Exam 3 MKT

8) Retailers like Walmart and Target carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy. A) high-low

good-value

9) A convenience store ________.

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

11) Which term refers to a giant specialty store with a very deep assortment of a particular product line?

category killer

14) ________ now command about 45 percent of all retail sales in the United States.

franchises

5) The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________.

specialty store

4) Which type of retailer typically carries deep product assortments of narrow product lines?

specialty stores

10) Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services?

superstores

10) A firm that uses direct marketing would most likely sell its products through ________.

the company Web site

13) ________ costs refer to the sum of the fixed and variable costs for any given level of production.

total

6) Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?

transform the assortments of products made by producers into the assortments wanted by consumers

4) Which of the following sets the lower limit for a product's pricing?

product cost

2) The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market.

"demand chain"

7) When establishing prices, it's important for a manager to understand that "good value" is not the same as ________.

"low price"

3) Which of the following sets the upper limit for a product's pricing?

Consumer perceptions of value

5) ________ uses buyers' perceptions of what a product is worth as the key to pricing.

Customer value-based pricing

1) ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

Omni-channel retailing

1) ________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Price

2) ________ is the only element in the marketing mix that produces revenue

Price

9) In which of the following situations is a producer guaranteed full control over product sales?

a direct marketing channel

1) Which of the following would be considered an upstream partner in a company's supply chain?

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

2) Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact, affordable and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers?

a front-page notice of the release of Greentech's solar chargers in all leading newspapers

1) ________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

advertising

12) ________ refer to two or more outlets that are commonly owned and controlled.

corporate chains

10) ________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

cost-based

5) Producers use marketing intermediaries because they ________.

create greater efficiency in making goods available to target markets

8) Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________.

department store

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

direct

10) In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

direct marketing

9) Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the Web site to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers?

direct marketing

11) Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs.

fixed

3) Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices?

full service stores

6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image?

holding a press conference to explain the remedial steps that ColaBlue has taken

8) All the institutions in a channel are connected by several types of flows. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of ________.

information flow

2) Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers.

limited service

4) ________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

marketing channels

6) Specialty stores are characterized by ________.

narrow product lines with deep assortments

7) In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships.

personal selling

8) Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario?

personal selling

5) In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events.

public relations

13) A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________.

retailer cooperative

3) In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service.

sales promotion

4) Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario?

sales promotion

3) A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

value delivery network

9) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

value-added

6) A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

value-based

12) Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable

variable

7) Department stores are most likely characterized by ________.

wide varieties of product lines