Marketing Exam 3 Tamu

Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment?

Cost-plus pricing

A company's rental of production space is an example of a _______.

a fixed cost

To compete effectively on a price basis, a firm should _______.

be the low-cost seller of the product

The most popular type of vertical marketing system is the _______.

contractual VMS

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price?

25%

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?

A decrease in total revenue

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?

An increase in total revenue

Which of the following should be accomplished after developing pricing objectives?

Assessing the target market's evaluation of price

Which of the following is a major advantage of nonprice competition?

Building customer loyalty toward the brand

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration?

Competition-based pricing

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate?

Evaluating competitors' prices

Which of the following is NOT an advantage of franchising?

Franchisees must pay to use the franchisor's name, products, and assistance.

Which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently?

Third-party logistics firms

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?

Uniform geographic pricing

Which of the following is calculated by dividing the variable costs by the number of units produced?

average variable cost

When Malcolm Reynolds walks into his local H&M store, he gets a message on his smartphone announcing that T-shirts in the store are 25% off today. This illustrates the use of _______.

beacons

Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?

breakeven point

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher?

captive pricing

ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?

cash discount

All of the following are general-merchandise retailers, except _______.

category killers

The Federal Trade Commission has established guidelines for _______. If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period.

comparison discounting

The key to success in retailing is to have a strong _______ with a retail strategy that provides the level of service, product quality, and innovation that consumers desire.

customer focus

The Federal Trade Commission (FTC) is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?

deceptive pricing

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?

demand curve

Which of the following is NOT a form of direct marketing?

direct selling

Which of the following is the most expensive form of retailing?

direct selling

Which of the following is NOT one of the factors that influence the assessment of value?

elasticity of demand

In any one large metropolitan area, there is usually just one Ferrari luxury sports car dealer. This best illustrates _______.

exclusive distribution

Which of the following is a fraction of the size of conventional discount stores and typically offer very low prices on smaller size name-brand nonperishable household items?

extreme value stores

In the absence of government controls, pricing is a(n) _______ and _______ way to adjust the marketing mix.

flexible; convenient

Which of the following perform the widest range of wholesaling functions?

full service wholesalers

When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______.

has channel power

A price developed in the buyer's mind through experience with the product is a(n) _______.

internal reference price

Dell Computer and Harley Davidson are well known for their use of the just-in time (JIT) approach. To which of the following physical distribution activities does the JIT approach belong?

inventory management

ACME Corp. has a pricing objective to increase its primary product's sales relative to total industry sales. This is best described as a(n) _______.

market share objective

The use of a variety of marketing channels to ensure maximum distribution is best called _______.

multichannel distribution

When retailers use multiple distribution channels to complement their stores with catalogs, apps, or websites, they are using _______.

multichannel retailing

_______ is/are a rapidly-growing segment that most retailers now view as vital to their businesses.

online retailing

_______ satisfy/satisfies an increasing expectation among consumers to have multiple channels available to obtain the goods and services they desire at their convenience.

online retailing

Chevrolet's Presidents' Day sales are an example of _______.

periodic discounting

Which pricing strategy provides the most flexible introductory base price?

price skimming

ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _______.

price war

Which of the following involves the processes to obtain resources to create value through sourcing, purchasing, and recycling including materials and information?

procurement

When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using?

producer to consumer

Which of the following business marketing channels is most likely to be used?

producer to consumer

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater?

product quality

Which of the following product-line pricing strategies is NOT generally used for business products?

psychological pricing

Which of the following pass on to a business customer the cost savings gained through economies of scale?

quantity discounts

Anjali Ravi and Sofia Similpa are starting a business where they own and stock display racks in supermarkets, discount, and drugstores with current magazines. Ravi and Similpa's business would best be described as _______.

rack jobbers

Which of the following is often favored by intermediaries?

restricted sales territories

Which of the following involves identifying an unserved or underserved market segment and reaching it through a strategy that distinguishes the retailer from others in the minds of customers in the market segment?

retail positioning

Price is a key element in the marketing mix because it relates directly to the generation of total _______.

revenue

Which of the following is owned by the producer?

sales offices

Which of the following levels of market coverage is desirable when a special effort, such as customer service from a channel member, is important to customers?

selective distribution

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products?

status quo

Which of the following integrates the functions of operations management, logistics management, procurement, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times?

supply chain management

Supply chain management should begin with a focus on _______.

the customer

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.

time utility

Phydeaux and Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally owned store is best classified as a(n) _______.

traditional specialty retailer

Suppliers may use _______ to get rid of slow-moving inventory, while a franchiser may use them to maintain quality control and protect the franchiser's reputation

tying agreements

Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?

value-conscious

Small, standardized, routinely purchased items are best suited for distribution through _______.

vending

Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates?

warehousing

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _______.

yield management

Which of the following does not take possession of the merchandise?

drop shippers

If PetSmart began to acquire very successful local pet stores, this would be an example of _______.

horizontal integration

Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues?

intensive distribution