Marketing Exam 4 - Questions
In order to justify direct-response marketing, a product really needs to be priced above
$20
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?
12.5%
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% = .75/3
If a retailer purchases a can of soup for 60 cents and sells it for 99 cents, what is the markup as the percentage of cost? The percentage of selling price?
65%; 39.4% 39/99 = 39.4 99/60
With respect to retailing, what is the "party plan"?
A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
Mike is pricing a new couch. This couch is higher-quality and expected to last longer than your traditional couch. Mike prices the couch high because he knows that consumers anticipate paying more for longer-lasting products. What stage of the pricing process is Mike currently?
Assessing the target market's evaluation of price
Which of the following should be accomplished after developing pricing objectives?
Assessing the target market's evaluation of price
Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine.Refer to Scenario 15.2. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden's _______.
Atmospherics
Which of the following is most likely to use exclusive distribution?
Boeing 777 Freighter
Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products have been high. Lyle believes there are many more potential customers for his product in different regions of the country. He would like to sell to discount stores, restaurants, supermarkets, and more. Lyle does not have much experience in the sales area, however, and he cannot afford to hire a full-time salesperson yet. Lyle turns to Tim, an independent salesperson who works for several different clients in the food industry. Tim is a specialist in his field and has a number of connections in the food industry. Lyle is sure Tim will be successful in finding companies or restaurants who will want to purchase his salsa. Tim is most likely a(n) _______.
Broker
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
Which of the following pricing objectives sets prices to recover cash as quickly as possible?
Cash Flow
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.
Cash-and-carry
Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants to open up another channel of distribution. Refer to Scenario 15.3. Based on her criteria, Delilah should probably use _______.
Catalog Marketing
All of the following are general-merchandise retailers, except _______.
Category Killers
Michael's, PetSmart, and Staples are all examples of
Category Killers
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
Category Management
Supermarkets use ____ to allocate space for their many product categories, such as cosmetics, cereals, and soups.
Category Management
Every year Walgreens sells red noses and other merchandise for Red Nose Day, which is a national fundraising campaign run by Comic Relief USA, a non-profit devoted to raising money and awareness to end child poverty. This event that Walgreens hosts each year is most likely which of the following?
Cause-related marketing
Chantel works at Coca-Cola. To make the required sales number, Chantel sent more Coca-Cola products to their distributors than what they asked for. She did this right before the accounting period. She knew that even if they sent back the extra product, it would be after the numbers were reported. This is an example of what type of distribution issue?
Channel Stuffing
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?
Comparison Discounting
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
Anthony works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Anthony has obtained a list of prices that tell him how much similar products are being sold for. Anthony is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Anthony decided to undercut their price by several dollars. He believes putting a sign in their stores that features his company's discounted price next to the price of their major competitor for the same product will show consumers that Anthony's company offers them a much better deal. However, he knows that he has to be careful not to misrepresent the competitor's price in the process. Refer to Scenario 20.3. Which of the following pricing strategies is Anthony planning to adopt?
Comparison Pricing
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
Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
Containerization
The most popular type of vertical marketing system is the _______.
Contractual VMS
When determining markup as a percentage of cost, divide the markup amount by
Cost
Valerie is attempting to price a piece of custom-made equipment for a gym. The production costs of the equipment are hard to assess. She decides it would just be easier to add a specified dollar amount to the total cost. What type of pricing is Valerie using?
Cost-Plus
Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment?
Cost-Plus 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
Mai has a dilemma. She works for a chocolate company and the price of chocolate is going up. The most logical solution would be to raise the price. However, Mai knows from her history in the business that their loyal customers would not look favorably on a price increase. For customers, candy bars are one of those items where the price rarely changes. Mai's firm has sold its candy bars for $0.99 for the past two decades. Mai feels that the next best solution to absorbing the extra costs is to make the candy bars slightly smaller without lowering the price. Mai's company is most likely using which of the following pricing strategies?
Customary
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
_______ systems exploit the information in supply chain partners' information systems and make it available for easy reference.
Customer Relationship Management
The driving force behind marketing channel decisions should be
Customer Satisfaction
A goal of logistics is to reduce ____ or how long it takes to complete a process.
Cycle Time
Nordstrom, Macy's, and JCPenney are all considered
Department Stores
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.
Differential
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
National Geographic sent Ray his monthly magazine. It also sent him a form letting him know that his subscription was running out. If he acts now, he can save $5 on his purchase. All Ray has to do to renew his subscription for the upcoming year is fill out a form and mail it with a check to National Geographic. This is an example of _______.
Direct-Response Marketing
Self-service, general merchandise stores such as Kmart are known as
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.
Distribution Centers
Which of the following does not take possession of the merchandise?
