MKT Exam 3
What is the description of monopolistic competition
Many sellers who compete on nonprice factors
Firms that set ___________ objectives believe that increased revenues will in turn lead to increases in market share and profit
Sales
What is a category killer
Specialty discount outlets that focus on one type of product
To find the actual price, you should do what with the list price?
Subtract incentives and allowances. Add extra fees
The pricing objective known as unit volume is based on?
The quantity of product sold
What are the 4 rights of in the Consumer Bill of Rights
The right to - safety to be informed to choose to be hread
What pricing objective can be counterproductive if it is achieved by drastic price cutting that drives down profit?
Unit volume
a shift in the demand curve is a result of
a change in selling conditions
Price transparency has encouraged what type of change in the marketplace....
aggressive price changes by sellers
price deals that mislead consumers fall into the category of _______________ pricing
deceptive
the retail life cycle describes the stages of __________ and ________ for a retail outlet
growth; decline
To increase customer value for a given price, the market must............
increase perceived benefits
a ____________ policy is also known as a fixed-price policy
one-price
In a pure competition market, advertising....
only serves to inform buyers that the product is available
the ability to attract price sensitive customers and discourage competitors from entering a market make which pricing strategy appealing?
penetration
when using ____________pricing, a firm sets a very low price for one or more products with the specific intent to drive its competition out of business
predatory
What are the part of the retailing mix
retail pricing store location retail communication merchandise
a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as
supply chain
What are logistical functions?
Assorting Storing Sorting Transporting
what are the two axes on the retail positioning matrix
Breadth of product line Value added
Consumer tastes and income are among the factors that determine their willingness and ability to pay for products and services. They are known as ______________ factors
Demand factors
Many Japanese car firms are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as.....
Managing for long-run profits
What is the description of pure competition
Many sellers who follow the market price for identical, commodity products
Strategies that can be used as part of a firm's profit objectives include which two of the following?
Maximizing current profits Target return
What is the description of Pure monopoly
One seller who sets the price for a unique product
What are pricing practices that are legally restricted
Predatory pricing Price fixing
What are the three factors that influence demand
Price and availability of similar products Consumer income Consumer tastes
What is the strategy of cost oriented pricing?
Price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead, and profit.
What is the strategy of competition oriented pricing
Price setter stresses what "the market" is doing in determining a price
What are essential to consider when setting a price
What will provide a profit? What will pay for all the associated costs, including marketing? What are customers willing to pay?
Compared to other company objectives, the sales objective...
can be translated more easily into meaningful targets for marketing managers
Legal and regulatory issues and customer demand are pricing ____________
constraints
What is the wheel of retailing
describes how new forms of retail outlets enter the market. Usually enter as low-status, low margin stores
a product for which nostalgia or fad comes into play is likely to.... what in regards to price
have higher prices later in its product life cycle
What is a broker
independent entities who bring together buyers and sellers with whom they o not have continuous relationships
Movement along a demand curve implies
no changes have occurred in any demand factors except price
What is the triple bottom line
recognition of the need for organizations to improve the state of the people, the planet, and profit simultaneously
The process of reclaiming recyclable and reusable materials, returns, and reworks from the point or consumption or use for repair, remanufacturing, redistribution or disposal is known as
reverse logistics
What are profit oriented approaches to setting a price
target return pricing target profit pricing
In an industry that has an oligopoly, price wars are likely to benefit only....
the consumer
The ratio of perceived benefits is a products ___________
value
What is a strategic channel alliance?
when one firm;s marketing channel is used to sell another firm's products
What are transactional functions?
Buying Selling Risk taking
What does the Clayton Act prohibit that might arise in channel management?
Exclusive Delaing Tying Arrangements
What is the description of Oligopoly
Few sellers who are sensitive to each other's prices
What are two factors that cause price in elasticity?
Few substitute Product is a neccesity
What are facilitating functions?
Financing Grading Marketing information and research
What are the functions performed by intermediaries in a marketing channel
Logistical functions Facilitating functions Transactionional functions
Which profit-oriented pricing objective is common in many firms because the targets can be set and performance measured quickly?
Maximizing current profit
In which type of market does the competitive market not provide a pricing constraint for the marketer
Pure monopoly
What is a selling agent
Represent a single producer and are responsible for the entire marketing function of that producer
Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as.....
cost-oriented
In a pure competition market, to differentiate products firms are advised to....
decommoditize products when possible. In pure competition the price is determined by the market, so firms must find ways to change the way the customer thinks about their products.
direct selling is sometimes called _______________ retailing
door-to-door
a ____________ pricing policy allows for more responsiveness to demand, cost, and competitive factors than does a fixed-price policy
dynamic
What is the strategy of demand oriented pricing
factors underlying customer tastes and preferences are weighed most heavily
The highest level of distribution density is known as _________________ distribution
intensive
What are the three types of distribution
intensive exclusive selective
firms often pursue _____________ as a pricing objective when industry sales are relatively flat or declining
market share
A firm may set goals for its business in terms of profit, sales, or unit volume. These are types of pricing _______________
objectives
When a consumer is comparing the costs and benefits of substitute items, he or she is developing a
reference value
loss leader pricing entails
selling a product below its customary price to attract attention to it
what are the major types of agents used by producers
selling agents manufacturers agents
when a firm introduces an innoivative new product, it may choose___________ pricing, setting the highest initial price that customers who really desire the product are willing to pay
skimming
In ___________________, prices are lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices
skimming pricing
__________________ markup pricing entails adding a fixed percentage to the cost of all items in a specific product class
standard
What is the strategy of profit oriented pricing?
the price setter balance both revenues and costs to set a price.
The pricing objective based on the quantity of product sold by a firm is also called
unit volume
a price __________ involves successive price cutting by competitors to increase or maintain their unit sales or market share
war
when using competition-oriented pricing approaches, price setters stress....
what "the market" is doing
What are the types of contractual vertical marketing systems?
wholesaler sponsored voluntary chains franchising Retailer sponsored cooperatives
Firms that buy products from manufacturers and resell them to retailers are known as
wholesalers
What is a manufacturers agent
works for several producers carrying noncompetitive merchandise in an exclusive territory