential treatment to certain customers. Encourage larger individual orders. Comply with the Robinson-Patman Act.

Encourage larger individual orders

The form of F.O.B. pricing in which the seller fundamentally pays all shipping and handling costs is: F.O.B. Mill F.O.B. Desination F.O.B. Point of Origin F.O.B. City Limits F.O.B. Basing Point

F.O.B. Desination

New York Steel Co. is trying to sell high grade stainless steel to a customer located in Denver Colorado. However, extremely high shipping costs make New York Steel's product more expensive to buyers than steel sold by a local producer in Pueblo Colorado. New York Steel should consider using which form of F.O.B pricing? F.O.B. Mill F.O.B. Destination F.O.B. Point of Origin F.O.B. Basing Point F.O.B. Zone

F.O.B. Destination

The form of F.O.B. pricing in which the buyer fundamentally pays all shipping and handling costs is: F.O.B. Mill F.O.B. Desination F.O.B. Point of Origin F.O.B. City Limits F.O.B. Basing Point

F.O.B. Mill

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________. Facilitating agents Physical distributors Logistical agents Distribution agents Vertical integrators

Facilitating agents

The adoption and diffusion of personal computers was initially slow, even given the tremendous relative advantage they offered. The major culprit may have been that computers also scored poorly on 'communicability.' True False

False

The most important source of new product ideas (in terms of sheer number of ideas generated) is from the firm's major competitors. True False

False

The services offered by research firms such as National Family Opinion (NFO) to conduct panel surveys are typically most valuable during the test market stage of new product development. True False

False

The most important reason underlying new product failures is poor execution of their marketing programs. True False

Fasle

Michelin's ads emphasizing keeping one's family safe by selecting the correct tires and American Cancer Society ads aimed at de-marketing cigarettes and other tobacco products are among the better examples of _____________. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Fear appeals

___________ are employed to scare people into buying or not buying and using certain products. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Fear appeals

With respect to the principles of marketing communication, FAB stands for: Function, attitudes, beliefs Function, attributes, beliefs Features, attributes, benefits Function, attributes, benefits Features, attitudes, benefits

Features, attributes, benefits

A salesperson asks: "Is there any reason why we can't process your order and proceed with the shipment next week?" The salesperson is probably using a(n) ___________. Assumptive close Standing room only close Sharp angle close Final objection close

Final objection close

The __________ close should only be used if the seller is confident that the prospective customer understands and agrees with the differentiating values of the salesperson's product. Assumptive close Standing room only close Sharp angle close Final objection close

Final objection close

Which of the following would be the least expensive way to estimate the demand curve for a new product similar to one already produced by competitors? Using buy-response data from a survey A controlled test market in which several prices were tested in a number of test cities A laboratory experiment in which a sample of consumers are asked to respond to a number of test prices. Historical ratios based on sales of similar competitors' products

Historical ratios based on sales of similar competitors' products

The mark-up pricing technique employed by manufacturers to estimate a suggested retail price (MSRP) is: Mark-up based on cost Mark-up based on selling price Forward chain mark-up pricing Backward chain mark-up pricing.

Forward chain mark-up pricing

Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to Specifying "F.O.B. Dallas" in its contracts Uniform delivered pricing Freight absorption pricing Zone pricing None of the above would help Texas Cable Corporation with its problem

Freight absorption pricing

In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States. Uniform delivered Freight-absorption Zone-delivered Market-skimming Market-penetration

Freight-absorption

With respect to assessing advertising effectiveness the number of times consumers comprising a target audience are repeatedly exposed to a given message during a specified period of time is called _______. Reach Frequency Rating Points Delivery Count Repeat Rate

Frequency

_____________ treaties with other world governments are international legal agreements that generally establish terms for a variety of marketing relationships between firms operating in the United States and firms operating in foreign nations. Friendship, Commerce, and Navigation (FCN) International trade International negotiation Global trade Foreign trade

Friendship, Commerce, and Navigation (FCN)

US customers are finally acknowledging that drinking soda may not be good for their health. At the same time governmental, regulatory, and other public interest forces complain continuously about and increasingly threaten the soft drink industry. As a result, the best response by Coca-Cola and other soft drink producers whose revenues are threatened domestically probably is: Modifying promotion programs domestically to counter negative perceptions of soft drinks Significant price decreases to stimulate added demand Further emphasizing sales in global markets to offset declining domestic sales New products that will not have the same negative effects and face less criticism by various publics All of the above should be done

Further emphasizing sales in global markets to offset declining domestic sales

Organizations that operate in more than one country and consequently secure marketing, production, NPD, research and development, financial or supply chain advantages that are not available to firms operating in purely domestic markets are engaged in ________. World-wide marketing International marketing Highly risky ventures Global marketing External marketing

Global marketing

During the ____________ stage of the PLC, advertising objectives shift to communicating brand superiority by promoting the brand's differentiating characteristics relative to competing brands. Introduction Growth Maturity Decline

Growth

Informative messages are generally more appropriate during which stages of the PLC? Introduction and growth Growth and maturity Maturity and decline Introduction and decline

Growth and maturity

Assume that a number of Texas oil refiners decide to work together to uniformly restrict output with the goal of stabilizing declining prices. These firms are likely to be accused of ____________ . Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling

Horizontal price fixing

___________ entails pricing agreements between two or more firms operating at the same supply chain level. Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling

Horizontal price fixing (correct)

The first step in the advertising process is to ___________ . Establish advertising objectives Identify the target audience Determine the advertising budget Execute the advertising strategy Determine advertising strategy

Identify the target audience

The US sugar industry has been protected from excessive foreign competition through America's imposition of __________ on imported sugar from other nations. Import quotas Trade barriers Revenue tariffs Protective tariffs Embargos

Import quotas

When the US places limits on the amounts of certain products that can be imported into this country, they are employing ____________. Import quotas Trade barriers Revenue tariffs Protective tariffs

Import quotas

A ____________ for penetrating international markets by US firms occurs when the US-based firm combines forces with a host firm in the foreign market to produce or market products or services in the host country. Direct exporting Indirect Exporting Direct Investment Joint Venturing Contract manufacturing

Joint Venturing

The new product adopter category described as the most risk averse, with the lowest discretionary income, and most likely to adopt new products only after the product is threatened with obsolescence is the: Innovator category Laggard category Late majority category Early majority category Early adopter category

Laggard category

When the US dollar is devalued relative to, say, the Euro, US goods purchased in foreign counties using the Euro tend to be ___________. More expensive Less expensive Equally priced since prices are set by producers well before exchange rates have changed The valuation of the dollar has no effect on sales of US goods in foreign markets

Less expensive

With __________ a US firm reaches an agreement with another firm in the targeted foreign market. In exchange for a royalty payment or fee, the foreign-based firm acquires the right to use a US firm's manufacturing process, brand or trademark, trade secret or patent, or some other item that delivers differentiating value. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Licensing

The value-pricing technique in which a selling price for industrial products is set by comparing the total life-time costs of the seller's product with a competing reference product is . Cost comparison pricing Life cycle pricing Breakeven pricing ROI pricing Experience curve pricing.

Life cycle pricing

The value-pricing technique in which a selling price for industrial products is set by comparing the total life-time costs of the seller's product with a competing reference product is . Cost comparison pricing Life cycle pricing Breakeven pricing ROI pricing Experience curve pricing.

Life cycle pricing

The typical Mountain Dew ad shows young adults enjoying the refreshing coolness of Mountain Dew while engaging in some fun activity, such as swimming and partying in a mountain lake. The advertising appeal used is __________. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Life style appeals

_________ appeals show the product being used within the context of someone enjoying a specific event or experience. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Life style appeals

Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a a.Manufacturers' agent b.Drop shipper c.Truck distributor d.Rack jobber e.Limited line (specialty) wholesaler

Limited line (specialty) wholesaler

Which of the following is false concerning the importance of global marketing? Most large international firms are headquartered in the US The proportion of US goods exported to other countries has doubled in the last 10 years International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets

Most large international firms are headquartered in the US

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy. Cost-plus Market-skimming Market-absorption Marginal cost Market-penetration

Market-skimming

The number of different product lines carried by a retailer is its ________ . Product mix Merchandise mix Product line breadth Merchandise breadth Portfolio width

Merchandise breadth

Teresa Wilson works for Whitman Pharmaceutical Co. Teresa provide service support to pharmacies, hospitals, and physicians, but does not actively become involved in making sales. Teresa is compensated via salary. Teresa is a(n) _________. Inside order takers Order getters Outside order takers Missionary salespersons Retail clerk

Missionary salespersons

__________ don't actually get involved in making sales. Their job is to provide B2B customers and prospective customers with information, assist in promotion activities with the firm's supply chain partners, and generally work to build goodwill. Inside order takers Order getters Outside order takers Missionary salespersons Retail clerks

Missionary salespersons

Advertisers attempt to move consumers through a series of steps beginning with becoming aware of a brand and ending with conviction and loyalty to the brand. This set of steps is referred to as _______ . Maslow's Hierarchy of Needs The consumer decision making process Hierarchy of Communications Objectives Pyramid of Promotion Objectives None of the above

Hierarchy of Communications Objectives

Little active information search and alternative evaluation occurs with low involvement decisions. Which promotional media are most effective at reaching and influencing consumers under these conditions? High imagery advertising media, such as TV and billboards. Print media, such as magazines and newspapers Publicity gleaned from newspapers and TV Strong public relations programs Social media advertising

High imagery advertising media, such as TV and billboards.

The strategy of market-skimming pricing is especially suited for new products because: Markets cannot be effectively segmented on an income basis. Price competition is typically most important in the introductory stage of the product life cycle. High initial prices can keep demand from exceeding supply. Profits are more important than recouping costs. All of the above are true.

High initial prices can keep demand from exceeding supply.

Products that are intended to convey prestigious or high quality images usually are priced _____________ . Lower than other brands in the product category Higher than other brands in the product category Competitively with lower priced versions of the product To avoid accusations of predatory pricing To avoid scrutiny by the FTC for possible price fixing

Higher than other brands in the product category

A lengthy series of past data relating sales to prices is required for constructing demand curves using: Test market data Historical ratios Laboratory experiments Buy response data None of the above.

Historical ratios

When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent: Price competition Economic diversification Market control Non-price competition Price fixing

Non-price competition

When firms seek to differentiate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ . Price competition Monopolistic competition Non-price competition Promotion competition Competitive positioning their product offerings by emphasizing different promotion techniques they are said to be employing ___________ .

Non-price competition

Using the ____________ budgets are set by first identifying exactly what communications objectives are being pursued and then setting the budget to achieve them. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

With ____________ IMC budgeting, the overall budget is built up from specific budgets allocated to each promotional activity that is needed to achieve objectives. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function? Specifying invoice terms of 2/10, net 30 Offering a noncumulative quantity discount Using zone pricing Offering a cash discount Setting a skimming price

Offering a noncumulative quantity discount

The communication process inherent in _____________ is useful for ascertaining the customer's wants and needs, imparting customized information to customers about products or services, and for developing customer relationships, even if the contact does not immediately result in a "sale." Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

When promotion messages are complex or when product benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

_________ is an oral, personal, and often face-to-face communication between prospective buyers and sellers. Sales management Advertising Sales promotion Personal selling Telemarketing

Personal selling

_________ should be used when products being marketed are complex enough such that their precise use or benefits must be explained or demonstrated to customers. Advertising Sales promotion Publicity Personal selling

Personal selling

_____________ is an oral, one-on-one, often face-to-face communication between prospective buyers and sellers. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the firm. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

Meg Ryan spends hours searching for data concerning sales prospects in the SEC's Edgar database, Hoover's, The Wall Street Journal, Standard & Poor's 500 Directory, and Dun & Bradstreet's Million Dollar Directory. Meg is engaged in _______ step of the personal selling process. Approach Prospecting Qualifying Pre-approach Presentation

Pre-approach

Primarily a consideration with B2B selling, ____________ is a homework step in which as much is learned about the prospect as possible. Approach Prospecting Qualifying Pre-approach Presentation

Pre-approach

When pricing objectives suggest that price should be used as a cue or signal meant to produce a high quality or prestige image for the product, a ___ strategy is appropriate. Demand is assumed to be highly price inelastic. Demand generation pricing Premium pricing Product line pricing Competitive pricing

Premium pricing

A danger with employing zone delivered pricing is that zones may be created that provide competitors in closer zones with lower delivered prices. If these competitors are in direct competition with competitors in more distant zones, competition between these competitors may be substantially damaged due to the price difference. The seller employing zone delivered pricing may be in violation of the: Sherman Antitrust Act Federal Trade Commission Act Robinson-Patman Act Clayton Act Fair Packaging and Labeling Act

Robinson-Patman Act

In addition to regulating discriminatory pricing activities, the ___________ also limits firms' use of promotional allowances as they attempt to incentive middlemen. FTC Act of 1914 Robinson-Patman Act Lanham Trademark Act Trademark Law Revision Act.

