Mangement Final

Retailers often influence consumers' images of products because:

- consumers have little contact with manufacturers and wholesaling intermediaries - retailers determine locations, store layouts, merchandise selections, and return policies

Jake is determining which customers should be included in a study sample. According to this information, Jake is in which stage of the marketing research process?

Creating a research design

Jill needs to motivate her promotion team to focus not just on individual messages, but on the benefits of integrating all of the firm's marketing communications. Choose the primary benefit that Jill should discuss.

Creating a unified brand personality

_____ can lead to a damaging downward spiral, causing a freefall in business profits, lower returns on most investments, and widespread job layoffs.

Deflation

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle.

Demographic segmentation

A price of $ 9.97 is less likely to appeal to customers than $ 9.95 or $ 9.99.

False

A salary is a payment tied directly to the sales or profits that a salesperson generates.

False

Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search extensively for the desired merchandise.

False

Businesses that use cost-based pricing always apply the same markup percentage across all products.

False

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

False

Firms spend more on consumer-oriented sales promotions than on trade promotions.

False

Makers of generic products are dependent on brand loyalty for their marketing success.

False

According to the AIDA concept, which of the following is the first function of a promotional message?

Gaining the potential consumer's attention

Jim plans to rent a car during an upcoming business trip to Dallas. He expects to pay a rental rate similar to what he was charged last year in the same city. However, he could be persuaded to pay more under certain conditions. Which of the following conditions might influence Jim to pay more?

He is offered a Range Rover or other top quality car at only a small premium

Bubble, a company that manufactures gums and candies, distributes its products through all possible channels. One can pick up a Bubble's product from just about anywhere—department stores, general stores, convenience stores, and even local pharmacies. Which of the following distribution strategy is being employed by Bubble?

Intensive distribution

Consumers today perceive that, within price limits, there is:

a direct relationship between the quality and price of a product

For more than a century, the Chanel brand has been synonymous with high fashion and exceptional quality. Women everywhere love your apparel, accessories, cosmetics, and fragrances. From your point of view, which factors have the greatest impact on the distribution channel strategy you've chosen?

Organizational factors, namely the volume of sales and brand recognition enjoyed by your organization, mean that Chanel can employ a dual distribution approach, selling directly and through intermediaries.

Banks have recently begun to install ATMs in supermarkets to address customers' wants for instant cash when they go shopping. What type of utility are banks creating for customers?

Place

After determining that a prospective customer is a good candidate to actually make a purchase, the salesperson will want to gather as much information about the customer as possible. This step in the sales process is known as:

Precall planning

A _____ brand refers to a brand name owned by a manufacturer or a producer.

Private

Marta's company wants to revamp its potato chips brand to compete with Lay's potato chips. She has been researching consumer preferences so that she can market her company's chips accordingly. What type of strategy is Marta using?

Product positioning strategy

Marketers looking for information on lifestyle and buying behavior would access which type of secondary data?

Research services

If categorizing by services provided, Banana Republic stores would be classified as:

a shopping store

Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.

Tactical

A marketing-related problem can be identified by evaluating the firm's marketing mix elements and target market.

True

A service encounter is a point at which a consumer interacts with a service provider. Group of answer choices.

True

A strong brand identity can contribute to the consumers' perceptions of product quality.

True

A wholesaler is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers.

True

Advertisers like radio for its ability to reach people while they drive because they are a captive audience.

True

Big data is information that originates in unprecedented volume and speed from the world around us.

True

Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.

True

Direct selling is an important option for goods requiring extensive demonstrations in persuading customers to buy.

True

Ethnographic studies involve researchers spending time studying culture.

True

Families, bachelors, and retirees could be considered separate market segments for a company promoting travel packages.

True

Feedback lets marketers evaluate the effectiveness of the message and tailor their responses accordingly.

True

Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing. As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent. This activity is an example of penetration pricing.

True

Many firms attempt to promote stable prices by meeting competitors' prices to maintain pricing parity.

True

Mobile marketing is a term used to describe marketing messages sent via wireless technology.

True

Railroads control the largest share of the freight business in the United States as measured by ton-miles.

True

City Drug is a locally owned, independent pharmacy located in a town where there is also a Wal-Mart pharmacy and a CVS pharmacy. It could potentially be difficult for this small business to compete against these giant chains, but the independent pharmacy is protected against loss-leader pricing by __________.

Unfair trade laws

Cameron likes to listen to Pandora and has a variety of channels and artists that he prefers. He's trying to decide whether to purchase a premium subscription because he gets tired of the periodic messages for local companies that interrupt his music choices. These "periodic messages for local companies" are called _______ and are part of a firm's promotional mix.

advertising

On your first day as the new operations manager for a major toy manufacturer, you take a look at how raw materials are handled. The manufacturing plant keeps close to 500,000 types of tiny parts on hand, ready for assembly. To ensure that workers are able to easily locate, inventory, and retrieve these parts, as well as finished goods, you've decided the company needs ______ to keep production at its peak.

an automated warehouse

As the marketing director for a company that produces home office equipment, you've been asked to weigh in on a suggested price for the company's new all-in-one printer. Similar products retail for $200 to $600, with most of them falling in the $350 to $400 range. You'd like to position your company's product where there is less competition, so you suggest pricing yours:

at $150 because the lower the price, the less supply already on the market.

