Chapter 1, MKTG Chapter 1, Chapter 16 - Practice Problems, MKTG 351 Ch.20, MKT Exam 4, mktg ch 15, Chapter 2, MKT321_CH20, MKT 350 Test 4, Mktg 351 Test 3 Ch 20, MKTG 3, Marketing Segmentation, Chap 19 Practice Questions, MKT 350 quiz 4, Ch. 12 marke...
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? a) 500 units b) 2,000 units c) 1,200 units d) 300 units e) 3,000 units
2,000 units
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?
2,000
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?
2,000 units
What a price means or what it communicates to customers is called a) reference. b) response. c) interpretation. d) internalization. e) signaling.
interpretation.
the four major stages of a product life cycle include
introduction, growth, maturity, decline
Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called.
inventory management.
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded
inverse
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.
inverse
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. a) inelastic b) inverse c) positive d) unknown e) elastic
inverse
If the terms of a business exchange are 2/10 net 30, this means that the transaction
involves a cash discount if paid within ten days.
If the terms of a business exchange are 2/10 net 30, this means that the transaction a) involves a cumulative discount if paid in 30 days. b) involves a noncumulative discount. c) offers a discount if the buyer lives within a ten-mile radius. d) price does not include the cost of freight. e) involves a cash discount if paid within ten days.
involves a cash discount if paid within ten days.
The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is
order handling.
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)
outlet shopping center
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
Who are the members of the channel
retailers and wholesalers
Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of
retailers.
Direct selling, direct marketing, and vending machines are all examples of
retailing
Direct selling, direct marketing, and vending machines are all examples of Answer producing.
retailing.
price discrimination
revenue maximizing behavior of a firm that faces two different markets with two different elasticities for its single product. The price discrimination charges a high price to the inelastic market and a low market, thereby increasing revenues in both markets above what would be earned with a single price.
All of the following are concepts used in a just-in-time inventory management system except
safety stock is kept to reduce stockouts.
Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping
safety stock.
Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called
supply chain management
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
supply chain management
walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. this is an example of: -supply chain management -a vertical marketing system -a horizontal marketing system -channel conflict -dual distribution
supply chain management
Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called supply chain management. vertical channel integration. industrial management. industrial distribution. marketing management.
supply chain management.
Deep discounts, few customer services, and central checkouts. Buy manufacturers seconds, overruns, returns, and off-season production runs at below wholesale prices and resell them.
Off-price retailers
a
Off-price retailers and category killers are both a) specialty retailers. b) discount stores. c) showrooms. d) general merchandisers. e) department stores.
a
Off-price retailers feature a) deep discounts, few customer services, and central checkouts. b) sales expertise, wide selections, and low prices. c) overstocks, designer brands, and moderate prices. d) a narrow product range and enormous product availability. e) cash only sales and few customer services.
b
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a) department store. b) discount store. c) warehouse showroom. d) specialty store. e) superstore.
c
One advantage of nonprice competition is that a) a firm can react quickly to competitive efforts. b) market share becomes less important. c) a firm can build customer loyalty. d) marketing efforts are completely eliminated. e) pricing is no longer a factor.
What are the three primary tasks of order processing?
Order handling, order entry, order delivery
Which of the following best describes wholesalers?
Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.
Which of the following best describes wholesalers?
Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.
________ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.
Outlet shopping centers
Consumer products are purchased becasue of ?
Social influences
True or False: some distributors act as both wholesalers and distributors
True. Ex. costco
True or false: consumers will use price as an indicator of quality
True. Unless they have additional information to guide their decision.
True or False: Distribution and pricing strategies are linked together
True. and with the product and promotional strategies of any successful brand
True or False: some wholesalers are owned by producers and some by retailers
True. but the majority are independent wholesaling businesses
Terms for the Concept of Price
Tuition, Fee, premium, Retainer, Dues
d
Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are _________ retailers. a) discount b) traditional c) specialty d) non-store e) home-delivery
c
Which of the following is most likely to be a fixed cost? a) Component parts b) Raw materials c) Rent d) Electricity e) Transportation
e
Which of the following is most likely to have an inelastic demand curve? a) Automobile b) Vacation c) Nonelective surgery d) Recreational vehicle e) Computer
e
Which of the following is not a discount provided to business customers? a) Trade b) Cumulative c) Cash d) Seasonal e) Differentiated
d
Which of the following is not a factor used to classify wholesalers? a) Whether the wholesaler is owned by the producer b) Whether the wholesaler takes title to the products it handles c) The range of services offered by the wholesaler d) The price range of the products carried by the wholesaler e) The breadth and depth of the product lines carried by the wholesaler
c
Which of the following is not a major factor for firms making price decisions? a) Costs b) Competition c) Previous sales d) Channel member expectations e) Legal and regulatory issues
a
Which of the following is not a method used to determine transfer prices? a) Discounted standard cost b) Actual full cost c) Standard full cost d) Cost plus investment e) Market-based cost
e
Which of the following is not an advantage of franchising for the franchisee? a) The franchisee can capitalize on the business experience of others. b) When problems arise, the franchisee can obtain guidance and advice from the franchiser. c) Franchised outlets are usually more successful than independently owned businesses with respect to long-term survival. d) The franchisee can participate in national promotional campaigns sponsored by the franchiser. e) The franchisee gives up a certain amount of control when participating in a franchise agreement.
b
Which of the following is not one of the basic types of franchising arrangements? a) A producer franchising a number of stores to sell a particular brand of product b) A wholesaler franchising a number of producers c) A producer franchising a number of wholesalers to sell to retailers d) The franchising of brand names, techniques, procedures, or services e) All of these are basic types of franchising.
inelastic
a demand relationship in which the rate of change of quantity demanded is less than the rate of change of price
Customers who purchase computer laptops from manufacturer websites are acquiring products though
a direct-marketing channel
direct channel
a distribution process that links the producer and the customer with no intermediates Ex. dell computers, local farmers
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is
a negative impact on consumers' perceptions of quality.
Who provides the environment in which exchanges with ultimate consumers occur? a) Retailers b) Wholesalers c) Catalogers d) Telemarketers e) Producers
a) Retailers
Which type of retail outlet can have up to 200,000 square feet? a) Superstores b) Supermarkets c) Discount stores d) Department stores e) Category killers
a) Superstores
Sometimes the distributors deliver the value rather than adding it themselves, but often they do what?
add new utility that wouldn't otherwise be present
What does ownership utility do?
adds value by making it easier for customers to actually possess the goods and services that they purchase Ex. providing credit, delivering goods, installing products
What does service utility do?
adds value by providing fast, friendly, personalized service Ex. customized order. Distributors that provide service utility typically create a loyal customer base
Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ___________ to maintain contact with the firms using its products.
agents
Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here? a) Production conception b) Satisfaction of organizational goals c) Distribution of ideas d) Product planning e) Exchange
e
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location.
72. As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation. a) market b) societal c) sales d) evolutionary e) production
e
84. In managing customer relationships, the three primary ways profits can be obtained are by a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
e
88. ________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a) Marketing orientation b) Monetary price c) Product assessment d) Price assessment e) Value
e
92. Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would not be a customer benefit considered in his determination of this product's value? a) Speed of delivery b) Ease of installation c) Availability of technical support d) Availability of training assistance e) Monetary price
e
94. Marketing management is defined as a process of a) maintaining an appropriate and efficient marketing mix for a target market. b) establishing performance standards and evaluating actual performances against these standards. c) providing products that satisfy customers' needs through a coordinated set of activities. d) facilitating satisfying exchanges between an organization and its customers. e) planning, organizing, implementing, and controlling marketing activities.
e
97. A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities? a) Strategic planning b) Marketing control c) Implementation d) Organizing e) Planning
e
A general merchandise retailer offers a. a single product line that is stocked in depth. b. few product lines with deep assortments of these lines. c. few choices of a large variety of product lines. d. products through the Internet and catalogs only. e. a variety of product lines that are stocked in depth.
e
A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities? a)Strategic planning b) Marketing control c) Implementation d) Organizing e) Planning
e
As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation. a) marketing b) societal c) sales d) evolutionary e) production
e
Changing the hours of operation for a service business involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
Consumers buying products online have dramatically affected the ___________ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is a. in a traditional business district. b. a rural shopping center. c. in a neighborhood shopping center. d. a non-traditional shopping center. e. a free-standing structure.
e
In managing customer relationships, the three primary ways profits can be obtained are by a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.
e
Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution
e
Direct selling, direct marketing, and vending machines are all examples of a. producing. b. promoting. c. advertising. d. wholesaling. e. retailing.
e. retailing.
At the breakeven point, a. profits are exactly equal to the difference between revenue and total variable costs. b. the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. c. the marginal cost curve and the average cost curve will be identical for a particular product. d. the total fixed costs are exactly equal to the total variable costs. e. the money a company brings in from selling products equals the amount spent producing the products.
e. the money a company brings in from selling products equals the amount spent producing the products.
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are
long-term commitments
Under Armor is establishing a ____ pricing objective to maintain or increase its product's sales in relation to total industry sales
market share
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing.
market-based cost
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing. a) zone b) actual full cost c) standard full cost d) cost plus investment e) market-based cost
market-based cost
A growing number of ___ have turned to supply chain management to build a competitive edge through greater efficiency
marketers
personality characteristics
marketers appeal to positive/favorable personal characteristics to influence the purchase decision
Which type of retail outlet can have up to 200,000 sq ft?
Superstores
Which type of retail outlet can have up to 200,000 square feet?
Superstores
e
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should a) charge a price based on their cost. b) charge prices consistent with their existing ties. c) discount the ties. d) negotiate the price with individual tie shoppers. e) use price symbolically.
a
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point. a) breakeven b) marginal revenue less than marginal cost c) profit margin d) competitive price e) profit maximizing
d
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called a) zone pricing. b) base-point pricing. c) business-unit pricing. d) transfer pricing. e) price discrimination.
e
Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing. a) zone b) actual full cost c) standard full cost d) cost plus investment e) market-based cost
a
Temporary price reductions through sales, rebates, and special discounts are often used to a) raise cash quickly. b) decrease costs. c) increase profitability. d) run off the competition. e) create a value image.
d
Thad Rather works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a a) commission merchant. b) manufacturers' agent. c) sales branch. d) selling agent. e) full-service wholesaler.
c
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland? a) $45 b) $50 c) $30 d) $25 e) $40
Marketers generally view _____ as the minimum price a product can be sold for.
costs
Marketers generally view _____ as the minimum price a product can be sold for. a) fixed costs b) variable costs c) profits d) costs e) moderate losses
costs
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a
cumulative quantity discount.
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a a) noncumulative quantity discount. b) additive cash discount. c) cumulative quantity discount. d) cumulative discount allowance. e) additive quantity reduction.
cumulative quantity discount.
Order handling involves all of the following activities except that the
customer places a purchase order.
All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is
customer relationships
All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is shifting costs to suppliers. maximizing costs. maximizing technology implementation. cooperation with competitors. customer relationships.
customer relationships.
The driving force behind marketing channel decisions should be
customer satisfaction
The driving force behind marketing channel decisions should be convenience. cost reduction. environmental concerns. customer satisfaction. quality.
customer satisfaction.
Compared with other types of retailers, department stores compete mainly on the basis of
customer services.
A goal of physical distribution is to reduce ____ or how long it takes to complete a process.
cycle time
A goal of physical distribution is to reduce ______ or how long it takes to complete a process.
cycle time
An important goal of physical distribution is reducing the time it takes to complete
cycle time.
The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce
cycle time.
100. If McDonald's runs a promotion advertising Big Macs for $1.50, it must ensure that each of the company's restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the following marketing management activities? a) Strategic planning b) Planning c) Organizing d) Implementation e) Marketing control
d
106. In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a) $1.70 b) $3.40 c) $5.10 d) $7.50 e) $12.75
d
19. The definition of marketing implies that ______ should receive benefits from exchange relationships. a) only customers b) only businesses c) company management d) both customers and businesses e) only the most important customers
d
27. Marketing managers strive to develop a marketing mix that a) minimizes marketing costs. b) matches what competitors are offering. c) best matches the abilities of the firm. d) matches the needs of the target market. e) generates the highest level sales.
d
35. Which of the following is most likely to be an idea marketer? a) Car salesperson b) Airline pilot c) Attorney d) Abuse counselor e) Orthodontist
d
Wal-mart, Macy's, Nordstrom's, and Toys "R" Us are examples of?
Retailers
Who provides the environment in which exchanges with ultimate consumers occur?
Retailers
Overall channel goals and individual channel member goals cannot be achieved together without
cooperation.
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit
deceptive pricing
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit
deceptive pricing.
A marketer sometimes uses temporary price reductions to
gain market share.
first stage in market selection process
identifying the appropriate targeting strategy
What is the least flexible retailing strategy issue?
location
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler
Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
Possession utility is best described as
the customer having access to the product to use now or store and use later.
markup
the difference between cost and selling point
In order to justify direct-response marketing, a product really needs to be priced above
$20
In order to justify direct-response marketing, a product really needs to be priced above
$20.
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?
$30
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland? a) $45 b) $50 c) $30 d) $25 e) $40
$30
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe
$55.00.
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe a) a penalty. b) $53.90. c) $56.10. d) $58.30. e) $55.00.
$55.00.
Opportunities and threats affect all organizations within an industry, market, or geographic region because they exist outside of and independently of the company.
(1) Opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted upon. (2) Threats refer to barriers that could prevent the organization from reaching its objectives.
Equation that shows the relationship between price and profit
(Price x Quantity Sold) - Total Costs = Profit
What equation shows organizations the relationship between price and profit? a) Total Variable Costs + Total Fixed Costs = Sales - Profit b) Price = Profit per Item × Number of Units Sold c) (Price × Quantity Sold) - Total Costs = Profits d) (Price - Profits) × Total Costs = Sales e) Total Costs = (Price × Quantity Sold) - Profits
(Price × Quantity Sold) - Total Costs = Profits
What equation shows organizations the relationship between price and profit?
(Price × Quantity Sold) Total Costs = Profits
Organization's products into four basic types
(a) Stars have a dominant share of the market and good prospects for growth; they use more cash than they generate to finance growth, add capacity, and increase market share. (b) Cash cows have a dominant share of the market but low prospects for growth; they typically generate more cash than is required to maintain market share. (c) Dogs have a subordinate share of the market and low prospects for growth; these products are often found in established markets. (d) Question marks, sometimes called "problem children," have a small share of a growing market and generally require a large amount of cash to build market share.
Weaknesses
(internal) limitations a company faces in developing or implementing a marketing strategy.
mass marketing
(shot-gun approach) same marketing mix directed at all consumers. (no segmentation. WD-40)
segment marketing
(target approach) different marketing mix to one or more segments (some segmentation. P&G)
skimming price
- A new product pricing strategy that aims to maximize profitability by offering new products at a premium price - aimed for price insensitive consumers - once these people have made their purchases, marketers will often introduce lower-priced versions of the same product to capture the bottom of the market. - Ex. apple
They key goal is to set prices based on...
- What everyone else is doing - wipe out price to the point of comparison, forcing customers to choose their product based on other factors - Ex. pepsi and coke
wheel of retailing
- a classic distribution theory that suggests that retail firms and retail categories become more upscale as they go through their life cycles - doesn't apply to stores that launch at the high end market like whole foods or places with a niche like taco bell - does underscore the core principle that retailers must meet changing consumer needs in a relentlessly competitive cycle
penetration pricing
- a new product pricing strategy that aims to capture as much of the market as possible through rock-bottom prices - discourage competitors, who may be scared off by the slim profit margins - only makes sense in categories that don't have significant group of consumers who would be willing to pay a premium - focused on controlling costs
high/low pricing
- a pricing strategy designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others - grocery stores, drug stores, department stores - it can alienate customers who feel cheated when a product they bought for full price goes on sale soon afterward - train customers to only buy products when they go on sale
direct selling
- all methods of selling directly to customers in their homes or workplaces. - door-to-door sales - multilevel marketing (MLM) involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commission
direct response retailing
- catalogs, telemarking, and advertising, such as informercials, meant to elicit direct consumer sales - telemarketing both inbound and outbound also remains a potent distribution channel
loss-leader pricing
- closely related to high/low pricing - loss-leader pricing means pricing a handful of items, or loss leaders, temporarily below cost to drive traffic - products placed in the back to drive customers to them
Relationships among the members of a supply chain used to be contentious, but now they are what?
- companies that foster collaboration, rather than competition, have typically experience more sucesses
wholesalers
- distributors that buy products from producers and feel them to other businesses or nonfinal users such as hospitals, nonprofits, and the government - can be businesses, other wholesalers, or business users
retailers
- distributors that sell products directly to the ultimate users, typically in small quantities, that are stored and merchandized on the premises. - distributors that most of us know on a daily bases - Ex. starbucks, urban outfitters
exclusive distribution
- establishing only one retail outlet in a given area - that one retailer has exclusive distribution rights and provides exceptional service and selection - luxury-good provides - lamborghini, versace
Online retailing
- great customer service can be a powerful differentiator - face two major hurdles: 1. the product must be deliver, and even the fastest delivery typically takes at least a couple of days. 2. the lack of security on the web
A volume objective usually leads to what four strategies
- penetration pricing - everyday-low prices - high/low pricing - loss-leader pricing
What's vendor-managed inventory
- pioneered by walmart - allows suppliers to determine buyer needs and automatically ship product
Intensive distribution
- placing your products in as many stores as possible, or placing stores in as many locations - makes most sense for low-cost convenience goods that consumers won't travel too far to find - Ex. mcdonalds, people magazine
Selective distribution
- placing your products only with preferred retailers or limited locations - best for medium and higher-priced products or stores that consumers don't expect to find on every street corner. - nordstrom, in-n-out
what affects spending choice at a more fundamental level than most other variables?
- price, but it's one of the toughest variable for marketers to control - both legal constraints and marketing intermediaries, distributors, play roles in determining the final price of most products - they most consider cost, competitors, investors, taxes, and product strategies
What is the starting point for pricing strategies?
- profitability targets - firms express these goals in terms of ROI (return on investment) or ROS (return on sales)
Full service merchant wholesalers
- provide a complete array of services to the retailers or business users who typically purchase their goods. - Ex. warehousing, shipping, promotional assistance, etc
multichannel retailing
- providing multiple distribution channels for consumers to buy a product - encouraging consumers to buy through different venues - online and on the ground
what're the choses of things to do to reap of profit
- raise prices - decrease variable costs: less ingredients, hire less people, etc. - decrease fixed costs: different location, cheaper equipment
Vending
- selection has expanded - marketing recognize the value of providing products as conveniently as possible to their target consumers
cash and carry wholesalers
- service customers who are too small to merit in person sales calls from wholesaler reps. - costco and staples are examples
logistics
- subset of SCM that focuses more on tactics ( the actual movement of products) than on strategy - a subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain
everyday-low pricing
- sustained discount pricing - long-term discount pricing, designed to achieve profitability through high sales volume
drop shippers
- take legal title of the merchandise, but never physically process it - organize product shipments directly from the producer to their customers - Ex. bulky products like coal or timber
profit margin
- the gap between the cost and the price of an item on a per-product basis - expressed in dollar amount or percent
odd pricing
- the practice of ending price in numbers below even dollars and cents in order to create a perception of greater value - determine whether odd pricing would work for them by evaluating the strategy in light of the message it sends to the target market
breakeven analysis
- the process of determining the number of units a firm must sell to cover all costs - the analysis helps marketers get a sense of where they stand and the hurdles they need to clear before actually introducing a product
modes of transportation
- the various transportation options, such as planes, trains, and railroads, for moving products through a supply chain - must consider what each mode offers in terms of cost, speed, dependability, flexibility, availability, and frequency of shipments - right choice depends on the needs of the business and on the products itself
What are key management decisions in supply chain management?
- warehousing: how many/where do we locate - materials handling: how should we move products? balance efficiency? - inventory control: how much, how should we store and distribute, etc. - order processing: manage incoming/outgoing orders - customer service: how should we serve our customers - transportation: how can we move products efficiently through the supply chain - security: how can we keep products safe from vandals, theft, etc.
truck jobbers
- work with perishable goods like bread, they drive their products to their customers who are usually smaller grocery stores - check out stock, suggesting reorder quantities
If a company increased its price from $100 to $120 and the percentage change in quantity demanded was 40 percent, the price elasticity of demand for this product is
-2
If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is a) 2. b) 1/2. c) -1/2. d) -2. e) 4.
-2.
The major levels of intensity at which a company can choose to distribute its products are ____ distribution. a. cooperative, conflicting, and integrated b. vertical and horizontal c. exclusive, selective, and intensive d. intensive, extensive, and exclusive e. selective, cooperative, and conflicting
. exclusive, selective, and intensive
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units.
1,167
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units. a) 1,167 b) 1,000 c) 1,750 d) 2,500 e) 700
1,167
Markum Industries determines that, for its air compressors, the following results are achieved at a price of $250: total costs = $250; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units
1,167
Establishing Performance Standards
1. A performance standard is an expected level of performance against which actual performance can be compared, such as a reduction in customer complaints, a sales quota, or an increase in new-customer accounts. 2. Marketing objectives directly or indirectly set forth performance standards, usually in terms of sales, costs, or communication dimensions.
Comparing Actual Performance with Performance Standards and Making Changes, If Needed
1. Comparing actual performance with established performance standards can result in actual performance exceeding performance standards or actual performance failing to meet performance standards. 2. It is important to find out why a particular strategy is effective or ineffective so that it can be improved. 3. Marketers may have to alter the marketing objective to make it more realistic.