Robinson-Patman Act

___________ are technical experts in industries where products must be tailored to the needs of specific customers. Inside order takers Order getters Outside order takers Missionary salespersons Sales engineers

Sales engineers

___________ are trained in engineering or the sciences. These sales people offer their technical expertise to advise clients on product specifications and functions, and assist with systems design and installation. Inside order takers Order getters Outside order takers Missionary salespersons Sales engineers

Sales engineers

TRUE OR FALSE: The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

TRUE

The ____________ is the set of message recipients toward which advertising is directed and may be the market to which the firm's products are targeted. Target market Intended audience Target audience Communications target

Target audience

Taxes levied on foreign products that are imported into domestic markets are called ________. Import taxes Trade barriers Quotas Tariffs Trade incentives

Tariffs

Avis in some of its early ads began by pointing out that Avis was not the largest car rental company and then essentially discounted the "deficiency" by stating "...we try harder.'' Avis was employing ___________ . One-sided messages Two-sided messages Positive-point messages Single-point messages Benefit-oriented messages

Two-sided messages

Promotional message pointing out both the positive features and negative deficiencies (and then refuting the negatives) are called ___________ . One-sided messages Two-sided messages Positive-point messages Single-point messages Benefit-oriented messages

Two-sided messages (correct)

The geographic pricing technique in which a single price is employed for all customers regardless of geographic location and includes the average cost of shipping and handling is: F.O.B Mill F.O.B Destination Zone delivered pricing Uniform Delivered Pricing

Uniform Delivered Pricing

Postage stamp pricing is technically termed: Zone Delivered pricing Uniform Delivered pricing F.O.B. Mill pricing F.O.B Delivered pricing

Uniform Delivered pricing

Which method for estimating demand curves is least appropriate for the marketer of a new product. Using buy-response data Using historical ratios Using test market data Using managerial judgement

Using historical ratios (correct)

Which of the following is not one of the purposes of advertising? Inform consumers of features, benefits, availability Remind buyers of features, benefits, availability Persuade buyers to purchase Stimulate immediate action in retail settings

Stimulate immediate action in retail settings

The objectives of promotion during the growth stage of the PLC are primarily to: Stimulate primary demand Create brand awareness Induce product trial Convince intermediaries to stock and promote the product Stimulate selective demand

Stimulate selective demand

Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price. Fair trade Value Psychological Cost-plus Penetration

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product. Price Value Exchange Utility Barter

Value

Amanda is examining advertising, social media posts, and company websites, as well as talking to sales people to acquire information as she considers alternative DVD players for purchase. Which stage in the Hierarchy of Communications Objectives is illustrated in this example? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Structuring beliefs and attitudes

During the __________ stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize determinant attributes in promotion communications. Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Structuring beliefs and attitudes

China sold Chinese-manufactured glass for solar panels in Europe at prices well below local retail prices. China's dumping practice permitted its glass industry to increase its export market share by 500% during a three-year period. This practice probably was made possible by China's use of _______ for this industry. Import quota Trade barrier Revenue tariff Protective tariff Subsidies

Subsidies

Often domestic governments help fund the costs associated with producing and marketing certain products, such as gasoline, steel, and electronics to make them more price-competitive in foreign markets. These governments are using ____________. Import quota Trade barrier Revenue tariff Protective tariff Subsidies

Subsidies

When Chinese wireless providers received governmental funding that partially underwrote the high costs of development and production, they were able to lower their domestic retail prices, making them competitive with foreign providers. The Chinese government was employing __________. Import quota Trade barrier Revenue tariff Protective tariff Subsidies

Subsidies

____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers. Supercenters Specialty stores Discount stores Category killers Department stores

Supercenters

Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ . Supercenters Supermarkets Discount stores Category killers Department stores

Supermarkets

Which of the following is not a response by supermarkets to improve their profit margins? a.Reduced reliance on technology to cut costs b.Vendor assistance to help manage inventory and restock shelves c.Adding higher margin non-food product lines and services d.Adding private lable brands e.Using promotional mechanisms to build store loyalty

a.Reduced reliance on technology to cut costs

The inventory numbers given to products stocked by retailers are called: a.Stock Keeping Units b.Retail Inventory Units c.Slotting Units d.Stocking Inventory Units

a.Stock Keeping Units

A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of: full-line pricing value in use pricing price lining bait pricing leader pricing

bait pricing

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ . a.Off-price retailers b.Specialty stores c.Factory outlets d.Category killers e.Department stores

d.Category killers

The primary benefit to consumers when buying from a vending machine is: a.Lower prices b.Higher quality products c.No requirement to interface with a retail salesperson d.Convenience e.Cleanliness

d.Convenience

Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a: a.Cash & carry wholesaler b.Manufacturer's agent c.Specialty wholesaler d.Drop shipper e.Selling agent

d.Drop shipper

Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typically located in ____________. a.Neighborhood centers b.Community centers c.Regional centers d.Power centers e.Factory outlet malls

d.Power centers

_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing. a.Supercenters b.Supermarkets c.Discount stores d.Warehouse clubs e.Convenience stores

d.Warehouse clubs

With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects? a.Cold-calling from existing phone lists. b.Random digit dialing c.Lists of current or past customers d.Lists purchased from third party vendors e.All of the above (correct)

e.All of the above

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________. a.Investment banker b.Financial broker c.Financial agent d.Industrial distributor e.Facilitating agent

e.Facilitating agent

The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of: a single-price strategy leader pricing cost-plus pricing price lining penetration pricing

leader pricing

POP in sales promotion terminology stands for _________. Placed on Promotion Point of Purchase Power of Promotion Point of Promotion Power of Purchase

Point of Purchase

The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. The company sells 20,000 maps and just breaks even. What is the map's selling price? (Select the closest answer). $3.75 $4.00 $4.25 $4.50 $4.75

$4.25

Given the following data, find the break-even point in units: TFC = $1,500,000 per year; price = $.79; AVC = $.39. (Select the closest answer). 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000

3,750,000

Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the Unit Contribution? (Select the closest answer) .39 .49 .59 .69 .79

.39

Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 5% 10% 15% 20% 25%

10%

Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The total variable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. The company charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units. 1,200 1,300 1,400 1,500 1,600

1,300

Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed. 72 14 18 36 22

14

The Gulfport Cycle Shop bought two motorcycles for a total of $2,000 and sold each one for $1,500. The markup percent(based on selling price)was closest to: 30% 43% 50% 53% 55%

30%

Apple's introduction of the iPhone 6s is: A discontinuous innovation A dynamically continuous innovation A continuous innovation An absolute product failure All of the above.

A continuous innovation

For which of the following products would a retailer be LEAST likely to use odd pricing? Chewing gum A designer evening dress Lean Cuisine diet meals Reams of computer paper Bic cigarette lighters

A designer evening dress

Forward chain mark-up pricing Price=[(investment cost X Target ROI)/Standard Volume]+ATC A desired mark-up based on selling price A desired mark-up based on cost Break-even A desired return on investment.

A desired return on investment.

Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy? A large, highly price-elastic market exists for the product The product is protected by patents The product is associated with a high capital investment serving as a 'barrier to competitive entry' Strong brand preferences exist due to the product's unique characteristics Producer has control over a critical material needed for production of the product

A large, highly price-elastic market exists for the product

Kellogg's "Share Your Breakfast" campaign used Facebook as the primary medium for its 2011 award-winning advertising campaign. In its ads, Kellogg urged consumers to submit their breakfast photos. Kellogg, for each photo, donated money to a nonprofit organization that provided free breakfasts to schoolchildren. This is an example of ____________ . Advocacy advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Advocacy advertising

Using __________ firms attempt to communicate their positions on important issues. The purpose is to influence the opinions of targeted audiences concerning the issue. Often the general public is the primary target audience. Advocacy advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Advocacy advertising

Firms that are pursuing a strategy of price competition are more likely to: Employ follow-the-leader pricing in order to avoid price wars in their industry Aggressively use lower prices to buy market share from competitors Set prices higher than competitors to signal greater value to buyers Set prices lower than competitors to enhance the quality images of their brands. Price their brands in a comfortable competitive range to avoid "rocking the boat."

Aggressively use lower prices to buy market share from competitors

For which of the following products would a manufacturer be most likely to offer a seasonal discount? Aspirin Weight-training gloves Air conditioning system Microwave ovens Forklift trucks

Air conditioning system

As practiced today, telemarketing is used for which of the following? Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above

All of the above

Friendship, Commerce, and Navigation (FCN) treaties with other countries typically: Establish the rights of US firms engaged in marketing activities in foreign markets Establish standards related to product specifications Establish agreements on patent and trademark protections Identify reciprocal tax agreements between countries All of the above

All of the above

The AVC curve is typically 'u-shaped' because: Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above None of the above

All of the above

The benefits of direct investment as a means of entering foreign markets include: Greater control of operations and marketing activities Lower operational and production costs Enhanced brand image and brand power in the host country Easier to adopt products to local tastes and desires All of the above

All of the above

Which of the following are characteristics of comparative advertisements? Competing brands are directly compared with one another, usually by name Positives of the advertised brand are emphasized, negatives of the competing brands are highlighted Consumers already using the competing brands are more likely to pay attention to the ad Comparative ads provide consumers more information upon which to make a choice All of the above

All of the above

Which of the following are considered to be economic factors affecting a firm's global marketing strategy? Gross domestic product Per capita income of individuals Exchange rates Infrastructure All of the above

All of the above

The key principles of effective marketing communications include: Message must be received and understood by the receiver Marketer should emphasize FAB Identify the features, attributes, and benefits that are meaningfully different Communicate the differentiating features, attributes, and benefits All of the above

All of the above

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as: AVC declines by 90% with each doubling of cumulative output AVC declines by 9% with each doubling of cumulative output AVC declines by 10% with each doubling of cumulative output AVC declines by 1% with each doubling of cumulative output None of the above is correct

AVC declines by 10% with each doubling of cumulative output

Customers who purchase higher value consumer durable products such as electronics, appliances, and sporting goods equipment generally demand more information and often welcome "expert" advice. Which forms of promotion are best suited to these products Advertising and personal selling Personal selling and sales promotion Advertising and sales promotion Advertising and Public relations Personal selling and publicity

Advertising and personal selling

When consumers engage in high-involvement, extensive decision-making, for major durable goods, which elements of the promotional mix should be emphasized? Advertising and sales promotion Advertising and personal selling Personal selling and sales promotion Personal selling and publicity Sales promotion and publicity

Advertising and personal selling

During the introductory stage of the product life cycle, promotion objectives are to stimulate primary demand by communicating product benefits, create brand awareness, and stimulating trial. The most appropriate forms of promotion to accomplish these tasks are __________ . Advertising and personal selling Advertising and sales promotion Advertising and publicity Personal selling and sales promotion Publicity and public relations

Advertising and sales promotion

The forms of promotion most important for lower unit value consumer convenience goods are: Advertising and personal selling Advertising and sales promotion Advertising and publicity Personal selling and sales promotion Publicity and public relations

Advertising and sales promotion

The use of ____________ is most appropriate for consumers engaged in low involvement decisions. Advertising and sales promotion Advertising and personal selling Personal selling and sales promotion Personal selling and publicity Sales promotion and publicity

Advertising and sales promotion

When the US places limits on the amounts of certain products that can be imported into this country, they are employing ____________. Administrative tariffs Trade barriers Revenue tariffs Protective tariffs

Administrative tariffs

____________ include such forms as customs barriers, quotas on the amount of product that can be imported, export subsidies, or unnecessarily restrictive standards for imported goods. Administrative tariffs Trade barriers Revenue tariffs Protective tariffs

Administrative tariffs

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: Demand changes by -1.5% for each 1% change in price For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above

All of the above

Armed with knowledge gathered in the early steps of the personal selling process, the seller is prepared to contact the prospect and, potentially, make an initial presentation. This is the ____ step in the personal selling process. Approach Prospecting Qualifying Pre-approach Presentation

Approach

The _______ is the initial contact with a qualified prospect. Approach Prospecting Qualifying Pre-approach Presentation

Approach

What is NOT a criterion for evaluating a KPI? Attainable Actionable Accurate Assembled

Assembled

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in ___ . Accumulating Allocating Sorting Assorting

Assorting

With which geographic pricing strategy is the seller likely to have the lowest freight charge? Freight absorption pricing FOB mill pricing Uniform delivered pricing Geographic pricing Zone-delivered pricing

FOB mill pricing

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use? Freight absorption pricing Uniform delivered pricing FOB plant pricing Zone-delivered pricing FOB destination pricing

FOB plant pricing

False, misleading, and deceptive advertising are regulated by the __________. FTC Act of 1914 Robinson-Patman Act Lanham Trademark Act Trademark Law Revision Act

FTC Act of 1914

Coupons, free samples, and other incentives are commonly employed for new products to stimulate consumer awareness (1st stage of the adoption process) more than in any other stage in the new product adoption process. True False

False

Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage. Introduction Growth Maturity Decline

Growth

The majority of retailing establishments in the US today are: Chain stores Corporate chain stores Independent retailers Internet retailers Franchise stores

Independent retailers

The _____________ method of budgeting is the best approach to employ, although not normally the easiest. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Objective and task

When setting prices, the price floor is usually defined by ______ of producing and marketing the product. The total costs The total fixed costs The average variable costs The average total costs None of the above

The average total costs

When a seller offers a cash discount with terms of 3/10, n/60, this means: The buyer gets a discount of 10 percent if the bill is paid within 3 days; otherwise the entire amount is due in 60 days. Payment is due in 10 days, or else there is a 3 percent late-payment penalty. Payment is due in 60 days, or else there is a 3 percent late-payment penalty. The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days. If the buyer pays within 60 days, there is a 3 percent discount; beyond that is a 10-day grace period before there is a penalty.

