Marketing Unit 3 Final questions

T or F: As the number of communication media has increased, the task of understanding how best to reach target customers has become easier

False B/c the proliferation of communication media has made it more difficult to choose the best way to reach a target market

T or F: The sender of an integrated marketing communication controls the meaning individual receivers take from the message

False B/c the receiver is the person who reads, hears, or sees and processes the information contained in the message and advertisement

T or F: Quick response(QR) inventory systems allow retailers to maximize their inventory holdings

False B/c they are systems that deliver less merch on a more frequent basis

T or F: Consumer goods firms such as Lancôme often use reminder advertising to convince consumers to take action—switch brands, try a new product, or even continue to buy the advertised product

False B/c this is a form of persuasive advertising which occurs in the growth and early maturity stages of the product life cycle when competition is most intense

T/F: When a firm has a particular profit goal as its overriding concern, it will use target return pricing to meet the profit objective

False b/c target return pricing is used when firms want to produce a specific return on their investment

T or F: At the break-even point, profits are maximized

False, b/c profits are 0 at this point

T of F: When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This refers to price elasticity of demand

True

T of F: When manufacturers such as Avon sell directly to consumers, they perform both production and retailing activities

True B/c Avon acts as a retailer by selling to customers and as production when it transports the merchandise

T or F: Public service advertising typically focuses on social marketing objectives

True B/c PSA focuses on public welfare

T or F: One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized offerings and services for each customer

True B/c an internet channel enables retailers to provide customers with more personalized information about products and services

T or F: One problem facing advertisers is that consumers screen out messages that are not relevant to them

True B/c consumers have grown adept at screening out messages they consider irrelevant, making it hard to reach them

T of F: Cost-based methods do not recognize the role that consumers' or competitors' prices play in the marketplace

True B/c cost based-methods do not recognize the role that consumers' play in the marketplace

T or F:Many retailers and some manufacturers use an omnichannel or multichannel strategy in which they sell in more than one channel

True B/c many retailers and some manufacturers use an omnichannel strategy, which involves selling in more than one channel

T or F: Puffery is not always illegal in the US under state and federal law

True B/c puffery is the legal exaggeration of praise, stopping just short of deception, lavished on a product

T or F: Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer

True B/c the first step in moving a consumer toward taking action is to raise awareness and gain attention

T or F: Sarita wants to quickly establish a dominant market share for her new line of organic candles. To do this, she will likely use a penetration pricing strategy

True B/c this sets initial price low for the introduction of the new product or service

T or F: One of the retailer's most fundamental activities is providing the right mix of merchandise and services that satisfied the needs of the target market

True B/c to be successfully, retailers must find the right balance of merchandise assortment and services offered

T or F: Wholesalers are often used in an indirect marketing channel

True B/c wholesalers are firms that buy products from manufacturers and resell them to retailers

T or F: It is primarily the retailer's responsibility to make sure customers' expectations are fulfilled

True B/c since it is generally the retailer who interacts directly with the customer, the retailed is the one who must fulfill customer expectations

T or F: Radio frequency identification(RFID) tags automatically transmit information about a container's contents or individual products

True b/c RFID tags transmit to a special scanner all the info about contents and products

T or F: Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease

True, b/c consumers show more sensitivity to price increases than to price decreases

Pricing strategies should be aligned with a firm's overall goals and objective

True, b/c ever firm has different goals and company objectives

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain? A. A manufacturer will send and receive information from buyers, stores, and distribution centers B. Stores will send and receive informations only from manufacturers C. Distribution centers will send and receive information directly from customers D. Customers will send and receive information from stores and manufacturers E. manufacturers will send and receive information only from fulfillment centers

A. A manufacturer will send and receive information from buyers, stores, and distribution centers B/c the information flows in the supply chain do not include customer participation

Personal selling is an especially important part of IMC in A. Business-to-business settings B. Cause-related marketing C. Event sponsorships D. Stealth marketing E. Web tracking