Creating the Marketing Plan
1. It provides a uniform marketing vision for the firm and is the basis for internal communication among employees. 2. It delineates marketing responsibilities and tasks and outlines schedules for implementation. 3. It presents objectives and specifies how resources are to be allocated to achieve these objectives. 4. It helps marketing managers monitor and evaluate the performance of a marketing strategy. 5. A company may develop multiple marketing plans, with each relating to a specific brand or product. 6. Organizations use many different formats, and it is important is to make sure that it aligns with corporate and business-unit strategies and is shared with all key employees. 7. Marketing planning and implementation are closely linked in successful companies. a. The marketing plan provides a framework to stimulate thinking and provide strategic direction. b. Implementation is an adaptive response to day-to-day issues, opportunities, and unanticipated situations that cannot be incorporated into marketing plans.
Motivating Marketing Personnel
1. Managers must address their employees' needs and then develop motivational methods that will help employees satisfy those needs. 2. Employee rewards should be tied to organizational goals. 3. A firm can motivate its workers by directly linking pay with performance, informing workers how their performance affects department and corporate results, following through with appropriate and competitive compensation, implementing a flexible benefits program, and adopting a participative management approach. 4. Managers should also use a variety of other tools, including nonfinancial rewards such as prestige or recognition, job autonomy, skill variety, task significance, increased feedback, or even a more relaxed dress code.
Marketing Cost Analysis
1. Marketing cost analysis breaks down and classifies costs to determine which are associated with specific marketing efforts. 2. By pinpointing exactly where a company incurs costs, this form of analysis can help isolate profitable or unprofitable customers, products, and geographic areas. 3. A company that understands and manages its costs appropriately has a competitive advantage and can compete on price. 4. One way to analyze costs is by comparing a company's costs with industry averages; however, a company should take into account its own unique situation. 5. Costs can be categorized into fixed costs (always the same over time) such as rent as well as variable costs (affected by sales or production volume) such as the cost to produce product. They can also be categorized by whether they can be linked to a specific business function.
Communicating within the Marketing Unit
1. Marketing managers must be in clear communication with the firm's upper-level management to ensure that they are aware of the firm's goals and achievements and that marketing activities are consistent with the company's overall goals. 2. Communication that flows upward from the front lines of the organization to higher-level marketing managers provides important information about the needs of customers and employees. 3. Training provides employees with a forum to learn and ask questions, and results in employees who are empowered and can be held accountable for their performance. 4. Information systems expedite communications within and between departments and support other activities, such as allocating scarce organizational resources, planning, budgeting, sales analyses, performance evaluations, and report preparation.
The target market of a regional shopping center typically includes at least _____ people.
150,000
The target market of a regional shopping center typically includes how many people?
150,000
The target market of a regional shopping center typically includes at least ____ people.
150000
Sales analysis
1. Sales analysis uses sales figures to evaluate a firm's current performance. 2. A common method of evaluation because sales data are readily available and can reflect the target market's reactions to a marketing mix. 3. To be useful, marketers must compare current sales data with forecasted sales, industry sales, specific competitors' sales, and the cost incurred from marketing efforts to achieve the sales volume. 4. The basic unit of measurement is the sales transaction, which includes the quantity, terms, the salesperson or sales team, and the date. 5. Firms frequently use dollar volume in their sales analysis because the dollar is a common denominator of sales, costs, and profits. 6. A marketing manager who uses dollar-volume analysis should factor out the effects of price changes, which can skew the numbers by making it seem that more or fewer sales have been made than is the actual case. 7. Market share analysis lets a company compare its marketing strategy with competitor's strategies and estimate whether sales changes have resulted from the firm's marketing strategy or from uncontrollable environmental forces. However, the results must be interpreted carefully.
The major components of a marketing plan include:
1. The executive summary, a one- to two-page synopsis of the entire marketing plan. 2. The environmental analysis, which provides information about the company's current situation with respect to the marketing environment, the target market, and the firm's current objectives and performance. 3. The SWOT analysis, which assesses the organization's strengths, weaknesses, opportunities, and threats. 4. The marketing objectives, a specification of the company's marketing objectives that includes qualitative and quantitative measures of what is to be accomplished. 5. The marketing strategies, which outlines how the company will achieve its objectives (identifies the target market(s) and marketing mix). 6. The marketing implementation section, which outlines how the company will implement its marketing strategies. The performance evaluation section, which explains how the company will evaluate the performance of the implemented plan (includes performance standards, financial controls, and monitoring procedures).
Analyzing Actual Performance
1. The principle means by which a marketer can gauge whether a marketing strategy has been effective in achieving objectives is by analyzing the actual performance of the marketing strategy. 2. Technology advancements have made it easier for firms to analyze actual performance.
Strategic planning process
1. The process begins with the establishment or revision of an organization's mission and goals. 2. The corporation and individual business units then develop strategies to achieve these goals. 3. The company then analyzes its strengths and weaknesses and identifies opportunities and threats within the external marketing environment. 4. Each functional area of the organization establishes its own objectives and develops strategies to achieve them, which must support the organization's overall goals and mission and should be focused on market orientation.
Organizing the Marketing Unit
1. The structure and relationships of a marketing unit, including establishing lines of authority and communication that connect and coordinate individuals, strongly affect marketing activities. 2. Companies that truly adopt the marketing concept develop an organizational culture that is based on a shared set of beliefs that places the customer's needs at the center of decisions about strategy and operations. 3. Firms must decide whether operations should be centralized or decentralized, a choice that directly impacts marketing decision making and strategy. a. In a centralized organization, top-level managers delegate little authority to lower levels. Most traditional organizations are highly centralized. b. In a decentralized organization, decision-making authority is delegated as far down the chain of command as possible. Decentralized authority allows the company to adapt more rapidly to customer needs. 4. Organizing marketing activities to align with the overall strategic marketing approach enhances organizational efficiency and performance. 5. A marketing department should clearly outline the hierarchical relationships between personnel and who is responsible for performing certain activities and making decisions.
Coordinating Marketing Activities
1. To achieve marketing objectives, marketing managers must coordinate actions within and across departments, firms, and external organizations to ensure that marketing activities align with other functions of the firm. 2. Marketing managers can improve coordination by making each employee aware of how his or her job relates to others and how his or her actions contribute to the achievement of marketing objectives.
Two key ways to determine margins
1. cost-based pricing: most popular method of establishing a fixed margin starts with determining the actual cost of each product. Once that's decided, the next step is to layer the margin on the cost to determine the price. 2. demand-based pricing: approach begins by deterring what price consumers would be willing to pay, and with that as a starting point, marketers subtract their desired margin, which yields their target costs. It's more market-focused than cost-based pricing, but it's also more risky, since profits depend on achieving those target costs.
What are the three specific categories of limited-service merchant wholesalers
1. drop shippers 2. cash and carry wholesalers 3. truck jobbers
In a simple economy of five producers and five consumers, there would be ___ transactions possible without an intermediary and ___ transactions possible with one intermediary.
25; 10
Online sales account for about ____ percent of all retail sales in the U.S.
5
A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?
5,000
A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even? a) 2,000 b) 5,000 c) 10,000 d) 3,333 e) 2,500
5,000
When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is
6
What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?
80
A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? A) Product, price, distribution, and promotion variables B) Marketing environment variables C) Product and promotion variables D) Product, price, and customer variables
A
SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's A) target market. B) consumer advocates. C) marketing strategy. D) marketing mix. E) marketing tactic.
A
The primary value that a marketer expects to receive from a customer in an exchange relationship is A) the price charged for the product. B) customer satisfaction. C) references to other potential customers. D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.
A
b
A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even? a) 2,000 b) 5,000 c) 10,000 d) 3,333 e) 2,500
b
A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a a) general-line wholesaler. b) selling agent. c) commission merchant. d) manufacturers' agent. e) broker.
Competitive advantage
A company is said to have a competitive advantage when it matches a core competency to opportunities it has discovered in the marketplace.
b
A company trying to position itself as value oriented should not a) set prices that are reasonable relative to product quality. b) use premium pricing for its products. c) set prices similar to those of its competitors. d) use any advertising for its products. e) consider costs when determining the price of products.
a
A concession in price in business markets to achieve a desired goal is called a(n) a) allowance. b) objective-oriented discount. c) cash discount. d) trade discount. e) cumulative discount.
With respect to retailing, what is the "party plan"?
A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
e
A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product." a) price-conscious b) quality-conscious c) value-conscious d) socially conscious e) prestige-sensitive
b
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies. a) reduction in cost b) price war c) competitive draw d) industry collapse e) advertising battle
c
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a a) noncumulative quantity discount. b) additive cash discount. c) cumulative quantity discount. d) cumulative discount allowance. e) additive quantity reduction.
d
A difference between manufacturers' agents and selling agents is that a) selling agents have little control over the marketing mix of the manufacturers they represent. b) selling agents represent retailers. c) manufacturers' agents do not offer retailers aid in advertising or promotional material. d) selling agents do not have the territorial restrictions that manufacturers' agents do. e) selling agents represent wholesalers.
c
A functional and psychological picture in the consumer's mind of a retail store is called a) retail positioning. b) atmospherics. c) store image. d) interior location. e) retail persona.
e
A general merchandise retailer offers a) a single product line that is stocked in depth. b) few product lines with deep assortments of these lines. c) few choices of a large variety of product lines. d) products through the Internet and catalogs only. e) a variety of product lines that are stocked in depth.
e
A general-line wholesaler would be expected to carry a ___________ product mix. a) wide and deep b) wide and shallow c) narrow and shallow d) wide e) narrow and deep
e
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a a) price graph. b) supply curve. c) price/quantity graph. d) marginal revenue curve. e) demand curve.
e
A large retailer selling food and most routinely purchased consumer products is a a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore
c
A manufacturer-owned operation that provides services usually associated with agents is a a) facilitating agency. b) wholesaler. c) sales office. d) sales branch. e) public warehouse.
What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
c
A manufacturers' outlet mall is most appropriately classified as a(n) a) discounter. b) specialty retailer. c) off-price retailer. d) category killer. e) department store.
b
A marketer sometimes uses temporary price reductions to a) increase the number of competitors. b) gain market share. c) decrease volume sold. d) increase revenue per item. e) control demand.
d
A measure of sensitivity of demand in relation to changes in price is a) a demand curve. b) a prestige graph. c) marginal analysis. d) price elasticity of demand. e) quantity elasticity.
b
A merchant wholesaler a) arranges for transfer of goods directly to business and retail customers. b) takes title to goods, assumes risk associated with ownership, and buys and resells products. c) takes title and possession of goods and sells only to retailers. d) does not take title or possession of goods but facilitates exchanges between any parties. e) deals exclusively with business products.
d
A narrow product mix with a deep product line would most likely be carried by a) mass merchandisers. b) supermarkets. c) discount stores. d) specialty retailers. e) warehouse showrooms.
Distribution strategy
A plan for delivering the right product to the right person at the right place at the right time
e
A price developed in the consumer's mind through experience with the product is called a(n) a) external reference price. b) value-price guideline. c) frame of reference. d) internalized price. e) internal reference price.
In which of the following situations is dual distribution likely to be determined illegal?
A producer uses company outlets to dominate independent retailers that carry its products.
b
A product under nonprice competition would most likely not succeed in the market if a) a new advertising campaign is established for it. b) it is easy to duplicate. c) it is packaged differently from similar products. d) it is priced near the competitors' price. e) its quality has been upgraded.
a
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called a) category management. b) scrambled merchandising. c) line extensions. d) aggregate management. e) wheel of retailing.
c
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of a) lower costs of selling. b) easier financial transactions. c) superior ability to demonstrate the product. d) superior ability to offer the product at a lower price. e) decreased cycle time.
c
A retailer is an organization that purchases products for the purpose of reselling them to a) other retail organizations. b) the government. c) ultimate consumers. d) wholesalers. e) nonprofit organizations.
a
A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a a) regional shopping center. b) mall of America. c) community shopping center. d) complete business district. e) hypermarket.
e
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) a) strip mall. b) neighborhood shopping center. c) off-price mall. d) lifestyle shopping center. e) outlet shopping center.
c
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.
b
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) a) department store. b) specialty retailer. c) category killer. d) off-price retailer. e) warehouse showroom.
c
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a) service. b) market share. c) price. d) selection. e) packaging.
d
A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a a) specialty-line wholesaler. b) limited-service wholesaler. c) rack jobber. d) general merchandise wholesaler. e) general-line wholesaler.
c
A(n) ___________ is a very large specialty store that competes on the basis of lower prices and enormous product availability. a) warehouse club b) off-price retailer c) category killer d) traditional specialty store e) super center
c
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be a) survival. b) cash flow. c) competition. d) return on investment. e) profit.
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?
Above some price level, the quantity demanded would begin to decrease.
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a) The quantity demanded would immediately fall. b) The quantity demanded would always increase. c) Above some price level, the quantity demanded would begin to decrease. d) The demand curve for the product would always shift to the right. e) The demand curve for the product would always shift to the left.
Above some price level, the quantity demanded would begin to decrease.
What does time utility do?
Adds value by making products available at a convenient time for consumers. Instant gratification is something that distributors can more easily provide than producers.
a
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products? a) Direct-response marketing b) Party plan c) Catalog marketing d) Specialty retailing e) Direct selling
b
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a) superstore. b) hypermarket. c) department store. d) general merchandise retailer. e) discount store.
e
Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as a) functional wholesalers. b) commission wholesalers. c) hands-off intermediaries. d) contract negotiators. e) functional middlemen.
Which of the following products is most likely to have an elastic demand curve?
Airline tickets for vacation travel
If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California?
Airways
a
Alison asks ten of her friends over to her home to learn about exciting new cosmetic products. A salesperson from Angel Products makes a presentation and takes the women's orders. This is an example of a) a party plan. b) telemarketing. c) a warehouse club. d) direct marketing. e) a catalog showroom.
c
Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from a) rack jobbers. b) general-line wholesalers. c) mail-order wholesalers. d) truck wholesalers. e) specialty-line wholesalers.
b
All of the following are examples of full-service wholesalers except a) general merchandise wholesalers. b) mail-order wholesalers. c) rack jobbers. d) general-line wholesalers. e) specialty-line wholesalers.
c
All of the following are types of direct marketing except a) catalog marketing. b) direct-response marketing. c) direct selling. d) television home shopping. e) online retailing.
d
All of the following are types of limited-service merchant wholesalers except a) cash-and-carry wholesalers. b) truck wholesalers. c) mail-order wholesalers. d) specialty-line wholesalers. e) drop shippers.
a
An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a a) commission merchant. b) sales branch agent. c) selling agent. d) manufacturers' agent. e) broker-agent.
e
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is a) selling products on consignment. b) retailing. c) wholesaling. d) licensing. e) franchising.
b
An example of an emerging type of power shopping center might contain a) JC Penney's, Sears, some specialty shops, McDonalds, and Dairy Queen. b) Michael's, Office Depot, T.J. Maxx, and Circuit City. c) Liz Claiborne, Van Heusen, Corning Ware, and Mikasa outlets. d) Safeway, CVS, and Subway. e) a Supercenter Wal-Mart.
d
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) a) regional shopping center. b) neighborhood shopping center. c) community shopping center. d) lifestyle shopping center. e) outlet shopping center.
e
Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesalers will not deal with her, so she relies primarily on _____ for the survival of her business. a) drop shippers b) truck wholesalers c) rack jobbers d) specialty-line wholesalers e) cash-and-carry wholesalers
c
Angela Barton approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up the display, service and restock it weekly, and maintain billing and inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in the business of serving retailers as a a) general-line wholesaler. b) specialty-line wholesaler. c) rack jobber. d) full-service merchant wholesaler. e) cash-and-carry wholesaler.
Which of the following is a common feature of a warehouse club?
Annual fees
e
Below the breakeven point, a firm is operating a) with fixed costs only. b) with minimal variable costs. c) with no revenue. d) profitably. e) at a loss.
b
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's a) services. b) atmospherics. c) location. d) environment. e) decor.
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price.
F.O.B. factory
While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?
Automatic vending
a
Automatic vending is a) a type of nonstore retailing. b) a specialty line retailer. c) not considered a form of retailing. d) a type of direct selling. e) a form of franchising.
The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?
Automobiles
The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?
Automobiles
c
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) a) wholesaler. b) shopping center. c) retailer. d) intermediary. e) producer.
d
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred. a) superstores b) supermarkets c) specialty stores d) department stores e) category killers
a
At the breakeven point, a) the money a company brings in from selling products equals the amount spent producing the products. b) the total fixed costs are exactly equal to the total variable costs. c) profits are exactly equal to the difference between revenue and total variable costs. d) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. e) the marginal cost curve and the average cost curve will be identical for a particular product.
a
At what point does a firm maximize profit? a) The point at which marginal cost equals marginal revenue b) The point at which the firm sells its product at the highest price c) The breakeven point plus the adjusted marginal cost d) The point at which marginal profits equal marginal revenue e) The point at which marginal cost equals marginal profits
what do most producers use? Define
Channel intermediaries: distribution organizations, informally called the "middlemen," that facilitate the movement of products rom the producer to the consumer
A target market A) involves a large number of customers B) is a specific group of customers on whom a company focuses its marketing efforts. C) already has several competitors vying for customers' business. D) is the same as a salesperson's prospective client list. E) is a customer group classified as people with similar demographic characteristics.
B
Distribution, price, promotion, and product are all elements of A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.
B
The oldest form of exchange - trading of products - is known as
Barter
b
Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the concerns of shoppers who buy shellfish. He is looking for help in display set-up and merchandising ideas. He should contact which of the following types of wholesalers? a) General-line b) Specialty-line c) General merchandise d) Rack jobber e) Limited-service merchant
b
Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a a) rack jobber. b) manufacturers' agent. c) specialty-line wholesaler. d) selling agent. e) commission merchant.
c
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit a) freezing prices. b) independent pricing policies. c) deceptive pricing. d) price fixing. e) price differentials.
d
Brad accesses Borders Books and Prints' site on the World Wide Web and purchases a copy of a new best seller. This is an example of a) telemarketing. b) catalog retailing. c) direct-response marketing. d) online retailing. e) WWW retailing.
c
Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a a) general merchandise wholesaler. b) rack jobber. c) general-line wholesaler. d) specialty-line wholesaler. e) limited-service wholesaler.
a
Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on a) atmospherics. b) retail positioning. c) location. d) scrambled merchandising. e) value-pricing.
d
Buyers who focus on purchasing products that signify prominence and status are a) value-conscious consumers. b) price-conscious consumers. c) socially elite buyers. d) prestige-sensitive buyers. e) brand aware consumers.
d
By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except a) inventory planning. b) transportation. c) materials handling. d) unit pricing. e) communication.
a
By locating in the same general vicinity as other car dealerships, Hartfield Honda can a) facilitate comparison shopping. b) create form utility. c) facilitate wholesale exchanges. d) create possession utility. e) create exchange utility.
e
By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to a) provide quality merchandise to consumers. b) focus on increasing production capacity. c) focus on increasing working capital. d) reduce manufacturing costs to retailers. e) focus on producing products that meet consumers' needs.
The marketing Mix is built around the A) product. B) company. C) customer. D) employee. E) retail outlet.
C
Which of the following best describes Nintendo's initial strategy when introducing the Wii? A) Increase its sales of software to current gamers B) Increase its sales of game consoles to the under-25 market C) Increase its sales of game consoles by broadening the appeal of gaming to all ages
C) Increase its sales of game consoles by broadening the appeal of gaming to all ages
d
Calhoun Produce, a ___________, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold. a) manufacturer's agent b) selling agent c) commission broker d) commission merchant e) selling broker
What type of retailing began with Montgomery Ward in the late 1800s?
Catalog marketing
Compete primarily on the basis of lwo prices and enourmous product availability.
Category killers
Toys "r" Us, Michae's, Petsmart, Staples are examples of?
Category killers
b
Category killers compete primarily on the basis of a) enormous product selection and sales expertise. b) low prices and enormous product availability. c) convenient locations and customer services. d) rock-bottom prices and moderate selections. e) one-stop shopping and product availability.
c
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n) a) online retailer. b) direct seller. c) catalog marketer. d) direct-response marketer. e) specialty retailer.
What two elements does the distribution strategy have?
Channels of distribution and physical distribution
c
Chelsea has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chelsea is a a) commission merchant. b) selling agent. c) broker. d) specialty-line wholesaler. e) sales branch agent.
e
Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a a) cash-and-carry wholesaler. b) general merchandise wholesaler. c) limited-service wholesaler. d) rack jobber. e) full-service wholesaler.
Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials.
Clayton Act
Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials. a) Simpson-Marshall Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Sherman Antitrust Act
Clayton Act
a
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____________ site for his retail business. a) free-standing b) traditional business district c) neighborhood shopping center d) community shopping center e) regional shopping center
This shopping center can have two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic.
Community shopping center
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a) Consolidated did poor market demand research. b) Consolidated has an elastic product. c) Consolidated has an inelastic product. d) Consolidated mustard is a prestige good. e) Consolidated mustard has a normal demand curve.
Consolidated mustard is a prestige good.
Which of the following statements about nonprice competition is false?
Companies that use nonprice competition do not need to keep track of their competitor's prices.
Which of the following statements about nonprice competition is false? a) Companies that use nonprice competition do not need to keep track of their competitor's prices. b) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. c) A firm using nonprice competition can build loyalty to both its company and its products. d) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. e) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.
Companies that use nonprice competition do not need to keep track of their competitor's prices.
a
Compared with other types of retailers, department stores compete mainly on the basis of a) customer services. b) low prices. c) a very deep assortment of a few specific products. d) high sales volume. e) catalog sales.
If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?
Competition-based
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?
Consolidated mustard is a prestige good.
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as?
Convenience store
This was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes.
Convenience stores
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
a
Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set
b
Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.
Where do supply chains start?
Customers
Where do supply chains start? Raw materials Suppliers Customers Producers Retailers
Customers
c
Customers rely on ______ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments. a) full-line retailers b) limited-service wholesalers c) full-service wholesalers d) commission merchants e) cash-and-carry wholesalers
Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke's A) audience. B) sales alternative. C) business group. D) target market. E) focus group.
