Marketing 3 practice exam

______ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items

Factory outlets

______ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

High-low

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

Self-service retailers

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

by-product

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.

advertising

Using the AIDA model, an effective marketing message should get attention, hold interest, _____, and obtain action.

arouse desire

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?

captive product pricing

Kellogs Corn Flakes are businesses that have high market share and require very little investment to hold on to their market share. They tend to generate profits that might exceed their growth rate. This is an example of:

cash cows

Which of the following term refers to the wholesalers and retailers that forma vital link between the firm and its customers?

downstream partners

The Internet offers ______, where the price can easily be adjusted to meet changes in demand.

dynamic pricing

Phoebes Purses, a line of designer handbags, can only be purchased at Macy's. What channel intensity strategy is most likely being used to sell Phoebe's Purses?

exclusive distribution

The _____ organizations is the most common type of contractual relationship.

franchise

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing.

good-value

Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict.

horizontal

If demand hardly changes with a small change in price, the demand is ______>

inelastic

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ______ pricing.

location-based

Companies that set a low price for a new products in order to attract a large number of buyers and a large share are using the ________ strategy.

market-penetration pricing

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ______ pricing strategy

market-skimming

A(n) ______ is a set of symbols that the sender transmits.

message

A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.

noise

______ includes sales presentations, trade shows, and incentive programs.

personal selling

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of _______ activities used by retailers to promote themselves.

public relations

The use of short-incentives to encourage the purchase or sale of a product or service is called _____.

sales promotion

________ are a type of SBU that often require heavy investments to finance their rapid growth.

stars

Costs that change with the level of production are referred to as _______.

variable costs