A popular clothing brand in Switzerland decided to launch a new line of home furniture under the same brand name. This strategy being used by the company to launch its new offerings is called _____.

brand extension

Frequent flyer programs are often used by airlines to encourage consumers to make repeat purchases since members can earn free trips based on their accumulated points are an example of _____.

brand loyalty segmentation

A company has introduced a new product in the market. The company distributes free samples of this product to people so that they can try it. This product is at the _____ stage of brand loyalty.

brand recognition

Iron ore and raw cotton are examples of:

business products

Fred Foods Inc. provides free cereals and biscuits to support a program that aims to end hunger in various emerging nations. This is an example of _____ marketing.

cause

A _____ is a payment tied directly to the sales or profits a salesperson achieves.

commission

Individuals who purchase new products almost as soon as these products reach the market are called _____.

consumer innovators

Casey's General Store is a popular ______-type retailer offering gasoline, snacks, extended store hours, and rapid checkout service.​

convenience

Keith is searching through computerized information files of customers to detect patterns in product sales. Keith is engaged in the process of:

data mining

Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, Lululemon Athletica is using _____ segmentation to segment its markets.

demographic

Cody stopped by Ferrari of Beverly Hills to look at the new Ferrari 488 Spider that just came in. Cody is obsessed with cars and would love to buy the 488, but there is a slight problem. Cody is a full-time student in his senior year of college and works part time at Olive Garden where he earns $7.75 an hour. The new 488 is listed for sale for $429,000! Cody really should not be considered part of the market for the Ferrari because he:

does not have the purchasing power.

​As Tom begins his new sales job, he is looking forward to interacting with customers. Tom's strengths are in personal, one-to-one communication. Choose the type(s) of sales channels that Tom probably hopes to use.

field and over-the-counter

Items such as lease payments, administrative staffing, and insurance costs, that remain stable at any production level within a certain range are known as :

fixed costs

Jeff is the owner of Bayou Adventure in southeast Louisiana and sells a variety of fishing equipment for salt and fresh water fishing. Recently, Mike sold Jeff an initial order of 35 rods and reels that his company had developed. Two weeks after the rods and reels had been delivered, Mike contacted Jeff by phone to see how the rods and reels were doing and if Jeff had any questions or concerns. What stage of the sales process is Mike in now?

follow-up

A customer-focused firm wants its sales representatives to:

form long-lasting relationships with buyers by providing high levels of customer service.

Advantages of technology include all of the following except:

increased costs.

Fixed costs typically include items such as:

lease payments, administrative staffing, and insurance costs that remain stable at any production level within a certain range.

Compared to other broadcast media, cable advertising is more likely to attract specialized audiences and encourage niche marketing. This characteristic of cable advertising is known as _____.

narrowcasting

Michelle is the owner of Cardio Kick, a fitness studio and is performing a SWOT analysis as part of a strategic planning exercise. She knows that consumers aged 18-30 are especially interested in staying fit, eating clean, and looking attractive and is wondering how she should classify this trend. How would you advise Michelle on this item?

opportunity

In the _____ stage of the sales process, a salesperson describes a product's features and relates them to the customer's needs.

presentation

A popular morning TV program shows its host and guests drinking beverages from mugs that have been engraved with the logo of a popular coffee chain. This is an example of:

product placement

A message is determined to be effective if it

results in a purchase outcome

A _____ pricing strategy helps manufacturers to distinguish their high-end products from similar products of their competitors.

skimming

In the planning hierarchy, plans dealing with organization-wide objectives, long-term plans, and the total budget would be classified as _____ plans.

strategic

A product is said to have achieved brand preference when:

the consumer sees or recognizes the product and chooses it over its competitors

Consumers are increasingly showing a preference for fulfilling their product needs via smartphone applications and online shopping. The relative ease of creating a web-based storefront is posing a significant threat to brick-and-mortar retailers and driving many established retailers to close their doors. According to Michael Porter, this is an example of

threat of new competitors

Compared to other organization personnel, more time is devoted to long-range strategic planning by the:

top management

A brand is said to have high relevance if a large number of consumers feel the need for the benefits offered by the brand.

true

According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer.

true

Decisions regarding product lines, pricing, selection of appropriate distribution channels, and promotional campaigns are____.

typically detailed in a marketing plan

A cost that changes with the level of production is called a(n) _____ cost.

variable

Items such as raw materials and labor costs, which change with the level of production, are known as:

variable

A(n) _____ is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers.

wholesaler