The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.

With respect to the Communications Process, the promotional medium selected to transmit the message to the receiver is called ____________ . The communications channel Transport network Communications network Conveyance channel Transmission medium

The communications channel

Innovative Technology manufacturers sophisticated electronics components. When setting its budget and projecting costs for its products, Innovative's management knows that with each doubling of cumulative output, they can expect the average variable costs of production to decline by a fixed percentage. Evidently, Innovative is predicting its costs based on _ . Supply and demand relationships Anticipated scale economies from production The experience curve Managerial judgement.

The experience curve

The target audiences for a firm's public relations effort is least likely to include which of the following? Existing and potential customers Government agencies and regulatory bodies The general public The firm's competitors Company employees

The firm's competitors

Which of the following is least likely to cause problems when employing historical data to estimate demand curves? Competitors experimented with multiple price changes during the time frame under analysis. Price controls were imposed on the industry by the Federal government during the period in which the pricing data were collected. The seller made several major changes to its promotion program during the time in question. The seller introduced several new products that were considered to be category extensions during the time in question. A consumer rights advocacy group mounted a major campaign against the company and its products during the time under analysis.

The seller introduced several new products that were considered to be category extensions during the time in question.

Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because: The current legal interpretation of the Robinson-Patman Act required the price differential The rules and regulations of the Federal Trade Commission required the price differential The seller set pricing differentials based on the existence of inverse demand The seller probably was using zone-delivered pricing. The seller was using cash discounts.

The seller probably was using zone-delivered pricing.

The entire set of organizations that are involved in supplying component parts to producers, these producers, and the organizations involved in moving finished goods to consumers is _ . Logistics management Materials management Physical distribution The channel of distribution The supply chain

The supply chain

The greatest limitation of all cost-based pricing techniques is that: It's difficult to estimate a product's costs The techniques are very difficult to understand The techniques do not take into account demand considerations at the price being set Cost-based techniques are only useful to manufacturers and cannot be employed by intermediaries

The techniques do not take into account demand considerations at the price being set

The major advantage to using the competitive parity of IMC budgeting is: The budget is directly linked to the firm's promotion objectives. Budget is likely to be appropriate since it is based on what knowledgeable competitors are budgeting. Such budgeting implicitly assumes that sales are a direct result of promotional spending. The budget is carefully constructed since time has been spend deconstructing competitors' promotion programs. There are no real advantages.

There are no real advantages.

The major distinction between a retail and a wholesale transaction is: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a retailer or a wholesaler. Whether the product involved is sold at a wholesale or a retail price. The quantity of goods involved.

Whether the product will be used by an organization or by a consumer.

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand. Gossip Opinion-leader Word-of-Mouth Peer-to-Peer

Word-of-Mouth

___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand. Gossip Opinion-leader Word-of-Mouth Peer-to-Peer

Word-of-Mouth

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties. a.Selling agent b.Manufacturers' agent c.Drop shipper d.Broker e.Commission merchant

d.Broker

A typical Caterpillar salesperson calls on Cat's regional distributors, as well as larger agricultural and construction businesses to generate orders and maintain customer relations. This type of salesperson is a(n) ____________. Inside order taker Order getter Outside order taker Route salesperson Delivery salesperson

Outside order taker

________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more. Price Value Exchange Utility Barter

Price

_______ is the most influential component of the promotion mix and the only component that can effectively make the sale. Sales management Advertising Sales promotion Personal selling Telemarketing

Personal selling

________ is the most important form of promotion for most industrial goods, particularly installations and major equipment, where product customization and demonstration are often essential. Advertising Personal selling Sales promotion Public relations Publicity

Personal selling

__________ should be used when products must be customized in order to best fit customers' special needs. Advertising Sales promotion Publicity Personal selling

Personal selling

When production stops (i.e. no units produced), _________becomes zero. Variable costs of production Marginal costs Total costs Fixed production costs Total fixed costs

Variable costs of production (correct)

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? Vending Direct response advertising Direct selling Mechanical marketing None of the above

Vending

Which is NOT a possible structure of the Marketing Dashboard? Flow-Based Structure Grouping Structure Vertical Structure Relationship Structure

Vertical Structure

__________ communication entails any positive or negative opinions or experiences by potential, current, or former customers about products, brands, or marketing organizations transmitted through digital media. WOM Opinion-leader Word-of-Mouth Peer-to-Peer Social media

WOM

The principle adopted from psychology that predicts how much a stimulus must change for that change to be noticed is: Parkinson's Principle Weber's Law Pavlov's Principle Skinner's Law None of the above.

Weber's Law

____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep." a.General merchandise retailers b.Limited line retailers c.Specialized line retailers d.Restricted line retails

b.Limited line retailers

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point. $13,000 $13,100 $13,200 $13,300 $13,400

$13,100

Consider the following data: TFC = $1,500,000 per year, price = $.79; AVC = $.39. What is the Contribution Margin? (Select the closest answer) 39% 49% 59% 69% 79%

49%

You have overheard a conversation between two co workers. Sam, who is the current sales manager, is of the opinion that new product development isn't really needed if current products are aggressively marketed. Sam has apparently forgotten that ___ . New products provide additional benefits to firms such as enhanced image and market position. Firm's that innovate often have a 'differential advantage' over competitors New products can help the firm reduce risks via diversity. Eventually, all products enter a sales decline that no amount of aggressive marketing can prevent All of the above.

All of the above.

By computing the advertising budget using ____________ , advertisers are implicitly, and incorrectly, assuming that sales causally drive advertising expenditures. Objective and task, competitive parity All you can afford, percent of sales Percent of sales, objective and task Competitive parity, all you can afford None of the above

All you can afford, percent of sales

With the __________ budgeting approaches, funds allocated to advertising tend to increase when sales rise and decrease when sales decline. Objective and task, competitive parity All you can afford, percent of sales Percent of sales, objective and task Competitive parity, all you can afford None of the above

All you can afford, percent of sales

Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

All-You-Can-Afford

Jerry's Used Cars advertises some of its cars at prices that are "too good to be true." When potential customers visit the car lot, they are told that these cars have already been sold and try to show the prospects alternative cars at higher prices. Jerry's is using __ . Quality pricing Bait pricing Skimming pricing Captive pricing Predatory pricing.

Bait pricing

Which of the following is not consistent with employing a skimming pricing strategy? Customer demand is price inelastic The effects of competition on pricing can be minimized Bait pricing Initial production and marketing costs are high Price connotes high quality or prestige.

Bait pricing

Burger King's simple but memorable "Have It Your Way" creative concept was the basic theme upon which subsequent advertising was based for more than 20 years. "Have It Your Way" was Burger King's _____________ . Big Idea Target message Advertising slogan Mission Advertising theme

Big Idea

Consumers who spread positive word-of-mouth about products or brands are called _________. Brand evangelists Brand missionaries Opinion leaders Innovators

Brand evangelists

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand. Brand evangelists Brand missionaries Opinion leaders Innovators

Brand evangelists

Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using Flexible pricing Bait pricing Prestige pricing Bundled pricing Promotional pricing

Bundled pricing

Which of the following is not a potential reason why firms should consider engaging in global marketing? By going global firms can avoid the risks associated with fluctuating exchange rates Foreign firms who are potential competitors may enter domestic markets with superior products. Domestic firms may need to counter-attack in the foreign firm's home country to force that firm to reallocate resources International logistics and transportation costs are rapidly declining making it possible for even small firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets

By going global firms can avoid the risks associated with fluctuating exchange rates

With _________ IMC budgeting, the size of the promotion budget is based on industry comparisons. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Competitive parity

The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end. Price floor Price ceiling Competitive price range Demand curve Optimal price

Competitive price range

With respect to the product life cycle, prices are usually lowest during the ___________ stage. Conceptualization Introduction Growth Maturity Decline

Decline

The Communications Process from the message sender to the message receiver begins with the sender formulating the "message" and ends with _________ . Encoding the message by the receiver Transmitting the message via a communications channel Decoding the message by the receiver Acting on the decoded information

Decoding the message by the receiver

Friendship, Commerce, and Navigation (FCN) treaties with other countries typically cover all of the following except: Establish standards related to product specifications Define ethical standards of doing business between countries Establish agreements on patent and trademark protections Identify reciprocal tax agreements between countries Set standards for between countries transportation communications

Define ethical standards of doing business between countries (correct)

Which of the following best defines the meaning of "e" - the coefficient of elasticity? Defines the change in total revenue for a given change in price. Defines the percent change in price for every one percent change in revenue. Defines the percent change in revenue for every one percent change in price Defines the percent change in quantity demanded for every one percent change in price None of the above

Defines the percent change in quantity demanded for every one percent change in price

________ are responsible for delivering and stocking products for which an order has already been placed. Inside order takers Order getters Outside order takers Route salespersons Delivery salespersons

Delivery salespersons

The "law of demand" is associated with: Demand curves in which demand increases as price increases. Demand curves in which demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above.

Demand curves in which demand decreases as price increases.

The "law of demand" is associated with: Demand curve in which demand increases as price increases. Demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above

Demand decreases as price increases.

What is NOT among the Top 10 Marketing KPIs? ROI Incremental Sales Net Promoter Score EBITDA

EBITDA

The new product adopter category most likely to contain 'opinion leaders' is the: Innovator category Laggard category Late majority category Early majority category Early adopter category

Early adopter category

Which of the following is not a major trend associated with IMC? From preferred use of traditional marketing communications to greater engagement with digital/interactive communications. From the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses. From greater use of mass media (ABC, NBC or CBS, or Time magazine) to more specialized media (Twitter, Instagram, and Spotify). From low-accountability in the terms of the effectiveness of communication expenditures (i.e., what advertisements are and are not working effectively) to high-accountability in terms of communication-spend effectiveness. From limited, one-way buyer-seller connectivity to more pervasive, two-way (reciprocal) connectivity.

