Exam 4 MKTG 409

Which of the following offer the narrowest range of products?

a. Specialty-line wholesalers

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

a. When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

Research suggests that a relationship exists between ______ and an organizational climate that supports marketing ethics and social responsibility.

a. a stakeholder orientation

If Albertsons Market advertise 2-liter bottles of Coca-Cola for 89 cents to generate store traffic so that shoppers will purchase other items at regular prices, the grocer is using

b. a price leader.

Which of the following wholesalers never take actual possession of the goods?

b. Drop shippers

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability?

b. Focusing primarily on the external environment of the company

At his new job, Kunal notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Kunal has made several observations about the

c. corporate culture.

What are two common distribution-related ethical issues?

d. counterfeiting and channel stuffing

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to

d. create channel conflict between Dole and these wholesalers.

Emily Ross is an administrative assistant for Erik Boseman, who is brand manager for a consumer products company. Erik works with a variety of suppliers and customers and is very busy. Erik has asked Emily to screen his calls to make sure that only those people with whom he is working are able to speak with him, advising her to say things like "I'm sorry, he's in a meeting" or "He just stepped out of the office and won't return until tomorrow." Emily is growing increasingly concerned about these practices and dislikes lying to people who call. She feels that Erik is being dishonest, and she'd rather be more transparent and honest with people when they call rather than making up a story that isn't true. Emily doesn't want to compromise her own personal values to be an effective administrative assistant. Emily's dilemma represents the ________ factor that influences the ethical decision-making process.

d. individual

In order to justify direct-response marketing, a product really needs to be priced above

e. $20.

A price-skimming strategy assumes that

a. the initial demand is highly inelastic.

In response to organizational pressure to perform, Bao used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Bao will most likely

a. use the similar sales tactic again.

Nick Clark is managing director for Southern Mutual Company, a financial services firm. Nick firmly believes that dress and grooming are important elements in creating a positive first impression and provides training to his account managers regarding the dress code and grooming policy. Southern Mutual does not allow any facial hair for men and stresses that women should pull their hair back away from their face because research suggests they will be perceived negatively. The Southern Mutual Company dress and grooming policies are an example of the importance of ______ in influencing ethical decision making.

c. corporate culture

Bram is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and vending, which are all examples of ____ retailing.

c. nonstore

Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.

c. professional pricing

The notion of logistics is

c. the activities used to move products from producers to end users.

When determining markup as a percentage of cost, divide the markup amount by

a. cost.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

a. differential

Distribution-related ethical issues arise when marketers

a. force channel intermediaries to behave in a specific manner.

When Texas Instruments first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Texas Instruments is called

a. price skimming.

Reference pricing is

a. pricing a product at a moderate level and positioning it next to a more expensive model or brand.

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

a. selling agent.

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

a. specialty retailer.

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

a. status quo

For which of the following products would exclusive distribution be most appropriate?

a. Rolls Royce automobile

Which of the following has become increasingly unpopular and less appealing?

a. Telemarketing

Ecover, a manufacturer of personal care and beauty products, has a focus on sustainability. It has developed eco-packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to reduce waste. What major social responsibility issue is Ecover addressing?

a. The natural environment

When a single channel member manages an integrated marketing channel to achieve low-cost, effective distribution for satisfying target markets, ____ exists.

a. a vertical marketing system

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

a. be profitable

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

a. market share

_____________ is pricing a product at a moderate level and positioning it next to a more expensive model or brand.

a. ​Reference pricing

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

b. Cash flow

Customers rely on ____ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.

b. full-service wholesalers

The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients labeling on food products: Labels must be placed on the product in a location most likely to be seen by the consumer. Labels must include quantity of and type of ingredients included in the food product. Labels must be printed in a specific font size ​ Regarding these requirements, which one of the following statements is correct?

b. ​ This is an example of marketing ethics as determined by a government regulator.

Assuming everything else is equal, the most cost-efficient way for ConocoPhillips to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be

b. pipelines.

Multichannel distribution is characterized as

b. the use of a variety of marketing channels to ensure maximum distribution.

With respect to retailing, what is the "party plan"?

c. A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.

That marketers have an obligation to engage in fair competition and build proper customer relationships best relates to which of the following?

c. Economic

_______ involves developing and maintaining adequate assortments of products to meet customers' needs.

c. Inventory management

Which of the following pricing strategies often results in a retailer losing money on the product?

c. Price leader

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

c. Status quo

Michael's, PetSmart, and Staples are all examples of

c. category killers.

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

c. containerization.

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing.

c. cost-plus

A goal of logistics is to reduce ____ or how long it takes to complete a process.

c. cycle time

Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates _____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as _____.

c. demand-based; differential pricing

When Bud Light Orange beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.

c. intensive

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

c. demand-based

Nordstrom, Macy's, and JCPenney are all considered

c. department stores.

Online retailing satisfies an increasing expectation among consumers to have ______ to obtain the goods and services they desire at their convenience.

c. multiple channels available

Kendall sells Almay cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Kendall's job is best described as a

c. rack jobber.

What is a primary difference between an industrial distributor and a manufacturers' agent?

d. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called

d. inventory management.

Vertical channel integration

d. is made possible by purchasing the operations of a channel member.

All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except

d. penetration pricing.

Product testing for reliability and quality helps to ensure a consumer's right to

d. safety.

All of the following are types of limited-service merchant wholesalers except

d. specialty-line wholesalers.

The driving force behind marketing channel decisions should be

e. customer satisfaction.

