Marketing Ch. 9-11
Which of the following is an example of horizontal channel conflict? A consumer complaining to a retailer about the service he received. A retailer complaining about receiving damaged goods from a wholesaler. A Ford dealer complaining that another Ford dealer is advertising in its territory. A consumer complaining to a producer about the quality of a product. E.A retailer complaining about a producer's pricing.
A Ford dealer complaining that another Ford dealer is advertising in its territory
What is the most common type of a contractual VMS? A retailer A wholesaler A supplier A channel intermediary A franchise
A franchise
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? Administered VMS Franchise Corporate VMS Contractual VMS Conventional distribution channel
Administered VMS
What are the two major elements in developing advertising strategy? Determining the advertising budget and evaluating results Determining the target audience and selecting advertising media Creating advertising messages and selecting advertising media Creating advertising messages and selecting advertising agencies Creating advertising messages and setting the advertising budget
Creating advertising messages and selecting advertising media
________ refers to setting price based on buyers' perception of value rather than on the seller's cost. Customer value-based pricing Value-added pricing Cost Cost-based pricing Good-value pricing
Customer value-based pricing
Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships? Public relations Advertising Personal selling Sales promotion Direct and digital marketing
Direct and digital marketing
Which of the following correctly describes the retail practice known as high-low pricing? High-low pricing means the retailer does not have to run sales on selected items. High-low pricing means retailers charge an everyday low price. High-low pricing means retailers do not have to use promotions. High-low pricing means some products are priced high and others are priced low. High-low pricing means charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.
High-low pricing means charging higher prices on an everyday basis, coupled with frequent sales and other price promotions
Which advertising objective is used heavily when introducing a new product category? Reminder Attack Informative Comparative Persuasive
Informative
Which of the following is a shortcoming of advertising? a. It does not allow dramatization of the brand or company. b. It only provides one-way communication with customers. c. It can be too customized and only attracts small, niche markets. d. It reaches targeted customers too slowly in most cases. e. It is the most costly promotion tool for companies.
It only provides one-way communication with customers
Which of the following is true of an intensive distribution strategy? It strives to make products available where and when consumers want them It gives sole rights to select dealers in a given area Compared with other distribution strategies, it provides the best support for dealers of luxury products It discards traditional intermediaries and uses direct marketing to reach customers Compared with other distribution strategies, it uses the least number of intermediaries to sell products
It strives to make products available where and when consumers want them
Which of the following is a reason that producers use marketing channels and channel intermediaries? Marketing channel decisions only require a short-term commitment. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. Using channel intermediaries increases the number of contacts with customers. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. Using marketing channels allows producers to retain control over how and to whom they sell their products.
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers
Which of the following statements about major retail trends is true? Retail convergence has decreased competition for retailers. The green movement has not yet affected retailing. The lifecycle of new retail forms is getting longer. Online buying is growing at a much brisker pace than retail buying as a whole. The global expansion of major retailers into other countries has slowed down.
Online buying is growing at a much brisker pace than retail buying as a whole
Which type of retailer carries a narrow product line with deep assortments within those lines? Specialty stores Department stores Supermarkets Convenience stores Superstores
Specialty stores
Which of the following statements about public relations is correct? The lines between advertising and public relations are becoming more and more blurred. Trade associations do not use public relations. Public relations is only used to promote products. The impact of public relations on public awareness comes at a much higher cost than advertising. Public relations cannot be used to engage consumers.
