Test 4 ch9/10/11/15

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. - limited-service - full-service - off-price - convenience - self-service

limited-service

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? - time-based pricing - location-based pricing - market-skimming pricing - market-penetration pricing - product-form pricing

location-based pricing

Which of the following is a cost-effective mode for shipping large amounts of bulk products - coal, sand, minerals, and forest products - over long distances? - air carriers - trucks - pipelines - railroads - water carriers

railroads

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy. - market-skimming - time-based - value-added - product form - market-penetration

time-based

A(n) ________ is considered a marketing intermediary. - advertiser - wholesaler - manufacturer - customer - producer

wholesaler

Department stores are most likely characterized by ________. - specialty goods and services - narrow product lines - deep assortments of luxury brands - predatory pricing strategies - wide varieties of product lines

wide varieties of product lines

Which of the following is true about joint venturing? - Management contracting is highly risky for the domestic firm. - Contract manufacturing gives significant control to the domestic firm. - Companies are required to invest in the construction of foreign-based facilities. - Licensing is a highly complex method for entering global markets. - A host country partner is necessary for selling or marketing products.

A host country partner is necessary for selling or marketing products.

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. - Value-added - Competition-based - Good-value - Demand-based - Cost-based

Cost-based

________ uses buyers' perceptions of what a product is worth as the key to pricing. - Competition-based pricing - Cost-plus pricing - Customer value-based pricing - Target return pricing - Psychological pricing

Customer value-based pricing

Pricing decisions of specialty stores are typically based on low markups on a high volume of products. - True - False

False

Similar consumer needs around the world suggest that a strategy of adapted global marketing is appropriate for most international firms. - True - False

False

Which of the following is true of exporting? - It typically requires products to be extensively modified for the foreign market. - It involves a huge investment if done through independent international distributors. - It involves the least change in a company's product lines. - It is the most complex way to enter a foreign market. - It involves the association of companies with host country partners.

It involves the least change in a company's product lines.

Which of the following is true of an intensive distribution strategy? - Compared with other distribution strategies, it uses the least number of intermediaries to sell products. - Compared with other distribution strategies, it provides the best support for dealers of luxury products. - It gives sole rights to select dealers in a given area. - It strives to make products available where and when consumers want them. - It discards traditional intermediaries and uses direct marketing to reach customers.

It strives to make products available where and when consumers want them

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services. - Joint venturing - Direct investment - Indirect exporting - Direct exporting - Importing

Joint venturing

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service. - Manufacturers' agents - Merchant wholesalers - Brokers - Agent wholesalers - Retailers

Merchant wholesalers

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. - Warehousing - Retailing - Procurement - Manufacturing - Sole sourcing

Retailing

________ distribution typically allows manufacturers to develop good working relationships with intermediaries and expect a better-than-average selling effort. It also gives producers good market coverage with more control and less cost than intensive distribution. - Horizontal - Selective - Inclusive - Vertical - Comprehensive

Selective

From a producer's point of view, a greater number of levels in a supply chain means less control and greater channel complexity. - True - False

True

Global branding and standardization result in reduced costs from economies of scale. - True - False

True

Too many retailers, even big ones, fail to clearly define their target markets and positions. - True - False

True

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. - Specialty stores - Department stores - Warehouse clubs - Superstores - Convenience stores

Warehouse clubs

Which of the following is most likely true about a global organization? It considers itself a national marketer that sells abroad. - Employees are recruited exclusively from the home country. - Executive training is restricted to domestic operations. - Global operating units report to international division chiefs. - Worldwide policies are planned by top corporate management.

Worldwide policies are planned by top corporate management.

In which of the following situations is a producer guaranteed full control over product sales? - an administered marketing system - a horizontal marketing system - a contractual distribution channel - a direct marketing channel - a corporate marketing channel

a direct marketing channel

Which of the following would be considered an upstream partner in a company's supply chain? - a firm that markets a product to consumers through social media - a firm that exclusively markets a product to other businesses - a firm that provides technical expertise in the production of a product - a firm that resells a finished product and shares the net sales with the producer - a firm that buys products at wholesale cost from the company

a firm that provides technical expertise in the production of a product

Which mode of transportation is best for carrying perishable goods to distant markets? - railroads - air carriers - pipelines - water carriers - trucks

air carriers

Which of the following sets the upper limit for a product's pricing? - profits - consumer perceptions of value - product costs - competition - elements of the product mix

consumer perceptions of value

As with other types of marketers, a primary goal in wholesaling is to ________. - hold prices constant - establish a greater number of locations - maintain the status quo - build value-adding customer relationships - match competitors' strategies

build value-adding customer relationships

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. - product bundle - captive-product - market-penetration - product line - by-product

captive-product

A convenience store ________. - involves high operation costs due to full-service customer assistance - markets to segments comprised mostly of white-collar workers - carries a limited line of high-turnover goods for consumer self-service - is a multi-channel food and discount retailer that targets niche markets - stocks narrow product lines that have wide, deep assortments

carries a limited line of high-turnover goods for consumer self-service

Which term refers to a giant specialty store with a very deep assortment of a particular product line? - department store - category killer - factory outlet - independent store - convenience store

category killer

When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates ________. - straight product extension - communication adaptation - product adaptation - communication extension - product invention