D
The definition of marketing implies that ______ should receive benefits from exchange relationships. A) only customers B) only businesses C) company management D) both customers and businesses E) only the most important customers
D
e
Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a a) free-standing location. b) traditional business district. c) strip center. d) community shopping center. e) regional shopping center.
Nordstrom's, Macy's and JC Penney's are considered?
Department stores
Retailer that generally accepts lower margins than traditional retailers in excange for higher sales volume
Department stores
Store has areas for men's apparel women's apparel, housewares, cosmetics and jewelry and competes on the basis of service
Department stores
These retailers compete mainly on the basis of customer services
Department stores
What type of retailers are the primary competitors for specialty retailers?
Department stores
Which of the following is not a discount provided to business customers?
Differentiated
Which of the following is not a discount provided to business customers? a) Trade b) Cumulative c) Cash d) Seasonal e) Differentiated
Differentiated
Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels?
Direct distribution
c
Direct marketing, direct selling, and automatic vending are all examples of _________ retailing. a) off-premise b) portfolio c) nonstore d) off-price e) direct
What is the most expensive form of retailing?
Direct selling
d
Direct selling, direct marketing, and vending machines are all examples of a) producing. b) advertising. c) promoting. d) retailing. e) wholesaling.
Which of the following is not a concern of the practice of price competition?
Focus on product features
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?
Direct-response marketing
Self-service, general merchandise stores such as Kmart, Walmart, Target are known as?
Discount stores
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
Discount stores
Which of the following is not a method used to determine transfer prices?
Discounted standard cost
Which of the following is not a method used to determine transfer prices? a) Discounted standard cost b) Actual full cost c) Standard full cost d) Cost plus investment e) Market-based cost
Discounted standard cost
Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following?
Distribution center
e
Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.
a
Drop shippers a) take title to but not physical possession of the goods. b) do not take title to or physical possession of the goods. c) take title to and physical possession of the goods. d) do not take title to but take physical possession of the goods. e) are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves.
The focal point of all marketing activities is A) Products B) The marketing mix C) profits D) sales E) customers
E) customers
Select the greatest advantage of horizontal channel integration.
Efficiencies in advertising, marketing research, and purchasing are increased.
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were
F.O.B. destination.
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were a) F.O.B. origin. b) F.O.B. factory. c) C.O.D. d) 2/10, n/30. e) F.O.B. destination.
F.O.B. destination.
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
Exclusive
If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices?
Exclusive dealing
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price. a) F.O.B. destination b) F.O.B. factory c) transfer d) postage-stamp e) base-point
F.O.B. factory
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price
F.O.b origin pricing
By locating in the same general vicinity as other car dealerships, Hartfield Honda can?
Facilitate comparison shopping
True or False: agents and brokers take legal ownership for the foods they distribute
False. - insurance companies distribute via agents - brokers handle real estate, etc.
True or False: it's less expensive to buy directly from the producers
False. Distributors add value, additional benefits, to products. They charge for adding that value, but the charge is less than it would cost for consumers or producers to add that value on their own
a
For most consumers, there is an assumed relationship between a) price and quality. b) value and cost. c) internal and external reference prices. d) value and price consciousness. e) prestige prices and value.
e
For most firms in the United States, demand curves are a) upward sloping. b) completely horizontal. c) completely vertical. d) c-shaped. e) downward sloping.
b
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. a) inelastic b) inverse c) positive d) unknown e) elastic
Which of the following organizations consolidates shipments from several firms into more efficient lot sizes?
Freight forwarder
e
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product. a) reverse-demand b) inferior c) standard d) secondary-demand e) prestige
e
Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called a) specialty-line wholesalers. b) full-service stockers. c) in-store maintainers. d) assemblers. e) rack jobbers.
Supermarkets, discount stores, and hypermarkets can all be classified as?
General merchandise retailers
Type of retailer that offers a variety of product lines taht are stocked in depth.
General merchandise retailers
a
Generally, customers are most likely to rely on the price-quality association when a) they cannot judge the quality of the product for themselves. b) the product is a well-known brand. c) customers can judge the product's quality for themselves. d) the product is purchased through the use of the Internet. e) products are being purchased from well-established retailers that are familiar to customers.
Which of the following products is most likely to have an inverted C-shaped demand curve?
Giorgio perfume
Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus
Giorgio perfume
c
Greg Prakash works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler? a) Drop shipper b) General-line c) Truck d) Cash-and-carry e) Specialty-line
e
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is a) in a traditional business district. b) a rural shopping center. c) in a neighborhood shopping center. d) a non-traditional shopping center. e) a free-standing structure.
a
Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a _________ shopping center. a) community b) regional c) nontraditional d) neighborhood e) power
If you can get a whopper, and go to an optical shop for contacts without leaving the store in which you've been shopping, this is most likely a?
Hypermarket
What is the primary distinction between superstores and hypermarkets?
Hypermarkets are larger and have more types of products than superstores.
c
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called a) the marketing concept. b) the wheel of retailing. c) retail positioning. d) targeted retailing. e) scrambled merchandising.
c
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.
d
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where a) total costs and total revenues are equal. b) marginal revenue is at its highest level. c) marginal revenue exceeds marginal cost. d) marginal revenue equals marginal cost. e) demand is most elastic.
e
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.
a
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
e
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 a) its marginal costs are falling. b) average total cost is at its maximum. c) average total costs are rising. d) demand is elastic. e) average total cost is at its lowest level.
c
If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a) The quantity demanded would immediately fall. b) The quantity demanded would always increase. c) Above some price level, the quantity demanded would begin to decrease. d) The demand curve for the product would always shift to the right. e) The demand curve for the product would always shift to the left.
a
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a) quantity demanded goes down. b) demand remains constant. c) quantity demanded increases. d) demand increases. e) breakeven increases.
d
If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is a) 2. b) 1/2. c) -1/2. d) -2. e) 4.
a
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing a) price discrimination. b) price-consciousness. c) functional discounting. d) price competition. e) price fixing.
d
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur a) more fixed costs. b) higher average fixed costs. c) fewer variable costs. d) a marginal cost. e) higher average variable costs.
a
If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.
a
If a retailer needed help with store design and training sales personnel, it would most likely use the services of a a) full-service wholesaler. b) full-price wholesaler. c) rack jobber. d) cash-and-carry wholesaler. e) technical wholesaler.
b
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price. a) F.O.B. destination b) F.O.B. factory c) transfer d) postage-stamp e) base-point
b
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) a) off-price retailer. b) department store. c) discount store. d) superstore. e) supermarket.
b
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? a) 500 units b) 2,000 units c) 1,200 units d) 300 units e) 3,000 units
e
If the terms of a business exchange are 2/10 net 30, this means that the transaction a) involves a cumulative discount if paid in 30 days. b) involves a noncumulative discount. c) offers a discount if the buyer lives within a ten-mile radius. d) price does not include the cost of freight. e) involves a cash discount if paid within ten days.
d
In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ______ shopping center. a) neighborhood b) national c) regional d) community e) city
b
In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal a) a loss of $20,000. b) a loss of $32,000. c) $28,000. d) $40,000. e) $222,000.
d
In contrast to industrial products, consumer products are often purchased because of a) economic planning. b) necessity. c) prior planning. d) social influences. e) rational needs.
c
In franchising, which of the following is not a benefit that the franchiser gains? a) The franchiser can gain more rapid product distribution. b) The franchiser can acquire capital more quickly for expanding production. c) The franchiser gains more control over how the franchisees operate the establishments. d) The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties. e) All of these are benefits for the franchiser.
d
In order to justify direct-response marketing, a product really needs to be priced above a) $50. b) $10. c) $5. d) $20. e) $100.
b
In the Sunday paper, Caitlin sees a flyer for a collector's edition Thomas Kinkade plate that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of a) telemarketing. b) direct-response marketing. c) television home shopping. d) direct selling. e) catalog marketing.
c
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter. a) a 10 percent return on investment b) product development costs c) total costs d) advertising expenditures e) Nestlé's prices
Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change?
Increase order frequency
b
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called a) commission merchants. b) manufacturers' agents. c) selling agents. d) truck wholesalers. e) brokers.
b
Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as a) manufacturers' agents. b) sales branches. c) selling agents. d) sales offices. e) commission merchants.
___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers.
Intermodal transportation
Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved?
Inventory management
Greg is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved?
Inventory management
What does the demand curve for a prestige product look like?
It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.
It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
What assumption does breakeven analysis make that limits its overall usefulness?
It relies on demand for a product being inelastic.
What assumption does breakeven analysis make that limits its overall usefulness? a) It focuses on how to achieve a price objective. b) It assumes a company wants to gain a certain market share. c) It relies on demand for a product being inelastic. d) It focuses only on competitive factors and not costs. e) It assumes demand is elastic for the product.
It relies on demand for a product being inelastic.
e
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n) a) convenience store. b) off-price retailer. c) specialty store. d) franchiser. e) supermarket.
a
Jannette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time? a) Location b) Production depth c) Product mix d) Scrambled merchandising e) Retail positioning
What is the most popular type of product sold through television home shopping?
Jewelry
e
Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___________ to support his request for a loan to start such a retail operation. a) scrambled merchandising b) location analysis c) the wheel of retailing d) product mix width e) retail positioning
b
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is a) cash. b) noncumulative. c) seasonal. d) trade. e) cumulative.
c
Karen Shapiro has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a a) sales agent. b) commission merchant. c) broker. d) sales branch. e) sales office.
b
Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of a) online retailing. b) television home shopping. c) telemarketing. d) direct-response marketing. e) catalog marketing.
d
Kevin is talking with Peter about purchasing a Wendy's franchise. Peter tells Kevin that one of the major advantages of franchising for him to consider is the a) higher start-up costs. b) greater freedom it provides. c) individuality it offers. d) higher success rate for franchises. e) gross margin it provides.
d
Kroger, Safeway, and Publix are all considered a) superstores. b) groceries. c) department stores. d) supermarkets. e) food stores.
c
Large, self-service stores that carry a complete line of food products and some nonfood products are called a) discount stores. b) superstores. c) supermarkets. d) department stores. e) warehouse clubs.
e
Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ___________ wholesaler for these entrepreneurs. a) general-line b) specialty-line c) full-service merchant d) truck e) cash-and-carry
d
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
b
Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart? a) Supermarket b) Superstore c) Hypermarket d) Discount store e) Department store
a
Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a a) warehouse showroom. b) catalog showroom. c) superstore. d) warehouse club. e) department store.
Jannette Down is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
Location
Which of the following is the least flexible of these important retailing strategy issues?
Location
d
Location is important to a retailer because a) suppliers charge more to service stores in certain trading areas. b) a desirable location appeals to consumers' emotions. c) location is the major determinant of store image. d) location determines the trading area from which the store must draw its customers. e) convenient location is an essential customer service element.
e
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of a) internal referencing. b) cumulative discounts. c) seasonal discounts. d) base-point pricing. e) an external reference price.
a
Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a a) rack jobber. b) drop shipper. c) general merchandise wholesaler. d) cash-and-carry wholesaler. e) truck jobber.
b
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to a) party-plan retailing. b) franchising. c) vending. d) corporate chain retailing. e) off-price retailing.
a
Manufacturers' agents offer products that are both a) noncompeting and complementary. b) competing and specialized. c) unrelated and noncompeting. d) complementary and competing. e) unrelated and competing.
d
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as a) neighborhood shopping centers. b) community shopping centers. c) traditional shopping centers. d) traditional business districts. e) free-standing structures.
a
Marginal analysis involves examining a) what happens to a firm's costs and revenues when production is changed by one unit. b) the extra revenue produced by the sale of one more product. c) the extra cost incurred by the production of one more unit. d) the difference between marginal revenue and total revenue. e) the difference between marginal cost and total cost.
b
Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a a) mail-order wholesaler. b) drop shipper. c) desk wholesaler. d) truck jobber. e) specialty-line wholesaler.
d
Marketers generally view _____ as the minimum price a product can be sold for. a) fixed costs b) variable costs c) profits d) costs e) moderate losses
c
Marketers have no flexibility in setting prices under conditions of a) a monopoly. b) an oligopoly. c) perfect competition. d) monopolistic competition. e) no competition.
What links producers to consumers through the purchase and reselling of products or contractual agreements? Marketing intermediaries Distributors Suppliers Middle marketers Marketing channels
Marketing intermediaries
a
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units. a) 1,167 b) 1,000 c) 1,750 d) 2,500 e) 700
b
Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a a) rack jobber. b) merchant wholesaler. c) wholesaler agent. d) drop shipper. e) sales branch.
d
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store. a) department b) catalog c) discount d) traditional specialty e) convenience
e
Merchant wholesalers can be divided into two basic categories: a) general merchandise and general-line. b) rack jobbers and cash-and-carry. c) commission and fee-based. d) goods and services. e) full-service and limited service.
a
Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called a) limited-service wholesalers. b) wholesale service specialists. c) general-line wholesalers. d) specialty-line wholesalers. e) specialty-service wholesalers.
An example of an emerging type of power shopping center might contain
Michael's, Office Depot, T.J. Maxx, and Circuit City.
c
Michael's, PetsMart, and Staples are all examples of a) department stores. b) off-price retailers. c) category killers. d) traditional specialty retailers. e) superstores.
b
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 a) average revenue. b) marginal revenue. c) price elasticity. d) average variable revenue. e) average total cost.
b
Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because a) they want to avoid new competitors entering their market. b) they want to avoid government regulations on their pricing. c) they try to satisfy the demands of value-conscious consumers. d) firms can increase market share more rapidly this way. e) customers will discontinue use of these products if prices rise.
Specialty stores offer_______ than department stores.
More sales expertise and better selections
Price is considered to be the variable in the marketing mix that is
Most flexible
Type of shopping center usually consists of several small convenience and specialty stores?
Neighborhood
What type of shopping center usually consists of several small convenience and specialty stores?
Neighborhood
Which of the following is most likely to have an inelastic demand curve?
Nonelective surgery
Which of the following is most likely to have an inelastic demand curve? a) Automobile b) Vacation c) Nonelective surgery d) Recreational vehicle e) Computer
Nonelective surgery
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
Nonprice competition
d
Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed? a) Store image b) Location c) The wheel of retailing d) Retail positioning e) Scrambled merchandising
a
Nordstrom's, Macy's, and JC Penney's are all considered a) department stores. b) discount stores. c) off-price retailers. d) specialty retailers. e) category killers.
e
Premium-priced products are usually marketed through a) complex marketing channels. b) intensive or selective distribution. c) exclusive or intensive distribution. d) exclusive distribution only. e) selective or exclusive distribution.
Which of the following is not a major factor for firms making price decisions?
Previous sales
Which of the following is not a major factor for firms making price decisions? a) Costs b) Competition c) Previous sales d) Channel member expectations e) Legal and regulatory issues
Previous sales
Which of the following is the most flexible variable in the marketing mix?
Price
Which of the following is the most flexible variable in the marketing mix? a) Product b) Price c) Advertising d) Personal selling e) Distribution
Price
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using...
Price Competition
e
Price is a) money paid in a transaction. b) not important to buyers. c) of limited interest to sellers. d) the most inflexible marketing mix decision variable. e) the value that is exchanged for products in a marketing transaction.
d
Price is a key element in the marketing mix because it relates directly to a) the size of the sales force. b) the speed of an exchange. c) quality controls. d) the generation of total revenue. e) brand image.
Which of the following is the most commonly used channel for distributing business products?
Producer, organizational buyers
Which of the following is the most commonly used channel for distributing business products?
Producer, organizational buyers
Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
Large retailers such as JC Penney's and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?
Producer, wholesaler, retailer, consumer
Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?
Producer, wholesalers, retailers, consumers
National distributed consumer convenience products are most likely distribute through which of the following channels?
Producer, wholesalers, retailers, consumers
Nationally distributed consumer convenience products are most likely distributed through which of the following channels?
Producer, wholesalers, retailers, consumers
What is the primary determinant in deciding how materials will be handled?
Product characteristics
Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
b
Sam's and Costco are examples of a) discounters. b) warehouse clubs. c) warehouse showrooms. d) discount clubs. e) wholesalers.
d
Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials. a) Simpson-Marshall Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Sherman Antitrust Act
Which mode of transportation hauls more freight than any other?
Railroads
What two modes of transportation are used when containers are shipped by piggyback?
Railroads and trucks
e
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as a) base-point pricing. b) freight absorption pricing. c) price zoning. d) location pricing. e) geographic pricing.
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?
Reference pricing strategy
Which of the following is most likely to be a fixed cost?
Rent
Which of the following is most likely to be a fixed cost? a) Component parts b) Raw materials c) Rent d) Electricity e) Transportation
Rent
c
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called a) catalog showrooms. b) category killers. c) warehouse showrooms. d) warehouse clubs. e) display outlets.
Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?
Retail positioning
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
Retailer
e
Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called a) hypermarkets. b) retail groups. c) warehouse showrooms. d) discount stores. e) warehouse clubs.
Direct selling, direct marketing, vending machines are examples of
Retailing
Transactions in which the buyer intends to consumer the product through personal, faimly, or household use.
Retailing
b
Retailing is best characterized as a) large organizations that carry wide and deep product mixes. b) transactions in which the buyer intends to consume the product through personal, family, or household use. c) arrangements whereby a supplier grants a dealer the right to sell its products. d) transactions in which the purchaser intends to use the product for resale or for business operations. e) exchanges that take place only in a store or service establishment.
Which of the following products is most likely to involve personal selling?
Riding lawn mowers
Which of the following products is most likely to involve personal selling? a) Blenders b) Riding lawn mowers c) Fresh peaches d) Picture frames e) Footballs
Riding lawn mowers
e
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were a) F.O.B. origin. b) F.O.B. factory. c) C.O.D. d) 2/10, n/30. e) F.O.B. destination.
d
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable
Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?
Robinson-Patman Act
Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers? a) Sherman Antitrust Act b) Robinson-Patman Act c) Lanham Trademark Act d) Federal Trade Commission Act e) Wheeler-Lea Act
Robinson-Patman Act
For which of the following products would exclusive distribution be most appropriate?
Rolls Royce automobile
e
Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a) non-price competition. b) demand-based pricing. c) prestige pricing. d) price differentiation. e) price competition.
a
Select the true statement about wholesaling. a) Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved. b) Warehouses are necessary in order for the wholesaling function to be completed. c) Only wholesaling establishments can perform wholesaling activities. d) Wholesaling is an inefficient process that should be eliminated from the marketing channel. e) The biggest problem with the wholesaling process is that inefficient wholesalers can thrive, at the expense of consumers.
a
Self-service, general merchandise stores such as Kmart are known as a) discount stores. b) warehouse showrooms. c) catalog showrooms. d) superstores. e) specialty retailers.
b
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing a) product competition. b) nonprice competition. c) brand differentiation. d) price competition. e) competitor differentiation.
d
Selling agents perform every wholesaling activity except a) transporting goods. b) setting prices. c) financing the products. d) taking title to products. e) inventory control.
The ___________ prohibits price fixing among firms in an industry.
Sherman Antitrust Act
The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act
Sherman Antitrust Act
a
Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out? a) Merchant wholesaler b) Agent c) Broker d) Functional middleman e) Commission merchant
Which factor is least likely to affect pricing decisions?
Shifting stock values
Which factor is least likely to affect pricing decisions? a) Competitive prices b) Legal and regulatory issues c) Organizational and marketing objectives d) Customers' interpretation and response e) Shifting stock values
Shifting stock values
These include outlet malls, lifestyle, strip mals and shopping malls.
Shopping centers
c
Shopping centers include a) neighborhood, regional, superregional, power, and strip malls. b) community, rural, urban, and traditional business districts. c) outlet, power, lifestyle, superregional, regional, neighborhood, and community. d) outlet malls, lifestyle, strip malls, and shopping malls. e) free-standing, convenience, traditional, and regional.
Which of the following acts does not directly affect pricing decisions?
Simpson-Marshall Act
Which of the following acts does not directly affect pricing decisions? a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Simpson-Marshall Act
Simpson-Marshall Act
What is a potential disadvantage of direct selling?
Some customers view direct selling negatively.
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a ?
Speciality retailer
d
Specialty stores offer ______ than department stores. a) greater varieties of product lines and higher prices b) lower prices and higher quality c) more product depth and less customer service d) more sales expertise and better selections e) more frequent price discounts and less selection
Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?
Stockout
Laura goes to Wal-Mart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart?
Superstore
Laura goes to Walmart and buys some clothing, a DVD and all the groceries she needs for her family. What type of retailer is this particular Wal-mart?
Superstore
Kroger, Safeway, and publix are considered to be?
Superstores
b
Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called a) category killers. b) off-price retailers. c) specialty retailers. d) hypermarkets. e) discount retailers.
Establishing a Timetable for Implementation
Successful marketing implementation requires that employees know the specific activities for which they are responsible and the timetable for completing each activity. Since scheduling can be a complicated task, some organizations use sophisticated computer programs to plan the timing of marketing activities.
Jack needs a potted plant, salmon, motor oil, bread, milk and bday cake. Which store should Jack go to get all these supplies?
Supermarket
Large, self service stores that carry a complete line of food products and some nonfood products are called?
Supermarkets
b
Supermarkets, discount stores, and hypermarkets can all be classified as a) superstores. b) general merchandise retailers. c) department stores. d) specialty retailers. e) off-price retailers.
Question Which of the following offers the widest product mixes and the deepest product lines?
Superregional shopping center
This offers the widest product mixes and deepest product lines?
Superregional shopping centers
Which of the following may include special attractions such as amusement parks or skating rinks
Superregional shopping centers
A large retailer selling food and most routinely purchased consumer products is a?