During the hot, humid months of July and August, Pinewood Links Golf Course, located in Georgia, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of

e. demand-based pricing.

There will be significant ethical diversity in any one organization because of

e. different levels of personal ethics.

Eliminating a wholesaler from a marketing channel will

e. not eliminate the functions performed by that wholesaler.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

e. philanthropic

Fahad works for a company that markets all of Celextron's products. Fahad's company acts as the marketing department for Celextron, performing all marketing functions without actually taking title to the goods. Fahad's company is a

e. selling agent.

Safeway and SuperValu are all considered

e. supermarkets.

According to the consumer bill of rights, the right to be informed means that

e. consumers should have access to and the opportunity to review all relevant information about a product before buying it.

Self-service, general merchandise stores such as Kmart are known as

e. discount stores.

Tesco is a large U.K. supermarket. The firm's supply chain operates using a number of _______ to receive, store, and redistribute its many goods. Two of these facilities are used for frozen food. Many of the facilities are designed for the rapid flow of food products. They use automation such as forklifts and hoists to collect and move products to loading docks.

e. distribution centers

Consumerism is

e. the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

___ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.

b. Codes of conduct

Which of the following statements about implementing an ethics and legal compliance program is false?

b. It rarely needs to be revised.

Which of the following bases for pricing is most commonly used by retailers?

b. Markup pricing

Jo operates an upscale shop that does both pet grooming and human manicures and pedicures. She is targeting a market segment of people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Jo appear to have addressed?

b. Retail positioning

Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.

b. cash-and-carry

Ann is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on consumers to determine how much of different competing products she should order for her store and how much shelf space to give to each of the competing brands. Ann is working on

b. category management.

Companies that sell products with high-profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______.

b. exclusive distribution; intensive distribution

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience

b. improved marketing performance.

Aaron Whitley's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Aaron works for carries inventories of the tools, which reduces capital requirements for the producers. Aaron's company is an example of a(n) ____ in a distribution channel.

b. industrial distributor

Cleveland accesses Overstock.com's site on the internet and purchases a business laptop case. This is an example of

b. online retailing.

If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use

b. penetration pricing.

Scenario 20.1 Use the following to answer the questions. ​ Suppose that Maui Jim is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical sunglasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Maui Jim lines that are sold through specialty stores. In determining the price for this sunglass line, Maui Jim wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. Refer to Scenario 20.1. Given Maui Jim's plan for positioning the new sunglass line, it should use a ____ strategy when introducing its new product.

b. price-skimming

Scenario 4.2 Use the following to answer the question. ​ WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996 and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gases from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically-modified soybeans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans. ​ Refer to Scenario 4.2. The use of wind power to offset energy consumption by Silk Soymilk's parent company demonstrates its commitment to

b. social responsibility.

Betty Vinson worked in accounting at WorldCom. When her bosses first approached her and asked her to make questionable accounting transactions, she balked. She knew from her training that these questionable transactions could be construed as misleading. At first, Betty Vinson held firm. But after being told by her bosses that it was the only way to save the firm's finances, she decided to comply. This is an example of

b. ​how organizational variables influence ethical decision making.

If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's

c. social responsibility.

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

c. television home shopping

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to

c. tighten its control over distribution of its products.

Disney sells apparel, cookie jars, puzzles, photo albums, and other items featuring its popular characters directly through its own retail outlets. This is an example of

c. vertical channel integration.

At lunchtime, Gwyn uses an app on her phone to select and pay for items from Target. After work, she drives to a nearby Target store, where an employee loads the items into her car. This best illustrates

c. online retailing.

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a

c. retailer.

_______________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated.

c. ​Codes of conduct

Glenn is shopping for a new coat at Marshalls and finds a North Face down jacket that he really likes. He knows that the North Face brand is considered to be high quality and that it's usually very expensive. He's pleasantly surprised to see the price—the "suggested retail price" is $199 and Marshalls' price is $99. Glenn decides to purchase the coat even though it's a little more expensive than he originally thought he'd spend on the jacket. What type of pricing strategy is Marshalls using to price the North Face jacket and other merchandise?

d. Comparison discounting

Which of the following is an advantage of using an industrial distributor?

d. They help reduce a producer's financial burdens by extending credit to customers.

Jack's girlfriend tells him she wants a cashmere sweater for Christmas. Jack decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store.

d. traditional specialty

Suppose that Faust Distributing has been told that it cannot carry the beers made by Anheuser-Busch because it also carries the products of the competitor, Miller Brewing Company. Faust is then told that it must drop the Miller brands in order to carry the Anheuser-Busch products. If this were true, Anheuser-Busch would be engaging in which of the following channel management practices?

d. Exclusive dealing

Cassy and James both are buying new iPhones this week. Cassy goes to the Apple store because she wants to actually see the phone before she makes a final decision. James knows that he does not need to see the phone, because he just wants an upgrade from his older version. He simply orders it online from apple.com. Cassy is purchasing her phone through _____, while James is purchasing his through _____.

d. a retailer; a direct-marketing channel

A product is a price leader when

d. it is sold at less than cost in the hope that sales of other products will increase.

Euan is planning three sales during the third quarter of the year at Party City. The first is at a week before Easter, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be

d. special-event pricing.

A retailer of Degree antiperspirant prices it at $4.00; it costs the retailer $3.50. What is the approximate markup as a percentage of selling price?

e. 12.5%

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

e. Truck wholesalers

An ethical issue is

e. an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.