The lines between advertising and public relations are becoming more and more blurred
________ includes all the activities involved in selling goods and services to those buying them for resale or business use. Sole sourcing Wholesaling Franchising Showrooming Crowdsourcing
Wholesaling
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________. an indicator of the cost of production an indicator of quality a type of segmented pricing an indicator of geographic pricing a limited time offer
an indicator of quality
As with other types of marketers, a primary goal in wholesaling is to ________. a. match competitors' strategies b. establish a greater number of locations c. build value-adding customer relationships d. hold prices constant e. maintain the status quo
build value-adding customer relationships
Which of the following sets the upper limit for a product's pricing? profits product costs consumer perceptions of value elements of the product mix competition
consumer perceptions of value
Owning the entire distribution chain - from its own design and manufacturing operations to distribution through its own managed stores - has turned French sunglasses chain Air Optics into the world's fastest-growing glasses retailer. This is an example of a(n) ________ marketing system. a. contractual vertical b. corporate vertical c. administered vertical d. horizontal e. direct
corporate vertical
The local movie theater has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. a. time-based b. location-based c. customer-segment d. by-product e. product form
customer-segment
Macy's carries several product lineslong dashtypically clothing, home furnishings, and household goodslong dashwith each line operating as a separate department managed by specialist buyers or merchandisers. Macy's is best described as a(n) ________. superstore department store discount store specialty store off-price retailer
department store
For over 10 years, Choppy, a publishing and educational company that produces college textbooks, has been selling its books through off-campus bookstores. Recently, it stopped selling its books through retail stores and set up its own Web site to sell its books. This change in channel organization is called ________. a. disintermediation b. intensive distribution c. brokering d. franchising e. selective distribution
disintermediation
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. segmented pricing psychological pricing cash rebates dynamic pricing promotional pricing
dynamic pricing
Consumers rely less on price to judge the quality of a product when they ________. are unable to research the product are unable to judge the quality of the product have prior experience with the product lack information about the product rely on cues from sellers to differentiate a high or low price
have prior experience with the product
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) __________ corporate vertical marketing system horizontal marketing system contractual vertical marketing system administered vertical marketing system direct marketing system
horizontal marketing system
Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? inventory control segmentation logistics information management integrated marketing communications niche market penetration global marketing management
integrated marketing communications
Producers of convenience products typically use ______ distribution. franchise direct intensive selective exclusive
intensive
Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? market-skimming pricing location-based pricing market-penetration pricing product-form pricing time-based pricing
location-based pricing
The first generation Samsung watch was introduced for $500. The following year the price was reduced to $450. Samsung uses a ________ strategy to price its tech products a. market-skimming b. target costing c. deceptive d. market-penetration e. predatory
market-skimming
When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy. market-skimming by-product captive-product optional-product market-penetration
market-skimming
Circuit City Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. a. product line b. optional-product c. by-product d. product bundle e. captive-product
product line
A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of _________ pricing. segmented geographical optional product psychological promotional
promotional
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________. service retailers specialty stores franchises non-retailers Wholesalers
service retailers
Scott and his fiancé visit several electronics stores in and around their hometown of Boston. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. a. warehousing b. wholesaling c. retailing d. franchising e. showrooming
showrooming
The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called _______. experiential retailing shopper retailing off-price retailing showrooming. mobile retailing
showrooming
The _______ style of advertising shows ordinary people using a product in a normal setting. slice of life personality symbol mood or image technical expertise testimonial evidence
slice of life
The _____________ message execution style shows one or more "typical" people using the product in a normal setting. lifestyle fantasy scientific evidence slice of life mood or image
slice of life
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 department store discount store supermarket off-price retailer
specialty store
The French Purse Company, a purse retailer, offers a deep assortment of ladies' purses. The French Purse Company is best described as a(n) ________. a. department store b. supermarket c. specialty store d. discount store e. off-price retailer
specialty store
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. a. discount stores b. specialty stores c. factory outlets d. superstores e. off-price outlets
superstores
When setting channel objectives, companies should state the objectives in terms of ______. the length of the channel targeted levels of customer service exclusive distribution arrangements expected profitability competitor's objectives
targeted levels of customer service
A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of _________ style of advertising testimonial evidence technical expertise fantasy mood or image scientific evidence
testimonial evidence
A firm that uses direct marketing would most likely sell its products through ________. large wholesalers big-box retailers multiple intermediaries the company website one marketing intermediary
the company website
The length of a channel is indicated by ___________. the number of wholesalers in the channel the number of final consumers the number of intermediary levels the number of retailers in the channel the number of producers
the number of intermediary levels
One retail trend resulting from economic conditions is ________. the rise of megaretailers the growth of social media retailing pop-up stores tighter consumer spending green retailing
tighter consumer spending
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. a. manufacturing chain b. distribution center c. marketing intermediary d. value delivery network e. disintermediation system
value delivery network
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. marketing channel contact channel level value delivery network supply chain
value delivery network
Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. everyday low value-added cost-plus target return high-low
value-added
Costs that change directly with the level of production are referred to as ________ costs. fixed variable payroll capital target
variable
________ advertising would most likely result in attack ads between competitors. a. Reminder b. Comparative c. Personal d. Informative e. Classified
Comparative
Which of the following is a shortcoming of advertising? It only provides one-way communication with customers It reaches targeted customers too slowly in most cases It does not allow dramatization of the brand or company It can be too customized and only attracts small, niche markets It is the most costly promotion tool for companies
It only provides one-way communication with customers
________ advertising is utilized most often by mature, well-known brands. Attack Persuasive Informative Reminder Comparative
Reminder
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Warehousing Manufacturing Shopper marketing Retailing Wholesaling
Retailing
________ is a short-term incentive to encourage the purchase or sale of a product or service. Public relations Advertising Direct and digital marketing Sales promotion Personal selling
Sales promotion
_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. Showrooming Internal marketing Shopper marketing Retailing Warehousing
Shopper marketing
Internal factors that affect pricing include ________. The company's overall marketing strategy, objectives and the nature of the market The company's overall marketing strategy, objectives, and marketing mix The company's overall marketing strategy, objectives and demand The company's overall marketing strategy, the nature of the market, and demand. The nature of the market, demand, and the economy.