From the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses

____________ involves all the processes through which products or services are conceptualized, developed, promoted, priced, and distributed internationally from one nation to another. World-wide marketing International marketing Highly risky ventures Global marketing External marketing

Global marketing

___________ are employed to gain attention and, hopefully, create a positive "affective" response to the ad that can rub off on the product. The idea is "like the ad, like the brand." Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Humor appeals

_______ involves every department in the firm becoming involved in developing and communicating messages to customers, channel members, other stakeholders, and publics to create a unified image of the organization and its products. IMC TTT WOM eWOM PLC

IMC

Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced: Profit programming Expected price effects Inverse demand The law of demand None of the above

Inverse demand

Most firms begin their global marketing efforts using _____________ . This is the simplest and least risky method for entering foreign markets. Direct exporting Indirect Exporting Joint Venturing Licensing Contract manufacturing

Indirect Exporting

US-based firms can enter into arrangements with foreign firms to create local businesses in foreign markets. Both firms share ownership and control of the venture. This arrangement is termed _______ . Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Joint ownership

The Hilton hotel chain recently opened a Doubletree in Dubai, the capital of the United Arab Emirates. Local investors own the facility. Hilton manages the property for these local investors. This is an example of __________ for entering a foreign market. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Management contracting

Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

Neighborhood centers

With respect to the Communications Process, physical/psychological barriers, distractions, and other impediments to successful communication are called ____________ . Noise Encoding - decoding impediments Clutter Decryption limitations None of the above

Noise

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a: Cash-and-carry wholesaler Specialty wholesaler Rack jobber Manufacturers' agent Broker

Rack jobber

___________ employed to keep the brand in consumers' minds. Letting them know that the brand is available and continues to be a viable choice. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Reminder advertising

Tariffs imposed on foreign products that are intended to raise money for domestic governments are _______. Administrative tariffs Trade barriers Quotas Revenue tariffs Protective tariffs

Revenue tariffs

A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. Selling agent (correct) Manufacturers' agent Drop shipper Broker Commission merchant

Selling agent

Jenny Craig has used Marie Osmond as a celebrity spokesperson to endorse its program and products. This an example of _____________. Demonstration advertising Testimonial advertising Lifestyle advertising Slice of life advertising Sex appeal advertising

Testimonial advertising

Weight loss products often use _______________ showing real people endorsing a product because they have successfully used the product to lose weight. Demonstration advertising Testimonial advertising Lifestyle advertising Slice of life advertising Celebrity advertising

Testimonial advertising

__________ attempt to use real persons as endorsers who appear likeable and believable to attest to the product's utility and value. Demonstration advertising Testimonial advertising Lifestyle advertising Slice of life advertising Celebrity advertising

Testimonial advertising

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program? a.The company should use sales branches everywhere, since it will cost more to use manufacturers' agents. b.The company will probably have to rely only on manufacturers' agents, since they will only be willing to take the widely scattered markets if they can have the good territories too. c.The company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches. d.The company should use manufacturers' agents in the best territories and sales branches in the others, since good agents won't work the smaller territories. e.All of the above are good alternatives.

The company should use its own sales branches in the concentrated territories and agents, probably manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.

The break-even point is: The level of sales where total revenue equals total costs The level of sales which maximizes profit The total profit likely to be earned at a given price Where supply equals demand

The level of sales where total revenue equals total costs

A retailer might expect a stocking allowance: To pass along to retail salesclerks who aggressively sell the product. To offset the handling costs for a new product. For paying the supplier's invoice before the product is delivered. If the manufacturer can't fill an order by the promised delivery date. None of the above--stocking allowances only apply to wholesalers.

To offset the handling costs for a new product.

The first four steps in the new product development process are particularly crucial because: These steps are relatively inexpensive compared to the fifth step in which the physical product is actually produced. The new product test market occurs during these steps and this information is critical for making the go -no go decision to commercialize. These steps will determine whether a concept test is required, which is the most expensive element of new product development. These steps are important for predicting the potential life cycle of the new product. All of the above.

These steps are relatively inexpensive compared to the fifth step in which the physical product is actually produced.

A primary weakness of sales promotions is: They are easily duplicated by competitors and may lead to sales promotion wars Their use is too costly compared to other forms of promotion They are less effective for stimulating trial and repeat purchase They cannot "close" the sale

They are easily duplicated by competitors and may lead to sales promotion wars

_____ carry a select line of perishable products and deliver them by trucks to retail stores. Full-service wholesalers Rack jobbers Truck jobbers Commission merchants Drop shippers

Truck jobbers

The primary distinction between voluntary chains and retailer cooperatives is: Whether they are set-up by wholesalers or by retailers Voluntary chains tend to offer more benefits to members than do coops. Retailer cooperatives tend to be more profitable than voluntary chains Voluntary chains are limited to hardware stores, while coops serve the grocery industry.

Whether they are set-up by wholesalers or by retailers

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a manufacturer or a wholesaler. Whether the product involved is sold at wholesale or retail price. The quantity of goods involved.

Whether the product will be used by an organization or by a consumer.

A retail store's __________ include building architecture and storefront, parking, landscaping,surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store. a.External Atmospherics b.Exterior personality c.Exterior position d.Exterior brand image

a.External Atmospherics

The supermarket form of retailing normally commands profit margins, on average, of: a.Less than 5% b.5% - 10% c.10% - 15% d.15% - 20% e.More than 20%.

a.Less than 5%

__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems. a.Off-price retailers b.Specialty stores c.Factory outlets d.Category killers e.Department stores

c.Factory outlets

The entire range of products stocked by a retailer is its _______. a.Product mix b.Product portfolio c.Merchandise portfolio d.Merchandise mix e.Product line depth

d.Merchandise mix

_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently. a.Wholesaling intermediaries b.Retailing intermediaries c.Agents d.Industrial distributors e.Facilitating agents

e.Facilitating agents

Relative new product failure rates exceed absolute failure rates. True False

true

The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit). 10 11 12 13 14

11

Rocky Mountain Gift Products sold its products through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountain Gifts Products receive on the sale of this product? (Select the closest answer) $12.00 $13.00 $14.00 $15.00 $16.00

$15.00

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer) $214 $215 $216 $217 $218

$214

On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer). $225 $235 $245 $255 $265

$255

A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer) $32.00 $48.00 $36.00 $24.50 $40.00

$36.00

A manufacturer sells a product for $35 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 20%. The retailer prices the item to consumers to include a 30% markup (also based on selling price). What is the selling price to the consumer? (Select the closest answer) $60.00 $63.00 $66.00 $69.00 $71.00

$63.00

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10). $10.13 $10.35 $9.11 $9.42 None of the above is within the specified boundaries.

$9.11

Blue Ridge Knives wants to set its selling price on a custom knife so that the retail list price will be $150--taking into account markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Knives sell the item to wholesalers? (Select the closest answer). $80.00 $85.00 $90.00 $95.00 $100.00

$95.00

DrainKing produces an excellent professional drain-cleaning machine sold to plumbing businesses. The total variable costs for making each unit are $325.00. DrainKing's average selling price for the unit is $750.00. DrainKing's fixed costs of production and sales are $4,500 per month. If DrainKing desires $10,000 in profit each month, how many units must it sell each month? (Select the closest answer) 30 32 34 36 38

34

Savanna is the buyer for a large convenience store chain. A primary supplier has offered Savanna a cash discount on her most recent purchase. The discount has been quoted as: 4/10, net 30. Savanna is wondering whether it is worth her while to take advantage of the discount. As a result, she has decided to compute the implied interest rate her firm would be paying at the invoice due date rather than paying early. Assume a 365 day year. The implied interest rate she computed is approximately (pick the closest answer): 54% 18% 73% 40% 120%

73%

What should be the first step when designing dashboards? Choose the metrics Acquire the data Align marketing and business outcomes

Align marketing and business outcomes

Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY: A merchant wholesaler A drop shipper An agent middleman A manufacturer's agent A rack jobber

A merchant wholesaler

The biggest advantage of publicity is Publicity is generally free Publicity is generally viewed a more credible because it originates from an independent source Publicity is always positive Good publicity can be used to replace most other communications tools employed by firms A and b above are correct

A and b above are correct

_________ is any form of one-way, paid communication delivered en masse through electronic, print, or Internet-based media with the purpose of informing, reminding, or persuading. Advertising Personal selling Sales promotion Publicity Public relations

Advertising

____________ is any form of paid communication that is conveyed via a "non-personal medium." Advertising Personal selling Sales promotion Public relations Publicity

Advertising

Diet Coke's "Red Dress Online Initiative" used traditional and online media to draw attention to women's heart disease as the number one killer of women. This is an example of ____________. Advocacy advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Advocacy advertising

Which of the following is not a key question a firm must address when deciding whether it should "go global?" Are the firm's domestic sales sufficient to finance a move to global markets? Can the firm adapt is business model to accommodate differences in global cultures and supply chain structure? Can the firm identify, understand, and effectively respond to differences in consumer preferences and buying behaviors in global markets? Does the firm have the relevant expertise and experience to target global markets? Is the firm capable of managing and responding to the varying legal requirements in global markets?

Are the firm's domestic sales sufficient to finance a move to global markets?

To close a sale, the salesperson may ask "Would you prefer delivery by UPS or FedEx?" Or, "Will you pay cash, or can we assist you with financing?" Such approaches are common with the _________. Assumptive close Standing room only close Sharp angle close Final objection close

Assumptive close

With the __________, the salesperson presumes the buyer has made a positive decision and only minor points need to be clarified to "finalize the details of the sale." Assumptive close Standing room only close Sharp angle close Final objection close

Assumptive close

____________ are employed in advertising to create a positive mood or image surrounding the product and its use. Usually there is no attempt to link the brand to any specific benefits or features. Humor appeals Fear appeals Emotional appeals Slice of life appeals Life style appeals

Emotional appeals

____________ attempt to elicit affective or emotional responses from target audiences using humor, fear, and sex. Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Emotional appeals

Which of the following is not a potential reason why firms should consider engaging in global marketing? By going global firms can avoid the risks associated with fluctuating exchange rates Foreign firms who are potential competitors may enter domestic markets with superior products. Domestic firms may need to counter-attack in the foreign firm's home country to force that firm to reallocate resources International markets may provide more new, currently underserved prospective customers, and a domestic firm may be uniquely positioned to satisfy them Laws and constraints on producing and marketing some products in domestic markets may be avoided in foreign markets Marketing via the Internet has become increasingly easy and has opened international markets

By going global firms can avoid the risks associated with fluctuating exchange rates

Advertising by advocacy groups and governmental agencies that attempt to reduce demand for a product is called ________ . De-marketing Demand reduction marketing Controlled marketing Demand off-set marketing Re-marketing

De-marketing

An experience curve constant of .95 means that: Average variable costs decline by 95% with each doubling of output Average fixed costs decline by 95% with each doubling of output Average variable costs decline by 5% with each doubling of output Average variable costs with each doubling of output are 95% of what they were with the previous doubling C and d are both correct.

C and d are both correct.

When promotion is used to encourage consumers to purchase less, or at a later date, they are attempting to reduce demand for the advertised product. This promotion objective is called ________ . De-marketing Demand reduction marketing Controlled marketing Demand off-set marketing Re-marketing

De-marketing

__________ are employed when advertisers refuse to engage in the consent decree. The FTC can this remedy to force firms to remove offending communications from circulation. Cease and desist order Consent decree Corrective advertising Fines

Cease and desist order

Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons? Source expertise Source trustworthiness Source believability Source honesty Celebrities often score high on all of the above

Celebrities often score high on all of the above

Which of the following is not a key question a firm must address when deciding whether it should "go global?" Can the firm offer products that will be competitive in global markets? Can the firm be sure that it can use its current business model in global markets? Can the firm identify, understand, and effectively respond to differences in consumer preferences and buying behaviors in global markets? Does the firm have the relevant expertise and experience to target global markets? Is the firm capable of managing and responding to the varying legal requirements in global markets?

Can the firm be sure that it can use its current business model in global markets?

In B2B selling, __________ presentations generally should be avoided in favor of hybrid presentations in which the seller listens as much, or more so, as he or she speaks. Structured Custom Canned Powerpoint Spontaneous

Canned

The Gillette Fusion razor with one replacement blade can be purchased for as little as $9. However when it's time to buy replacement blades you can expect to pay $20 or more for a pack of 4 blades. Gillette is using . Quality pricing Prestige pricing Skimming pricing Captive pricing Predatory pricing.

Captive pricing

When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using Prestige pricing Price lining Captive product pricing Bundled pricing Bait pricing

Captive product pricing

When Sears decided to enter Mexico with its retail facilities. Its strategy was to engage in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. Sears ultimately desired to buy out these producers and take over their operations. This is an example of __________ for entering a foreign market. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Contract manufacturing

With ________ domestic firms contractually engage with manufacturers or other firms (including retailers) to produce, deliver, merchandise, retail or sell their products or services in foreign markets. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Contract manufacturing

Advertising in which brands are directly compared against one another are called _______ . Competitive ads Comparative ads Two-sided ads Multi-brand ads Positional ads

Comparative ads

Advertising in which a firm's brand is directly compared against those of competitors is called: Competitive advertising Persuasive advertising Comparative advertising Manipulative advertising None of the above

Comparative advertising

The FTC issued a ruling in 1979 that encourages the use of ____________ advertising, as long as the ads are truthful arguing that consumers are armed with more data upon which to make informed choices. Competitive advertising Persuasive advertising Comparative advertising Manipulative advertising None of the above

Comparative advertising

The positive rewards accruing to consumers from purchase and use of a brand along with the use of reminder advertising positively reinforce the consumer's brand purchase decision during the __________ stage of the Hierarchy of Communications Objectives. Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Conviction and brand loyalty

The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ . Cease and desist order Consent decree Corrective advertising Fines

Consent decree

Two-sided ads present both the positives and negatives for brand and then usually attempt to refute the negatives. The effectiveness of such ads as is explained by: Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad The "recency effect" in which the negatives are presented first and, therefore, overwhelmed by the positive points presented last The "primacy effect" in which the positives are emphasized more than the negatives None of the above. There is no evidence that two-sided ads work any better than one-sided ads.

Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad

Which of the following is least associated with the concept of 'price competition?' There is a stronger likelihood of price wars occurring Governmental agencies are more likely to monitor and intervene in pricing activities Firms aggressively employ price as a part of the marketing mix Consumers are more likely to be price inelastic All of the above are unlikely

Consumers are more likely to be price inelastic

______ are forms of sales promotion directed at the sales force with the objective of motivating or incentivizing extra effort and improved performance. Contests Sweepstakes Party plans Spiffs Sales competitions

Contests

__________ are forms of sales promotion in which consumers or company employees compete with one another to win monetary or non-monetary prizes. Contests Sweepstakes Party plans Spiffs Sales competitions

Contests

When Sears decided to enter Mexico with its retail facilities it engaged in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. This is an example of __________ for entering a foreign market. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Contract manufacturing

Chain stores with 11 or more retail units or locations are technically called as ______________ . Multi-unit chains Corporate chains (correct) Independent retailers Rack jobbers Superstores

Corporate chains

The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? Administered vertical marketing system Corporate vertical marketing system Franchise system Retailer cooperative Voluntary chain.

Corporate vertical marketing system

Which of the following is the major disadvantage of nearly all cost-based pricing methods? Costs are too difficult to determine for these pricing techniques to be truly effective. Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques. Most cost-based pricing techniques are technically too difficult to use in actual practice. Cost-based pricing techniques generally are only used by manufacturers because a manufacturer can more precisely pinpoint the exact fixed and variable costs associated with its products.

Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.

Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using? Expected pricing Experience curve pricing Marginal cost pricing Cost-plus pricing Mark-up pricing

Cost-plus pricing

Break-even analysis is normally conducted during the __________ stage of the price setting process. Setting price objectives Identifying price strategies Setting base price Cost-volume-profit analysis Pricing management

Cost-volume-profit analysis

The use of ___________ has been claimed to be a mild form of price discrimination because only price-conscious consumers are likely to take the time and effort to use them. Rebates Coupons Contests Push money Samples

Coupons

Persuasive advertising is employed mainly to: Create primary demand for product categories Create selective demand for individual brands Remind consumer of a brand's availability at specific retail locations Stimulate an immediate sale within a retail store All of the above

Create selective demand for individual brands

The first, critical step in the Hierarchy of Communications Objectives is _________ . Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Creating awareness

Determining the Big Idea is part of the ______________ stage of advertising strategy development. Selecting advertising media Creating the advertising message Determining advertising objectives Executing advertising strategy Identifying the target audience

Creating the advertising message

An understanding of traditions, preferences, and dos and don'ts in foreign counties helps domestic firms avoid embarrassing marketing mistakes. Equally important, these insights can also provide opportunities to exploit important differences in wants, needs, values, and perceptions. These considerations reflect the importance of understanding how ____________ impact a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

In India, LG introduced refrigerators that featured larger vegetable and water-storage compartments; electric surge-resistant power sourcing; and gaudily colored finishes that reflect regional preferences inside India. In Iran, LG markets a microwave oven that boasts a shish kebob preset button—makes sense, since this is a favorite dish throughout most of the Middle East. These are examples of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

Nike unintentionally agitated Chinese officials after it released an ad in China that featured Lebron James destroying several culturally-esteemed Chinese figures in a Kung Fu-themed television promotion. Chinese politicians asserted that the ad violated regulations to maintain national dignity. These are examples of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

South American business persons prefer to sit close to other another—truly nose-to-nose or side-by-side—when discussing business affairs. The American business person's propensity is to back away when someone infringes on his or her personal space. These are examples of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

The average French husband uses about twice the amount of cosmetics and grooming products as his wife. Germans, the French, and Americans eat more packaged and branded spaghetti than Italian consumers. These are examples of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

US business people prefer to get right to business and pursue tough "fast-to-fast" negotiating tactics. Chinese, Japanese, and other Asian businesspeople prefer to converse and socialize politely before entering business discussions. These are examples of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Cultural differences

Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount. Seasonal Cash Non-cumulative quantity Trade Cumulative quantity

Cumulative quantity

Joanna is the buyer for a local privately-owned convenience store. She places frequent orders from a local truck distributor that delivers fresh product on a daily basis. Joanna particularly likes doing business with this distributor since he offers substantial discounts at the end of each quarter based on the amount of product purchased that quarter. Evidently, the distributor is employing a: Cumulative quantity discount program Seasonal discount program Non-cumulative discount program Cash discount program Promotional pricing program.

Cumulative quantity discount program

What are the 3 layers of dashboards? Systematic, Operational, Tactical Executive, Operational, Tactical Strategic, Organizational, Technical

Executive, Operational, Tactica

As price increases, the total revenue for that product declines. This suggests that: Marketers have not planned very well. Demand for the product is extremely low. Demand for the product is essentially price elastic Demand for the product is essentially price inelastic. None of the above.

Demand for the product is essentially price elastic

When pricing objectives center around generating sales volume, (--------------------------) strategies that focus on low prices are appropriate. Demand is assumed to be price elastic. Demand generation Premium pricing Product line pricing Competitive pricing.

Demand generation

Bounty paper towels employ _____________ in which the brand is presented in a way that emphasizes its absorbency and strength. Demonstration advertising Testimonial advertising Lifestyle advertising Slice of life advertising

Demonstration advertising

___________ show the product actually being used. The specific objective is to highlight key benefits or features in a usage situation. Demonstration advertising Testimonial advertising Lifestyle advertising Slice of life advertising

Demonstration advertising

_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's. Off-price retailers Specialty stores Factory outlets Category killers Department stores

Department stores

____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally) restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits. Off-price retailers Specialty stores Factory outlets Category killers Department stores

Department stores

During the "structuring beliefs and attitudes" stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize ___________ in promotion communications. Determinant attributes Key attributes Differential attributes Performance characteristics Emotional characteristics

Determinant attributes

When __________ advertisers seek to determine the cost of advertising needed to achieve the desired objectives. Establishing advertising objectives Identifying the target audience Determining the advertising budget Executing the advertising strategy Determining advertising strategy

Determining the advertising budget

HP, in 2007, established two factories in India that manufactured personal computers. At about the same time, HP opened company-owned retail stores in more than 150 Indian cities. This is an example of _______ for penetrating a foreign market. Direct exporting Indirect Exporting Direct Investment Joint Venturing Contract manufacturing

Direct Investment

With __________ firms invest in and establish their own foreign-based assembly or manufacturing facilities. Direct exporting Indirect Exporting Direct Investment Joint Venturing Contract manufacturing

Direct Investment

With __________ the marketer takes over those supply chain functions initially performed by third-party providers. Risks, as well as the costs of financial investments, rise as this strategy is employed. Direct exporting Indirect Exporting Joint Venturing Licensing Contract manufacturing

Direct exporting

__________ consists of messages delivered through the mail; catalogs; telephone calls; direct response advertising and infomercials, in magazines or on television or radio; or through digitally-mediated communication sources such as tweets, texts, or emails. Direct marketing Social marketing Advertising Distance marketing

Direct marketing

Time-Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________. Direct mail Direct response advertising (correct) On-line retailing Direct selling Telemarketing

Direct response advertising

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ . Off-price retailers Specialty stores Discount stores Category killers Department stores

Discount stores

McDonald's product menu and its promotions vary greatly across the different countries in which it operates. The firm sensibly focuses substantial marketing mix attention on delivering products and messages that are popular and culturally acceptable across various nations and regions. McDonald's is using a(n) ______. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Dual customization strategy

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___ . Multi-channel marketing and distribution Direct distribution Dual distribution Retail distribution.

Dual distribution

_________ entails selling a product in a foreign market at prices substantially lower than it is priced in the domestic home market. Predatory pricing A trade barrier A revenue tariff Dumping The use of subsidies

Dumping

Subsequent to the outbreak of mad cow disease in the US a few years ago, South Korea and other countries prohibited the importation of US-produced beef for a period of time. This was an example of a(n) _______. Import quota Trade barrier Revenue tariff Protective tariff Embargo

Embargo

___________ are a complete ban on certain products imported from foreign countries into domestic markets. Import quotas Trade barriers Revenue tariffs Protective tariffs Embargos

Embargos

Perfumes, jewelry, and designer clothing are often advertised in pleasant settings or usage situations in an attempt to create a positive mood or image for the brand advertised. The advertising appeal employed is ____________. Humor appeal Fear appeal Emotional appeal Slice of life appeal Life style appeal

Emotional appeal

When BMW airs advertising that emphasizes the performance, driving enjoyment, and style of its M4 they are employing _____________ . Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Emotional appeals

Ford Motor, recently introduced a new, low-priced, and smallish model called the Figo in India. The Figo is targeted at tens of millions of Indian consumers who are only now able to afford their first car. This is example of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Economic factors

Underdeveloped but emerging nations cannot afford the technical equipment that is the backbone of more developed, or industrialized, nations. This is example of ____________ impacting a firm's potential global marketing strategy. Cultural differences Economic factors Political factors Trade barriers Exchange rates

Economic factors

After determining the target audience for an advertising campaign, firms must decide what the advertising should accomplish. Such decisions are done in which stage of the advertising process? Establish advertising objectives Identify the target audience Determine the advertising budget Execute the advertising strategy Determine advertising strategy

Establish advertising objectives

BP ran an effective institutional advertising campaign to improve its image after the Gulf oil spill. The purpose of the ads was to inform the public, affected citizens and businesses, and governmental agencies of its efforts to clean up the spill and its steps to ensure that it would not happen again. When BP decided on the purpose(s) of the campaign is was in which stage of the advertising process? Establish advertising objectives Identify the target audience Determine the advertising budget Execute the advertising strategy Determine advertising strategy

Establish advertising objectives

(n) _________ is the price of one nation's currency—the nation's dollar, pound, Euro, yen—in terms of another nation's currency. Monetary base Exchange rate Interest rate Utility rate Currency valuation rates

Exchange rate

The reason why ____________ are important is that fluctuations make a nation's currency more or less valuable in comparison to other nations' currencies. Monetary bases Exchange rates Interest rates Utility rates Currency valuation rates

Exchange rates

A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of: Scale economies associated with increased manufacturing efficiency as plant capacity is approached. Reliance on the likely inelastic demand that should exist for this product. Reliance on a high quality, prestige image that can be expected to generate high levels of market demand. Experience curve effects. None of the above.

Experience curve effects.

The _____________exempts most domestic firms from normal and standard antitrust regulations when they are marketing globally. Foreign Corrupt Practices Act Trade Act Export Trading Act Robinson-Patman Act Sherman Anti-Trust Act

Export Trading Act

___________ permits US firms to create export partnerships other domestic corporations who can "merge" presumably complimentary competencies, capabilities, and resources, to promote, and distribute domestic products more effectively in global markets. Foreign Corrupt Practices Act Trade Act Export Trading Act Robinson-Patman Act Sherman Anti-Trust Act

Export Trading Act

The term _________ means that a domestic marketer ships goods or delivers professional services outside the country in which the marketer is located. Direct investment Exporting Joint Venture Licensing Contract manufacturing

Exporting

The most sever remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ . Cease and desist order Consent decree Corrective advertising Fines

Fines

Even when production stops (i.e. no units produced), the firm still generally incurs some _________. Variable production costs Marginal costs Psychological costs Fixed production costs Total values costs

Fixed production costs

The ____________ also mandates that accounting controls be in place for purposes of monitoring the potential use of incentives by domestic firms for soliciting sales in foreign countries. Violations of the law can result in individuals being fined and, potentially, imprisoned. Foreign Corrupt Practices Act Trade Act Export Trading Act Robinson-Patman Act Sherman Anti-Trust Act

Foreign Corrupt Practices Act

The _____________ made it illegal for US marketers to use bribes as promotional incentives intended to solicit new sales. Foreign Corrupt Practices Act Trade Act Export Trading Act Robinson-Patman Act Sherman Anti-Trust Act

Foreign Corrupt Practices Act

The disadvantages of licensing as a means for US firms to enter foreign markets include all but the following: Reduced control over how it's products are produced and marketing in the foreign country Increased costs associated maintaining the licensing arrangement An alternative entry strategy may have been more profitable, particularly is the product gains substantial sales After developing an expertise and market for the licensed product, the licensee may break from the licensing arrangement and become a direct competitor with the US-based firm in the foreign market

Increased costs associated maintaining the licensing arrangement

Which of the following is not considered to be joint venturing for penetrating foreign markets? Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Indirect exporting

Direct channels for products are most likely for _ . Consumer convenience goods Consumer shopping goods Consumer specialty goods Industrial supplies Industrial installation.

