MKTG 310 Final Ch. 7-20

IKEA, a Swedish retailer, of contemporary furniture operates several stores in various Scandinavian countries, as well as in the United States and Canada. which of the following describes IKEA's level of commitment to international marketing

Direct Ownership

dual distribution

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product

​River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n)

industrial distributor

Extended problem solving is the type of consumer problem-solving process that

is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

formula for price elasticity of demand

% change in quantity demanded / % change in price

The primary psychological influences on consumer behavior are:

- Perception - Motives - Learning - Attitudes - Personality - Lifestyles

The three major categories of influences on the consumer buying decision process are:

- Situational influences - Social influences - Psychological influences

The five categories of situational influences are:

- purchase reason - time perspective - social surroundings - physical surroundings - buyer's momentary mood

Channel decisions are important to marketers mostly because

. they involve long-term commitments and affect customer accessibility.

Price Elasticity of Demand

A measure of sensitivity of demand in relation to changes in price is

​Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by

A reference group

Inelastic Demand

A situation in which an increase or a decrease in price will not significantly affect demand for the product (elasticity is a coefficient of less than 1)

elastic demand

A situation in which consumer demand is sensitive to changes in price (elasticity is a coefficient of greater than 1)

What is the primary purpose of the APEC?

All of the above

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

Average total cost (sum of average fixed cost and average variable cost) is at its lowest level

A single leader who controls and organizes a marketing channel is called a

Channel Leader

price skimming

Charging the highest possible price for a product during the introduction stage of its life-cycle

tactile communication

Communicating through touching

if the Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using

Contract Manufacturing

which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification

Contract Manufacturing

Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________

Convenience products

once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility

Direct Ownership

_______________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank

Exchange Controls

government restrictions on the amount of a particular country's currency that can be bought or sold are known as

Exchange Controls

a special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

Franchising

in many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. in exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in

Franchising

Product Line

Includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

one of the effects of NAFTA is the simplification of country-of-origin rules. this will likely hinder the international trade activities of

Japan

Head nodding, winking, hand gestures, and arm motions are all forms of _________ communication.

Kinesic (body language)

A major determining factor in deciding which type of problem-solving process should be useddepends on the individual's intensity of interest in a product and the importance of theproduct for that person. This is known as an individual's

Level of Involvement

if Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. this type of arrangement is called

Licensing

what level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable

Licensing

the trade alliance that includes Brazil, Argentina, Chile, and other countries is known as

MERCOSUR

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

Marginal Revenue

Which of the following types of promotion informs potential customers about a product and what it is?

Pioneer Promoting (informs consumers about a new product)

Jana now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ___________ needs, appealing to sex appeal.

Psychological

_____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.

Public Relations

Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterize

Situational Involvement

Human requirements for love, affection, and a sense of belonging would be classified byMaslow as _____ needs.

Social

Marginal analysis involves examining

What happens to a firm's costs and revenues when production is changed by one unit

​Private distributor brands are owned by

Wholesalers or Retailers

which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade

World Trade Organization

tying agreement

an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

Unitary

a change in price results in the same proportional change in quantity (elasticity is equal to 1)

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using _________________ and Red Box is using ____________ .

a direct marketing channel; a type of retailer

a business partnership between a domestic firm and a foreign firm is known as

a joint venture

Energizer batteries would be classified as which type of product? a) Convenience b) Shopping c) Specialty d) Unsought e) Industrial service

a) Convenience

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products. a) shopping b) specialty c) service d) convenience e) unsought

a) Shopping

Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product? a) Shopping b) Convenience c) Specialty d) Unsought e) Industrial

a) Shopping

A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

a) all products offered by a firm

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product. a) component parts b) accessory parts c) raw materials d) process materials e) MRO supplies

a) component parts

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is calledSelect one: a. exclusive dealing. b. exclusive distribution. c. refusal to deal. d. a tying agreement .e. contractual VMS

a) exclusive dealing

One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix a) width. b) depth. c) length. d) volume. e) dimension.

a) width

Threatt Production makes low-priced, convenience products that are widely available. It is most likely to focus its promotion efforts on

advertising

The use of a pull policy may require heavy expenditures for

advertising and sales promotion

6 major modes of communication

advertising, digital marketing, direct marketing, personal selling, public relations and sales promotion.

4 elements of promotion mix

advertising, personal selling, public relations, sales promotion

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a) Raw materials b) Installations c) Accessory equipment d) Component parts e) Process materials

b) Installations

Buyers do not compare alternatives when shopping for ______ products. a) convenience b) specialty c) shopping d) unique e) unsought

b) Specialty

42. Private distributor, generic, and manufacturer are the three types of a) equity. b) brands. c) producers. d) packaging. e) trade names.

b) brands

43. A ___________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions. a) dealer b) manufacturer c) private distributor d) store e) wholesaler

b) manufacturer

48. The major characteristic of a private brand is that a) only retailers initiate and own the brand. b) manufacturers are not identified on the product. c) producers become involved with the marketing mix. d) producers price the product. e) wholesalers encourage producers to make the product available.

b) manufacturers are not identified on the product

Routinized response behavior is what a consumer does when

buying frequently purchased, low-cost items that need little effort.

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product? a) Raw material b) Installations c) Accessory equipment d) Component part e) Process material

c) Accessory Equipment

What are a marketing manager's two options during the decline stage? a) Reintroduce the product to new markets or stop sales immediately b) Speed up the product's decline or increase advertising c) Attempt to postpone the decline or accept its inevitability d) Divesting the brand or reinvesting in the brand e) Accept the decline or phase the product out

c) Attempt to postpone the decline or accept its inevitability

Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.

c) Installations

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.

c) Mix

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product. a) convenience b) shopping c) specialty d) unsought e) durable

c) Specialty

When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as a) specialty products. b) installations. c) unsought products. d) shopping products.

c) Unsought Products

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called a) raw materials. b) installations. c) accessory equipment. d) component parts. e) process materials.

c) accessory equipment

The intangible products that most organizations use in their operations are called a) component parts. b) MRO supplies. c) process ideas. d) business services .e) installations.

d) business services

Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.

d) classified according to their characteristics and intended uses.

