FI 302 Exam 6

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

atmospherics

Fatima owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Fatima is focusing on

atmospherics

Timothy is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Timothy is interested in finding the

breakeven point

The owner of Mega Motor Bikes is opening a new retail location. Which of the following is most likely to be a constant fixed cost for Mega Motor Bikes?

building rent

When Jamie and Cayden are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of

bundle pricing

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.

cost-plus

According to the video, Whole Foods did what to try and grow sales and profits?

cut prices by 20%

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

differential

According to the slides, Amazon Go stores are associated with what technology advancement?

digital wallet

The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called

direct selling

Ollie's is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollie's is an example of a

discount store

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

discount stores

If Princess Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Princess's demand would be

elastic

Randy Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Randy plans to expand his operation into other cities. The service described here seems best suited to

franchising

Edward is talking with Juan about purchasing a Wendy's franchise. Juan tells Edward that one of the major advantages of franchising for him to consider is the

higher success rate for franchises

If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

inelastic

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

inverse

Mario is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order to make plans and set goals. Of all the issues that Mario can select in developing the new strategic plan, which of the following is the least flexible?

location

The kinds of products being sold and the availability of public transportation/parking are both factors that influence a retailer's decision about

location

Category killers compete primarily on the basis of

low prices and enormous product availability

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

market share

According to the slides, Wallmart's mobile app, website, and retail stores are an example of what?

multi-channel retailing

The use of multiple distribution channels that complement organizations' brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases is known as

multichannel retailing

Thinking about the slides, Whole Foods may follow a strategy called ________ that focuses on featuring different and unique products and services.

non-price competition

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

nonstore

Food King grocery stores offer candy bars in the checkout lanes for $0.99 rather than $1.00. This use of _____ pricing should help increase sales of the candy bars.

odd-number

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

online retailing

____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.

outlet shopping centers

Thinking about the slides, what type of Demand Curve does Whole Foods likely follow?

prestige

If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as

price skimming

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

product quality

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

status quo

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

status quo

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is

survival

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except

unit pricing

When consumers research products online and then go to an actual store to make their purchase, the practice is known as

webrooming