A. Business-to-business settings B/c although consumers don't often interact with professional salespeople, person selling represents an important channel in many IMC programs

When her company's dry goods deliveries were late for the third time, Pilar withheld payment from her supplier until it was back on schedule. This is an example of ________ power. A. Coercive B. Reward C. Referent D. Expertise E. Legitimate

A. Coercive B/c coercive power involves punishing a channel member for not undertaking certain tasks, such as timely delivery of products

Kaelin owns a lawn maintenance business. From experience, Kaelin has found that Kubota equipment lasts almost twice as long as competitors' machines. For Kubota, Kaelin's perception about its products makes ________ pricing a logical choice. A. Cost of ownership B. Cost-based C. Reference-based D. Improvement value E. Market-based

A. Cost of Ownership B/c this pricing considers not just the price initially paid but also the cost of owning the product across its lifetime

_________ is/are one of the five C's of pricing A. Customers B. Communication C. Correlation D. Collaboration E. Contribution per unit

A. Customers 5 C's: completion, costs, company objectives, customers, and channel members

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by A. Decreasing the price elasticity of demand B. Making demand more oligopolistic and less monopolistic C. Increasing the income effect D. Reducing fixed costs and increasing the gray marketing effect E. Shifting the market from a monopoly to pure competition

A. Decreasing the price elasticity of demand B/c brand-loyal customers are less sensitive to price increases

If you walk into __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything organized into distinct departments for displaying merchandise A. Department store B. Off-price retailer C. Discount store D. Specialty store E. Category specialist

A. Department store B/c department stores are retailers that carry a broad variety and deep assortment of merchandise

Retailers that offer a broad variety of merchandise, limited services, and low prices are known as A. Full-line discount stores B. Convenience stores C. Home improvement stores D. Category specialists E. Department stores

A. Full-line discount stores B/c full-line discount stores are retailers that offer a broad variety of merchandise and low prices

The price elasticity of demand for a specific brand of deodorant is -0.9. The market is considered A. Inelastic B. Elastic C. Saturated D. Dynamic E. A prestige market

A. Inelastic b/c when price elasticity is greater than 1

With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service. A. Penetration B. Bundling C. Price fixing D. Reference E. Skimming

A. Penetration B/c penetration pricing focuses on selling at a low price in order to gain market share as quickly as possible

In _________________ many firms provide similar products that are considered substitutes for each other. A. Pure competition B. Oligopolistic competition C. Monopolistic competition D. A monopoly E. A duopoly

A. Pure Competition B/c with pure competition, a large number of sellers offer standardized products that consumers perceive as substitutable

Firms using a _______ to set prices believe that increasing sales will help the firm more than will increasing profits A. Sales orientation B. Customer orientation C. Competitive parity D. Demand curve E. Competitor orientation

A. Sales orientation B/c firms using a sales orientation to set prices believe that increasing sales will help the firm more than will increasing profits

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? A. Sender B. Transmitter C. Encoder D. Channel E. Receiver

A. Sender B/c the message originates from the sender, who must be clearly identified to the intended audience

Latina's Studio, located in a shopping mall, offers Zumba dance classes for all ages. Latina's Studio is known as a A. Service retailer B. Category specialist C. Speciality store D. Outlet studio E. Small-box specialist

A. Service retailer B/c a service retailer is a firm that primarily sells a service rather than merchandise

Which of the following is most likely to be characterized by pure competition in the US? A. Soybeans B. Cereal C. Soft drinks D. Computer operating systems E. Fast-food restaurants

A. Soybeans B/c with pure competition, a large number of sellers offer standardized products that consumers perceive as substituable

The head of the marketing area told Alisha to find the most stringent federal regulations on advertising to create the toughest standards. "If we can pass those, we should be able to get by all regulations." One real problem is A. State regulations are not always consistent with federal standards B. FCC regulations create a uniform standard that preempt all other regulations C. European countries have agreed to follow the US standards, so its a matter of working with the US federal regulations D. As long as the advertising does not contain sexually explicit content, there are no regulations E. In most cases, standards are changing almost daily