Industrial installation.

Communications designed to relay information to consumers about product characteristics, their function, and availability are called ____________ communications. Reminder Informative Persuasive Educational Determinant

Informative

Transportation, communications, banking and financial, utilities, and public services capabilities are each part of a country's _________. Gross domestic product Logistics structure Trade barriers Infrastructure Economy

Infrastructure

Sales staff working the sales floor in Best Buy or Dillard's are technically called ______. Inside order takers Order getters Outside order takers Missionary salespersons Retail clerks

Inside order takers

The primary tasks of _____________ are to answer customers' questions, take orders, and make suggestive sales. Inside order takers Order getters Outside order takers Missionary salespersons Retail clerks

Inside order takers

Subsequent to the now infamous Gulf oil spill in 2010 BP employed ____________intended to "clean up" its image by talking about the steps it has taken to clean up the Gulf and prevent future similar disasters. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Institutional advertising

____________ is intended to promote the image of an organization by highlighting specific activities in which the organization is engaged, people who represent the organization, and/or ideas and points of view espoused by the organization. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Institutional advertising

_______________ promotes organizations rather than products. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Institutional advertising

The acronym IMC stands for ________. Integrated Marketing Communications Integrated Management Communications Integrated Marketing Channels Important Marketing Concepts None of the above

Integrated Marketing Communications

A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores. Internal atmospherics Internal personality Interior position Interior brand image

Internal atmospherics

Retailers work hard to design in-store sensory environments that postively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________. Internal atmospherics Internal personality Interior position Interior brand image

Internal atmospherics

Advertising is used extensively during the ____________ stage of the PLC to create awareness and stimulate product trial. Introduction Growth Maturity Decline All of the above

Introduction

Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the __________ stage of the PLC. Introduction Growth Maturity Decline All of the above

Introduction

Prices for products are usually at their highest point during the ________________ stage of the product's life cycle. Conceptualization Introduction Maturity Decline Harvesting

Introduction

Sales promotions, such as coupons and free samples, are employed to induce trial primarily in the ______ stage of the PLC. Introduction Growth Maturity Decline All of the above

Introduction

The primary objective of ____________ in which customers accumulate points over time with each purchase is to encourage consumers to continue buying the firm's products. Loyalty programs Spiffs Sweepstakes Contests Patronage promotions

Loyalty programs

With __________ customers accumulate "points" over time that can be redeemed for products or cash. Loyalty programs Spiffs Sweepstakes Contests Patronage promotions

Loyalty programs

Marriott intends to add hotel operations in Belize and Honduras. It would like to partner with local investors who would own the hotels, but rely on Marriott to provide management services. Ultimately, Marriott wants to buy out the foreign investors. Marriott probably should be advised to use which method of entering a foreign market? Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Management contracting

Some domestic US firms contract with partner firms in foreign markets for purposes of using the US firm's management expertise to run the partner firm's operations in the foreign markets. This is an example of __________ for entering a foreign market. Licensing Indirect exporting Contract manufacturing Management contracting Joint ownership

Management contracting

The final step in the price setting process is __________. Setting price objectives Managing price Identifying price strategies Setting base price Adjusting base price with various discounts and allowances

Managing price

When employing life cycle pricing for industrial products, which of the following costs to the buyer are not considered? Marginal costs Post-purchase costs The final sales price. Start-up costs

Marginal costs

The price for a gallon of 2% milk costs Kroger's $1.20 and Kroger's wants a 50% mark-up. The resulting selling price to Kroger shoppers is $1.20 + .5($1.20)=$1.80. This is an example of __ pricing. Mark-up based on cost Mark-up based on selling price Value Break-even pricing

Mark-up based on cost

The most common form of mark-up pricing, and the form of mark-up pricing to be used on all exams unless told otherwise is: Mark-up based on cost Mark-up based on selling price Value mark-up Break-even mark-up

Mark-up based on selling price

When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market. Market-skimming Market absorption Market penetration Cost-plus Value-set

Market penetration

The movement of parts and materials from their sources of supply into the manufacturing process is ___ . Logistics management Materials management Physical distribution Supply chain management

Materials management

During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reach additional target segments, and demonstrate new ways that consumers could use the product. Introduction Growth Maturity Decline

Maturity

During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" from competitors. Introduction Growth Maturity Decline

Maturity

During the __________ stage of the PLC, the primary role of sales promotions is to tempt consumers into "brand switching." Coupons, point-of-sale devices, premiums, and price incentives are needed to entice consumers away from competing brands. Introduction Growth Maturity Decline

Maturity

Reminder communications are generally more appropriate during which stages of the PLC? Introduction and growth Growth and maturity Maturity and decline Introduction and decline

Maturity and decline

Promotion messages that point out only the positive aspect of a brand are called _________. One-sided messages Two-sided messages Positive-point messages Single-point messages Benefit-oriented messages

One-sided messages

In general, one-sided ads work better when consumers: Are better educated Already agree with the advertiser's position Already prefer the advertiser's brand All of a,b,c above Only b and c above

Only b and c above

John Larson is a sales representative for Whitman Manufacturing. John's primary job is to seek new customers, but he is also tasked with generating increased sales to existing customers. John is a(n) _________ . Inside order taker Order getter Outside order taker Missionary salesperson Retail clerk

Order getter

___________, as salespersons, usually work in the B2B arena, and are engaged in creative selling to prospect and qualify prospective customers. Inside order takers Order getters Outside order takers Missionary salespersons Retail clerks

Order getters

___________ are traveling salespersons who visit customers in the field and generate orders in the process. This form of selling is most common in B2B supply chains. Inside order takers Order getters Outside order takers Route salespersons Delivery salespersons

Outside order takers

___________ are specialized types of sales promotions that include end-of-aisle displays, window signs, special display racks, shelf coupon dispensers, and displays next to check-out counters. Coupon dispensers Display centers Promotion panels Sample centers POP materials

POP materials

____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work. Party plan selling Direct selling In-home selling Sponsored selling Group selling

Party plan selling

With ___________ IMC budgeting, the magnitude of sales determines the size of the budget, rather than promotion driving sales. Percentage of Sales and All-You-Can Afford Percentage of Sales and Objective and Task Competitive parity and Percentage of Sales All-You-Can-Afford and Objective and Task

Percentage of Sales and All-You-Can Afford

With the ____________ of IMC budgeting, the total budget will decline when sales decline and increase as sales go up. Percentage of Sales and All-You-Can Afford Percentage of Sales and Objective and Task Competitive parity and Percentage of Sales All-You-Can-Afford and Objective and Task

Percentage of Sales and All-You-Can Afford

ABC corporation expects sales of $1,500,000 for next year and the promotion budget is limited to 5% of sales, the total promotion budget will be $75,000. ABC has employed the ______ method of budgeting. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Percentage of sales

With __________ the IMC budget is set at some fixed percentage of the previous year's sales or next year's forecasted sales. Percentage of sales Objective and task Competitive parity All-You-Can-Afford

Percentage of sales

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale: Random discounting Second market discounting Periodic discounting Deep discounting None of the above

Periodic discounting

Communications designed to convince consumers that a brand is the best solution to their purchasing problem are called ____________ communications. Reminder Informative Persuasive Educational Determinant

Persuasive

Incentives, such as coupons, rebates, and other forms of sales promotion are best classified as _______ communications. Reminder Informative Persuasive Educational Determinant

Persuasive

___________ is used during growth and maturity stages of the PLC to differentiate the firm's brand from competitors' brands. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Persuasive advertising

The movement of finished goods from the manufacturer into the hands of final consumers is . Logistics management Materials management Physical distribution Supply chain management

Physical distribution

The purpose of ___________ to create awareness and trial for new products that are in the introductory stages of their product life cycles. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Pioneering advertising

_______________ is used to develop primary demand for the product category, rather than demand for individual brands. Product advertising Pioneering advertising Persuasive advertising Reminder advertising Institutional advertising

Pioneering advertising

The acronym "POD" stands for __________. Price of Delivery Point of Distribution Point of Difference Power of Deterrence Point of Delivery

Point of Difference

____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

Power centers

A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described? Prestige pricing Average cost-pricing Bait pricing Penetration pricing Experience curve pricing

Prestige pricing

The pricing strategy most appropriate for "positional products" is __ . Penetration pricing Prestige pricing Product line pricing Competitive pricing Predatory pricing.

Prestige pricing

A penetration pricing strategy is most likely to be used when pricing objectives focus on: Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins. Manipulating consumers' psychological impressions of price as an indicator of product quality or status. Maximizing profits on a per unit basis. Pricing at the same level as competitors to avoid potential price wars Penetration pricing cannot be used in any of the situations suggested above.

Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.

_________ is the only marketing mix element that generates revenue for the firm. Promotion Product Distribution Price All of the above yield substantial revenue for the firm.

Price

__________ is a measure of the utility that exists or is perceived to exist in a product. Price Value Exchange Utility Barter

Price

__________ is the amount of money or other form of remuneration that is charged for products or services. Price Value Exchange Utility Barter

Price

The following formula is used to compute: Price=(pruduct cost)/1-(markup price/100) Price by employing mark-up based on cost Price by employing mark-up based on selling price A value-based price The break-even price

Price by employing mark-up based on selling price

A brand is fundamentally the same as those of its competitors with little 'value added.' In addition, the product is one such that little brand loyalty tends to exist. It is most likely that when setting prices for this brand, the seller must treat demand as ___ Price inelastic Price elastic Uniformly elastic Price inflexible Inverse.

Price elastic

When demand is (__) total revenue tends to increase as price increases. Price elastic Price sensitive Inverse Price inelastic Price invariant.

Price inelastic

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

Price objectives

In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

Price strategies

Understanding costs faced by the firm when making pricing decisions is important because: Costs constitute the maximum possible price that can be charged for a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs Costs are directly proportional to prices charged by competitors

Prices must be set with a knowledge of the costs required to make and sell the product.

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product. Price objectives Pricing techniques Pricing discounts Pricing allowances Cost-volume-profit analysis

Pricing discounts

The most common channel of distribution for consumer goods is ___ . Direct from producer to consumer Producer --> Wholesaler --> Retailer --> Consumer Producer --> Retailer --> Consumer Producer --> Agent --> Retailer --> Consumer

Producer --> Wholesaler --> Retailer --> Consumer

In Russia, greeting cards are not sent to men celebrating their 40th birthdays. Traditional Russians still honor the belief that big events or gestures intended to celebrate this milestone are tantamount to inviting "the Death" into his life. Hallmark does not produce and sell 40th birthday greeting cards in Russia. Hallmark is using a(n) _________ for tapping the Russian market. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Product adaptation strategy

When Hallmark markets Happy Birthday [Mom or Dad] greeting cards in Japan, messages are far more ceremonial and formal. This change illustrates a(n) _________ for penetrating an international market. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Product adaptation strategy

In general, there is a larger change in profits associated with a $1.00 reduction in costs than for the same $1.00 increase in revenue. This phenomenon is referred to as: Profit leverage of costs Profit leverage of revenue Profit elasticity of costs Price elasticity of demand Who knows?