Superstore
a
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts. a) trade b) cumulative c) noncumulative d) push e) intermediary
a
The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act
c
The amount of profit a channel member expects depends on a) the amount of discounts for large orders provided by the producers. b) the number of channel support activities provided by the producers. c) what the intermediary could earn if it were handling a competing product instead. d) the type of distribution channels involved. e) the amount of effort required to carry the product.
a
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their a) response. b) reference. c) interpretation. d) price satisfaction. e) price-consciousness.
e
The difference between an agent and a broker is that an agent a) seeks profit, whereas a broker does not. b) is an intermediary, whereas a broker is not. c) represents the seller and a broker represents the buyer. d) determines who the consumers are, whereas the broker does not determine the customers. e) usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.
e
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods? a) Price differentiation b) Base-point pricing c) Freight absorption pricing d) Transfer pricing e) Zone pricing
d
The oldest form of exchange—trading of products—is known as a) credit. b) buying. c) purchasing. d) barter. e) pricing.
In franchising, which of the following is not a benefit that the franchiser gains?
The franchiser gains more control over how the franchisees operate the establishments.
Price is a key element in the marketing mix because it relates directly to...
The generation of total revnue
b
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about a) store atmosphere. b) location. c) retail positioning. d) store image. e) the wheel of retailing.
Rovio, the parent company of the popular Angry Birds app, made several marketing mix decisions that were considered to be part of its distribution. Which of the following was not a decision that relates to distribution?
The licensing of the Angry Birds to producers of T-shirts and costumes
d
The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ___________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers. a) sales agents b) commission merchants c) broker offices d) sales branches e) facilitating agencies
e
The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called a) direct marketing. b) direct-response marketing. c) telemarketing. d) personal selling. e) direct selling.
a
The perception of price depends on a a) product's actual price and consumers' expectations regarding price. b) consumer's analysis of competitive prices. c) consumer's reference price. d) consumer's expectation of price. e) product's actual price in comparison with the manufacturer's suggested price.
c
The performance of marketing-related activities conducted on the telephone is called a) e-marketing. b) direct-response marketing. c) telemarketing. d) phone retailing. e) tel-selling.
Determining the best distribution channels for your product is only the first half of your distribution strategy. What is the second half?
The physical distribution strategy, which is determining how your product will flow through the channel from the producer to the consumer
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
At what point does a firm maximize profit? a) The point at which marginal cost equals marginal revenue b) The point at which the firm sells its product at the highest price c) The breakeven point plus the adjusted marginal cost d) The point at which marginal profits equal marginal revenue e) The point at which marginal cost equals marginal profits
The point at which marginal cost equals marginal revenue
b
The point at which the costs of producing a product equal the revenue earned from selling the product is a) elasticity of demand. b) the breakeven point. c) variable costs. d) price elasticity. e) the sum of fixed and variable costs.
e
The primary advantage of automatic vending as a form of retailing is that a) it offers a low-cost, personal method of selling products. b) it provides a continuous service to consumers. c) since vending machines must be serviced frequently, the products they sell are always fresh. d) vending machines require very few repairs. e) it eliminates the need for sales personnel.
d
The primary function of most wholesalers is to a) support the needs of the manufacturers and provide them with market information. b) provide for the unique needs of the individual retailers buying their merchandise. c) provide information system tracking of inventory for the ultimate consumer. d) perform physical distribution of products from manufacturers to retailers. e) develop and share database information about customers.
e
The primary purpose of a(n) _____ is to bring buyers and sellers together. a) commission merchant b) selling agent c) manufacturers' agent d) intermediary e) broker
Which of the following describes a disadvantage of using industrial distributors?
They are unlikely to handle bulky items or items that are slow sellers.
Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
a
The selling of merchandise outside the confines of actual facilities is generally called a) nonstore retailing. b) direct selling. c) direct marketing. d) Internet marketing. e) store-front sales.
marketing plan
The strategic planning process ultimately yields a marketing strategy that is the framework for a marketing plan, a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies.
Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
why do most producers use channel intermediaries?
To help their products move more efficiently and effectively from their factories to their consumers. Ex. hershey's sells chocolate bars to sam's club, which is a channel intermediary, which may in turn, sell them to you
d
The target market of a regional shopping center typically includes at least _____ people. a) 25,000 b) 50,000 c) 100,000 d) 150,000 e) 250,000
a
The three major types of nonstore retailing are a) direct marketing, direct selling, and automatic vending. b) direct selling, automatic vending, and catalog retailing. c) direct marketing, direct selling, and mail-order. d) automatic vending, direct selling, and telemarketing. e) telemarketing, door-to-door, and mail-order.
d
The tuition and fees each student paid for this semester of college are both terms for a) expenses. b) charges. c) bills. d) price. e) exchange valuations.
c
The type of prices most likely to appear in advertising is a) prestige. b) future. c) bargain. d) internal reference. e) cost-plus.
a
The type of retail location that is commonly being preserved and revitalized in many cities is the a) traditional business district. b) free-standing structure. c) community shopping center. d) neighborhood shopping center. e) nontraditional shopping center.
c
The types of prices that appear least often in ads are ___________ prices. a) reference b) discount c) premium d) comparison e) sale
a
The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called a) direct marketing. b) telemarketing. c) remote purchasing. d) direct-response marketing. e) direct selling.
Price
The value that is exchanged for products in a marketing transaction
What do all of the following have in common: tuition, fee, premium, retainer, dues?
They are different terms for the concept of price.
What do all of the following have in common: tuition, fee, premium, retainer, dues? a) They all must be paid in cash. b) They are forms of exchange similar to, but not identical with, money. c) They are forms of exchange similar to, but not identical with, barter. d) They are different terms for the concept of price. e) They have nothing in common.
They are different terms for the concept of price.
c
Through the years, drugstores have added more unrelated products to their product mix, such as lawn care supplies, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues? a) Tumbled product assortment b) Product line combination c) Scrambled merchandising d) Wheel of retailing e) Direct marketing
e
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe a) a penalty. b) $53.90. c) $56.10. d) $58.30. e) $55.00.
c
To determine the breakeven point in units, divide the fixed costs by a) total costs. b) variable costs time price. c) price minus variable costs. d) price per unit. e) total revenue minus fixed costs.
a
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is a) a negative impact on consumers' perceptions of quality. b) competitive matching. c) a high return on investment level affecting tax balances owed. d) poor survival chances. e) higher developmental costs.
c
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer. a) higher costs for the company and higher prices b) higher costs for the company and lower prices c) lower costs for the company and lower prices d) lower costs for the company and higher prices e) no change in the costs for either the company or
Which of the following is an example of a category killer?
Toys "R" Us
What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?
Trade
What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? a) Quantity b) Cash c) Geographic d) Service e) Trade
Trade
Matt's gf tells him she wants a cashmere sweater for Xmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a?
Traditional speciality
What is the most expensive physical distribution function?
Transportation
____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
Transportation
___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
Transportation
Which major mode of freight transportation provides the most flexible schedules and routes?
Trucks
If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices?
Tying agreement
psychographic and demographics variables
VALS & VALS 2, based on values, lifestyles, and demographic data
___________ consumers are concerned about both the price and the quality aspects of a product.
Value-conscious
___________ consumers are concerned about both the price and the quality aspects of a product. a) Price-conscious b) Prestige-sensitive c) Value-conscious d) Price-conscious and prestige-sensitive e) Quality-conscious
Value-conscious
c
Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a a) sales branch. b) manufacturers' agency. c) sales office. d) retail outlet. e) commission brokerage.
e
Victor knows that if he decides to buy a franchise, he will most likely have to supply a) management know-how and labor. b) buildings and daily operations. c) marketing assistance and management know-how. d) a percentage of total sales and expertise. e) labor and daily operations.
b
Wal-Mart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Wal-Mart works directly with suppliers through its advanced system of inventory control and data processing. Wal-Mart is a) able to eliminate many of the functions typically performed by wholesalers. b) performing many of the critical functions of wholesalers through its own system. c) successfully using wholesalers to run its venerable chain of discount stores. d) using information technology to eliminate the need to perform typical wholesale functions. e) vertically integrated in order to produce and distribute all products itself.
e
Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of a) manufacturers. b) merchant wholesalers. c) end-users. d) agents. e) retailers.
c
Walmart and Target are both examples of a) department stores. b) category killers. c) discount stores. d) supermarkets. e) warehouse clubs.
Large-scale, members-only, retailer that combines cash and carry wholesaling w/ discount retailing?
Warehouse club
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
Retailers that sell only to members and feature discount retailing combined with cash and carry wholesaling is called?
Warehouse clubs
Retail facilities located in big, low-cost buidlings with large on-premise inventories and minimal services are called?
Warehouse showrooms
What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?
Warehousing
Which of the following physical distribution functions involves design and operation of facilities for storing goods?
Warehousing
The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo?
Waterways
c
What a price means or what it communicates to customers is called a) reference. b) response. c) interpretation. d) internalization. e) signaling.
c
What assumption does breakeven analysis make that limits its overall usefulness? a) It focuses on how to achieve a price objective. b) It assumes a company wants to gain a certain market share. c) It relies on demand for a product being inelastic. d) It focuses only on competitive factors and not costs. e) It assumes demand is elastic for the product.
e
Which of the following is an example of a category killer? a) Sears b) Kmart c) Marshalls d) Lady Foot Locker e) Toys "R" Us
d
What do all of the following have in common: tuition, fee, premium, retainer, dues? a) They all must be paid in cash. b) They are forms of exchange similar to, but not identical with, money. c) They are forms of exchange similar to, but not identical with, barter. d) They are different terms for the concept of price. e) They have nothing in common.
c
What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.
c
What equation shows organizations the relationship between price and profit? a) Total Variable Costs + Total Fixed Costs = Sales - Profit b) Price = Profit per Item × Number of Units Sold c) (Price × Quantity Sold) - Total Costs = Profits d) (Price - Profits) × Total Costs = Sales e) Total Costs = (Price × Quantity Sold) - Profits
b
What is a potential disadvantage of direct selling? a) Commissions for salespeople are usually low. b) Some customers view direct selling in a negative light. c) Personal attention is lacking. d) Product demonstrations are difficult in this type of selling. e) Consumers must go out of their way.
b
What is a potential disadvantage of direct selling? a) Commissions for salespeople are usually low. b) Some customers view direct selling negatively. c) Personal attention tends to be lacking. d) Product demonstrations are difficult in this type of selling. e) Consumers must go out of their way.
c
What is the most popular type of product sold through television home shopping? a) Electronics b) Clothing c) Jewelry d) Kitchen appliances e) Cosmetics
c
What is the primary difference between an agent and a broker? a) An agent gets compensated based on commission while a broker generally charges fees for his services. b) A broker works only for a seller whereas an agent can represent a buyer or a seller. c) An agent represents a company on a permanent basis while a broker is employed temporarily. d) An agent has much more extensive knowledge about the products he deals with than a broker does. e) Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.
d
What is the primary distinction between superstores and hypermarkets? a) Superstores offer a wider variety of products than hypermarkets. b) Superstores offer low prices while hypermarkets have moderate to high prices. c) Hypermarkets have fewer departments but deeper product lines than superstores. d) Hypermarkets are larger and have more types of products than superstores. e) These two types of retailers carry very different types of products.
e
What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? a) Quantity b) Cash c) Geographic d) Service e) Trade
d
What type of retailers are the primary competitors for specialty retailers? a) Discount stores b) Category killers c) Catalog marketers d) Department stores e) Superstores
a
What type of retailing began with Montgomery Ward in the late 1800s? a) Catalog marketing b) Department stores c) Direct selling d) Discount retailing e) Franchising
c
What type of shopping center usually consists of several small convenience and specialty stores? a) Specialty b) Regional c) Neighborhood d) Convenience e) Community
d
What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection? a) On-site wholesalers b) Cash-and-carry wholesalers c) Rack jobbers d) Truck jobbers e) Drop shippers
c
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs. a) base-point b) zone c) transfer d) uniform geographic e) matrix
e
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on a) internal reference prices. b) symbol prices. c) high value products. d) discounted reference prices. e) external reference prices.
e
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using a) direct selling. b) television home shopping. c) telemarketing. d) automatic vending. e) direct-response marketing.
c
When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.
d
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a) Consolidated did poor market demand research. b) Consolidated has an elastic product. c) Consolidated has an inelastic product. d) Consolidated mustard is a prestige good. e) Consolidated mustard has a normal demand curve.
a
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a) price competition. b) nonprice competition. c) comparative pricing strategies. d) demand-based pricing. e) supply-based pricing.
e
When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ________ builds. a) discount stores b) category killers c) specialty retailers d) warehouse clubs e) department stores
Which of the following statements about price elasticity is false?
When price is raised on a product that has an inelastic demand, then total revenue will decrease.
Which of the following statements about price elasticity is false? a) Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more. b) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. c) If marketers can determine price elasticity, then setting prices at optimum levels is much easier. d) When price is raised on a product that has an inelastic demand, then total revenue will decrease. e) A product like electricity has an inelastic demand.
When price is raised on a product that has an inelastic demand, then total revenue will decrease.
e
When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ________ is being used. a) telemarketing b) television marketing c) direct-response marketing d) e-marketing e) television home shopping
A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
A channel that includes both a manufacturers' agent an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
e
Which factor is least likely to affect pricing decisions? a) Competitive prices b) Legal and regulatory issues c) Organizational and marketing objectives d) Customers' interpretation and response e) Shifting stock values
e
Which of the following acts does not directly affect pricing decisions? a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Simpson-Marshall Act
c
Which of the following best describes wholesalers? a) Organizations that buy products from producers and sell them to retailers. b) Individuals or organizations that purchase products and then resell them to other businesses and consumers. c) Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users. d) Organizations or entities that buy products from government, reseller, and producer users and sell them to customers in bulk. e) Companies that make products that have a general appeal and are resold to retailers for a profit.
a
Which of the following is a common feature of a warehouse club? a) Concrete floors and wide aisles b) Wide range of products c) Good customer service d) Moderate prices e) Pleasant atmosphere
b
Which of the following is a full-service merchant wholesaler? a) Cash-and-carry wholesaler b) General merchandise wholesaler c) Drop shipper d) Mail-order wholesaler e) Truck wholesaler
b
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a) Warehouse showroom b) Warehouse club c) Catalog showroom d) Category killer e) Hypermarket
e
Which of the following is the least flexible of these important retailing strategy issues? a) Store atmosphere b) Scrambled merchandising c) Retail positioning d) Store image e) Location
b
Which of the following is the most flexible variable in the marketing mix? a) Product b) Price c) Advertising d) Personal selling e) Distribution
e
Which of the following may include special attractions such as amusement parks or skating rinks a) Convenience shopping centers b) Neighborhood shopping centers c) Community shopping centers d) Regional shopping centers e) Superregional shopping centers
e
Which of the following offers the widest product mixes and the deepest product lines? a) Category killer b) Outlet mall c) Traditional business district d) Community shopping center e) Superregional shopping center
b
Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus
b
Which of the following products is most likely to involve personal selling? a) Blenders b) Riding lawn mowers c) Fresh peaches d) Picture frames e) Footballs
b
Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers? a) Sherman Antitrust Act b) Robinson-Patman Act c) Lanham Trademark Act d) Federal Trade Commission Act e) Wheeler-Lea Act
b
Which of the following services would a wholesaler least likely provide to a manufacturer? a) Assume the risks of selling to poor credit customers b) Look for and coordinate supply sources c) Pay the costs of transporting goods d) Provide up-to-date information on market developments e) Serve as an extension of the manufacturer's sales force
a
Which of the following statements about nonprice competition is false? a) Companies that use nonprice competition do not need to keep track of their competitor's prices. b) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. c) A firm using nonprice competition can build loyalty to both its company and its products. d) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. e) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.
d
Which of the following statements about price elasticity is false? a) Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more. b) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. c) If marketers can determine price elasticity, then setting prices at optimum levels is much easier. d) When price is raised on a product that has an inelastic demand, then total revenue will decrease. e) A product like electricity has an inelastic demand.
b
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes? a) Supermarkets b) Convenience stores c) Discount stores d) Department stores e) Specialty stores
a
Which of the following wholesalers never take actual possession of the goods? a) Drop shippers b) Cash-and-carry wholesalers c) Truck jobbers d) Mail-order wholesalers e) Rack jobbers
c
Which retail store invests the most in atmospherics? a) Kmart b) Sears c) Neiman Marcus d) Wal-Mart e) Walgreens
d
Which type of franchising is most popular in the soft-drink industry? a) The manufacturer authorizes a number of retail stores to sell a certain brand name item. b) Several manufacturers authorize one retail chain to sell a variety of brand name items. c) A franchiser supplies techniques, brand names, or other services besides complete products. d) A manufacturer licenses distributors to sell a given product to retailers. e) A distributor provides a brand name product and marketing assistance to one retailer.
a
Which type of retail outlet can have up to 200,000 square feet? a) Superstores b) Supermarkets c) Discount stores d) Department stores e) Category killers
e
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a) Department stores b) Traditional specialty retailers c) Warehouse showrooms d) Direct marketers e) Discount stores
d
While on their family vacation, the Millers realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve? a) Franchising b) Online retailing c) Direct-response marketing d) Automatic vending e) Machine marketing
a
Who provides the environment in which exchanges with ultimate consumers occur? a) Retailers b) Wholesalers c) Catalogers d) Telemarketers e) Producers
Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____.
Wholesaler; retailer
38. Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix. a) distribution b) product c) exchange d) price e) promotion
a
Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ______, while the vending machine company is a(an) _____ a. Wholesaler; broker b. Wholesaler; retailer c. Agent; retailer d. Broker; agent e. Broker; retailer
Wholesaler; retailer
a
Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the _____ component of the marketing mix. a) distribution b) promotion c) product d) price e) channel
a
Wholesaling can be defined as a) transactions in which products are bought for resale. b) transactions made at a discount. c) sales made to retailers only. d) transactions in which purchases are for production of other goods only. e) marketing activities necessary to conduct exchanges with consumers.
The Strategic Planning Process
With competition increasing, firms must spend more time planning—determining how to use resources and capabilities to achieve objectives and satisfy customers
e
With respect to inventory, wholesalers can help retailers with all of the following except a) selection. b) storage. c) inventory control. d) transportation. e) production.
e
With respect to retailing, what is the "party plan"? a) A sales representative has a party at her home to demonstrate products to a group of friends and associates. b) A party is set up that demonstrates a product and provides free samples of the product to all in attendance. c) An individual is asked to tell two friends about a product, who are in turn each asked to tell two friends, etc. until a sufficient number of people are reached. d) A store has a special sale that resembles a party, and those who come are asked to buy the featured products. e) A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?
Zone pricing
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods? a) Price differentiation b) Base-point pricing c) Freight absorption pricing d) Transfer pricing e) Zone pricing
Zone pricing
b
________ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. a) Off-price shopping centers b) Outlet shopping centers c) Regional shopping centers d) Power shopping centers e) Lifestyle shopping centers
c
___________ consumers are concerned about both the price and the quality aspects of a product. a) Price-conscious b) Prestige-sensitive c) Value-conscious d) Price-conscious and prestige-sensitive e) Quality-conscious
e
___________ provide an effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve. a) Desk jobbers b) Specialty-line wholesalers c) Cash-and-carry wholesalers d) Truck wholesalers e) Mail-order wholesalers
102. Which of the following statements describes the best use of the Internet by a marketer? a) Gain information. b) Relay product information. c) Facilitate the marketing process. d) Accumulate as many friends as possible. e) Facilitate the marketing exchange, obtain customer feedback, and providing product information.
a
105. For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a) One-half b) One-fifth c) One-fourth d) One-third e) One-sixth
a
107. Marketing activities are a) used by all sizes of organizations including for-profit, nonprofit, and government agencies. b) limited to use by larger for-profit and nonprofit organizations. c) implemented only to increase profits for the organization and to expand the scope of its customer base. d) used by all types and sizes of businesses but are not used by nonprofit organizations. e) used by small businesses and small nonprofit organizations the most.
a
111. Approximately what percentage of civilian workers in the United States performs marketing activities? a) 25 to 33 percent b) 81 to 92 percent c) 42 to 50 percent d) 64 to 76 percent e) 10 to 20 percent
a
20. The primary value that a marketer expects to receive from a customer in an exchange relationship is a) the price charged for the product. b) customer satisfaction. c) references to other potential customers. d) quality merchandise that meets expectations. e) few returns of the merchandise purchased.
a
23. SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's a) target market. b) consumer advocates. c) marketing strategy. d) marketing mix. e) marketing tactic.
a
25. A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? a) Product, price, distribution, and promotion variables b) Marketing environment variables c) Product and promotion variables d) Product, price, and customer variables e) Product, price, customer, and promotion variables
a
32. Which of the following companies is the best example of a service marketer? a) FedEx b) Sony c) Abercrombie & Fitch d) The Democratic Party e) General Electric
a
45. Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool. a) promotional b) distributional c) pricing d) targeting e) production
a
46. When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix? a) Price b) Promotion c) Distribution d) Product e) Target market
a
53. Which of the following statements about marketing environment forces is correct? a) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b) They do not influence customers' reactions to a firm's marketing mix. c) They fluctuate slowly and thereby create threats to a firm's marketing mix. d) They never fluctuate quickly. e) They do not influence the way a marketing manager performs certain marketing activities.
a
54. The forces of the marketing environment include a) political, legal and regulatory, sociocultural, technological, economic, and competitive. b) sociocultural, legal, regulatory, economic, and competitive. c) legal, regulatory, political, and sociocultural. d) competitive and noncompetitive forces that affect most lifestyles. e) fairly static components.
a
60. The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products they determine whether or how a marketing manager can perform certain marketing activities and they a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix. b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers. c) make most new products obsolete very quickly so that research and development must continually develop new products. d) cause most advertising to be ineffective at communicating product benefits due to rapidly changing environmental forces. e) change a customer's decisions about the appropriate marketing mix for the company and its various products.