A. State regulations are not always consistent with federal standards B/c states have diff regulations and are beginning to assert their authority more than in the past

Which of the following statements is true regarding distribution centers? A. They enable retailers to carry less merchandise in individual stores B. They are more expensive than retail space C. They are appropriate for all retailers D. They are the quickest way to get all products to retailers E. They complicate the process of predicting accurate sales forecasts

A. They enable retailers to carry less merchandise in individual stores B/c distribution centers enable the retailer to carry less merchandise in individual stores, which results in lower inventory investments systemwide

Kyle estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Kyle, the total cost of opening the new branch and remaining open for one year will be A. $500,000 B. $550,000 C. $650,000 D. $450,000 E. $605,000

B. $550,000 B/c total costs= fixed costs + variable costs or $500,000 + (1000*$50) = $550,000

Samson rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Samson, the contribution per unit is A. $100 B. $80 C. $800 D. $1000 E. It cannot be determined from the information provided

B. $80 B/c contribution per unit+ price variable cost per unit= $100-$20=$80

Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering A. As recognized by competitors B. As perceived by the consumer C. Relative to production costs D. In relationship to fixed and variable costs E. In order to minimize bundling charges

B. As perceived by the consumer B/c value-based pricing methods consider the consumers' perceived value

The goals of IMC need to A. Expand as the advertising budget expands B. Be explicit and measurable C. Be encoded before they can be decoded D. Include both the noise effect and the transmitter effect E. Be separate from budget

B. Be explicit and measurable B/c all IMC goals, both short and long term, should be explicitly defined and measured so that success can be evaluated

Katrina could not afford expensive furnishings but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Katrina likely responding to? A. Integrated CRM B. Brand image consistency C. Pricing consistency D. Integrated supply chain E. Efficient distribution

B. Brand image consistency B/c consumers desire a seamless experience when interacting with omnichannel retailers

Yesterday, Marya overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The sales rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Marya observed was an example of A. Sales tactics B. Channel conflict C. Retail strategy tension D. Passive aggressive behavior E. A failure of EDI processes

B. Channel conflict B/c store manager and sales rep have conflicting goals

Which of the following is an interactive element of an IMC strategy? A. Distribution B. Consumer contests C. Encoding D. Public Relations E. Supply channel

B. Consumer contests B/c personal selling and mobile marketing all involve direct interaction with a customer

In recent years, the component of IMC that has received the greatest increase in aggregate spending is A. Media advertising B. Direct marketing C. Public relations D. Sales promotions E. Publicity

B. Direct marketing B/c direct marketing has received the greatest recent increase in aggregate spending

A _________ is a facility for the receipt, storage, and redistribution of goods to company stores A. Circulation center B. Distribution center C. Supply chain hub D. Collaborative replenishment office E. Floor-ready franchising center

B. Distribution center B/c it is a center that can be operated by retailers, manufacturers, or distribution specialists

A __________ pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases A. Premium B. High/low C. EDLP D. Slotting E. Uniform

B. High/low B/c high/low strategy is appealing because it attracts two distinct market segments

In determining the price of his company's new financial planning software, Ricardo is assessing how much better his company's software is as compared to alternative products available int he market. Ricardo is using _____ pricing A. Cost-based B. Improvement value C. Reference-based D. Cost of ownership E. Market-based

B. Improvement value B/c the improvement value pricing method represents an estimate of how much more consumers are willing to pay for a product relative to other comparable products

After creating awareness of the firm's products or services, the next goal of integrated marketing communications is to A. Generate consumer action B. Increase the level of interest among consumers C. Determine the level of desire needed to sustain action D. Gain the attention of the consumer E. Create intentions to purchase the product

B. Increase the level of interest among consumers B/c the steps in the AIDA model are awareness, interest, desire, and action

Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. Expanding customer loyalty by closing the feedback loop B. Increasing marketing share, shales, and customer loyalty C. Increasing inquires, awareness, and trial of her firm's services D. Shifting customers to rule-of-thumb budgeting E. Increasing the lagged effect