communication adaptation

Producers use marketing intermediaries because they ________. - form a part of the company's direct channel - create greater efficiency in making goods available to target markets - monitor day-to-day activities during production - supply inexpensive raw materials for manufacturing products - provide technical expertise for faster production

create greater efficiency in making goods available to target markets

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. - customer-segment - product form - time-based - location-based - by-product

customer-segment

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________. - supermarket - specialty store - category killer - pop-up store - department store

department store

Vertical conflicts in distribution channels are conflicts that occur between ________. - same levels in the same channel - same levels of different channels - retailers and customers - different levels of the same channel - different levels of different channels

different levels of the same channel

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings. - direct - functional - layered - indirect - behavioral

direct

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________. - designer shops - discount stores - full-service retailers - specialty stores - convenience stores

discount stores

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________. - franchising - brokering - selective distribution - intensive distribution - disintermediation

disintermediation

When compared to merchant wholesalers, brokers and agents ________. - deal only in services and not products - rarely specialize in one product category or customer type - do not take title to goods - do not engage in any negotiation of wholesale deals - perform more extensive functions

do not take title to goods

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory. - intensive - horizontal - vertical - inclusive - exclusive

exclusive

The simplest way to enter a foreign market is through ________. - licensing - joint ownership - contract manufacturing - exporting - direct investment

exporting

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? - full-service stores - convenience stores - self-service stores - discount stores - off-price stores

full-service stores

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing. - predatory - category killer - high-low - every day low - discount

high-low

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through ________. - direct investment - franchising - joint ownership - joint venturing - indirect exporting

indirect exporting

A country's ________ shapes its product and service needs, income levels, and employment levels. - subsistence economy - tariffs - raw material export economy - quotas - industrial structure

industrial structure

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________. - flexible - elastic - variable - inelastic - cyclical

inelastic

Companies often form ________ ventures to merge their complementary strengths in developing a global marketing opportunity. - joint ownership - licensing - management contracting - direct investment - contract manufacturing

joint ownership

PharmaCom serves millions of customers across several Asian countries with the assistance of several pharmaceutical manufacturing sites in China, Japan, and Korea. This is an example of ________. - licensing - management contracting - exporting - contract manufacturing - joint ownership

joint ownership

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________. - direct investment - joint ownership - direct exporting - management contracting - licensing

licensing

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________. - target costing - value-added pricing - deceptive pricing - market-penetration pricing - market-skimming pricing

market-penetration pricing

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. - target costing - predatory - deceptive - market-penetration - market-skimming

market-skimming

Selective distribution is a strategy in which ________. - all willing intermediaries are given rights to sell a product - products are not sold through intermediaries but directly to customers from producers - common household goods are preferred over luxury products by intermediaries - products are stocked in as many outlets as possible by a seller - more than one, but fewer than all, willing intermediaries are used by a seller

more than one, but fewer than all, willing intermediaries are used by a seller

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing. - product bundle - market-penetration - product line - optional-product - by-product

optional-product

A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) ________. - quota - customs duty - excise duty - fine - tariff

quota

Veggie Delight, a leading manufacturer of frozen vegetarian burgers, has recently entered the Middle East markets. Based on its research, consumers in the Middle East prefer spicier burgers than in the United States and other countries. So the company alters the ingredients in its burgers to meet the local preferences. In this scenario, Veggie Delight is using a(n) ________ strategy to market its product. - product adaptation - undifferentiated marketing - product invention - communication adaptation - straight product extension

product adaptation

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing. - captive-product - product line - product bundle - optional-product - by-product

product bundle

Which of the following sets the lower limit for a product's pricing? - elements of the product mix - competition - product costs - profits - consumer perceptions of value

product costs

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. - captive-product - by-product - product bundle - optional-product - product line

product line

Outbound logistics refers to moving ________. - products from the factory to resellers and ultimately to customers - raw materials from suppliers to the factory - broken, damaged products from customers to producers - excess materials from the factory to suppliers - unwanted, excess products from resellers to producers

products from the factory to resellers and ultimately to customers

Pricing a product based on consumers' reference prices is referred to as ________ pricing. - allowance - geographical - psychological - captive-product - by-product

psychological

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? - bulk breaking - selling and promoting - buying and assortment building - warehousing - risk bearing

selling and promoting

Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. - franchising - wholesaling - showrooming - warehousing - retailing

showrooming

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. - specialty store - supermarket - department store - off-price retailer - discount store

specialty store

Which type of retailer typically carries deep product assortments of narrow product lines? - self-service retailers - warehouse clubs - factory outlets - discount stores - specialty stores

specialty stores

Chips of Joy, a leading chocolate chip cookie manufacturer, has decided to use the same marketing strategy approaches and marketing mix worldwide for all of its brands. The only change that will be made is language translation on the various packaging. Chips of Joy is using a(n) ________ marketing strategy. - collective global - adapted global - joint global - standardized global - direct global

standardized global

Retailers must decide on three major product variables: product assortment, services mix, and ________. - store layout - store atmosphere - store location - store ambience - self-service offerings

store atmosphere

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ________. - supply chain management - full-line forcing - distribution system management - physical distribution - marketing logistics

supply chain management

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. - distribution center - disintermediation system - marketing intermediary - value delivery network - manufacturing chain

value delivery network

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. - target costing - competition-based - value-added - value-based - cost-based

value-based