a
67. Which one of the following statements by a company president best reflects the marketing concept? a) We have organized our business to make certain that customers get what they want. b) We believe that the marketing department must organize to sell what we produce. c) We have organized an aggressive sales force in our company to promote our products. d) We try to produce only high-quality, technically efficient products. e) We try to encourage company growth.
a
70. The Jackson Hewitt company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, it should adopt which of the following philosophies? a) The customer is always right. b) Making money is our business. c) Sell, sell, sell. d) Keep prices low. e) Focus on today.
a
71. The marketing concept is a) a management philosophy. b) synonymous with exchange. c) a component of the marketing mix. d) a function of the marketing environment. e) focused solely on satisfying customer objectives.
a
78. Which of the following best describes the acceptance of the marketing concept by American organizations? a) The marketing concept has yet to be fully accepted by all organizations. b) All organizations fully utilize the marketing concept to run their businesses. c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept. d) Most organizations have really not accepted the marketing concept because of its many costs and problems. e) Although American organizations fully accept the marketing concept, many foreign companies do not.
a
80. Health Care Systems, Inc. rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept? a) An information system to determine customer needs b) The organizational structure c) Top-management commitment d) Technological advancement e) Scanning corporate capabilities
a
99. _________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. a) Implementation b) Planning c) Organizing d) Marketing control e) Strategic planning
a
Approximately what percentage of civilian workers in the United States performs marketing activities? a) 25 to 33 percent b) 81 to 92 percent c) 42 to 50 percent
a
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool. a) promotional b) distributional c) pricing d) targeting e) production
a
By locating in the same general vicinity as other car dealerships, Hartfield Honda can a. facilitate comparison shopping. b. create form utility. c. facilitate wholesale exchanges. d. create possession utility. e. create exchange utility.
a
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____________ site for his retail business. a. free-standing b. traditional business district c. neighborhood shopping center d. community shopping center e. regional shopping center
a
Compared with other types of retailers, department stores compete mainly on the basis of a. customer services. b. low prices. c. a very deep assortment of a few specific products. d. high sales volume. e. catalog sales.
a
For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a) one-half b)one-fifth c) one-third
a
Marketers use the term "___________" to describe establishing long-term, mutually satisfying buyer-seller relationships. a) relationship marketing b) customer service c) marketing management d) exchange e) utility
a
perfectly elastic
a demand relationship in which any change of quantity demanded brings about no price adjustment (is infinite)
elastic
a demand relationship in which the rate of change of quantity demanded is greater than the rate of change of price
Marketing activities are a) used by all sizes of organizations including for-profit, nonprofit, and government agencies. b) limited to use by larger for-profit and nonprofit organizations. c) implemented only to increase profits for the organization and to expand the scope of its customer base. d) used by all types and sizes of businesses but are not used by nonprofit organizations.
a
Off-price retailers feature a. deep discounts, few customer services, and central checkouts. b. sales expertise, wide selections, and low prices. c. overstocks, designer brands, and moderate prices. d. a narrow product range and enormous product availability. e. cash only sales and few customer services.
a
Self-service, general merchandise stores such as Kmart, Walmart, and Target are known as a. discount stores. b. warehouse showrooms. c. catalog showrooms. d. superstores. e. specialty retailers.
a
The forces of the marketing environment include a) political, legal and regulatory, sociocultural, technological, economic, and competitive. b) sociocultural, legal, regulatory, economic, and competitive. c) legal, regulatory, political, and sociocultural. d) competitive and noncompetitive forces that affect most lifestyles. e) fairly static components.
a
The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix. b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers. c) make most new products obsolete very quickly so that research and development must continually develop new products.
a
The type of retail location that is commonly being preserved and revitalized in many cities is the a. traditional business district. b. free-standing structure. c. community shopping center. d. neighborhood shopping center. e. nontraditional shopping center.
a
When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix? a) Price b) Promotion c) Distribution d) Product e) Target market
a
Which of the following best describes the acceptance of the marketing concept by American organizations? a) The marketing concept has yet to be fully accepted by all organizations. b) All organizations fully utilize the marketing concept to run their businesses. c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.
a
Which of the following companies is the best example of a service marketer? a)fedex b) sony c)abercrombie
a
Which of the following is a common feature of a warehouse club? a. Annual fees b. Wide range of products c. Good customer service d. Moderate prices e. Pleasant atmosphere
a
Which one of the following statements by a company president best reflects the marketing concept? a) We have organized our business to make certain that customers get what they want. b) We believe that the marketing department must organize to sell what we produce. c) We have organized an aggressive sales force in our company to promote our products.
a
Which type of retail outlet can have up to 200,000 square feet? a. Superstores b. Supermarkets c. Discount stores d. Department stores e. Category killers
a
Who provides the environment in which exchanges with ultimate consumers occur? a. Retailers b. Wholesalers c. Catalogers d. Telemarketers e. Producers
a
When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists.
a contractual VMS
perfectly inelastic
a demand relationship in which any change of price brings about no quantity demanded adjustment (is equal to zero)
Strategic business unit (SBU)
a division, product line, or other profit center within the parent company. Strategic planners should recognize the performance capabilities of each SBU and carefully allocate resources among the divisions.
One advantage of nonprice competition is that
a firm can build customer loyalty
One advantage of nonprice competition is that
a firm can build customer loyalty.
One advantage of nonprice competition is that a) a firm can react quickly to competitive efforts. b) market share becomes less important. c) a firm can build customer loyalty. d) marketing efforts are completely eliminated. e) pricing is no longer a factor.
a firm can build customer loyalty.
Greg chooses to have his equipment stored in a location away from the main part of town so that he can have large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is?
a free-standing structure
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is
a free-standing structure
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is
a free-standing structure.
a product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations
Mission statement
a long-term view or vision of what the organization wants to become. An organization's mission really answers two questions: a. Who are our customers? b. What is our core competency?
In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal
a loss of $32,000.
In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal a) a loss of $20,000. b) a loss of $32,000. c) $28,000. d) $40,000. e) $222,000.
a loss of $32,000.
The marketing concept is
a management philosphy
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur:
a marginal cost
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
a marginal cost.
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur a) more fixed costs. b) higher average fixed costs. c) fewer variable costs. d) a marginal cost. e) higher average variable costs.
a marginal cost.
elasticity
a measure of how responsive the quantity demanded by consumers or the quantity supplied by producers is to change in the equilibrium price or some other economic factor.
elasticity of demand
a measure of sensitivity of quantity demanded to changes in the price of the product (responsiveness of the quantity demanded to a change in the price of the price)
income elasticity
a measure of the sensitivity of quantity demanded to changes in consumers income
cross-price elasticity
a measure of the sensitivity of quantity demanded to changes in the price of another product, usually a substitute or complementary good
elasticity of supply
a measure of the sensitivity of the qaunity supplied to changes in the price of the product
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is a) a negative impact on consumers' perceptions of quality. b) competitive matching. c) a high return on investment level affecting tax balances owed. d) poor survival chances. e) higher developmental costs.
a negative impact on consumers' perceptions of quality.
Alison asks ten of her friends over to her home to learn about exciting new cosmetic products. A salesperson from Angel Products makes a presentation and takes the women's orders. This is an example of
a party plan
If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using:
a price leader
loss leader
a product is priced below cost in order to build traffic and promote sales of other, more profitable, products
elasticity coefficicent
a quantitative measure of the degree of responsiveness for a product in a market equal to the rate of change of quantity demanded (or supplied) divided by the rate of change of the other variable such as price of the product and so forth.
target market
a specific group of customers on whom an organization focuses its marketing efforts
An agreement in which the products of one organization are distributed through the marketing channel of another organization is called
a strategic channel alliance.
Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of
a strategic channel alliance.
Automatic vending is
a type of nonstore retailing.
Redbox, ProActiv, and Clinique all sell their products through automatic vending, which is
a type of nonvoter retailing
A general merchandise retailer offers
a variety of product lines that are stocked in depth
A general merchandise retailer offers
a variety of product lines that are stocked in depth.
A general-merchandise retailer offers
a variety of product lines that are stocked in depth.
A general-merchandise retailer offers
a variety of products that are stocked in depth
When a single channel member manages an integrated marketing channel to achieve low- cost, efficient distribution for satisfying target markets, ______ exists.
a vertical marketing system
Compared with other types of retailers, department stores compete mainly on the basis of a) customer services. b) low prices. c) a very deep assortment of a few specific products. d) high sales volume. e) catalog sales.
a) customer services.
Nordstrom's, Macy's, and JC Penney's are all considered a) department stores. b) discount stores. c) off-price retailers. d) specialty retailers. e) category killers.
a) department stores.
Self-service, general merchandise stores such as Kmart are known as a) discount stores. b) warehouse showrooms. c) catalog showrooms. d) superstores. e) specialty retailers.
a) discount stores.
By locating in the same general vicinity as other car dealerships, Hartfield Honda can a) facilitate comparison shopping. b) create form utility. c) facilitate wholesale exchanges. d) create possession utility. e) create exchange utility.
a) facilitate comparison shopping.
Analysis of the marketing environment also includes identifying opportunities in the marketplace, which requires a solid understanding of the company's industry.
a. A market opportunity exists when the right combination of circumstances and timing permits an organization to take action to reach a particular target market. b. Strategic windows are temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
A company's mission, goals, and objectives must be properly implemented to achieve and communicate the desired corporate identity—a company's unique symbols, personalities, and philosophies.
a. An organization's goals and objectives, derived from its mission statement, guide its planning efforts. b. Goals focus on the end results sought by the organization.
Strategic planning must assess an organization's available financial and human resources and capabilities and how these resources are likely to change over time. Resources can include:
a. Customer satisfaction and loyalty b. Goodwill c. Reputation d. Brand names e. Core competencies, things a firm does extremely well—sometimes so well that they can give the company an advantage over its competition.
Establishing an implementation timetable involves several steps:
a. Identifying the activities to be performed b. Determining the time required to complete each activity c. Separating the activities to be performed in sequence from those to be performed simultaneously d. Organizing the activities in the proper order e. Assigning responsibility for completing each activity to one or more employees, teams, or managers
Selecting the Target Market
a. Selecting an appropriate target market may be the most important decision a company makes in the strategic planning process and is crucial for strategic success. b. The target market must be chosen before the organization can adapt its marketing mix to meet the customers' needs and preferences. c. When exploring possible target markets, marketing managers try to evaluate how entry could affect the company's sales, costs, and profits. d. Marketers should determine whether a selected target market aligns with the company's overall mission and objectives. e. Marketers should also assess whether the company has the resources to develop the right marketing mix to meet the needs of a particular target market. The size and number of competitors is also a concern.
Creating Marketing Mixes
a. The decisions made in creating a marketing mix are only as good as the organization's understandings of the target market. b. Understanding comes from careful in-depth research into demographics as well as customer needs, preferences, and behavior with respect to product design, pricing, distribution, and promotion. c. Marketing mix decisions should be consistent with the business-unit and corporate strategies as well as flexible enough to permit the organization to alter the marketing mix in response to changes in marketing conditions, competition, and customer needs. d. Utilizing the marketing mix as a tool set, a company can detail how it will achieve a sustainable competitive advantage. e. A sustainable competitive advantage is one that the competition cannot copy in the foreseeable future.
Which of the following is calculated by dividing the variable costs by the number of units produced? a. average variable cost b. marginal cost c. average total cost d. break-even point. e. average fixed cost
a. average variable cost
To compete effectively on a price basis, a firm should ____. a. be the low-cost seller of the product b. have the lowest market share c. have the highest quality d. have the highest market share e. be the high-cost seller of the product
a. be the low-cost seller of the product
Price and cost are very different when talking about members in the supply chain. With the addition of each intermediary, cost is added to a product, and that cost is passed along to consumers in terms of a higher price. Keystoning is the name for a common pricing practice among retailers. Retailers double the _________ of an item to assign a ________ to the item. a. cost; price b. cost; cost c. price; price d. price; cost
a. cost; price
A price developed in the buyer's mind through experience with the product is a(n) _____. a. internal reference price b. break-even point c. trade discount d. experience price e. external reference price
a. internal reference price
Consumers receive the benefits of place utility when a. products are available in locations where consumers want to buy them. b. they have to travel excessively to obtain products they want. c. they make purchases with credit and debit cards. d. retailers remain open 24 hours a day. e. they can stock up on products they need but not use them right away.
a. products are available in locations where consumers want to buy them.
Late-mover advantage
ability of later market entrants to achieve longterm competitive advantages by not being the first to offer a certain product in a marketplace. (1) Benefits include learning from first-mover's mistakes, improved products and marketing strategies, lower initial investment costs, more market certainty, and more educated buyers. (2) Risks include first-movers holding patents and other protections on products and difficulty in convincing consumers to change brands. (3) The timing of entry to the market is crucial and can determine the amount of late-mover advantage.
In an administered vertical marketing system (VMS), interorganizational relationships are
achieved by informal coordination.
rob stevens is the head of a company that produce computer software for production scheduling. the firm is small and presently does not generate enough volume to justify hiring a sales force. the firm is probably using ___ to maintain contact with the firms using its products: -wholesalers -brokers -agents -merchants -retailers
agents
A producer is not likely to receive ___ from an industrial distributor.
aggressive promotion of its brand
A producer is not likely to receive _____ from an industrial distributor.
aggressive promotion of its brand
Which of the following products is most likely to have an elastic demand curve?
airline tickets for vacation travel
Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense.
airway
The supply chain includes
all entities that facilitate product distribution
The supply chain includes producers, wholesalers, and retailers. suppliers, producers, intermediaries, and customers. suppliers and suppliers' suppliers. all entities that facilitate product distribution. buyers, seller, marketing intermediaries, and agents.
all entities that facilitate product distribution.
Supply chain
all organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer
a product mix is best described as
all products offered by a firm
A concession in price in business markets to achieve a desired goal is called a(n)
allowance
A concession in price in business markets to achieve a desired goal is called a(n):
allowance
A concession in price in business markets to achieve a desired goal is called a(n) a) allowance. b) objective-oriented discount. c) cash discount. d) trade discount. e) cumulative discount.
allowance.
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of
an external reference price.
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of a) internal referencing. b) cumulative discounts. c) seasonal discounts. d) base-point pricing. e) an external reference price.
an external reference price.
Below the breakeven point, a firm is operating a) with fixed costs only. b) with minimal variable costs. c) with no revenue. d) profitably. e) at a loss.
at a loss.
Exterior and interior characteristics such as layout, displays, color and lighting are all elementsof a store's?
atmospherics
Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on
atmospherics.
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's
atmospherics.
ATMs are an example of
automatic vending.
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 is at its lowest level.
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 a) its marginal costs are falling. b) average total cost is at its maximum. c) average total costs are rising. d) demand is elastic. e) average total cost is at its lowest level.
average total cost is at its lowest level.
The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
corporate vertical marketing system.
101. _________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. a) Internal control analysis b) Marketing control c) Market flow regulation d) Environmental market analysis e) External analysis
b
103. Initiatives intended to improve an organization's positive impact on society and the natural environment are called a) environmental marketing b) green marketing c) socially-responsible marketing d) energy-conscious marketing e) socially-conscious marketing
b
109. Marketing knowledge and skills a) are not necessary for a nonprofit organization. b) enhance consumer awareness and help provide people with satisfying goods and services. c) constitute the marketing mix. d) were most important during the production era. e) are most valuable for advertising executives but less important for wholesalers and distributors.
b
16. Marketing is the process of a) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. c) delivering a standard of living to a society. d) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. e) focusing on customers' needs.
b
21. A target market a) involves a large number of customers. b) is a specific group of customers on whom a company focuses its marketing efforts. c) already has several competitors vying for customers' business. d) is the same as a salesperson's prospective client list. e) is a customer group classified as people with similar demographic characteristics.
b
24. Distribution, price, promotion, and product are all elements of a) marketing strategy. b) the marketing mix. c) a target market. d) a consumer good. e) a business strategy.
b
28. The product variable of the marketing mix can include all of the following except a) creation of brand names. b) consumer perception of the product price. c) development of product packaging. d) warranty issues. e) repair services.
b
30. A physical product you can touch is a(n) a) service. b) good. c) idea. d) concept. e) philosophy.
b
33. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a) goods. b) ideas. c) services. d) political figures. e) applications.
b
39. Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a) which market he should target. b) the best way to distribute his products. c) how to effectively promote his business. d) the product he provides to his customer. e) which supplier he should use.
b
44. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a) Price b) Promotion c) Distribution d) Product e) Packaging
b
50. For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations must participate, and each must possess "something of value" that the other desire; second, the exchange must provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the "something of value" held by the other; and fourth, a) the parties must agree to participate in the trading of "something of value." b) to build trust, parties to the exchange must meet expectations. c) both parties must participate in the trading of the "something of value." d) one party must be willing to compromise. e) one party must have sufficient bank credit to finance the exchange.
b
55. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy. a) operating situation b) marketing environment c) surroundings d) economic conditions e) trends
b
57. A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing. a) marketing mix b) marketing environment c) marketing concept d) marketing task e) product concept
b
58. StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about a) target market selection. b) the marketing environment. c) the reduction of marketing costs. d) marketing mix decisions. e) efficiency in marketing activities.
b
62. The marketing concept is best defined as a) a second definition of marketing. b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c) the performance of business activities that direct the flow of goods and services from producer to customer or user. d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers. e) the inclusion of marketing activities in the activities of an organization.
b
64. The marketing concept is a management philosophy that affects a) only marketing activities. b) all efforts of the organization. c) mainly the efforts of sales personnel. d) mainly customer relations. e) only business organizations.
b
68. The marketing concept affects a) just the marketing department. b) all organizational activities. c) only marketing and finance. d) only production and marketing. e) few decisions in an organization.
b
75. U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were in which of the following orientations? a) Production b) Sales c) Market d) Customer e) Societal
b
77. A market orientation is an organization-wide effort that includes all of the following activities except a) researching customers' needs. b) focusing on the marketing department only. c) generating marketing intelligence for use in the organization. d) being responsive to customers' ever-changing wants and needs. e) disseminating marketing intelligence across departments within the organization.
b
82. Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a) marketing synthesis. b) relationship marketing. c) a marketing orientation. d) the marketing concept. e) strategic marketing.
b
86. Long-term relationships with profitable customers is the key objective of a) personal selling. b) customer relationship management. c) production oriented firms. d) e-marketing. e) distribution channels.
b
87. Managing customer relationships requires identifying patterns of ___________ and then using that information to focus on the most promising and profitable customers. a) demographics b) buying behavior c) retailer information d) personality differences e) stock market cycles
b
95. ______ is the degree to which an exchange helps achieve an organization's objectives. a) Controlling b) Effectiveness c) Success rate d) Efficiency e) Objectivity
b
A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing. a) marketing mix b) marketing environment c) marketing concept d) marketing task e) product concept
b
A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy. a)operating situation b)marketing environment c)surroundings d)economic conditions e)trends
b
A marketing orientation is an organization-wide effort that includes all of the following activities except a) researching customers' needs. b) focusing on the marketing department only. c) generating marketing intelligence for use in the organization. d) being responsive to customers' ever-changing wants and needs. e) disseminating marketing intelligence across departments within the organization.
b
A physical product you can touch is a(n) a) service. b) good. c) idea.
b
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) a. department store. b. specialty retailer. c. category killer. d. off-price retailer. e. warehouse showroom.
b
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a. superstore. b. hypermarket. c. department store. d. general merchandise retailer. e. discount store.
b
Category killers compete primarily on the basis of a. enormous product selection and sales expertise. b. low prices and enormous product availability. c. convenient locations and customer services. d. rock-bottom prices and moderate selections. e. one-stop shopping and product availability.
b
Customer relationship management focuses on using ___________ about customers to create marketing strategies. a)internal communication b)information c)purchasing power insights d)marketing mix knowledge e)implementation knowledge
b
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) a. off-price retailer. b. department store. c. discount store. d. superstore. e. supermarket.
b
Initiatives intended to improve an organization's positive impact on society and the natural environment are called a) environmental marketing b) green marketing c) socially-responsible marketing d) energy-conscious marketing
b
Long-term relationships with profitable customers is the key objective of a) personal selling. b) customer relationship management. c) production oriented firms. d) e-marketing. e) distribution channels.
b
Marketing knowledge and skills a) are not necessary for a nonprofit organization. b) enhance consumer awareness and help provide people with satisfying goods and services.
b
Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a)goods. b)ideas. c)services. d)political figures.
b
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a. department store. b. discount store. c. warehouse showroom. d. specialty store. e. superstore.
b
Retailing is best characterized as a. large organizations that carry wide and deep product mixes. b. transactions in which the buyer intends to consume the product through personal, family, or household use. c. arrangements whereby a supplier grants a dealer the right to sell its products. d. transactions in which the purchaser intends to use the product for resale or for business operations. e. exchanges that take place only in a store or service establishment.
b
Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a) which market he should target. b) the best way to distribute his products. c) how to effectively promote his business.
b
Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called a. category killers. b. off-price retailers. c. specialty retailers. d. hypermarkets. e. discount retailers.
b
Supermarkets, discount stores, and hypermarkets can all be classified as a. superstores. b. general merchandise retailers. c. department stores. d. specialty retailers. e. off-price retailers.
b
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about a. store atmosphere. b. location. c. retail positioning. d. store image. e. the wheel of retailing.
b
The marketing concept affects a) just the marketing department. b) all organizational activities. c) only marketing and finance.
b
The marketing concept is a management philosophy that affects a) only marketing activities. b) all efforts of the organization. c) mainly the efforts of sales personnel. d) mainly customer relations. e) only business organizations.
b
The marketing concept is best defined as a) a second definition of marketing. b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c) the performance of business activities that direct the flow of goods and services from producer to customer or user. d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.
b
The product variable of the marketing mix can include all of the following except a) creation of brand names. b) consumer perception of the product price. c) development of product packaging. d) warranty issues. e) repair services.
b
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a) marketing synthesis. b) relationship marketing. c) a marketing orientation. d) the marketing concept. e)strategic marketing.
b
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a. Warehouse showroom b. Warehouse club c. Catalog showroom d. Category killer e. Hypermarket
b
______ is the degree to which an exchange helps achieve an organization's objectives. a) Controlling b) Effectiveness c) Success rate
b
_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. a) Internal control analysis b) Marketing control c) Market flow regulation d) Environmental market analysis
b
_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. a) Marketing control b) Implementation c) Organizing d) Planning e) Strategic planning
b
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes? a) Supermarkets b) Convenience stores c) Discount stores d) Department stores e) Specialty stores
b) Convenience stores
Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart? a) Supermarket b) Superstore c) Hypermarket d) Discount store e) Department store
b) Superstore
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a) Warehouse showroom b) Warehouse club c) Catalog showroom d) Category killer e) Hypermarket
b) Warehouse club
Marketing is the process of: A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. C) delivering a standard of living to a society. D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. E) focusing on customers' needs.
b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) a) off-price retailer. b) department store. c) discount store. d) superstore. e) supermarket.
b) department store.