B. Increasing market share, sales, and customer loyalty B/c typical long-term IMC goals include increasing sales and customer loyalty

In an _____________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members A. Cooperative B. Independent C. Contractural D. Administered E. Corporate

B. Independent

Which of the following is true regarding getting merchandise to customers? A. Most distribution centers ship products by rail B. Many retailers now offer free expedited service C. Distribution centers provide a window of two weeks for deliveries to stores but cannot get more specific D. To use the buy-online-and-pick-up-in-store option successfully, stores need to hire twice considerably more sales associates E. In most cases, consumers have to come to the store multiple times to see if their online order is available

B. Many retailers now offer free expedited service B/c is it a defensive competitive measure like amazon prime

__________ involves marketing to customers through wireless handheld devices such as cellular telephones A. Print advertising B. Mobile marketing C. Distribution D. The supply channel E. A formal critique

B. Mobile marketing B/c mobile marketing involves marketing to customers through wireless handheld devices such as cellular telephones

P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used ________ advertising to reposition Tide several times over the product's life, trying to motivate new consumer segments to use the product A. Informative B. Persuasive C. Social marketing D. Emotional E. Institutional

B. Persuasive B/c in later stages of product life cycle, persuasive advertising may be used to reposition an established brand

The three general objectives of advertising are to select, target, and promote. A. Remind B. Promote C. Discuss D. Deceive E. Survey

B. Promote

Mario decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer. By sending proof of purchase and the receipt to the manufacturer, he could receive a $40 check in return, making the final price $60. This pricing tactic is known as a A. Markdown B. Rebate C. Coupon D. Cash discount E. Price line

B. Rebate B/c rebates provide a form of discount for consumers off the final selling price

The content of an advertising message is closely tied to A. The size of the advertising team B. The characteristics of the media selected to carry the message C. The opportunity for post-testing D. The sales promotion opportunities E. The coupon redemption rate

B. The characteristics of the media selected to carry the message B/c the content of an advertisement is tied closely to the characteristic of the media

In marketing's four P's, place referees to all activities required to get A. The design of the terminal location for products accomplished B. The right product to the right customer when that customer wants it C. Access to the physical space within a retail establishment D. Consumers to the destination E. Demand chain management functionally operable

B. The right product to the right customer when that customer wants it B/c place includes all activities required to get product to right customer and when the customer wants it

Retailing is defined as the set of business activities that A. Focuses on a firm's core values B. Focuses on transactions, but not relationships C. Adds value to products and services sold to consumers for their personal or family use D. Separates wholesaling from manufacturing E. Occurs only in brick-and-mortar space

C. Adds value to products and services sold to consumers for their personal or family use B/c retailing sits at the end of the supply chain, where marketing meets the consumer

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of A. Vertical contractual notice B. VMI requirement C. Advanced shipping notice D. Universal product code report E. RFID tag

C. Advanced shipping notice B/c advanced shipping notice is electronic document that the supplier sends the retailer in advance of shipment

Marina asked Selma to help her buy some aftershave for her boyfriend. Selma was going through a list of different brand names, when Marina stopped her and said, "I recognize that one." Marketers call this A. Selective recall B. Free association C. Aided recall D. Recall mapping E. Top-of-mind awareness

C. Aided recall B/c it is when consumers indicate they know the brand when the name is presented to them

The knowledge retailers gain from their store personnel, the Internet browsing and buying activities of customer, and the data they collect on customer shopping habits can be used in A. POP B. MSRP C. CRM D. JIT E. SKU

C. CRM (customer relationship management) B/c the most successful retailers concentrate on providing more value to their best customers

When firms set prices similar to those of competitors, they are following a strategy of A. Me-too pricing B. Copycat pricing C. Competitive parity D. Market-broadening pricing E. Industry-standard pricing

