Principles of Marketing
In which of the following is vertical conflict, conflict between different levels of the same channel, common?
Franchise organizations
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse logistics, which means it ____________________________.
involves the entire supply chain management
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
_______________________ is an example of horizontal channel conflict.
A Subaru dealer complaining that another Subaru dealer is advertising in its territory
Channels often involve long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?
Adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer?
Channel levels
Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution strategy?
Exclusive
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Integrated supply chain management
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
Of the following, which most closely describes the method by which companies engage and create benefits for their customers?
Value delivery network
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.
an indicator of quality
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
When setting marketing channel objectives, companies should state the objective in terms of ______.
targeted levels of customer service
A(n) _____ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
Customer value-based pricing
Which of the following represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets?
Outsourcing logistics functions
_____________________ software systems enable companies to coordinate their whole-channel marketing efforts.
Partner relationship management
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
Which of the following indicates the length of a channel?
The number of intermediary levels in the channel
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________________.
the responsibilities of channel members
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas?
Warehousing, inventory management, transportation, and logistics information management
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
corporate VMS
Companies today see channel members as ______________ and practice strong partner relationship management.
first-line partners
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price-fixing
________________________ is the first step in marketing channel design.
Analyzing consumer needs
________________________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
One of the primary advantages of marketing logistics is __________________.
potentially high cost savings and improved customer satisfaction
Many vital and key functions are performed by marketing channels. Of the following, which is NOT one of those key functions?
Manufacturing and assembly
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
_______________________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