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a) department store. b) discount store. c) warehouse showroom. d) specialty store. e) superstore.
b) discount store.
Supermarkets, discount stores, and hypermarkets can all be classified as a) superstores. b) general merchandise retailers. c) department stores. d) specialty retailers. e) off-price retailers.
b) general merchandise retailers.
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a) superstore. b) hypermarket. c) department store. d) general merchandise retailer. e) discount store.
b) hypermarket.
Retailing is best characterized as a) large organizations that carry wide and deep product mixes. b) transactions in which the buyer intends to consume the product through personal, family, or household use. c) arrangements whereby a supplier grants a dealer the right to sell its products. d) transactions in which the purchaser intends to use the product for resale or for business operations. e) exchanges that take place only in a store or service establishment.
b) transactions in which the buyer intends to consume the product through personal, family, or household use.
ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result? a. an increase in market share b. a decrease in total revenue c. a decrease in market share d. a decrease in product inventory e. an increase in total revenue
b. a decrease in total revenue
ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _____. a. nonprice competition b. a price war c. bartering d. elasticity of demand e. price discrimination
b. a price war
ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use? a. quantity discount b. cash discount c. seasonal discount d. trade discount e. allowance
b. cash discount
A measure of sensitivity of demand in relation to changes in price is a. a prestige graph. b. price elasticity of demand. c. a demand curve. d. marginal analysis. e. quantity elasticity.
b. price elasticity of demand
Price is a key element in the marketing mix because it relates directly to the generation of total _____. a. elasticity of demand b. revenue c. market share d. profits e. price competition
b. revenue
Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers? a. zone pricing b. uniform geographic pricing c. base-point pricing d. F.O.B. destination pricing e. freight absorption pricing
b. uniform geographic pricing
The type of prices most likely to appear in advertising are
bargain.
The type of prices most likely to appear in advertising is a) prestige. b) future. c) bargain. d) internal reference. e) cost-plus.
bargain.
The oldest form of exchange trading of products is known as
barter
The oldest form of exchange trading of products is known as
barter.
The oldest form of exchange—trading of products—is known as a) credit. b) buying. c) purchasing. d) barter. e) pricing.
barter.
benefit segmentation
based on real or perceived benefits that a product or service offers a consumer
what does information utility do?
boosts customer satisfaction by providing helpful information. Ex. zappos.com hires customer service experts
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the:
break-even point
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point.
breakeven
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point. a) breakeven b) marginal revenue less than marginal cost c) profit margin d) competitive price e) profit maximizing
breakeven
Chandra has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chandra is a
broker
Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a
broker
What are common objectives and strategies?
building profit, boosting volume, matching the competition, and creating prestige
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of:
bundle pricing
A public warehouse is a
business that leases storage space and related facilities for distribution to other firms.
Who do agents and brokers connect
buyers and sellers and facilitate transactions in exchange for commissions
how do smart retailers gain a competitive edge?
by providing more utility, or added value, than their counterparts - including low price, customer service, product selection, advertising, and location
104. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities? a) $2,000 b) $1,500 c) $1,000 d) $500 e) $0
c
22. Kashi Heart to HeartTM cereal is aimed at people concerned about their heart health. These people represent the Kashi a) marketing mix. b) marketing strategy. c) target market. d) marketing tactic. e) consumer advocates.
c
26. The marketing mix is built around the a) product. b) company. c) customer. d) employee. e) retail outlet.
c
36. Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike. a) price b) good c) product d) promotion e) distribution
c
40. Consumers buying products online have dramatically affected the ___________ variable of the marketing mix. a) product b) price c) distribution d) research e) promotion
c
41. Changing the hours of operation for a service business involves the _____ component of the marketing mix. a) product b) price c) distribution d) promotion e) marketing concept
c
59. Which of the following is essentially an uncontrollable factor in developing a marketing mix? a) Product adaptations b) Pricing strategies c) Government regulations d) Advertising campaigns e) Retail locations
c
63. According to the marketing concept, an organization should try to a) consider short-run objectives and cash flow needs before developing new products. b) define its business as "making a product." c) provide products that satisfy customers' needs and allow the organization to achieve its goals. d) put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel. e) view selling activities as the major means of increasing profits.
c
66. The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a) increase market share. b) increase sales. c) achieve the organization's goals. d) produce high-quality products. e) coordinate its activities to increase production.
c
76. American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations? a) Production b) Sales c) Market d) Social e) Development
c
79. Which of the following is not an example of the implementation of the marketing concept? a) Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork. b) Mar's Candy asks customers to vote online for a new color for its M&M's candy. c) Burger King reduces the labor costs to produce its sausage-egg biscuits. d) Microsoft offers rewards for users who can find flaws in its new software. e) Saab introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision.
c
81. When Wonder introduced a new bread made with white whole wheat in response to customer demand, it was following which of the following philosophies? a) selling concept b) production concept c) marketing concept d) customer concept e) retailing concept
c
83. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on a) cost-cutting measures. b) continually selling to new customers and markets. c) creating and maintaining satisfying exchange relationships. d) high-volume, low-margin sales. e) increasing shelf space for their brands.
c
89. The equation a buyer applies to assess a product's value is a) value = monetary price - customer benefits. b) value = customer costs - customer benefits. c) value = customer benefits - customer costs. d) value = customer benefits - monetary price. e) value = customer benefits - time and effort.
c
90. Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a) risk. b) time. c) monetary price. d) effort. e) availability.
c
93. Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Taco Bell is doing so is to a) decrease customer benefits. b) increase customer costs. c) increase customer value. d) increase distribution expenses. e) decrease promotion expenses.
c
96. ______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. a) Effectiveness b) Productivity c) Efficiency d) Objectivity e) Cost cutting
c
98. The marketing unit can be organized by ________. a) profitability. b) functions and products only. c) functions, products, regions, types of customers, or a combination of all four. d) geographical regions and best-selling products. e) customer demographics and frequency of purchases.
c
A retailer is an organization that purchases products for the purpose of reselling them to a. other retail organizations. b. the government. c. ultimate consumers. d. wholesalers. e. nonprofit organizations.
c
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a. discount store. b. department store. c. convenience store. d. supermarket. e. category killer.
c
A(n) ___________ is a very large specialty store that competes on the basis of lower prices and enormous product availability. a. warehouse club b. off-price retailer c. category killer d. traditional specialty store e. super center
c
According to the marketing concept, an organization should try to a) consider short-run objectives and cash flow needs before developing new products. b) define its business as "making a product." c) provide products that satisfy customers' needs and allow the organization to achieve its goals.
c
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) a. wholesaler. b. shopping center. c. retailer. d. intermediary. e. producer.
c
Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a) risk b) time c) monetary price d) effort
c
Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike. a)price b) good c) product d) promotion e) distribution
c
Developing the internal structure of a firm's marketing unit relates to which of the following marketing management activities? a) Marketing control b) Implementation c) Organizing d) Planning e) Managing
c
Large, self-service stores that carry a complete line of food products and some nonfood products are called a. discount stores. b. superstores. c. supermarkets. d. department stores. e. warehouse clubs.
c
Making modifications to packaging or brand names involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution
c
Marketing management is defined as a process of a) providing products that satisfy customers' needs through a coordinated set of activities. b) facilitating satisfying exchanges between an organization and its customers. c) planning, organizing, implementing, and controlling marketing activities.
c
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called a. catalog showrooms. b. category killers. c. warehouse showrooms. d. warehouse clubs. e. display outlets.
c
The equation a buyer applies to assess a product's value is a) value = monetary price - customer benefits. b) value = customer costs - customer benefits. c) value = customer benefits - customer costs.
c
The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a) increase market share. b) increase sales. c) achieve the organization's goals. d) produce high-quality products. e) coordinate its activities to increase production.
c
Which of the following is essentially an uncontrollable factor in developing a marketing mix? a) Product adaptations b) Pricing strategies c) Government regulations d) Advertising campaigns e) Retail locations
c
Which of the following is not an example of the implementation of the marketing concept? a) jimmy deans b) mars candy c) burger king d) microsoft e) saab
c
Which of the following statements about marketing environment forces is not correct? A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b) They may influence customers' reactions to a firm's marketing mix. c) They fluctuate slowly and thereby create threats to a firm's marketing mix. d) They can fluctuate quickly and dramatically.
c
______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. a) Effectiveness b) Productivity c) Efficiency d) Objectivity e)Cost cutting
c
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.
c) convenience store.
Walmart and Target are both examples of a) department stores. b) category killers. c) discount stores. d) supermarkets. e) warehouse clubs.
c) discount stores.
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) a) wholesaler. b) shopping center. c) retailer. d) intermediary. e) producer.
c) retailer.
Large, self-service stores that carry a complete line of food products and some nonfood products are called a) discount stores. b) superstores. c) supermarkets. d) department stores. e) warehouse clubs.
c) supermarkets.
A retailer is an organization that purchases products for the purpose of reselling them to a) other retail organizations. b) the government. c) ultimate consumers. d) wholesalers. e) nonprofit organizations.
c) ultimate consumers.
Which factor is least likely to affect pricing decisions? a. Legal and regulatory issues b. Organizational and marketing objectives c. Shifting stock values d. Customers' interpretation and response e. Competitive prices
c. Shifting stock values
Prashant is shopping for a new pair of athletic shoes. Since he is concerned about both the price and the quality aspects of a product, Prashant is most likely a ___ consumer. a. Price-conscious and prestige-sensitive b. Quality-conscious c. Value-conscious d. Price-conscious e. Prestige-sensitive
c. Value-conscious
Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product? a. fixed cost b. marginal revenue c. break-even point d. marginal cost e. demand curve
c. break-even point
The Federal Trade Commission is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of? a. price fixing b. nonprice competition c. deceptive pricing d. price competition e. price discrimination
c. deceptive pricing
Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant? a. marginal analysis b. demand line c. demand curve d. reference price e. break-even point
c. demand curve
Which of the following is NOT one of the factors that influence the assessment of value? a. motivations to use available information about prices b. time constraints c. elasticity of demand d. perceived quality e. price levels
c. elasticity of demand
For custom-made equipment or commercial construction projects, which pricing method is most likely used?
cost plus
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a. comparative pricing strategies. b. supply-based pricing. c. price competition. d. demand-based pricing. e. nonprice competition.
c. price competition.
Price is a key element in the marketing mix because it relates directly to a. the size of the sales force. b. quality controls. c. the generation of total revenue. d. the speed of an exchange. e. brand image.
c. the generation of total revenue.
Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel
captain.
Pricing the basic product in a product line low, while pricing related items at a higher level is called:
captive pricing
When a company that produces computer printers prices them low, but the ink required to operate the printer is priced higher per relative usage, it is using:
captive pricing
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)
catalog marketer.
A(n) ___________ is a very large specialty store that competes on the basis of lower prices and enormous product availability.
category killer traditional specialty
Michael's, PetSmart, and Staples are all examples of
category killers
Michael's, PetsMart, and Staples are all examples of
category killers.
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called
category management.
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called?
categy management
A single leader who controls and organizes a marketing channel is called a
channel captain.
If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result.
channel conflict
Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of
channel conflict caused by inefficient communication between channel members.
When one company in a marketing channel has the ability to influence another member's goal achievement, the company has
channel power.
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?
cost plus
29. The three basic forms that a product can take are a) markets, products, and images. b) goods, ideas, and intangibles. c) brands, services, and tangibles. d) services, ideas, and goods. e) ideas, services, and things.
d
differential pricing
charging different prices to different buyers of the same product aka price discrimination
Hickory Village Shopping Center has two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic. Hickory is a _________ shopping center.
community
In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalks sales and boat shows. This mall is most likely a ______ shopping center.
community
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be
competition
If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using ____ pricing methods?
competition based
ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be a) survival. b) cash flow. c) competition. d) return on investment. e) profit.
competition.
Corporate strategy planners
concerned with broad issues such as organizational culture, competition, differentiation, diversification, interrelationships among business units, and environmental and social issues. They attempt to match the resources of the organization with the opportunities and threats in the environment.
Price and cost are very different when talking about members in the supply chain. With the addition of each intermediary, cost is added to a product, and that cost is passed along to consumers in terms of a higher price. Keystoning is the name for a common pricing practice among retailers. Retailers double the _________ of an item to assign a ________ to the item.
cost; ?
Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ___________ with independent Goodyear dealers.
conflict
When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers.
conflict
Strategic performance evaluation
consists of establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed.
a market segment
consists of individuals, groups, or organizations with one or more similar characteristics that cause them to have relatively similar product needs
Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is
containerization.
Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through
containerization.
In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a (n) ___________ vertical marketing system.
contractual
The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations.
contractual
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a
convenience store
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as
convenience store.
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
convenience stores
The Home Depot is trying to reduce transportation, information management, and admin costs. To accomplish this goal, channel members need to
cooperate and accommodate one another's needs
overall channel goals and individual channel member goals cannot be achieved together without: -conflict -captains -leadership -cooperation -tying agreements
cooperation
42. Which of the following scenarios involves the distribution element of the marketing mix? a) Deciding whether or not a certain product should continue to be sold b) Determining whether an advertising message would be more effective on television or in magazines c) Choosing between a company jet or the airlines for executive travel d) Deciding whether or not to have retail outlets in addition to a website e) Developing a new warranty policy for an existing product
d
47. When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix. a) distribution, promotion b) distribution, product c) product, price d) product, promotion e) promotion, price
d
48. Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables? a) Product b) Price c) Distribution d) Competition e) Promotion
d
49. The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange? a) Activities that are performed primarily by producers and manufacturers b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements c) Transfer of products in return for monetary considerations d) Provision or transfer of goods, services, or ideas in return for something of value e) Transfer of products that takes place only between for-profit organizations
d
61. The marketing environment is best described as being a) composed of controllable variables. b) composed of variables independent of one another. c) an indirect influence on the performance of marketing activities. d) dynamic and changing. e) slow, with infrequent fluctuations.
d
69. When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies? a) Selling concept b) Production concept c) Customer concept d) Marketing concept e) Retailing concept
d
73. During the Industrial Revolution demand for manufactured goods was a) weak. b) nonexistent. c) declining. d) strong. e) mediocre.
d
74. From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation. a) production b) market c) revolutionary d) sales e) reduction
d
85. Customer relationship management (CRM) begins its focus on customers with a) communication. b) product. c) distribution. d) information. e) promotion.
d
91. Which of the following would not be a customer cost considered in determination of product value? a) Product's purchase price b) Time spent purchasing the product c) Effort spent purchasing the product d) Benefits received in the exchange for the products e) Risk of purchasing the product
d
A ___________ is a retail establishment that combines a supermarket and a discount store in one location. a. superstore b. department store c. category killer d. hypermarket e. megamarket
d
A narrow product mix with a deep product line would most likely be carried by a. mass merchandisers. b. supermarkets. c. discount stores. d. specialty retailers. e. warehouse showrooms.
d
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred. a. superstores b. supermarkets c. specialty stores d. department stores e. category killers
d
Customer relationship management (CRM) begins its focus on customers with a) communication. b) product. c) distribution. d) information. e) promotion.
d
Direct selling, direct marketing, and vending machines are all examples of a. producing. b. advertising. c. promoting. d. retailing. e. wholesaling.
d
During the Industrial Revolution demand for manufactured goods was a)weak. b) nonexistent. c) declining. d) strong.
d
From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation. a)production b) marketing c) revolutionary d) sales e)reduction
d
In contrast to industrial products, consumer products are often purchased because of a. economic planning. b. necessity. c. prior planning. d. social influences. e. rational needs.
d
In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a)$1.70 b) $3.40 c) $5.10 d) $7.50 e)$12.75
d
Location is important to a retailer because a. suppliers charge more to service stores in certain trading areas. b. a desirable location appeals to consumers' emotions. c. location is the major determinant of store image. d. location determines the trading area from which the store must draw its customers. e. convenient location is an essential customer service element.
d
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as a. neighborhood shopping centers. b. community shopping centers. c. traditional shopping centers. d. traditional business districts. e. free-standing structures.
d
Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables? a) Product b) Price c) Distribution d) Competition e) Promotion
d
Marketing managers strive to develop a marketing mix that A) minimizes marketing costs. b) matches what competitors are offering. c) best matches the abilities of the firm. d) matches the needs of the target market. e) generates the highest level sales.
d
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store. a. department b. catalog c. discount d. traditional specialty e. convenience
d
Specialty stores offer ______ than department stores. a. greater varieties of product lines and higher prices b. lower prices and higher quality c. more product depth and less customer service d. more sales expertise and better selections e. more frequent price discounts and less selection
d
The Internet has been used as a search engine to find information about a marketer's product or service by about ____ percent of adults in the U.S. a) 65 b) 78 c) 82 d) 91 e) 99
d
The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange? a) Activities that are performed primarily by producers and manufacturers b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements c) Transfer of products in return for monetary considerations d) Provision or transfer of goods, services, or ideas in return for something of value
d
The marketing environment is best described as being a) composed of controllable variables. b) composed of variables independent of one another. c) an indirect influence on the performance of marketing activities. d) dynamic and changing. e) slow, with infrequent fluctuations.
d
The three basic forms that a product can take are a) markets, products, and images. b) goods, ideas, and intangibles. c) brands, services, and tangibles. d)services, ideas, and goods. e)ideas, services, and things.
d
What is the primary distinction between superstores and hypermarkets? a. Superstores offer a wider variety of products than hypermarkets. b. Superstores offer low prices while hypermarkets have moderate to high prices. c. Hypermarkets have fewer departments but deeper product lines than superstores. d. Hypermarkets are larger and have more types of products than superstores. e. These two types of retailers carry very different types of products.
d
What type of retailers are the primary competitors for specialty retailers? a. Discount stores b. Category killers c. Catalog marketers d. Department stores e. Superstores
d
When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix. a) distribution; promotion b) distribution; product c) product; price d) product; promotion e) promotion; price
d
Which of the following is most likely to be an idea marketer? a) Car salesperson b) Airline pilot c) Attorney d) Abuse counselor
d
Which of the following scenarios involves the distribution element of the marketing mix? a) Deciding whether or not a certain product should continue to be sold b) Determining whether an advertising message would be more effective on television or in magazines c) Choosing between a company jet or the airlines for executive travel d) Deciding whether or not to have retail outlets in addition to a website e) Developing a new warranty policy for an existing product
d
Which of the following would not be a customer cost considered in determination of product value? a) Product's purchase price b) Time spent purchasing the product c) Effort spent purchasing the product d) Benefits received in the exchange for the products
d
What is the primary distinction between superstores and hypermarkets? a) Superstores offer a wider variety of products than hypermarkets. b) Superstores offer low prices while hypermarkets have moderate to high prices. c) Hypermarkets have fewer departments but deeper product lines than superstores. d) Hypermarkets are larger and have more types of products than superstores. e) These two types of retailers carry very different types of products.
d) Hypermarkets are larger and have more types of products than superstores.
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred. a) superstores b) supermarkets c) specialty stores d) department stores e) category killers
d) department stores
Direct selling, direct marketing, and vending machines are all examples of a) producing. b) advertising. c) promoting. d) retailing. e) wholesaling.
d) retailing.
Kroger, Safeway, and Publix are all considered a) superstores. b) groceries. c) department stores. d) supermarkets. e) food stores.
d) supermarkets.
A general-merchandise retailer offers a. few choices of a large variety of product lines. b. few product lines with deep assortments of these lines. c. products through the Internet and catalogs only. d. a variety of product lines that are stocked in depth. e. a single product line that is stocked in depth.
d. a variety of product lines that are stocked in depth.
Which of the following is a major advantage of nonprice competition? a. building market share b. fostering a price-conscious mindset c. fostering a value-conscious mindset d. building customer loyalty toward the brand e. exceeding the breakeven point
d. building customer loyalty toward the brand
A business's rental of production space is an example of a _____. a. marginal cost b. total cost c. break-even point d. fixed cost e. variable cost
d. fixed cost
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount. a. trade b. seasonal c. cash d. quantity e. complementary
d. quantity
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a. demand remains constant. b. quantity demanded increases. c. breakeven increases. d. quantity demanded goes down. e. demand increases.
d. quantity demanded goes down.
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit a) freezing prices. b) independent pricing policies. c) deceptive pricing. d) price fixing. e) price differentials.
deceptive pricing.
The main objective of physical distribution should be to
decrease costs while increasing service.
Off-price retailers feature
deep discounts, few customer services, and central checkouts.
If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used
demand based
During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of:
demand based pricing
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
demand curve
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a:
demand curve
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
demand curve.
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a a) price graph. b) supply curve. c) price/quantity graph. d) marginal revenue curve. e) demand curve.
demand curve.
