Marketing Final Exam Chapter's 10,11, & 12

The purchase of a set of flannel sheets from the Lands' End catalog website is an example of ________ e-commerce.

Correct B2C

Which of the following is most likely intensively distributed?

Correct Coca-Cola beverages

Which of the following statements about department stores is true?

Correct Department stores were a dominant type of American retailer in the first half of the twentieth century.

Which of the following statements about business-to-business channels is true?

Correct Direct channels are more common in business-to-business markets than consumer markets.

A skimming price is typically used when the company introducing a new product anticipates other competitors will enter the market quickly.

Correct False

Captive pricing is illegal.

Correct False

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Correct False

Exchanges of nonmonetary value do not involve a price.

Correct False

Exchanges that occur in the grey market are illegal.

Correct False

In limited-service retail operations, such as specialty stores and first-class department stores, salespeople assist customers in every phase of the shopping process.

Correct False

Rack jobbers are important to both the producers and the customers of bulky products such as coal, oil, or lumber.

Correct False

Sales branches are independent wholesalers that are allowed to operate only in specific geographical territories.

Correct False

The fair trade goods designation means that a producer has agreed to pay the prevailing minimum wage to its employees.

Correct False

Value pricing is the opposite of cost-based pricing.

Correct False

According to the law of demand, which of the following is true?

Correct If prices decrease, customers will buy more.

Why are prestige products often an exception to the law of demand?

Correct Increasing the price of prestige products can make them seem more desirable.

Which of the following statements about the break-even point is true?

Correct It is calculated using contribution per unit costs and total fixed costs.

Which of the following is true about the demand curve?

Correct It shows the relationship between product demand and product price.

________, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance.

Correct Limited-service retailers

When consumers are unable to judge the quality of a product through examination or prior experience, they usually do which of the following?

Correct Make a price-quality inference.

Which of the following is NOT true about the SERVQUAL scale?

Correct SERVQUAL is not used in connection with gap analysis

Which of the following is NOT true about warehouse clubs?

Correct They have not followed the pattern set forth by the wheel-of-retailing hypothesis.

A package delivery company sells intangibles to its customers.

Correct True

Ads for an airline promote its last minute fare savers program. This program is one way to deal with the service characteristic of perishability.

Correct True

Application fees, tuition, and fines are all examples of prices.

Correct True

Demographic changes have contributed to a decline in the use of door-to-door sales in the United States.

Correct True

In a conventional marketing system, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

Correct True

Middlemen is an older term for intermediaries.

Correct True

Rooms-To-Go furniture retailers perform a channel intermediary facilitating function by providing financing for customers' purchases.

Correct True

The talent agency that is trying to convince Berry College to hire a motivational speaker for the college's homecoming festivities is marketing people.

Correct True

Unlike other currencies, bitcoin is not controlled by a single government entity, such as the U.S. Treasury.

Correct True

Variable costs for producing textbooks include the price of paper.

Correct True

When a cashier at the local grocery store purposefully fails to scan all of the items purchased by her friends and allows her friends to leave the store without paying for all of their items, the cashier is engaged in sweethearting.

Correct True

When a gift shop decided to begin selling Blue Ridge pottery, it was modifying its merchandise mix.

Correct True

When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to pursue a new marketing opportunity, they are forming a horizontal marketing system.

Correct True

Which of the following prohibits door-to-door selling unless prior permission has been granted by the household?

Correct a Green River Ordinance

In price planning, a firm would be most likely to set a profit objective for which of the following products?

Correct a fad such as Beanie Babies

Which of the following product offerings is intangible?

Correct a limousine ride

Which of the following is NOT an example of a service encounter?

Correct a potential customer using a search engine to locate a business

Which of the following is an illegal sales technique?

Correct a pyramid scheme

Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., which then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. is an example of which of the following?

Correct a wholesaling intermediary

A(n) ________ occurs when customers decide that two different brands of pain reliever have the same product quality because they have basically the same product characteristics and similar prices.

Correct assimilation effect

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Correct bait-and-switch tactics

Which of the following is the term for the firms and individuals who help move a product to the consumer or the business user?

Correct channel intermediaries

Using current sales as a predictor, which of the following products would likely be most effectively sold using direct selling?

Correct cleaning products

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use?

Correct competitive effect

Burger King, Holiday Inn, Avis, and H&R Block tax service are all franchises, which means they are also members of a(n) ________ vertical marketing system (VMS).

Correct contractual

Break-even analysis is used to examine the relationship between ________.

Correct costs and price

In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices?

Correct demand-based

If a product has a close substitute, its demand will likely be ________.

Correct elastic

Experts predicting that destination retail will be a future trend believe that consumers will soon visit retailers more for ________ than for the basic process of purchasing products.

Correct entertainment

Using the strategy of ________, retailers convert shopping into an interactive activity for customers in bricks and mortar locations.