C. Competitive parity B/c it is a strategy in which the firm sets prices similar to those of the major competition

Many stores now e-mail codes to their customers that can be used on their websites or printed and brought into the store to receive discounts for products purchased. In this instance, the customer is using a _______ to receive the discount. A. Size discount B. Rebate C. Coupon D. Markdown E. Seasonal discount

C. Coupon B/c a coupon offers a discount on the price of specific items when they are purchased

The role of the buyer in dealing with the manufacturer includes getting information, negotiating prices, arranging shipping dates, and A. Identifying transportation options B. Changing the marketing structure C. Determining promotional events D. Establishing a franchise E. Changing the product development timeline

C. Determine promotional events

Jerome knows that his spring break travel packages are the best deal on campus. He also knows his competitor is sloppy, often waiting until the last minute to provide the needed tickets and documents to students buying his island packages. Jerome wants to develop an advertising message that emphasizes the key benefits he provides. He will develop an _________ appeal A. Emotional B. Niche marketing C. Informational D. Institutional E. Reminder

C. Informational B/c by informing consumers about the key benefits of his spring break travel packages

A __________ is an an advertisement that focuses on public welfare issues A. Product-focused advertisement B. Consumer-generated advertisement C. Public service announcement D. Remind advertisement E. Push strategy

C. Public service announcement B/c as a form of advertising, public service announcements inform or persuade customers

A ________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising A. Continuous B. Flighting C. Pulsing D. Penetrating E. Purposeful

C. Pulsing B/c pulsing combines continuous and flighting schedules

_________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, typically used in conjunction with advertising or person selling programs A. B2B programs B. Trade incentives C. Sales promotions D. Push programs E. Targeted leader items

C. Sales promotions

The most common form of a quantity discount for consumers is a A. Cash discount B. Markdown C. Size discount D. Coupon E. Rebate

C. Size discount B/c the goal of this tactic is to encourage consumers to purchase larger quantities each time they buy

When developing an advertising message, the message should focus on A. The producer B. The advertising environment C. Solving problems for consumers D. Creating investment opportunities E. Niche media balance

C. Solving problems for consumers

In an administered vertical marketing system, A. No individual participant has control over the others, since a third-party administrator oversees the entire supply chain B. Independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict C. There is no common ownership, and the dominant member has significant power to impose its ideas and objectives D. Independent firms join together formally to decide as a group how the marketing channel will operate E. Participants——such as warehouses, transportation companies, and retail outlets——are typically owned by a parent company to ensure harmonious relations throughout the supply chain

C. There is no common ownership, and the dominant member has significant power to impose its ideas and objectives B/c with administered vertical marketing system, there is no common ownership or contractural relationships, but the dominant channel member controls or holds the balance of power

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. The primacy effect B. Aided recall C. Top-of-mind awareness D. Category dominance E. Elevated awareness

C. Top-of-mind awareness B/c this means that the consumer mentions the brand name first when asked about a product

In the IMC communication process, the ___________ encodes the marketing communication message A. Instructor B. Sender C. Transmitter D. Communication channel E. Receiver

C. Transmitter B/c the transmitter converts the sender's ideas into a message

Traditionally, marketers have seen the role of _________ as generating short-term results, whereas the goal of ___________ was to lead to long-term results A. Public relations; institutional advertising B. Advertising; personal selling C. Sales promotion; advertising D. Advertising; public relations E. Corporate blogs; public relations

C. sales promotion; advertising B/c sales promotion is viewed as short-term and advertising is viewed as long-term

T or F: For market penetration pricing to work, the product or service must be perceived as breaking new ground in some way

False B/c that is price skimming (consumers willing to pay the premium price to have the innovation first)

A pricing tactic is A. A long-term and broad-based approach to pricing B. An integrative pricing approach based on the five C's C. An approach that can be used only with consumers D. A short-term approach that is often in response to a competitive threat E. An approach that can be used only in a business-to-business setting

D. A short-term approach that is often in response to a competitive threat B/c pricing tactics offer short-term methods to focus on select components of the five C's