The three primary bases for developing prices are:
demand, competition, and cost
The three primary bases for developing prices are
demand, competition, and cost.
measurable
demographic/psychographic data
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n)
department store.
As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.
department stores
When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ________ builds.
department stores
Nordstrom's, Macy's, and JC Penney's are all considered
department stores.
second stage in market selection process
determine which segmentation variables to use
Corporate strategy definition
determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development (R&D), and human resources to achieve the organization's goals.
third stage in market selection process
develop market segment profiles
When establishing prices, a marketer's first step is to:
develop pricing objectives
Market-growth/market-share matrix
developed by the Boston Consulting Group (BCG), is based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy. (1) All the organization's SBUs and products are integrated into a single matrix and compared and evaluated to determine appropriate strategies for individual products and overall portfolio strategies. (2) Managers use this model to determine and classify each product's expected future cash contributions and future cash requirements. (3) The BCG analytical approach is more of a diagnostic tool than a guide for making strategy prescriptions. (4) This model classifies an organization's products into four basic types
the depth of a product mix is measured by the average number of
different products offered in each product line
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing
differential
The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called
direct marketing
The three major types of nonstore retailing are
direct marketing, direct selling, and automatic vending
The three major types of nonstore retailing are
direct marketing, direct selling, and automatic vending.
the three major types of nonvoter retailing are
direct marketing, direct selling, and automatic vending.
The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called
direct marketing.
All of the following are types of direct marketing except
direct selling
All of the following are types of direct marketing except
direct selling.
The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called
direct selling.
Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and internet sales. This channel would be classified as
direct-marketing
Customers who purchase computer laptops from manufacturer websites are acquiring products through
direct-marketing channel.
Many producers selling on the Internet are using
direct-marketing channels
Many producers selling on the Internet are using
direct-marketing channels.
Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as
direct-marketing.
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products?
direct-response marketing
In the Sunday paper, Caitlin sees a flyer for a collector's edition Thomas Kinkade plate that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of
direct-response marketing.
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using
direct-response marketing.
A channel of distribution is defined as a group of individuals and organizations that
directs the flow of products from producers to customers.
A channel of distribution is defined as a group of individuals and organizations that consumes about one-half of every dollar spent on products in the United States. directs the flow of products from producers to customers. links producers to other marketing intermediaries. takes title to products and resells them. manages transportation and warehousing functions.
directs the flow of products from producers to customers.
Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an example of a(an)_
discount store
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a
discount store.
Self-service, general merchandise stores such as Kmart are known as
discount stores
Wal-Mart and Target are both examples of
discount stores.
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
discout stores
Dual distribution is characterized as
distribution of one manufacturer's product through two or more different channel structures.
For most firms in the United States, demand curves are
downward sloping
For most firms in the United States, demand curves are
downward sloping.
For most firms in the United States, demand curves are a) upward sloping. b) completely horizontal. c) completely vertical. d) c-shaped. e) downward sloping.
downward sloping.
Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy.
dual distribution
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
dual distribution.
Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called
dual distribution.
108. Marketing activities a) are aimed at persuading customers through advertising. b) involve mainly distribution and promotion decisions. c) and selling activities are basically the same. d) are important only when a firm is developing new products or entering new markets. e) help sell an organization's products and generate financial resources for the firm.
e
110. The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to a) raise prices in order to increase their profits so that they can contribute to philanthropic causes. b) reduce the quality of their products in order to save money and provide less expensive products to their consumers. c) reduce their profits by donating more time and money to improve social welfare and environmental conditions. d) enact laws requiring companies to work toward the welfare of customers and society. e) create a responsible approach to developing long-term relationships with customers and society.
e
17. The focal point of all marketing activities is a) products. b) the marketing mix. c) profits. d) sales. e) customers.
e
18. Organizations should define themselves not according to the products they produce but according to a) how profitable they are. b) the price of their stock. c) the abundance of their product selection. d) how they treat employees. e) how they satisfy customers.
e
31. The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a) issue. b) experience. c) idea. d) good. e) service.
e
34. The Church of the Latter Day Saints has used advertising for many years to market its a) goods. b) services. c) experiences. d) production. e) ideas.
e
37. Making modifications to packaging or brand names involves the _____ component of the marketing mix. a) price b) promotion c) market d) distribution e) product
e
43. The element of the marketing mix used to increase awareness of a product or company is a) communication. b) product. c) price. d) distribution. e) promotion.
e
51. Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here? a) Production conception b) Satisfaction of organizational goals c) Distribution of ideas d) Product planning e) Exchange
e
52. Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a) Profits for the seller b) A good bargain on the product for the buyer c) Reducing the seller's inventory d) One party having to compromise in the exchange e) Satisfaction for both the buyer and seller
e
56. Which of the following best characterizes the forces of the marketing environment? a) The forces are relatively stable over time and are interrelated with one another. b) There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. c) The various forces ensure that the marketing environment will remain fairly certain in the future. d) These forces change dramatically over time, but a change in one force is unlikely to impact another force. e) The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
e
65. The marketing concept focuses on a) achieving the goals of top executives. b) creating maximum visibility for the firm. c) maximizing sales. d) maximizing market share. e) satisfying customers' needs in a way that helps to achieve organizational objectives.
e
Marketing activities a) are aimed at persuading customers through advertising. b) involve mainly distribution and promotion decisions. c) and selling activities are basically the same. d) are important only when a firm is developing new products or entering new markets. e) help sell an organization's products and generate financial resources for the firm.
e
Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a) Profits for the seller b) A good bargain on the product for the buyer c) Reducing the seller's inventory d) One party having to compromise in the exchange e) Satisfaction for both the buyer and seller
e
Retailers that sell only to members and feature discount retailing combined with cash-and carry wholesaling are called a. hypermarkets. b. retail groups. c. warehouse showrooms. d. discount stores. e. warehouse clubs.
e
The Church of the Latter Day Saints has used advertising for many years to market its a)goods. b)services. c)experiences. d)production. e)ideas.
e
The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a)issue. b) experience. c)idea. d) good. e) service.
e
The element of the marketing mix used to increase awareness of a product or company is a)communication. b)product. c) price. d) distribution. e) promotion.
e
The marketing concept focuses on a) achieving the goals of top executives. b) creating maximum visibility for the firm. c) maximizing sales. d) maximizing market share. e) satisfying customers' needs in a way that helps to achieve organizational objectives.
e
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a)communication. b)product. c) price. d) distribution. e) promotion.
e
Which of the following best characterizes the forces of the marketing environment? a)The forces are relatively stable over time and are interrelated with one another. b)There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. c)The various forces ensure that the marketing environment will remain fairly certain in the future. d)These forces change dramatically over time, but a change in one force is unlikely to impact another force. e)The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.
e
Which of the following is an example of a category killer? a. Sears b. Kmart c. Marshalls d. Lady Foot Locker e. Toys "R" Us
e
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a. Department stores b. Traditional specialty retailers c. Warehouse showrooms d. Direct marketers e. Discount stores
e
________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a) Marketing orientation b) Monetary price c) Product assessment d) Price assessment e) Value
e
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a) Department stores b) Traditional specialty retailers c) Warehouse showrooms d) Direct marketers e) Discount stores
e) Discount stores
A large retailer selling food and most routinely purchased consumer products is a a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore
e) Superstore
A general merchandise retailer offers a) a single product line that is stocked in depth. b) few product lines with deep assortments of these lines. c) few choices of a large variety of product lines. d) products through the Internet and catalogs only. e) a variety of product lines that are stocked in depth.
e) a variety of product lines that are stocked in depth.
Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of a) manufacturers. b) merchant wholesalers. c) end-users. d) agents. e) retailers.
e) retailers.
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n) a) convenience store. b) off-price retailer. c) specialty store. d) franchiser. e) supermarket.
e) supermarket.
Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called a) hypermarkets. b) retail groups. c) warehouse showrooms. d) discount stores. e) warehouse clubs.
e) warehouse clubs.
Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result? a. a decrease in product inventory b. an increase in market share c. a decrease in market share d. a decrease in total revenue e. an increase in total revenue
e. an increase in total revenue
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a. easier to change than promotion. b. impossible to change. c. short-term commitments. d. easier to change than prices. e. long-term commitments.
e. long-term commitments.
Category killers compete primarily on the basis of a. enormous product selection and sales expertise. b. rock-bottom prices and moderate selections. c. convenient locations and customer services. d. one-stop shopping and product availability. e. low prices and enormous product availability.
e. low prices and enormous product availability.
Which of the following pass on to a business customer the cost savings gained through economies of scale a. allowances b. cash discounts c. trade discounts d. seasonal discounts e. quantity discounts
e. quantity discounts
Since North Face has decided to use nonprice competition, it distinguishes its brand through all but which of the following? a. distinctive product features. b. product quality and style. c. variety and selection. d. exceptional service. e. rebates.
e. rebates.
Price is a. of limited interest to sellers. b. money paid in a transaction. c. the most inflexible marketing mix decision variable. d. not important to buyers. e. the value that is exchanged for products in a marketing transaction.
e. the value that is exchanged for products in a marketing transaction.
Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following? a. utility-sensitive b. prestige-sensitive c. price-obsessed d. price-conscious e. value-conscious
e. value-conscious
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n): a. Shopping Center b. Wholesaler c. Producer d. Intermediary e. Retailer
e. Retailer
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be:
elastic
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be
elastic
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.
elastic.
a commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is: -web-based inventory management -just-in-time -electronic data interchange -universal product codes -activity based management
electronic data interchange
A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange.
price competition
emphasizing low price, and competing on that basis
substantial
enough people with money
fourth stage in market selection process
evaluate relevant market segments
marginal analysis
examining the effect on revenues and costs of producing and selling one additional unit
When only one outlet in a relatively large geographic area is used to distribute a product that is consumed over a long period of time, a(n) ___________ channel arrangement is developed.
exclusive
honey farms is a maker of fine chocolates. the company's latest product, fudge-dipped strawberries, is the premier product in its fudge-dipped line. the product is very expensive and targeted to upscale consumers. which form of distribution would honey farms be likely to use for its new product: -intensive -selective -targeted -exclusive -premier
exclusive
An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called
exclusive dealing.
Location is important to a retailer because
location determines the trading area from which the store must draw its customers.
Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called
exclusive dealing.
Expensive, high-quality products that are purchased infrequently often reach consumers through
exclusive distribution.
The major levels of intensity at which a company can choose to distribute its products are ____ distribution.
exclusive, selective, and intensive
The three major levels of intensity at which a company can choose to distribute its products are _____ distribution.
exclusive, selective, and intensive
If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be
exercising channel power.
Organizational buyers are especially partial to direct marketing channels when
expensive and/or complete equipment is involved.
Organizational buyers are especially partial to direct marketing channels when
expensive and/or complex equipment is involved.
___ is not a stage in the buyer's product adoption process
exploration
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on
external reference price
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on
external reference prices.
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on a) internal reference prices. b) symbol prices. c) high value products. d) discounted reference prices. e) external reference prices.
external reference prices.
By locating in the same general vicinity as other car dealerships, Hartfield Honda can
facilitate comparison shopping.
Costs that do not vary with changes in the number of units produced and sold are called ____ costs.
fixed
Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set
fixed
By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to
focus on producing products that meet consumers' needs
how do distributors add value, or utility?
form, time, place, ownership, information, and service
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is
franchising
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____________ site for his retail business.
free-standing
Supplier ABC requires all its channel members to purchase all of its products in order to be able to purchase any of its products. This is an example of
full-line forcing
If a retailer needed help with store design and training sales personnel, it would most likely use the services of a
full-service wholesaler
A marketer sometimes uses temporary price reductions to a) increase the number of competitors. b) gain market share. c) decrease volume sold. d) increase revenue per item. e) control demand.
gain market share.
Supermarkets, discount stores, and hypermarkets can all be classified as
general merchandise retailers.
A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a
general merchandise wholesaler
Which of the following is a full-service merchant wholesaler?
general merchandise wholesaler
Price is a key element in the marketing mix because it relates directly to
generation of total revenue
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as
geographic pricing.
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as a) base-point pricing. b) freight absorption pricing. c) price zoning. d) location pricing. e) geographic pricing.
geographic pricing.
inferior goods
goods with negative income elasticity
normal goods
goods with positive income elasticity
aggressive pricing is typical during the ___ stage of the product life cycle
growth
Strategic planning
helps a firm establish an organizational mission and formulate goals; corporate strategy, marketing objectives, and marketing strategy
At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service.
higher warehousing costs
to expand the number of its retail outlets in the washington dc area, whole foods bought out a small chain of organic food stores in northern virginia. this type of integration is called: -vertical -retail -horizontal -backward -forward
horizontal
To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called
horizontal.
A ___________ is a retail establishment that combines a supermarket and a discount store in one location.
hypermarket
After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a
hypermarket.
How do companies usually express volume goals?
in terms of market share, the percentage of a market controlled by a company or a product
independent wholesaling businesses
independent distributors that buy products from a range of different businesses and sell those products to a range of different customers
agents/brokers
independent distributors who do not take title of the goods they distribute. Even though they may take physical possession on a temporary basis before distribution
merchant wholesalers
independent distributors who take legal possession, or title, of the goods they distribute
Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel.
industrial distributor
An independent business that takes title to products and carries inventories is a(n)
industrial distributor.
If Pacific Power and Light increased its rates by 10 percent and the demand for power remained the same, the demand would be:
inelastic
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be
inelastic.
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.
inelastic.
Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.
intensive
When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution.
intensive
What are the three key strategic options for a distribution strategy?
intensive, selective, and exclusive
Candy bars and chewing gum are most likely to be distributed through _____ and _____.
intensive; dual distribution
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price.
A price developed in the consumer's mind through experience with the product is called a(n) a) external reference price. b) value-price guideline. c) frame of reference. d) internalized price. e) internal reference price.
internal reference price.
What a price means or what it communicates to customers is called
interpretation.
Market
is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products. The percentage of a market which actually buys a specific product from a particular company is referred to as that product's (or business unit's) market share.
Vertical channel integration
is made possible by purchasing the operations of a link in the channel.
SWOT analysis
is one tool marketers use to assess an organization's strengths, weaknesses, opportunities, and threats
market segmentation
is the process of dividing a total market into homogeneous subgroups, or segments, consisting of people or organizations with relatively similar product needs
marketing strategy
is the selection of a target market and the creation of a marketing mix that will satisfy the needs of target market members.
When an organization matches internal strengths to external opportunities
it creates competitive advantages in meeting the needs of its customers. Companies should attempt to convert internal weaknesses into strengths and external threats into opportunities.
The primary advantage of automatic vending as a form of retailing is that
it eliminates the need for sales personnel.
A product under nonprice competition would most likely not succeed in the market if
it is easy to duplicate.
A product under nonprice competition would most likely not succeed in the market if a) a new advertising campaign is established for it. b) it is easy to duplicate. c) it is packaged differently from similar products. d) it is priced near the competitors' price. e) its quality has been upgraded.
it is easy to duplicate.
A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called
just-in-time (JIT).
Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel.
leadership
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n)
lifestyle shopping center.
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a ?
lifestyle stopping center
the width of a product mix is measured by the number of product
lines a company offers
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
link producers to other middlemen or to consumers
Most marketing channels have marketing intermediaries. A marketing intermediary's role is to link wholesalers to other wholesalers. link producers to other middlemen or to consumers. always sell products to wholesalers. not take title to products. always sell products to retailers.
link producers to other middlemen or to consumers.
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are long-term commitments. short-term commitments. easier to change than prices. easier to change than promotion. impossible to change.
long-term commitments.
The result of an inventory stockout is usually an increase in
lost sales.
Category killers compete primarily on the basis of
low prices and enormous product availability.
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer.
lower costs for the company and lower prices
To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer. a) higher costs for the company and higher prices b) higher costs for the company and lower prices c) lower costs for the company and lower prices d) lower costs for the company and higher prices e) no change in the costs for either the company or
lower costs for the company and lower prices
Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from
mail-order wholesalers
Immediately after the breakeven point, a firm starts to
make profits
Immediately after the breakeven point, a firm starts to
make profits.
An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)
manufacturers' agent.
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called
manufacturers' agents
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost.
marginal
Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable
marginal
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where
marginal revenue equals marginal cost.
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where a) total costs and total revenues are equal. b) marginal revenue is at its highest level. c) marginal revenue exceeds marginal cost. d) marginal revenue equals marginal cost. e) demand is most elastic.
marginal revenue equals marginal cost.
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.
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 a) average revenue. b) marginal revenue. c) price elasticity. d) average variable revenue. e) average total cost.
marginal revenue.
lifestyles
marketers segment markets according to how individuals choose to spend their time in various activities, their income, their interests and opinions
motives
marketers use individuals' differeing purchase motives to segment a product market
A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a
marketing channel
What links producers to consumers through the purchase and reselling of products or contractual agreements?
marketing intermediaries
geodemographic segmentation
marketing segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information (PRIZM and MicroVision)
mass marketers rarely practice mass marketing
mass marketers do target almost everyone, but they do not do it with one marketing mix they develop unique marketing mixes and strategies for each major target market
mass marketers do not often practice
mass marketing today, they practice differentiated marketing, they might slightly change the product to appeal to different segments ( they change price, place, and promotion)
A firm might temporarily sell products below their cost in order to
match competition or generate cash flow.
Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is
materials handling.
When considering the best channel to use, all of the following are true with regard to larger firms except they
may be better suited to serve customers in a particular region.
Freight transportation companies that offer several different shipment methods are called
megacarriers.
Question The selling of merchandise outside the confines of actual facilities is generally called
nonstore retailing.
Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?
merchant wholesaler
What two categories do independent wholesaling businesses fall in?
merchant wholesalers and agents/brokers
Specialty stores offer ______ than department stores.
more sales expertise and better selections
Many producers sell their goods through ____ ___
multiple channels
select the right position
must be valued by the target market, distinctive-something competitors do not have, superior/preemptive-something competitors cannot replicate easily, communicable- must be visible or able to convey
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing:
non price competition
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
non-price competition
Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ____ retailers.
non-store
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is
noncumulative.
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is a) cash. b) noncumulative. c) seasonal. d) trade. e) cumulative.
noncumulative.
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
nonprice competition.
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing a) product competition. b) nonprice competition. c) brand differentiation. d) price competition. e) competitor differentiation.
nonprice competition.
Direct marketing, direct selling, and automatic vending are all examples of _________ retailing.
nonstore
Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.
nonstore
By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on
order entry.
A manufacturer's outlet mall is classified as?
off-price retailer
A manufacturers' outlet mall is most appropriately classified as a(n)
off-price retailer.
Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
Strategic planning @ corporate
often begins at the corporate level and proceeds downward to the business-unit and marketing levels However, organizations are increasingly developing strategies and conducting strategic planning that moves in both directions to seek expertise from multiple levels.
how many mm for mass marketing
one mm for all
how many mm for segment marketing
one or more mm targeted to one or more segments
how many mm for niche marketing
one or more mm targeted to one or more sub-segments
how many mm for micro marketing
one or more mm targeted to specific individuals or communities
What are the key players of nonstore retailers
online retailing, direct-respone retailing, direct selling, and vending
Brad accesses Borders Books and Prints' site on the World Wide Web and purchases a copy of a new best seller. This is an example of
online retailing.
Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about
order delivery.
A shopping center that contains stores owned by manufactures who make a special effort not to conflict with tradiitional retailers and consumers will drive a significan distance to save money to go to it is a?
outlet shopping center
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)
outlet shopping center.
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)
outlet shoppping center
Shopping centers include
outlet, power, lifestyle, superregional, regional, neighborhood, and community.
As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using _____ for physical distribution for her business.
outsourcing
If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using
outsourcing.
The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as
outsourcing.
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use:
penetration pricing
Marketers have no flexibility in setting prices under conditions of
perfect competition.
Marketers have no flexibility in setting prices under conditions of a) a monopoly. b) an oligopoly. c) perfect competition. d) monopolistic competition. e) no competition.
perfect competition.
A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time
periodic discounting
Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define
physical distribution.
Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be
pipelines.
Marketing channels create three types of utility for consumers including
place, time, and possession
Marketing channels create three types of utility for consumers including
place, time, and possession.
product positioning
placing the product in the mind of the consumer
supply chain management
planning and coordinating the movement of products along the supply chain, from the raw materials to the final consumers
differentiation
positioning on physical characteristics; pertains to objective aspects of the product
The types of prices that appear least often in ads are ___________ prices.
premium
The types of prices that appear least often in ads are ___________ prices. a) reference b) discount c) premium d) comparison e) sale
premium
A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using:
premium pricing
Breyer's produces a variety of ice cream flavors and of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using ____ to price its ice cream.
premium pricing
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product.
prestige
To determine the breakeven point in units, divide the fixed costs by a) total costs. b) variable costs time price. c) price minus variable costs. d) price per unit. e) total revenue minus fixed costs.
price minus variable costs.
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product. a) reverse-demand b) inferior c) standard d) secondary-demand e) prestige
prestige
French Quarter Inns reduces the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded by an average of five per night. This is an indication that suites at this hotel are an example of a(n) ____ product
prestige
A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product."
prestige-sensitive
A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product." a) price-conscious b) quality-conscious c) value-conscious d) socially conscious e) prestige-sensitive
prestige-sensitive
Buyers who focus on purchasing products that signify prominence and status are
prestige-sensitive buyers.
Buyers who focus on purchasing products that signify prominence and status are a) value-conscious consumers. b) price-conscious consumers. c) socially elite buyers. d) prestige-sensitive buyers. e) brand aware consumers.
prestige-sensitive buyers.
Most flexible variable in the marketing mix
price
The tuition and fees each student paid for this semester of college are both terms for
price
For most consumers, there is an assumed relationship between
price and quality.