___________ occurs when two or more brands are placed on a single product. a) Brand extension b) Brand licensing c) Line family branding d) Co-branding e) Cohort branding

d) co -branding

The four major stages of a product life cycle include a) prosperity, recession, depression, and recovery. b) specialty, convenience, shopping, and unsought goods. c) decline, stabilization, exposure, and growth. d) introduction, growth, maturity, and decline. e) awareness, interest, trial, and adoption.

d) introduction, growth, maturity, and decline.

What measure of the product mix involves the number of product lines a company offers? a) Quality b) Consistency c) Depth d) Width e) Size

d) width

A marketing channel is defined as a group of individuals and organizations that

directs the flow of products from producers to customers

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of

dua distribution

Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods. a) similar; more b) higher; fewer c) higher; more d) lower; more e) lower; fewer

e) Lower; Fewer

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and a) production activities. b) service assistance. c) specialty industrial products. d) computer programming and operation services. e) MRO supplies.

e) MRO Supplies

As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a a) raw material. b) processed component. c) component part. d) service. e) business product.

e) business product

46. Old Navy sells only Old Navy labeled clothing in its retail stores. The Old Navy brand is not sold in any other outlet. Old Navy is a _____ brand. a) generic b) reseller c) manufacturer d) distribution e) private distributor

e) private distributor

Products used directly in the production of a final product but are not easily identifiable are categorized as a) accessory products. b) component parts. c) MRO supplies. d) assembly components. e) process materials.

e) process materials

Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These brand types include all but which of the following? a) Arbitrary b) Descriptive c) Fanciful d) Generic e) Symbolic

e) symbolic

Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____ years with indefinite renewals. a) two b) thirty c) eighteen d) five e) ten

e) ten

in considering the variability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________________, which provides insight into market potential

per capita gross domestic product

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is

personal selling

​Marketing channels create four types of utility for consumers including

place, time, possession, and form

​Melissa needs some spaghetti sauce and always buys Ragu. However, her local supermarket is out of Ragu and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand ____ for Ragu and brand ____ for Prego.

preference; recognition

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

price lining

​By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate

primary demand (demand for product category rather than a specific brand such as milk vs juice)

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.

If a manufacturer decides to use a PULL policy to promote its products, it is most likely to focus its efforts on

promotes directly to consumers

When a salesperson varies the physical distance between himself and a customer he is using

proxemic communication

Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of _____ marketing, while the TV commercials described above would be an example of ________ marketing.

push;pull

when a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a (n)

quota

Frequently, Burger King restaurants offer 32-ounce glasses depicting currently popular movie characters free with the purchase of a large drink. This example illustrates Burger King's use of which one of the following elements of the promotion mix?

sales promotion

___________ are situational influences that include the characteristics and interactions of others who are present when a purchase decision is being made, such as friends, relatives, and salespeople

Social Surroundings

sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. these partnerships are known as

Strategic Alliance

Total Cost

Sum of average fixed and average variable costs times the quantity produced.

61. Which of the following is a primary factor specific to services in choosing a brand name?

The service brand is usually the same as the company name so it must be flexible enough to fit several services.

What statement best explains the focus areas of the APEC?

Trade barriers, cost controls for doing business, free trade areas.

a company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

Trading Company

a large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. this business would most likely be called a (n)

Trading Company

When a consumer purchases products occasionally or needs information about an unfamiliarbrand in a familiar product category, he or she will most likely engage in

limited problem solving

The three most widely recognized types of consumer problem solving are:

limited problem solving, extended problem solving, and routinized response behavior.

Selective demand is demand for a

particular brand

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is

the importance and intensity of interest in a product in a particular situation.

​Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of

vertical integration

If a manufacturer decides to use a PUSH policy to promote its products, it is most likely to focus its efforts on

wholesalers (because push policy 'pushes' the promotion to whats next in the marketing channel)

Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer. a) menus b) mixes c) lines d) life cycles e) ensembles

c) lines

if a US bicycle tire manufacturer has to forma a partnership with the government of Indonesia in order to gain access to the country's rubber, a ___________ has been formed

joint venture

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used _____________ distribution.Select one: a. exclusive b. horizontal c. intensive d. selective e. agent

c) intensive

When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as a) harvesting. b) divesting. c) investing. d) realigning. e) squashing.

b) divesting

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of a) width of product mix. b) product mix consistency. c) depth of product mix. d) a market mix. e) a promotion mix.

c) depth of product mix (# of products offered in each product line = depth of product mix)

Integrated Marketing Communications

coordinating the promotion mix elements and synchronizing promotion as a unified effort (a company may promote a new logo, slogan, or strategy through multiple media such as print, television, web, and social networks.)

Objectives of Promotion

create awareness, stimulate demand, encourage product trial, identify prospects, retain loyal customers, facilitate reseller support, combat competitive promotional efforts, reduce sales fluctuations

the united states' prohibition against importing cigars from Cuba is an example of a (n)

embargo

Justin is purchasing his third car in the past five years. He has been a car enthusiast eversince he was a little boy. He likes to spend his free time looking at car magazines, going tocar shows, and watching NASCAR. Justin's interest in cars is referred to as

enduring involvement

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be

exercising channel power

Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. to maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through

exporting

which of the following is often used to raise revenue for a country and/or to protect domestic products

import tariff

when the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

importing