For retailers, promotion refers to A. Supply chain communication B. The relationship between price and product C. The image a store attempts to maintain through its pricing strategy D. Both their in-store environment and their media communications E. The seasonal discounts offered to move end-of-season items

D. Both their in-store environment and their media communications B/c retailers promote within the retail environment and media communications

Variable costs change with A. Changes in fixed costs B. Changes in cross-price elasticity C. Changes in target return pricing D. Changes in quantity being produced E. Competitive party

D. Changes in quantity being produced B/c variable costs are costs that change as the production quantity changes

Even the best marketing communication can be wasted if the sender does not first A. Generate consumer action B. Offer testimonials from past consumers C. Determine the level of desire needed to sustain action D. Gain the attention of the consumer E. Stimulate interest among stealth marketing consumers

D. Gain the attention of the consumer B/c if the consumer's attention is not gained, and brand awareness does not result, the marketing communication cannot achieve its desires results

To get us to remember their ad and the product or brand in the ad, advertisers must first A. Use persuasion B. Offer incentives C. Create effective PSA's D. Get our attention E. Vary between flighting and pulsing scheduling

D. Get our attention B/c unless an advertiser gets the consumer's attention, the ad has no impact

In very simple words, advertising is really about A. Improving brand image B. Personal selling C. Linking emotions with products D. Getting consumers' attention E. Being creative

D. Getting consumers' attention B/c to get you to remember their ad and the brand, advertisers must first get your attention

Omnichannel retailers use consumer information collected from the customers' Internet browsing and buying behavior to send dedicated emails to customers promoting specific products or services in an effort to A. Slay the category killers B. Compete with off-price retailers C. Drive their supply chain D. Increase their share of wallet E. Combat the inroads made by big-box specialty retailers

D. Increase their share of wallet B/c retailers hope that customers will increase their spending with the retailer

One of the limitations associated with break-even analysis is that A. It assumes fixed costs are zero B. It cannot adjust for high variable costs C. It tells marketers only what price is needed to break even D. It assumes that there is only one price E. It assumes that demand is extremely Inelastic

D. It assumes that there is only one price B/c break-even analysis assumes that all products are sold at a single price

Manufacturers trying to implement a just-in-time delivery system need to start with A. Routing software B. Shipping schedules C. Distribution center design D. Knowledge of customer demand E. Intensive distribution

D. Knowledge of customer demand B/c JIT refers to inventory management systems designed to ship smaller quantities more frequently

The primary reasons manufacturers offer seasonal discounts to retailers are to more easily plan production schedules and to A. Reduce advertising allowances B. Increase price skimming C. Control vertical pricing D. Lessen inventories of finished goods E. Alter consumers' perceived reference price

D. Lessen inventories of finished goods B/c seasonal discounts are additional reductions offered as incentive to retailers to order merch in advance of normal buying season

_________ pricing tactics lower the price of a product below the store's cost A. Fixed B. Zone C. Regular D. Loss-leader E. Cost-based

D. Loss-leader B/c leader pricing is a legitimate tactic that attempts to build store traffic by aggressively pricing and advertising a regularly purchased item

_______ channels are used to reach a broad audience; _______ channels are used to reach a narrower segment of consumers. A. Nice media; mass media B. Media mix; media buy C. Media buy; media mix D. Mass media; niche media E. Promotion; institutional

D. Mass media; niche media B/c mass is for large numbers and niche is more focused

Advertising slogans such as "Don't text and drive" and "Buy flood insurance before it is too late" are examples of ads designed to A. Provide information B. Remind consumers C. Recruit employees D. Persuade consumers to take action E. Generate goodwill

D. Persuade consumers to take action B/c these are persuasive messages because they seek to persuade the receiver to take some action

_____________ must always be aligned with other elements of a retailer's strategy in order to accurately define the value of the product and a retailer's image A. Mobile commerce B. Transportation C. Distribution D. Price E. Labeling