For most consumers, there is an assumed relationship between a) price and quality. b) value and cost. c) internal and external reference prices. d) value and price consciousness. e) prestige prices and value.
price and quality.
When marketers emphasize price as an issue and match or beat the prices of other companies, they are engaging in:
price competition
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
price competition
Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a) non-price competition. b) demand-based pricing. c) prestige pricing. d) price differentiation. e) price competition.
price competition.
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
price competition.
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a) price competition. b) nonprice competition. c) comparative pricing strategies. d) demand-based pricing. e) supply-based pricing.
price competition.
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing
price discrimination.
If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing a) price discrimination. b) price-consciousness. c) functional discounting. d) price competition. e) price fixing.
price discrimination.
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand.
A measure of sensitivity of demand in relation to changes in price is a) a demand curve. b) a prestige graph. c) marginal analysis. d) price elasticity of demand. e) quantity elasticity.
price elasticity of demand.
Dividing the percentage change in quantity demanded by the percentage change in price gives the
price elasticity of demand.
Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.
price elasticity of demand.
To attract customers into a store, Safeway advertises its milk at a lower cost, hoping that customers will purchase other groceries as well. This pricing strategy is called:
price leader pricing
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called
price leader pricing
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as:
price lining
To determine the break-even point in units, divide the fixed costs by:
price minus variable costs
To determine the breakeven point in units, divide the fixed costs by
price minus variable costs
To determine the breakeven point in units, divide the fixed costs by
price minus variable costs.
After direct-marketing, the next slightly longer marketing channel adds a(n)
retailer.
The newest version of a product like Bose headphones, which sell for $118, is likely to use _____, while the new version of Red Bull, which sells for $2.95, is likely to use _____ .
price skimming; penetration pricing
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a _______ that will be harmful to both companies
price war
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies.
price war
A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies. a) reduction in cost b) price war c) competitive draw d) industry collapse e) advertising battle
price war
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as:
price-skimming
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of
price.
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a) service. b) market share. c) price. d) selection. e) packaging.
price.
The tuition and fees each student paid for this semester of college are both terms for a) expenses. b) charges. c) bills. d) price. e) exchange valuations.
price.
price lining
pricing a line of similar goods at certain predetermined prices, with clear price breaks
price leader
pricing a product at or even below cost in order to build traffic
captive pricing
pricing an additional product relatively low, when other products must be purchased. ex: printers and ink or razors and blades
transfer pricing
pricing of products which are sold within the firm
Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a
private warehouse.
When companies operate their own facilities for storing and shipping products, these facilities are known
private warehouses.
Steelcase, Inc. markets furniture directly to businesses. This is an example of a ___ channel.
producer-to-business buyer
Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n)_________ channel.
producer-to-business buyer
Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by
producers.
national firms may target regionally
product may mean different things in different parts of the country (McDonald's) coke or pop or soda and is it a breakfast drink
The pricing of Clinique makeup, considerably higher than brands such as Cover Girl, Revlon, and Maybelline, is most likely used to communicate ____
product quality
The perception of price depends on a
product's actual price and consumers' expectations regarding price.
The perception of price depends on a a) product's actual price and consumers' expectations regarding price. b) consumer's analysis of competitive prices. c) consumer's reference price. d) consumer's expectation of price. e) product's actual price in comparison with the manufacturer's suggested price.
product's actual price and consumers' expectations regarding price.
identifying the brand's strong points in relation to the competition
product, service, image, place, and personnel differentiation
differentiation variables
products (features, performance, durability, reliability, serviceability)
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
retailer.
consumers receive the benefits of place utility when: -they have to travel excessively to obtain products they want -retailers remain open 24 hours a day -they can stock up on products they need but not use them right away -they make purchases with credit and debit cards -products are available in locations where consumers want to buy them
products are available in locations where consumers want to buy them
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
Without wholesalers and other intermediaries,
products would likely be more expensive due to the use of less efficient channel members.
Without wholesalers and other intermediaries,
products would likely be more expensive due to the use of less efficient channel members
Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective
profit
Price leaders, comparison discounting, and special-event pricing are examples of:
promotional pricing
Limited service merchant wholesalers
provide fewer services to their customers. Some might warehouse products but not deliver them.
What does form utility do?
provides customer satisfaction by converting inputs into finished products. It's primarily a part of manufacturing
Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air- Tech will probably need to add a ___________ to its distribution network.
public warehouse
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount
quantity
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.
quantity
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount.
quantity
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
quantity
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the:
quantity demanded goes down
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down.
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a) quantity demanded goes down. b) demand remains constant. c) quantity demanded increases. d) demand increases. e) breakeven increases.
quantity demanded goes down.
Temporary price reductions through sales, rebates, and special discounts are often used to a) raise cash quickly. b) decrease costs. c) increase profitability. d) run off the competition. e) create a value image.
raise cash quickly.
accessible
reachable (language barriers, etc.)
Since North Face has decided to use nonprice competition, it distinguishes its brand through all but which of the following? a. product quality and style. b. rebates. c. variety and selection. d. exceptional service. e. distinctive product features.
rebates
What's one core role of the distributors?
reduce the number of transactions, and the associated costs, for goods to flow from producers to consumers
By merchant wholesalers taking legal title to the goods they distribute, they do what?
reduce the risk of producers' products being damaged or stolen, or even that they won't sell. Taking title also allows them to develop their own marketing strategies, including pricing
Using a freight forwarder usually
reduces transit time.
Strengths
refer to competitive advantages or core competencies that give the organization an advantage in meeting the needs of its target markets.
Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called:
reference pricing
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levi's, priced at $39.99. Which of the following strategies is the manager attempting to accomplish?
reference pricing strategy
A shopping center containg a macy's, marshal fields, jc penneys as well as dozens of specialty shops, restaurants and entertainment is most likely a ?
regional shopping center
A shopping center containing a Macy's, Sears, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a
regional shopping center
A shopping center containing a Macy's, Marshall Fields, and JC Penney's as well as dozens of specialty shops, restaurants, and entertainment is most likely a
regional shopping center.
Dawn is concerned that there are not enough avid quilters in Centerville to support her Quilts Unlimited store. Her business adviser suggests that she not limit her promotion to the Centerville population but also consider outshoppers. This approach is most likely to work if her store is located in a
regional shopping center.
The elimination of marketing intermediaries
requires that the services they provide be performed by someone else in the marketing channel.
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their
response.
The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their a) response. b) reference. c) interpretation. d) price satisfaction. e) price-consciousness.
response.
Identifying an dunserved or underserved market segment and serving it through a strategy that is distinguishe din the mind of the consumer is called
retail positioning
Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___________ to support his request for a loan to start such a retail operation.
retail positioning
Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?
retail positioning
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called
retail positioning.
After direct-marketing, the next slightly longer marketing channel adds a
retailer
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n):
retailer
Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)
retailer
When Sophie buys organic produce for her household using a channel with one intermediary, that intermediary is classified as a
retailer
when sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a: -retailer -wholesaler -broker -functional middleman -producer
retailer
during the decline stage of the product life cycle
sales rapidly decrease
What does place utility do?
satisfies customer needs by providing the right products in the right place
The addition of unrelated products to a stores product mix, is which type of retail strategy?
scrambled merchandising
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of:
secondary market pricing
fifth stage in market selection process
select specific target markets
In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products.
selective
Durable goods such as television sets and DVD players generally reach their target markets through
selective distribution.
Using only some of the available outlets to distribute a product is called
selective distribution.
Premium-priced products are usually marketed through
selective or exclusive distribution.
Premium-priced products are usually marketed through a) complex marketing channels. b) intensive or selective distribution. c) exclusive or intensive distribution. d) exclusive distribution only. e) selective or exclusive distribution.
selective or exclusive distribution.
penetration pricing
setting a very low price for new product
The ___________ prohibits price fixing among firms in an industry.
sherman antitrust act
Which factor is least likely to affect pricing decisions?
shifting stock values
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
shopping
fragile products that require special handling are more likely to be distributed through: -longer channels -shorter channels -direct channels -strategic alliances -exclusive outlets
shorter channels
Fragile products that require special handling are more likely to be distributed through
shorter channels.
Corporate strategy
should be developed with the organization's overall mission in mind, business-unit strategy should be consistent with corporate strategy, and marketing strategy should be consistent with both.
Both strengths and weaknesses
should be examined from a customer perspective.
How many differences to promote
single benefit positioning usually best (best quality, lowest price, best value, and most reliable), easy to promote and remember, helps to gain positioning intensity
In contrast to industrial products, consumer products are often purchased because of
social influences
In contrast to industrial products, consumer products are often purchased because of
social influences.
During the maturity stage
some competitors are forced out
A Narrow product mix with a deep proudct line would most likely be carried by?
speciality retailers
Off-price retailers and category killers are both?
speciality retailers
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)
specialty retailer.
Off-price retailers and category killers are both
specialty retailers
A narrow product mix with a deep product line would most likely be carried by
specialty retailers.
Off-price retailers and category killers are both
specialty retailers.
marketing objective
states what is to be accomplished through marketing activities. a. Objectives can be given in terms of product introduction, product improvement or innovation, sales volume, profitability, market share, pricing, distribution, advertising, or employee training activities. b. Objectives should be based on a careful study of the SWOT analysis, matching strengths to opportunities, eliminating weaknesses, and minimizing threats. c. Marketing objectives should: (1) Be expressed in clear, simple terms (2) Be measurable (3) Specify a time frame for its accomplishment (4) Be consistent with both business-unit and corporate strategies (5) Be achievable and use company resources effectively, and successful accomplishment should contribute to the overall corporate strategy
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
status quo
When marginal cost is equal to marginal revenue, the firm should
stop producing additional units to maximize profits.
When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.
stop producing additional units to maximize profits.
what two categories does retailing fall in?
store and nonstore
A functional and psychological picture in the consumer's mind of a retail store is called
store image
A functional and psychological picture in the consumer's mind of a retail store is called?
store image
A functional and psychological picture in the consumer's mind of a retail store is called
store image.
criteria for successful segmentation
substantial, measurable, accessible, responsive
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because
superior ability to demonstrate the product.
Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)
supermarket.
Kroger, Safeway, and Publix are all considered
supermarkets.
Large, self-service stores that carry a complete line of food products and some nonfood products are called
supermarkets.
Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n)
superstore
Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n)
superstores
Tying agreements occur when a
supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.
Possession utility is best described as
the customer having access to the product to use now or store and use later
Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of supply chain management. a vertical marketing system. a horizontal marketing system. channel conflict. dual distribution.
supply chain management.
pricing objectives
survival, profits, return on investment, market share, etc.
Drop shippers
take title to but not physical possession of the goods.
A merchant wholesaler
takes title to goods, assumes risk associated with ownership, and buys and resells products.
Basis of Differentiation
tangible thing (product features, location), intangible concept (reputation, a cause, an ideal, etc.), Limited only by managerial creativity
The performance of marketing-related activities conducted on the telephone is called
telemarketing.
When products are presented to television viewers, who can purchase them by calling a toll- free number and paying with a credit card, ________ is being used.
television home shopping
When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.
television home shopping
Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of
television home shopping.
first-mover advantage
the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace. (1) Benefits include building a reputation as a market leader, reducing competition, establishing brand loyalty, and protecting trade secrets. (2) Risks include high costs associated with creating and marketing a new product, slower than predicted sales growth, and the potential for product failure.
physical distribution
the actual, physical movement of products along the distribution pathway
basis for pricing
the basis used to calculate selling price- cost, demand, competition, etc.
The point at which the costs of producing a product equal the revenue earned from selling the product is
the breakeven point
The point at which the costs of producing a product equal the revenue earned from selling the product is
the breakeven point.
The point at which the costs of producing a product equal the revenue earned from selling the product is a) elasticity of demand. b) the breakeven point. c) variable costs. d) price elasticity. e) the sum of fixed and variable costs.
the breakeven point.
marginal revenue
the change in revenue from selling one additional unit
In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless,
the channel members remain autonomous.
targeting strategies
the classic mass marketing, all things to all people approach, ignore segments, one mm, rarely used today
marginal cost
the cost to produce one additional unit
price elasticity of demand
the extent to which changing price changes the quantity demanded
differentiated strategy
the firm decides to target several separate segments and designs separate marketing strategies and marketing mixes for each, most companies offer a good, better, best version of a product for different target markets, typically, for most firms, this means you go for a small share of the larger, total aggregate market (one or two mm for one or two segments out of maybe 6 or 7)
concentrated marketing
the firm goes for a large share of a single segments, can be niched or larger (GM division-trucks only)
Price is a key element in the marketing mix because it relates directly to:
the generation of total revenue
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue.
Price is a key element in the marketing mix because it relates directly to a) the size of the sales force. b) the speed of an exchange. c) quality controls. d) the generation of total revenue. e) brand image.
the generation of total revenue.
At the break-even point:
the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit
At the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products
At the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products.
At the breakeven point, a) the money a company brings in from selling products equals the amount spent producing the products. b) the total fixed costs are exactly equal to the total variable costs. c) profits are exactly equal to the difference between revenue and total variable costs. d) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. e) the marginal cost curve and the average cost curve will be identical for a particular product.
the money a company brings in from selling products equals the amount spent producing the products.
The notion of physical distribution is
the movement of products from producers to end users.
channel of distribution
the network of organizations and processes that links producers to consumers
breakeven point
the point at which total cost equals total revenue
Strategic marketing management
the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectiveness and efficiency. The overall goal of strategic marketing management is to facilitate desirable customer relationships and reduce costs.
Marketing implementation
the process of putting marketing strategies into action.
Order processing is defined as
the receipt and transmission of sales order information.
total cost
the sum of all fixed costs and variable costs
Price is
the value that is exchanged for products in a marketing transaction.
Price is a) money paid in a transaction. b) not important to buyers. c) of limited interest to sellers. d) the most inflexible marketing mix decision variable. e) the value that is exchanged for products in a marketing transaction.
the value that is exchanged for products in a marketing transaction.
What do all of the following have in common: tuition, fee, premium, retainer, dues?
they are all different concepts of price
Generally, customers are most likely to rely on the price-quality association when
they cannot judge the quality of the product for themselves.
Generally, customers are most likely to rely on the price-quality association when a) they cannot judge the quality of the product for themselves. b) the product is a well-known brand. c) customers can judge the product's quality for themselves. d) the product is purchased through the use of the Internet. e) products are being purchased from well-established retailers that are familiar to customers.
they cannot judge the quality of the product for themselves.
Channel decisions are important to marketers mostly because
they involve long-term commitments and affect customer accessibility
Channel decisions are important to marketers mostly because they are relatively flexible to change quickly. consumers value reasonable prices delivered through marketing channels. they dictate what promotional strategies companies should use. many businesses are marketing intermediaries. they involve long-term commitments and affect customer accessibility.
they involve long-term commitments and affect customer accessibility.
Physical distribution activities may be performed by a producer, wholesaler, retailer or
they may be outsourced.
Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because
they want to avoid government regulations on their pricing.
Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because a) they want to avoid new competitors entering their market. b) they want to avoid government regulations on their pricing. c) they try to satisfy the demands of value-conscious consumers. d) firms can increase market share more rapidly this way. e) customers will discontinue use of these products if prices rise.
they want to avoid government regulations on their pricing.
The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to
tighten its control over distribution of its products.
The reasons a vertically integrated channel can be more effective against competition is because of all of the following except
tightly controlled and bureaucratic management style.
Having products available when customers want them creates
time utility
Having products available when the customer wants them is called
time utility
Having products available when the customer wants them is called place utility. time utility. availability. possession utility. chronavailability.
time utility.
the purpose of market segmentation
to enable a marketer to design a marketing mix that more precisely matches the needs of customers in the selected market segments
What's the core goal of using price?
to send consumers a message about the high quality and exclusivity of a product. the higher the price the better the product
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter.
total costs
In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter. a) a 10 percent return on investment b) product development costs c) total costs d) advertising expenditures e) Nestlé's prices
total costs
If a product has an inelastic demand and the manufacturer raises its price:
total revenue will incraese
If a product has an inelastic demand and the manufacturer raises its price,
total revenue will increase
If a product has an inelastic demand and the manufacturer raises its price,
total revenue will increase.
If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.
total revenue will increase.
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount.
trade
Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount. a) quantity b) cash c) seasonal d) trade e) complementary
trade
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.
trade
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts.
trade
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts. a) trade b) cumulative c) noncumulative d) push e) intermediary
trade
The type of retail location that is commonly being preserved and revitalized in many cities is?
traditional business district
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as
traditional business districts.
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a________ store.
traditional specialty
Wholesaling can be defined as
transactions in which products are bought for resale.
Retailing is best characterized as
transactions in which the buyer intends to consume the product through personal, family, or household use.
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs.
transfer
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs. a) base-point b) zone c) transfer d) uniform geographic e) matrix
transfer
When Cadillac buys headlights from Delco, both of which are divisions of General Motors, ____ pricing occurs
transfer
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called
transfer pricing.
Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called a) zone pricing. b) base-point pricing. c) business-unit pricing. d) transfer pricing. e) price discrimination.
transfer pricing.
Greg chooses to have his hunting equipment stored in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is
truck
Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ___________ as its transportation mode.
trucks
Greg works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler?
trucl
True or false: when distributors add to the cost of a product without providing comparable benefits, the middlemen don't stay in business
true
In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary.
twenty-five; ten
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers.
Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse.
unit loading
Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse.
unit loading
Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called
unit loading.
By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except
unit pricing
The best way to reduce overall distribution costs is to
use a total-cost approach to analyze and evaluate the entire system.
demographic variables
use characteristics of the population, perhaps the most widely used and most widely available, objective, often a proxy for harder to obtain psychographics (young adults interested in housing, 50 year old and interest in retirement funds)
A company trying to position itself as value oriented should not
use premium pricing for its products.
A company trying to position itself as value oriented should not a) set prices that are reasonable relative to product quality. b) use premium pricing for its products. c) set prices similar to those of its competitors. d) use any advertising for its products. e) consider costs when determining the price of products.
use premium pricing for its products.
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should
use price symbolically.
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should a) charge a price based on their cost. b) charge prices consistent with their existing ties. c) discount the ties. d) negotiate the price with individual tie shoppers. e) use price symbolically.
use price symbolically.
you can target the same product to different segments
using different promotion, pricing, and distribution strategy
According to the text, physical distribution cost tradeoffs enable firms to
utilize resources for greatest cost-effectiveness.
Prashant is shopping for a new pair of athletic shoes. Since he is concerned about both the price and the quality aspects of a product, Prashant is most likely a ___ consumer.
value-conscious
Costs that vary directly with changes in the number of units produced or sold are called
variable costs.
Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.
variable costs.
Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payment industries so it would have more control over the entire process. Alibaba's acquisition is an example of
vertical channel integration
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 channel integration.
When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in
vertical channel integration.
benetton, a leading manufacturer of knitwear in italy, expanded its operations to include retail outlets in the united states and south america. this type of channel is called: -horizontal integration -vertical integration -multilevel integration -retail integration -merchandising integration
vertical integration
Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called
vertical.
behavioral
very straightforward-target your users,
Retailers that sell only to members and feature discount retailing combined with cash-and- carry wholesaling are called
warehouse clubs
Sam's and Costco are examples of
warehouse clubs
Sam's and Costco are examples of
warehouse clubs.
Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a
warehouse showroom.
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called
warehouse showrooms.
Marginal analysis involves examining
what happens to a firm's costs and revenues when production is changed by one unit.
Marginal analysis involves examining a) what happens to a firm's costs and revenues when production is changed by one unit. b) the extra revenue produced by the sale of one more product. c) the extra cost incurred by the production of one more unit. d) the difference between marginal revenue and total revenue. e) the difference between marginal cost and total cost.
what happens to a firm's costs and revenues when production is changed by one unit.
The amount of profit a channel member expects depends on
what the intermediary could earn if it were handling a competing product instead.
The amount of profit a channel member expects depends on a) the amount of discounts for large orders provided by the producers. b) the number of channel support activities provided by the producers. c) what the intermediary could earn if it were handling a competing product instead. d) the type of distribution channels involved. e) the amount of effort required to carry the product.
what the intermediary could earn if it were handling a competing product instead.
Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____.
wholesaler; retailer
responsive
will consumers buy what we offer in the segment?
strategic planning process begins
with an analysis of the marketing environment, which can influence an organization's goals, resources, and opportunities.
The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to work independently. avoid cooperation due to antitrust considerations. work with competitors and share information. increase competition among channel members. cooperate and accommodate one another's needs.
work independently.
Are the various types of utility interrelated?
yes
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe
$55.00.
When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?
Consolidated mustard is a prestige good.
What does the demand curve for a prestige product look like?
It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
What assumption does breakeven analysis make that limits its overall usefulness?
It relies on demand for a product being inelastic.
Which of the following is most likely to have an inelastic demand curve?
Nonelective surgery
_____________ is pricing a product at a moderate level and positioning it next to a more expensive model or brand.
Reference pricing
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
bundle pricing.
A market share objective
can be used effectively whether total industry sales are rising or falling.
The federal government often uses ____ pricing when it grants defense contracts.
cost-plus
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
demand curve.
The three primary bases for developing prices are
demand, competition, and cost.
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price.
The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of ____; where ____ prices are often used to _____.
odd-even pricing; even; give a product an upscale or exclusive image.
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand
Dividing the percentage change in quantity demanded by the percentage change in price gives the
price elasticity of demand.
The newest version of a product like Bose headphones is likely to use _____, while the new version of Red Bull is likely to use _____ .
price skimming; penetration pricing
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.
quantity
A price-skimming strategy assumes that
the initial demand is highly inelastic. setting the additional price very high, early in the product lifecycle
At the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products.
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets,
the quantity demanded goes down.
In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.
total costs
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.
transfer
A company trying to position itself as value-oriented should not
use premium pricing for its products. -pricing a product at a high level in order to enhance quality perceptions