Correct experiential merchandising

Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

Correct facilitating

When the seller takes on part or all of the cost of shipping, it is called ________.

Correct freight absorption

Which of the following is used to measure the difference between a customer's expectations of service quality and what actually occurred?

Correct gap analysis

Increasingly commonplace today is the appearance of two different franchise chains under the same roof, such as Pizza-Hut and Taco Bell. This is an example of a(n) ________ marketing system.

Correct horizontal

In a ________, two or more companies at the same channel level join together to develop a new marketing opportunity.

Correct horizontal marketing system

Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?

Correct horizontal price fixing

A number of top fashion-modeling agencies were charged with ________ because they were jointly determining what commissions they would charge for models.

Correct horizontal price-fixing

In 2003, Home Depot's 40 Arizona stores participated with the Arizona Department of Water Resources and the cities of Phoenix, Mesa, and Scottsdale in a $1.8 million "Water, Use It Wisely" campaign. This is an example of ________.

Correct idea marketing

During ________ the company receives materials it needs to manufacture its products.

Correct inbound logistics

Conventional distribution channels consist of one or more ________ producers, wholesalers, and retailers.

Correct independent

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.

Correct independent intermediary

Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.

Correct indirect marketing channel

When demand is ________, increases in price result in increases in total revenues, while decreases in price result in decreases in total revenue.

Correct inelastic

People, places, and ideas are all ________ that often need to be "sold" by someone and "bought" by someone else.

Correct intangibles

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

Correct internal reference price

Price fixing occurs when two or more companies conspire to ________.

Correct keep prices at a certain level

Manufacturers of which of the following would be most likely to use freight absorption pricing?

Correct laptop computers

Which of the following is the process of designing, managing, and improving the movement of products through the supply chain?

Correct logistics

Each member of a channel of distribution adds a ________ to create the price at which they will sell the product.

Correct markup

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.

Correct materials handling

Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?

Correct merchandise brokers

Producers benefit from using intermediaries because they ________.

Correct offer greater efficiency in making goods available to target markets

Limited-service merchant wholesalers are less likely than full-service merchant wholesalers to do which of the following?

Correct offer marketing assistance or delivery for the products they sell

The value of something we give up in order to obtain something else is referred to as a(n) ________.

Correct opportunity cost

Which stage of activity in logistics involves shipping the product out to customers?

Correct outbound logistics

Marketing logistics involves which of the following types of distribution flows?

Correct outbound, inbound, and reverse

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

Correct penetration

Four characteristics are used to differentiate services from goods. Which of the following is NOT one of those characteristics?

Correct personalization

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________.

Correct predatory pricing

The Robinson-Patman Act does NOT include regulations that ________.

Correct protect final consumers

An agent for an actor presents a client's qualifications to potential movie production companies until one company responds positively to the actor. This is an example of the ________ approach.

Correct pure selling

When using the SERVQUAL scale, a store focused on employee willingness to help customers and provide prompt service would likely pay the most attention to the results in the ________ dimension.

Correct responsiveness

Josh purchased a new tie from an upscale men's clothing store to impress the managers he would meet at an important job interview. The day after the job interview, Josh returned the tie to the store for a full refund. This is an example of ________.

Correct retail borrowing

When setting prices, a leading manufacturer of nutritional supplements decided to institute a pricing strategy that would support a five percent increase in sales over the next three years. What type of pricing objective has the company set?

Correct sales

Which type of distribution is used when the producer wants to place its products with more than one, but fewer than all, of the intermediaries who are willing to carry its products?

Correct selective

The ________ is the interaction between the customer and the service provider.

Correct service encounter

GameStop sells video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________http://www.xbox.com/en-us/games/forza-6.

Correct specialty store

A cashier who purposely undercharges a customer or allows a friend to walk away without paying for items would most likely be accused of which of the following?

Correct sweethearting

Karen likes using the SERVQUAL scale to measure her clients' perception of the quality of her hair styling salon because it includes assessing ________, which involves the physical facilities and equipment and professional appearance of the stylists. These aspects are very important for the comfort of her clients.

Correct tangibles

Facility exteriors and interiors are part of ________.

Correct the servicescape

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

Correct the supply chain

Which of the following best explains why new retailers often squeeze out older retailers?

Correct the wheel-of-retailing hypothesis

Which of the following is the purpose of a beacon in a retail space?

Correct to deliver promotions and rewards to customers as they shop in a physical retail space

Which of the following is NOT a function of a point-of-sale (POS) system?

Correct transmitting coupons to customers in the store

A customer got a great haircut at a salon and went back six weeks later to the same person to get a second haircut. This time, the customer received one of the worst haircuts of his life. The difference between the two haircuts is due to the ________ characteristic of services.

Correct variability

Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?

Correct vertical price fixing

Federal legislation on price-fixing requires that sellers set their prices ________.

Correct without communication with competitors

Using ________, marketers charge different prices to different customers in order to manage capacity and maximize revenue.

Correct yield management pricing