D. Price B/c price must always be aligned with the other elements of a retailer's strategy

In determining the price for his company's new digital activity tracker, Mathias determines what consumers consider the regular or original price for similar activity trackers available in the market. Mathias is assessing the influence of _____ on pricing strategy A. Improvement value B. Odd-even prices C. Everyday low pricing D. Reference prices E. Cost of ownership

D. Reference prices B/c reference price is the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process

Byron gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Byron told the manager to always match the gasoline prices of the other store. Byron is using a ________ pricing strategy. A. Maximizing profits B. Target profit C. Target return D. Status-quo E. Sales

D. Status quo B/c it id s type of strategy in which the firm changes prices only when competitors change theirs

T or F: The message originates from the transmitter, who must be clearly identified to the intended audience

False B/c the message originates from the sender, who must be clearly identified to the intended audience

Steve managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steve most likely A. Cancelled orders and shifted the business to competitors B. Increased promotional outlays to overcome customer dissatisfaction C. Used exclusive geographic territories to reduce supply chain inefficiencies D. Stockpiled inventory, adding to the cost of providing auto parts E. Returned to traditional distribution center logistics

D. Stockpiled inventory, adding to the cost of providing auto parts B/c many retailers in the 90"s stockpiled inventory, leading to higher inventory carrying costs

Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing A. Reciprocity B. Simplicity C. Discounting D. Storage E. Extreme value labeling

D. Storage B/c retailers buy in quantity from manufacturers and then sell single items to consumers, thus providing a storage function

Although conflict is likely to occur in any marketing channel, it is generally more pronounced when A. The supply chain members are geographically too close to each other B. Manufacturers pressure retailers C. Retailers pressure manufacturers D. The channel members are independent entities E. The economy is booming

D. The channel members are independent entities B/c although conflict is likely, it is generally more pronounced when the channel members are independent entities

Retailers can gain valuable knowledge about their customers from the transaction process and from A. Trade industry profiles B. Store brand/private-label brand ratios C. Omnichannel flow process D. The insights of store personnel E. End-of-aisle positioning studies

D. The insights of store personnel B/c the knowledge retailers gain from their store personnel, the Internet browsing and buying activities of customers

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and A. Earn a cash discount B. Capitalize on the experience curve effect C. Will not fall prey to predatory pricing D. Will be less likely to switch brands E. Will be able to take advantage of zone-pricing benefits

D. Will be less likely to switch brands B/c the goal of a size discount is to encourage cu=insurers to purchase larger quantities each time they buy

As the number of communication media has increased, the task of understanding how best to reach target customers has A. Shifted from creating a value proposition to revising a value proposition B. Increased the use of rule-of-thumb targeting C. Become easier D. Focused on reducing communication noise E. Become more complex

E. Become more complex B/c advances in tech have lead to a variety of new and traditional media channel option for consumers which vie for consumers' attention

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because A. They do not carry enough merchandise B. Consumers no longer recognize brand equity C. Big-box food retailers are shifting into specialty store product lines D. There is not enough merchandise or go around E. Competitors can purchase and sell many of the same popular brands

E. Competitors can purchase and sell many of the same popular brands B/c merchandise can ordinarily not be used to create a competitive advantage unless the retailer has exclusive distribution rights to a brand

Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these other fast-food restaurants will A. Increase the income effect for Wendy's products B. Increase demand for Wendy's products C. Decrease the income effect for Wendy's products D. Increase the complementary effect for Wendy's products E. Decrease demand for Wendy's products

E. Decrease demand for Wendy's products B/c is substitutes go down, it makes food at Wendy's seem like less of a value

Sophia wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Sophia will likely increase her use of A. Sales promotions B. Advertising C. Public relations D. Price reductions E. Direct marketing

E. Direct marketing B/c direct marketing is the form of marketing communication that is most easily personalized

The ____________ loop allows the receiver to communicate with the sender in the IMC process and thereby informs the sender wether the message was received and decoded properly A. Decoding B. Protesting C. Preceding D. Encoding E. Feedback

E. Feedback B/c this permits the receiver to respond to the sender

Yvonne represents a manufacturer who makes unique, high-end handbags. When making a recommendation about potential retail partners, what should be Natalie's first consideration? A. What is the appropriate advertising strategy? B. When will customers be willing to pay? C. What prices will customers be willing to pay? D. What assortment of products will customers want? E. How likely is it for certain retailers to carry this product?