Profit leverage of costs

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level. Price objectives Pricing techniques Pricing discounts Promotion allowances Cost-volume-profit analysis

Promotion allowances

Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller. Functional discounts Quantity discounts Seasonal discounts Promotional allowances Trade discounts

Quantity discounts

Advertising, personal selling, sales promotion, publicity, and public relations comprise the firm's __________. Marketing mix Communications mix Sales mix Promotion mix Advertising mix

Promotion mix

Which of the following is not a common criticism of promotion? Promotion is misleading Promotion is unjustifiably expensive Promotion can classically condition some groups Promotion provides too much information to consumers

Promotion provides too much information to consumers

For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a: Forward dating Seasonal discount Cash discount Promotional allowance Rebate

Promotional allowance

Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a: Promotional allowance Forward dating Seasonal discount Cash discount Quantity discount

Promotional allowance

Firms typically will attempt to characterize likely customers in terms of easily identifiable geographic and demographic characteristics and then employ various directories and databases to locate people with these characteristics. This step in the personal selling process is ___________. Approach Prospecting Qualifying Presentation Close

Prospecting

Sales promotions are employed to solicit interest in a firm's products. The objective is to generate interest that leads to requests for further information. This step in the personal selling process is ___________. Approach Prospecting Qualifying Presentation Close

Prospecting

With B2C sales, firms often rely on inquiries by email, social media, or inquiries made to the sellers' websites to identify potential customers. This step in the personal selling process is ___________. Approach Prospecting Qualifying Presentation Close

Prospecting

With respect to the personal selling process, _______ is the process of identifying potential customers and is the first step in the personal selling process. Approach Prospecting Qualifying Presentation Close

Prospecting

_________ are used to increase the retail price of an imported product such that it generally matches or exceeds the price of domestically produced goods. Administrative tariffs Trade barriers Quotas Revenue tariffs Protective tariffs

Protective tariffs

Typical goals of ____________ are to garner positive news releases, arrange interviews between the media and the firm's spokespersons, lobby governmental agencies, support charitable events, and engage in corporate (institutional) advertising. Advertising Personal selling Sales promotion Public relations Publicity

Public relations

_________ is the organized effort by a firm in an attempt to manage the publicity it receives; create positive attitudes toward the firm, its product, and its policies; and foster positive relationships with various internal and external publics. Publicity Relationship management Relationship marketing Public relations Publicity management

Public relations

_____________ is an attempt by firms to manage the publicity it receives by seeking to enhance the image of the firm and its products, or to communicate important company information to key publics. Advertising Personal selling Sales promotion Public relations Publicity

Public relations

The Robinson-Patman Act (1936) is designed to: Prohibit the formation of monopolies Regulate the information required on consumer packaged goods Regulate price discrimination between producers and their middlemen Regulate price discrimination on prices charged consumers Prohibit unfair business practices that may restrain trade.

Regulate price discrimination between producers and their middlemen

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparently is evaluating the ___________ of the alternatives being considered. Risks Relative values Utilities Merits Exchange rates

Relative values

Managing media relations, publicity, lobbying, and investor relations are generally handled by the firm's ___________. Advertising department Public relations staff Marketing manager Purchasing manager CEO

Public relations staff

A TV station runs a story about a company that is deemed to be "newsworthy." The company that is the subject of the news story does not pay for or directly sponsor the message. This is an example of ______ . Advertising Personal selling Sales promotion Public relations Publicity

Publicity

______________ is any message about a product, organization, person, or event that is communicated via non-personal media and is not paid for by a sponsor. Advertising Personal selling Sales promotion Public relations Publicity

Publicity

A ______ promotion strategy builds sales by promoting aggressively to the final buyer, usually the ultimate consumer. By stimulating demand with the final buyer, intermediaries are forced to stock and sell the product to satisfy this demand. Push Pull Primary demand Selective demand Distributor

Pull

Procter and Gamble employs extensive television and print advertising to create demand for its personal care products with consumers. Coupons, gifts, and premiums are employed at the point of purchase to stimulate trial and brand switching behaviors, as well as to create brand preference. P&G is employing a _________ promotion strategy. Push Pull Primary demand Selective demand Distributor

Pull

With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised. Push Pull Primary demand Selective demand Consumer

Pull

Producers employ a wide range of promotions directed at intermediaries to motivate their selling efforts. Examples include dealer contests for middlemen's sales personnel, trade shows, slotting fees for retailers, and promotional allowances. These promotional tools are considered to be elements ____________ promotion. Push Pull Primary demand Selective demand Distributor

Push

With ______ promotion, advertising and other promotion techniques are directed at intermediaries to convince them to stock the advertiser's products. Push Pull Primary demand Selective demand Distributor

Push

With ________ promotion strategies producers heavily promote to wholesale and retail intermediaries. In turn, retailers actively promote the product to ultimate consumers. This strategy relies heavily on the aggressive selling efforts of the manufacturer's sales force to work with wholesalers and/or retailers. Push Pull Primary demand Selective demand Distributor

Push

Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Cash discounts Slottine fees Trade discounts Push money Advertising allowances

Push money

_________ is a form of sales promotion in which sales personnel are incentives to expend greater effort selling a specific product or brand. Push money Specialty advertising Sales commission Sales incentive

Push money

The key questions asked during the _________ step of the personal selling process are: Does the prospect need and want the product? And, does the prospect have the resources to buy the product? Approach Prospecting Qualifying Presentation Close

Qualifying

Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a: Selling agent Rack jobber Cash & carry wholesaler Truck wholesaler (jobber) Manufacturers' agent

Rack jobber

With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may have unlisted numbers. Random digit dialing (correct) Competitors' customer call lists Purchased data bases of prospects The FTC's no-call lists On-line phone lists

Random digit dialing

The pricing strategy that may induce price sensitive customers to periodically visit a retail store to see "what's on sales" is __ . Systematic discounting Random discounting Second market discounting Odd pricing Penetration pricing.

Random discounting

When Ford airs advertising that focuses on the functional characteristics of its cars, such as quality, reliability, gas mileage, warranties, and service they are employing ____________ in their ads. Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Rational appeals

With respect to the appeals than can be employed in promotion, the type of appeal that emphasizes communicating information about concrete benefits, functions, or characteristics that are associated with the product are called ______ . Emotional appeals Rational appeals Functional appeals Benefit appeals Utilitarian appeals

Rational appeals

With respect to assessing advertising effectiveness the number or percentage of consumers in a particular target audience exposed to a specific advertising message in a given period of time is called __________. Reach Frequency Delivery Scope Spread

Reach

________ are essentially refunds that amount to price reductions for products already purchased. Rebates Coupons Contests Push money Samples

Rebates

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________. Reduced probability of price wars with other firms. Firms can differentiate based on product attributes and other elements of the marketing mix. Greater ability to build brand image and equity. Lower propensity for firms to collude with one another to maintain prices Reduced ability to raise prices.

Reduced ability to raise prices.

Which of the following is not a response by supermarkets to improve their profit margins? Increased use of technology to improve customer service Reduced reliance on vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private label brands Using promotional mechanisms to build store loyalty.

Reduced reliance on vendor assistance to help manage inventory and restock shelves

The benefits of direct investment as a means of entering foreign markets include all of the following except: Greater control of operations and marketing activities Lower operational and production costs Enhanced brand image and brand power in the host country Easier to adopt products to local tastes and desires Reduced risk of foreign governmental restrictions on operations

Reduced risk of foreign governmental restrictions on operations

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using: Captive pricing Skimming pricing Reference pricing Price lining Every-day low pricing

Reference pricing

Ralph Lauren displays its Ricky Alligator Bags ($14,000 price tag) next to its Tiffin Bags priced at only $2,500 in an attempt to make the Tiffin Bags appear to provide greater value in comparison. This is an example of ___ . Quality pricing Bait pricing Reference pricing Captive pricing Predatory pricing.

Reference pricing

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________. Neighborhood center Community center Regional center Power center Factory outlet mall

Regional center

_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents

Retailing intermediaries

Tariffs that impose tax rates per pound, per gallon, or other unit on imported products are called _______. Administrative tariffs Trade barriers Quotas Revenue tariffs Trade incentives

Revenue tariffs

An LA Fitness salesperson may offer to "waive your enrollment fee if you sign-up today." The sales person is using the ___________ . Assumptive close Standing room only close Sharp angle close Final objection close

Standing room only close

___________ supports and augments advertising and personal selling efforts. It consists of activities that provide short-term incentives aimed at inducing desired responses from customers. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

____________ is a paid form of communication that is temporarily used to stimulate purchases, as well as enhance salesperson and dealer effectiveness. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

_____________ includes the use of coupons, games, contests, free samples, rebates, frequent-flyer programs, in-store displays, in-store product demonstrations, free gifts, and travel vacations for salespeople. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

______________ is probably the best promotional tool for stimulating impulse purchases and brand switching for low involvement consumer convenience goods. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

______________ is probably the best promotional tool for stimulating new product trial and encouraging brand switching for consumer convenience goods. Advertising Personal selling Sales promotion Public relations Publicity

Sales promotion

Normally employed to supplement the firm's advertising and personal selling efforts, the range of short-term paid incentives that are used to stimulate purchase are _______. Sales promotions Specialty advertising Promotion materials Sales tools Selling aids

Sales promotions

The range of short-term paid incentives that are used to encourage the sale of specific products or brands are ____________. Sales promotions Specialty advertising Promotion materials Sales tools Selling aids

Sales promotions

The purpose of __________ as a form of sales promotion is to introduce customers to new products and to stimulate trial. Rebates Coupons Contests Push money Samples

Samples

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a: Selling agent Manufacturers' agent Broker Specialty wholesaler Truck jobber

Selling agent

The typical markup (expressed as a percent) is the: Selling price minus the cost of the item, divided by the cost of the item--times 100. Selling price of an item, divided by its cost--times 100. Selling price minus the cost of the item, divided by the selling price--times 100. Selling price minus the cost of the item, divided by the average fixed cost--times 100. Cost of an item divided by its selling price--times 100.

Selling price minus the cost of the item, divided by the selling price--times 100.

________ are intended to either make one feel more attractive by using a product by attaching sensual or even erotic imagery to the product Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Sex appeals

A prospective member is considering an LA Fitness membership. In her discussion with the sales rep the prospective member asks "what can you do to sweeten the deal?" The sales rep may respond by saying "I can waive the $100 initiation fee if you sign up now." The sales rep has used a(n) ___________. Assumptive close Standing room only close Sharp angle close Final objection close

Sharp angle close

Using the ____________ the buyer asks for a concession, such as free delivery or additional features as part of the sale. Assumptive close Standing room only close Sharp angle close Final objection close

Sharp angle close

With the ____________ close the seller urges the prospect to buy immediately in order to receive, for example, a special price or free gift before some deadline passes. Assumptive close Standing room only close Sharp angle close Final objection close

Standing room only close

Tide laundry detergent commercials often show the average homemaker enjoying brighter, cleaner laundry as a result of using Tide's latest formula. The advertising appeal employed is _____________. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Slice of life appeals

___________ appeals show the product being used by the "typical consumer" in a normal setting. Humor appeals Fear appeals Sex appeals Slice of life appeals Life style appeals

Slice of life appeals

A reduction from list price given to middlemen to get shelf space for a product is a: Brokerage allowance Trade discount Push money allowance Self allocation Slotting allowance

Slotting allowance

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ . That have the same number of customers So as to avoid charges of illegal price discrimination That are equal in dollar sales potential Such that the prices are the same for each zone That are equal in geographic size

So as to avoid charges of illegal price discrimination

The firm's promotion mix consists of all of the following except _______ . Advertising Personal selling Sales promotion Social media Publicity and public relations

Social media

Which of the following is not a form of non-store retailing? Vending Party plan selling Telemarketing Direct mail Social network selling Rationale: Feedback: Although substantial sales are made via social networks outside of brick and mortar facilities, it is not one of the formal categories of non-store retailing.

Social network selling

When employing life cycle pricing for industrial products, any training, installation, design, and retooling costs are classified as __ . Start-up costs Marginal costs Post-purchase costs Investment costs.

Start-up costs

For an advertising message about a product or brand to be "determinant" it must focus on or emphasize ____________. Some point of difference (POD) Benefits similar to those offered by competitors Superior value to competitor's brands Features and benefits delivered by the brand

Some point of difference (POD)

The message _________ is the apparent originator of the message and can be a person, a company, or an inanimate figure, such as a cartoon character. Presenter Spokesperson Source Broadcaster Initiator

Source

Which of the following is not a major determinant of source credibility? Source expertise Source trustworthiness Source believability Source attractiveness Source honesty

Source attractiveness

The perceived believability, expertise, and trustworthiness of the message source can be important for assuring acceptance of the message and is called __________ . Message source effect Source acceptance Source importance Source credibility None of the above

Source credibility

Family and friends typically score high on those factors that contribute to source credibility except: Source expertise Source trustworthiness Source believability Source honesty

Source expertise

Sales promotion include all of the following except ___________ . Specialty advertising Coupons Spiffs Rebates Samples

Specialty advertising

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as: Off-price retailers Specialty stores Factory outlets Category killers Department stores

Specialty stores

____________ attempt to avoid price competition, preferring instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortments of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. Off-price retailers Specialty stores Factory outlets Category killers Department stores

Specialty stores

_________ is a form of sales promotion in which sales personnel are incentives to expend greater effort selling a specific product or brand. Spiff Specialty advertising Sales commission Sales incentive

Spiff

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. Investment in equipment Upkeep on equipment Theft and vandalism of equipment Spoilage of products not purchased before their expiration date.

Spoilage of products not purchased before their expiration date.