Drop Shippers
Which of the following wholesalers never take actual possession of the goods?
Drop Shippers
Disney is implementing a new type of pricing. When demand increases and more customers visit the parks, the price will increase. When demand dips during the slow season, prices will decrease. This is a way to help balance out supply and demand. What is another name for the type of pricing that Disney is using?
Dynamic Pricing
A _____ is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.
Ethical Issue`
According to your text, a well-implemented _______ and a strong _______ result in the greatest decrease in ethical risks for an organization.
Ethics program; corporate culture
The use of comparative shoppers would generally occur during which step of the pricing process?
Evaluating Competitor's Price
Anthony works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Anthony has obtained a list of prices that tell him how much similar products are being sold for. Anthony is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Anthony decided to undercut their price by several dollars. He believes putting a sign in their stores that features his company's discounted price next to the price of their major competitor for the same product will show consumers that Anthony's company offers them a much better deal. However, he knows that he has to be careful not to misrepresent the competitor's price in the process. Refer to Scenario 20.3. When Anthony is examining the list of prices, he is most likely in which of the following stages?
Evaluating Competitor's Prices
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 Competitor's Pricing
Shelly is undergoing the six-step process for establishing prices for a newly launched product. She has just finished assessing the target market's evaluation of possible prices. What is Shelly's next step?
Evaluation of competitors' prices
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
Evaluate the truthfulness of this statement: Strong ethical standards are necessary to completely eliminate misconduct from the organization.
False
In industries where price competition prevails, a firm should always price its products much lower than competitors.
False
In order to qualify as retailing, the transaction between buyer and seller must occur either through the internet or a physical location.
False
Individual values are more likely to influence organizational ethical decision making than organizational culture.
False
Retailers play a major role in creating time, place, and possession utility but not form utility.
False
___is unique to price in the marketing mix.
Flexibility
Joseph opened a large electronics store called It's Electric to compete against Best Buy. After many years of success, Joseph decides to grant Kim the right to open her own It's Electric location in exchange for a percentage of total sales. In this case, Kim is a(n) _______.
Franchisee
Which of the following is NOT an advantage of franchising?
Franchisees must pay to use the franchisor's name, products, and assistance.
Customers rely on ____ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.
Full-Service Wholesalers
Which of the following perform the widest range of wholesaling functions?
Full-Service Wholesalers
In the absence of ____ , pricing remains a flexible and convenient way to adjust the marketing mix.
Government Controls
When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______.
Has channel power
In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______.
Horizontal Channel Alliance
If PetSmart began to acquire very successful local pet stores, this would be an example of _______.
Horizontal integration
The United Kingdom's largest supermarket is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _______.
Hypermarket
Jose works in accounting. He was told by his supervisor that it was necessary to change some of the accounting to make company performance look better. Jose objected, so the CEO got involved and told Jose that it was necessary to keep the firm afloat. If the firm went under, then many people would lose their jobs. Jose also faced pressure from colleagues. In the end, Jose decided not to do what he was told and quit his job. Which factor most likely impacted his ethical decision the most?
Individual Values
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.
Industrial Distributor
Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______.
Industrial Distributor
When Bud Light Orange beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution.
Intensive
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
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
_______ involves developing and maintaining adequate assortments of products to meet customers' needs.
Inventory Management
Frito-Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demonstrate about socially responsible behavior?
It can be difficult to balance all of society's demands.
How does social responsibility differ from ethics?
It deals with the total effect of marketing decisions on society.
Ethical choices in marketing are most often made _______.
Jointly
Which of the following would most likely use intensive distribution?
Kimberley-Clark
_______ are designed to resemble traditional "Main Street" shopping centers and often have a central theme evidenced by the architecture.
Lifestyle Shopping Centers
Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______.
Manufacturer's Agent
Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.
Market Share
Anthony works at a firm that wants to develop a new pricing strategy for one of its products. The company has decided that its main objective for this product is to increase the product's sales in relation to industry sales. Anthony has obtained a list of prices that tell him how much similar products are being sold for. Anthony is particularly interested in the industry's top competitor because it has so much market share. After determining the price of its major competitor, Anthony decided to undercut their price by several dollars. He believes putting a sign in their stores that features his company's discounted price next to the price of their major competitor for the same product will show consumers that Anthony's company offers them a much better deal. However, he knows that he has to be careful not to misrepresent the competitor's price in the process. Refer to Scenario 20.3. Anthony's firm has adopted a _______ pricing objective.
Market Share
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
ACME Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes _______.
Marketing Citizenship
Which of the following bases for pricing is most commonly used by retailers?
Markup Pricing
When retailers use multiple distribution channels to complement their stores with catalogs, apps, or websites, they are using _______.