E. How likely is it for certain retailers to carry this product? B/c in choosing retail partners, Yvonne must first assess how likely it is for certain retailers to carry the product

One of the difficulties associated with value-based pricing is that A. Costs used in this method are difficult to compute B. Only the creator of a new product can fully understand its value to consumers C. Value depends on variable costs and not fixed costs D. Everyday low pricing has neutralized the impact of price on consumers' purchase decisions E. It necessitates a great deal of consumer research to be implemented successfully

E. It necessitates a great deal of consumer research to be implemented successfully B/c it can be quite effective, they also necessitate a great deal of consumer research to be implemented successfully

A ____________ discount is based on the amount purchased in a single order A. Uniform delivered B. Zone pricing C. Advertising allowance D. Cumulative quantity E. Noncumalitive quantity

E. Noncumalitive quantity B/c a Noncumalitive quantity discount, though a quantity discount, is based only on the amount purchased in a single order

French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a A. Product in demand B. Inelastic product C. Elastic product D. Custom product E. Prestige product

E. Prestige product B/c prestige products are products that consumers purchase for their status rather than their functionality

Customers interacting with omnichannel retailers most desire a _____________ experience A. Unique B. Speedy C. Distinctive D. Inexpensive E. Seamless

E. Seamless B/c to determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain in order to provide consumers with a seamless experience

If a manufacturer isn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ________________ distribution A. Moderate B. Compromise C. Luxury D. Evolutionary E. Selective

E. Selective B/c between the intensive and exclusive distribution strategies lies selective distribution, which relies on a few selected retail customers in a territory to sell products

Sarita goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Pilar doesn't read newspapers, let alone look through them for coupons. But Pilar filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Pilar? A. Loyalty program B. Contest C. Deal D. Premium E. Sweepstakes

E. Sweepstakes B/c sweepstakes does not require the entrant to complete a task other than buying a ticket or filling out a form

The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment will likely lead to a ______________ channel conflict A. Horizontal B. Independent C. Conventional D. Coercive E. Vertical

E. Vertical B/c this is when supply chain members that buy and sell to one another are not in agreement about their goals and roles

Because there are many firms in monopolistic competition markets, A. Everyone is a price taker B. Producers do not have to consider the reactions of rival firms C. Government often encourages consolidation to reduce the number of competitors D. Price controls may be implemented E. The many competitors will focus on product differentiation

E. the many competitors will focus on product differentiation B/c firms in monopolistic competition markets seek to differentiate their offering order to target unique segments

T or F: A pricing strategy and a pricing tactic are essentially the same thing

False B/c a pricing strategy is a long-term approach to setting prices broadly across all the firm's products based on the 5 C's

T or F: When business support cultural or sporting events, such as the St. Jude Walk/Run to End Childhood Cancer, this is known as cause-related marketing

False B/c cause-related marketing is commercial activity in which business and charities form a partnership to market an image or service for their mutual benefit

T or F: Distribution centers are always operated by distribution specialists

False B/c distribution centers may be operated by retails, manufacturers, or distribution specialists

T or F: Off-price retailers specialize in having a consistent line of merchandise available at discount prices

False B/c off-price retailers offer an inconsistent assortment of brand-name merchandise at a significant discount

T or F: Slotting allowances are used to get retailers to feature a manufacturer's product in their advertising and promotional efforts

False B/c slotting allowances are offered to get new products into stores or to gain more or better shelf space

T or F: After seeing advertisements for the Toyota Prius, Hannah becomes interested and does some Internet research. However, after seeing the price for a new model, he decides to purchase a Ford Fusion instead. This is an example of the lagged effect.

False B/c sometimes consumers don't act immediately after receiving a marketing communication because of the lagged effect- a delayed response