Domino's opened pizza stores throughout Asia during the 1990s using the same positioning strategy employed in domestic US markets. This strategy, however, did not resonate with Asian consumers. In their minds 30-minute delivery promises were not sufficient to offset the pizza's comparative mediocrity. The failure of Domino's in the Asian market illustrates the dangers of using a ____________ for penetrating global markets. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

Procter & Gamble (P&G) markets its Pringle's potato chips brand using the same product formulation in each international market. It is able to satisfy 80% of world demand through only six flavors and one package design. P&G is using a(n) ____________. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

Rolex has used the same simple positioning message of elegance, precision, and durability for decades in all its global markets. It is the world's 72nd most dominant brand. The Rolex global marketing strategy is a(n) ___________. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

South Africa's De Beers, the world's largest diamond producer, uses glossy high-image advertising with little copy in upscale publications to convey its prestige messages in all international markets served. The same message and associated marketing program are employed in all its markets. De Beers is using a(n) ______. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

When firms employ a one-product, one-message marketing mix to tap all foreign markets and this program is basically the same as their domestic marketing program, they are employing as ________. Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

Which global marketing strategy yields the longest production runs, lowest costs, and reinforces the "universality" of a brand's global image? Straight extension strategy Product adaptation strategy Promotion adaptations strategy Dual customization strategy New product development strategy

Straight extension strategy

The channel of distribution for consumer products does not include which of the following? The producer Intermediaries, such as wholesalers and retailers Ultimate consumers of the distributed product Suppliers of component parts to the producer.

Suppliers of component parts to the producer.

_________ is a form of sales promotion in which consumers (usually) submit an entry that entitles them to take part in and potentially win one or more prizes. Rebates Coupons Contests Games Sweepstakes

Sweepstakes

A primary weakness of sales promotions is: Their use may build customer loyalty to the deal, rather than to the brand Their use is too costly compared to other forms of promotion They are less effective for stimulating trial and repeat purchase They cannot "close" the sale

Their use may build customer loyalty to the deal, rather than to the brand

In price determination, given a particular selling price, the break-even point is where: Profit is maximized Sales volume is maximized Marginal cost equals total sales Marginal cost equals marginal revenue Total costs of the product equals total sales revenue from the product.

Total costs of the product equals total sales revenue from the product.

The __________ of 1988 provided more specific descriptions of the sort of practices that were prohibited under the Foreign Corrupt Practices Act. Foreign Corrupt Practices Act Trade Act Export Trading Act Robinson-Patman Act Sherman Anti-Trust Act

Trade Act

All of the following are considered to be economic factors affecting a firm's global marketing strategy except __________. Gross domestic product Per capita income of individuals Trade barriers Infrastructure Exchange rates

Trade barriers

_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform. Markdowns Cash discounts Quantity discounts Slotting fees Trade or functional discounts

Trade or functional discounts

The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers are at which stage in the Hierarchy of Communications Objectives? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Trial and purchase

When marketers of automobiles offer to let consumers "take a car home" for an extended test drive and offer generous return policies, they are emphasizing objectives at which stage of the Hierarchy of Communications Objectives? Creating awareness Structuring beliefs and attitudes Creating liking and preference Trial and purchase Conviction and brand loyalty

Trial and purchase

Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of: Marginal costs Break even points Variable costs Fixed costs Average costs

Variable costs

Microwave ovens, automatic dishwashers, and instant coffee were somewhat slow to be adopted and diffuse due to: Lacked relative advantage Too complex to understand and use Lacked social visibility (communicability) Could not be sampled on a limited basis (trialability) Were not compatible with cultural and other usage expectations.

Were not compatible with cultural and other usage expectations.

_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups. a.Neighborhood centers b.Community centers c.Regional centers d.Power centers e.Factory outlet malls

c.Regional centers

____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use. a.Wholesaling b.Consumption c.Retailing d.Distribution e.Logistics

c.Retailing

The internal and external physical characteristics of stores that shape the retail store's image are referred to as: a.Atmospherics b.Retail personality c.Retail position d.Retail brand image

a.Atmospherics

_________ are groups of two or more retail stores operated by th same entity. a.Chain stores b.Independent retailers c.Corporate chains d.Internet retailers c.Rack jobbers

a.Chain stores

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ . a.Direct marketing b.Direct selling c.In-store retailing d.Soft marketing as opposed to brick and mortar retailing e.Distance marketing

a.Direct marketing

Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ . a.Leased department retailer b.Corporate chain c.Franchise retailers d.Internet retailers e.Rack jobbers

a.Leased department retailer

Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ . a.Direct mail b.Direct response advertising c.On-line retailing d.Direct selling e.Telemarketing

b.Direct response advertising

Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods? A desk jobber A commission merchant A truck jobber (correct) A manufacturer's sales office A broker

A truck jobber

The television home shopping format appeals to some consumers for which of the following reasons? Prices are often perceived as lower Sales personnel are often perceived as friendlier and better informed Consumers can shop from the convenience of their own homes Consumers can see how products work and understand the benefits before they purchaseProducts can be easily demonstrated and plenty of time exists to explain the product's benefits All of the above

All of the above

__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices. Supercenters Supermarkets Discount stores Category killers Convenience stores

Convenience stores

provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers. Off-price retailers Specialty stores Discount stores Category killers Department stores

Discount stores

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon? a.Price matching on select merchandise b.Adding value-enhancing services c.Liberal return policies d.Improved merchandising by expanding the merchandise mix e.Enhanced customer relationship management

Improved merchandising by expanding the merchandise mix

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a: Rack jobber Drop-shipper Broker Manufacturers' agent Selling agent

Manufacturers' agent

Convenience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls

Neighborhood centers

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers? Seek to tailor their merchandising and customer service to the precise needs of their local market Identify a unique niche not targeted by competitors in which they can attain a differential advantage Seek to become part of a franchise organization Seek to become part of an established vertical marketing system Seek to become part of an established network marketing system

Seek to become part of an established network marketing system

The primary factor that distinguishes between a merchant wholesaler and an agent is: The agent takes title; the wholesaler does not. The wholesaler takes title; the agent does not. The wholesaler provides many more services than does the agent. Wholesalers account for a larger sales volume than do agents None of the above

The wholesaler takes title; the agent does not.

Which of the following is true about how direct selling differs from direct marketing? a.Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling b.Direct marketing is limited by various "Green River Ordinaces" in a large number of communities c.Direct selling uses traditional promotional media to encourage consumers to buy products by mail, telephone, or internet d.Direct selling includes a number of techniques including direct mail, telemarketing, and direct response advertising e.There is no differences. These are different names for the same thing.

a.Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling

The classification system for in-store retailers employed in the text is based on the ______________ of the retailer. a.Merchandise mix b.Degree of effort consumers expend in visiting facilities c.Location d.Size e.Type of ownership

a.Merchandise mix

___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's. a.Off-price retailers b.Specialty stores c.Factory outlets d.Category killers e.Department stores

a.Off-price retailers

outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. a.Off-price retailers b.Specialty stores c.Factory outlets d.Category killers e.Department stores

a.Off-price retailers

Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all exemplify which form of direct selling? a.Party plan selling b.Door-to-door selling c.In-home selling d.Sponsored selling e.Group selling

a.Party plan selling

additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers. a.Supercenters b.Specialty stores c.Discount stores d.Category killers e.Department stores

a.Supercenters

The main difference between agent middlemen and merchant wholesalers is: a.That agent middlemen do not own the products they sell--while merchant wholesalers do. b.That no agent middlemen physically handle products--while all merchant wholesalers do. c.Their attitudes regarding the marketing concept. d.The kind of selling they do. e.There is no difference--an agent middleman IS a merchant wholesaler.

a.That agent middlemen do not own the products they sell--while merchant wholesalers do.

The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use: a.Selling agents b.Manufacturers' agents c.Drop shippers d.Brokers (correct) e.Commission merchants

d.Brokers

Merchant wholesalers: a.Are the smallest segment of wholesaling firms when measured by number of establishments. b.Are independently owned firms that engage primarily in wholesaling and take title to products being distributed. c.Are independently owned firms that do not take title to the products being distributed. d.Are manufacturer-owned organizations that perform primarily wholesaling tasks for their owner companies. e.Engage in both wholesaling and retailing activities for manufacturers and consumers.

b.Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

____________ are responsible for managing a group of related products stocked by a retail store. a.Stocking managers b.Category managers c.Product line managers d.Inventory managers

b.Category managers

______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations. a.Multi-unit chains b.Corporate chains c.Independent retailers d.Rack jobbers e.Superstores

b.Corporate chains

Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______. a.Direct mail b.Direct response advertising c.On-line retailing d.Direct selling e.Telemarketing

b.Direct response advertising

Door-to-door selling and party plan selling are both examples of ________ . a.Telemarketing b.Direct selling c.In-store retailing d.Direct retailing e.Mail order selling

b.Direct selling

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________. a.Storage intermediaries b.Facilitating agents c.Vertical integrator d.Warehousing agents e.Channel integrator

b.Facilitating agents

Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a: a.Truck jobber b.Manufacturers' agent c.Drop shipper d.Broker e.Commission merchant

b.Manufacturers' agent

____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. a.In-store retailing b.Non-store retailing c.Internet retailing d.Social network retailing e.Out-bound retailing

b.Non-store retailing

A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a: a.Broker b.Specialty (limited line) wholesaler c.Truck distributor d.Manufacturers' agent e.General merchandise wholesaler

b.Specialty (limited line) wholesaler

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________. a.Retailing b.Wholesaling c.Channel management d.Logistics e.Distribution management

b.Wholesaling

___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses. a.Retailing b.Wholesaling c.Channel management d.Logistics e.Distribution management

b.Wholesaling

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ . a.Retailing intermediary b.Wholesaling intermediary c.Facilitating agent d.Broker e.Manufacturer's agent

b.Wholesaling intermediary

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a: Selling agent manufacturers' agent drop shipper broker commission merchant

broker

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? a.A well-established, international company b.A large cereal manufacturer that has developed a gluten-free cereal line c.A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon d.An international sporting goods manufacturer that wants to add a line of snow toboggans e.A company that wants to introduce product line extensions to its current market.

c.A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon

A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain could use a: a.Cash-and-carry wholesaler b.Specialty wholesaler c.Rack jobber d.Manufacturers' agent e.Broker

c.Rack jobber

America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides. a.Neighborhood center b.Community center c.Regional center d.Power center e.Factory outlet mall

c.Regional center

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads? a.Target upscale shoppers who are less price-elastic b.Focus on higher margin products such as clothing, jewelry, and cosmetics c.Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." d.All of the above are being employed e.Only a and b above.

d.All of the above are being employed

____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition. a.Off-price retailers b.Specialty stores c.Factory outlets d.Category killers e.Department stores

d.Category killers

All of the following are characteristics of direct selling except ___________. a.Sales commissions can be as high as 40-50% of the selling price. b.Sales staff tend to employ high pressure sales tactics c.Prices to consumers are generally inflated due to high sales commissions d.Direct selling is the cheapest form of selling because no retail store-front is required e.The negative image and high pressure tactics associated with direct selling makes it hard to recruit and retain sales personnel.

d.Direct selling is the cheapest form of selling because no retail store-front is required

Which of the following is a distinct advantage of the smaller independent retailer over its corporate chain store competitors? a.Better financed with more resources b.Access to experienced expert management c.Scale economies in purchasing and promotion d.Greater flexibility in operational decision-making at the individual store level e.Greater brand recognition

d.Greater flexibility in operational decision-making at the individual store level

Which of the following is not an advantage of corporate chain stores over smaller independent retailers? a.Better financed with more resources b.Access to experienced expert management c.Scale economies in purchasing and promotion d.Greater flexibility in operational decision-making at the individual store level e.Greater brand recognition

d.Greater flexibility in operational decision-making at the individual store level

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________. a.Dot.com b.Wholesaling intermediary c.Internet distributor d.Retailing intermediary e.Facilitating agent

d.Retailing intermediary

Factory outlet malls usually are located in outlying, rural areas in order to: a.Better serve the needs of smaller communities b.To avoid the higher costs of doing business in urban locations c.To avoid traffic congestion associated with urban locations d.To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands. e.All of the above

d.To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee. a.Supercenters b.Supermarkets c.Discount stores d.Warehouse clubs e.Convenience stores

d.Warehouse clubs

Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________. a.Neighborhood center b.Community center c.Regional center d.Power center e.Factory outlet mall

e.Factory outlet mall

Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: a.Rack jobber b.Broker c.Truck wholesaler d.Selling agent e.Manufacturers' agent

e.Manufacturers' agent