Multichannel Retailing
The use of a variety of marketing channels to ensure maximum distribution is best called _______.
Multichannel distribution
Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Refer to Scenario 15.1. After continued success, Nicole decides to begin online retailing and is considering creating an app. Online retailing is a significant factor in the rise of what type of retailing?
Multichannel retailing
Online retailing satisfies an increasing expectation among consumers to have ______ to obtain the goods and services they desire at their convenience.
Multiple Channels Available
Philip goes to a Toyota dealership looking for a new car. He finds a Toyota Corolla he really likes. The time has come to meet with the salesperson. What type of pricing strategy is the salesperson likely to adopt with Philip?
Negotiated pricing
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.
Nonstore
In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their _______.
Observations of how coworkers and superiors behave
A significant factor in the rise of multichannel retailing is ___ , which makes products available to buyers through internet connections.
Online Retailing
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
Online Retailing
Cleveland accesses Overstock.com's site on the internet and purchases a business laptop case. This is an example of
Online Retailing
Which of the following direct marketing methods will reach the most people, allow customers to shop from the convenience of their homes, and is one of the least expensive?
Online 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
At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of Shania's supervisor is an example of how _______ factors can influence employee conduct.
Opportunity
Conditions that limit barriers or provide rewards are known as ___
Opportunity
Which of the following is often a better predictor of unethical activities than are personal values?
Opportunity
Electronic data interchange (EDI) is most effective for which type of logistics activity?
Order Processing
ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______.
Organizational Culture
Which of the following is one of the three factors that influence the ethical decision-making process?
Organizational Culture
All of the following are pricing strategies used by companies establishing prices of multiple products within a product line except
Penetration Pricing
If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use
Penetration Pricing
Chevrolet's Presidents' Day sales are an example of _______.
Periodic Discounting
Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Suppose that Janelle went on a business trip. When she comes back, she files an expense report and sends it to the pharmacy's headquarters. Although a few meals were provided on her trip, Janelle does not tell them this but puts down that she needs to be reimbursed for all meals. The initiative providing discounts to low-income consumers fulfills the company's _______ responsibilities, and Janelle's practice of filling out expense reports violates the company's _______ responsibilities.
Philanthropic; Ethical
`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
Pipelines
Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers?
Place Utility
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
Price Leader
Which of the following pricing strategies often results in a retailer losing money on the product?
Price Leader
Bert's company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Bert's firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality. Refer to Scenario 20.1. What type of pricing strategy is Bert's company using for this product?
Price Skimming
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
Price Skimming
Which pricing strategy provides the most flexible introductory base price?
Price Skimming
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 customer
If Apple seeks to lead the electronics industry in innovation, what type of pricing objective will it most likely adopt?
Product Quality
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
occur(s) when companies ask customers to return products found to be defective.
Product Recalls
Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due to his extensive experience and legal background, he believes that his fees should not relate directly to the time or effort spent on specific cases. Refer to Scenario 20.2 What type of pricing will Malcolm most likely choose?
Professional Pricing
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.
Professional Pricing
Which of the following product-line pricing strategies is NOT generally used for business products?
Psychological Pricing
Daniel always likes to purchase popcorn when he goes to the movies. Popcorn is marked up 1,275 percent. However, Daniel is willing to pay this price. For Daniel the___ is impacting his view of price.
Purchase Situation
Value is a combination of price and _______.
Quality
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
Rack Jobber
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
Jake is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Jake use?
Railroad
_____________ is pricing a product at a moderate level and positioning it next to a more expensive model or brand.
Reference Pricing
Which of the following is often favored by intermediaries?
Restricted Sales Territories
Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants to open up another channel of distribution. Refer to Scenario 15.3. The reason why Delilah chose to locate her one retail location in this small town was because the town has a reputation for being an "art colony." It is located off a major highway, and a lot of travelers stop in. Others are willing to travel from miles away. When Delilah looked at the market, she realized most sellers of art in the community were charging premium pricing. This worked fine for those who traveled from far away to shop for art, but most people who were just passing through on their way to another destination did not want to make such a big investment. Recognizing this, Delilah chose to price her pottery at more reasonable prices. This is an example of _______.
Retail Positioning
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?
Retail Positioning
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
Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Refer to Scenario 15.1. Based upon the description, Nicole is engaging in
Retailing
When Olive Garden sells wine to its customers in the restaurant, this is known as _______.
Retailing
For which of the following products would exclusive distribution be most appropriate?
Rolls Royce Automobile
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
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
Selling Agent
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
Selling Agent
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
Special-Event Pricing
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)
Specialty Retailer
Phil works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Phil's organization have few options to choose from because its beef products tend not to vary. Phil most likely works for a _______.
Specialty-line wholesaler
All of the following are types of limited-service merchant wholesalers except
Specialty-line wholesalers
Which of the following offer the narrowest range of products?
Specialty-line wholesalers
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
Procter & Gamble's (P&G) Bounty paper towels are a cash cow for P&G. Assume that Procter & Gamble is adjusting the prices of Bounty paper towels sold in the United States. Viewing the United States as a saturated market, the marketing manager of Bounty believes that P&G should adopt a pricing strategy that will serve to maintain their current market share. What type of objective is this manager adopting?
Status Quo
Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products?
Status Quo
Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?
Status Quo
Safeway and SuperValu are all considered
Supermarkets
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
Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies?
Sustainability
Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer?
Target
Which of the following has become increasingly unpopular and less appealing?
Telemarketing
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.
Television Home Shopping
When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct?
The Channel Member managing the product
Supply chain management should begin with a focus on _______.
The Customer
Which of the following promises consumers fair treatment when they complain to marketers about products?
The Right to be heard
What is the greatest determinant of ethical conduct in the organization?
The company's ethical culture
A price-skimming strategy assumes that
The initial demand is highly inelastic
Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
Which of the following is true about codes of ethics?
They should be updated periodically
Which of the following do codes of ethics NOT do?
They take every situation into account
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
Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.
Time Utilit
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.
Traditional Specialty
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
___ is the most expensive logistics function
Transportation
What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?
Truck Wholesalers
Extreme value stores include Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores.
True
Procurement involves the processes to obtain resources to create value through sourcing, purchasing, and recycling including materials and information.
True
Refusal to deal is legal as long as suppliers do not refuse to deal with intermediaries simply because they resist policies that are anticompetitive.
True
Supply chain management includes procurement, logistics management, and operations management activities.
True
Value does not necessarily have to connote a low price.
True
Walmart is most likely to be a channel captain in the supply chain.
True
ACME Corp. sells hammers and other tools to Blue's Hardware Store. Suppose that ACME, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from ACME if it wants to continue receiving the hammers. Blue's is dismayed because these other products are costly. It has no need for these products. ACME is attempting to get Blue's to enter into _______.
Tying Agreement
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
Small, standardized, routinely purchased items are best suited for distribution through _______.
Vending
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
Vertical Channel Integration
In addition to producing the popular iPhone and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______.
Vertical Channel Integration
Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates?
Warehousing
A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
Cardinal Health, based in Dublin, Ohio, specializes in the distribution of pharmaceuticals and medical products. It recently completed a transaction where it provided a national hospital chain with a new supply of pharmaceuticals used to help control pain after surgery. Cardinal Health is engaging in _______.
Wholesaling
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 _____.
a retailer; a direct-marketing channel
If other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is _______ from both an ethical and a social responsibility perspective.
acceptable
Sam Walton, founder of Walmart, was a retail genius. One thing he would do is advertise a product such as a microwave at a knock-down price. Consumers would come into the store to examine the low-priced microwave. Next to the low-cost microwaves, Walmart would position some better quality, higher-priced microwaves. The idea is that consumers will be attracted to the store due to the low-priced product but that they often upgrade and purchase a higher-priced product once they realize that it offers better quality. Such a method is completely legal as long as there are enough low-priced products available that consumers can choose from if they desire. Sam Walton used what type of pricing strategy?
bait pricing
A lawsuit was filed against Naked Juice because of its claims that it is "natural." The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural" claim. According to critics, Naked Juice was violating consumers' right to _______.
be informed
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
When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to
create channel conflict between Dole and these wholesalers.
Ethics relates to individual and group decisions whereas social responsibility _______.
deals with the total effect of marketing decisions on society
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.
demand-based
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
demand-based pricing
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 _____.
demand-based; differential pricing
In terms of selling products, _______ is the most personal and customizable form of selling, whereas _______ is one of the least personal.
direct selling; automatic vending
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 _______.
exclusive distribution; intensive distribution
In the absence of government controls, pricing is a(n) _______ and _______ way to adjust the marketing mix.
flexible; convenient
Research into marketing ethics suggests that the _______ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision.
greater the consequences
An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are.
greenwashing
Vertical channel integration
is made possible by purchasing the operations of a channel member.
A product is a price leader when
it is sold at less than cost in the hope that sales of other products will increase.
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
Reference pricing is
pricing a product at a moderate level and positioning it next to a more expensive model or brand.
A manufacturer has the legal right to refuse to do business with a channel member unless _______.
the channel member resists policies that are anticompetitive or in restraint of trade
Multichannel distribution is characterized as
the use of a variety of marketing channels to ensure maximum distribution.
BSNF Logistics is a third-party organization that companies can use to help with their logistics needs. BSNF claims that it has strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______.
third-party logistics firm
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