The company's overall marketing strategy, objectives, and marketing mix
Which of the following statements regarding the changing communications landscape is correct? Marketers today are shifting their efforts to mass marketing. The digital age has had little impact on marketing communications. The dominance of television, magazines, newspapers and other traditional mass media is declining. More than ever, consumers are relying on marketers for information. In terms of communication, today's consumers are less empowered.
The dominance of television, magazines, newspapers, and other traditional mass media is declining
How do firms that use captive-product pricing make up for the low prices of their main products? They reduce the cost of the captive products They provide the captive products as freebies They set high markups on the captive products They offer the captive products and main products together at a reasonable price They increase the price of the main products
They set high markups on the captive products
What is the goal of integrated marketing communications? To lower overall marketing expenditures To have different media carry different messages about a brand To integrate communications via online and mobile technologies To deliver clear, consistent, and compelling messages about the organization and its brands To maximize return on investment
To deliver clear, consistent, and compelling messages about the organization and its brands
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? Breakeven pricing Cost-plus pricing Value-added pricing High-low pricing EDLP pricing
Value-added pricing
In which of the following situations is a producer guaranteed full control over product sales? an administered marketing system a corporate marketing channel a contractual distribution channel a direct marketing channel a horizontal marketing system
a direct marketing channel
In the promotion mix, ________ refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. public relations advertising crowdsourcing sales promotion personal selling
advertising
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing. product line captive-product two-part pricing product-bundle by-product
captive-product
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. channel level supply chain value delivery network contact marketing channel
channel level
Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered _______________. convenience stores full-service retailers designer shops specialty stores discount stores
discount stores
Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. disintermediation horizontal marketing systems vertical marketing systems corporate vertical marketing systems intermediation
disintermediation
Online marketers taking business from traditional brick-and-mortar retailers is an example of _____. vertical conflict disintermediation franchising an administered VMS horizontal conflict
disintermediation
Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? a. direct marketing b. exclusive dealing c. disintermediation d. horizontal integration e. vertical integration
exclusive dealing
Carefully orchestrating the store's layout and displays, background music, colors, and smells is related to ________. megaretailing online retailing green retailing social media retailing experiential retailing
experiential retailing
What 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? discount stores off-price retailers convenience stores full-service stores self-service stores
full-service stores
Pretty Petunias, a new fresh flower company, uses the same logo and shade of pink in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Pretty Petunias to promote its business? a. logistics information management b. inventory control segmentation c. niche market penetration d. integrated marketing communications e. global marketing management
integrated marketing communications
Techgear, a sportswear equipment manufacturer, releases a new line of nutrition drinks called NutriJuice. The television ad for the drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink NutriJuice, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the NutriJuice ad? a. scientific evidence b. technical expertise c. personality symbol d. testimonial evidence e. lifestyle
lifestyle
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use? captive-product pricing market-penetration pricing psychological pricing product bundle pricing market-skimming pricing
market-penetration pricing
Maddie's Sneakers, a manufacturer of fine sneakers, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Maddie's Sneakers employ to distribute its products? a. horizontal marketing system b. multichannel distribution system c. administered vertical marketing system d. contractual vertical marketing system e. corporate vertical marketing system
multichannel distribution system
Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? geofencing product placement subliminal advertising vertical integration advertainment
product placement
There are more than 15 wheat farmers in Bowling Green, Ohio, that grow, package, and distribute the same quality wheat. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. a. pure competition b. monopolistic competition c. oligopolistic competition d. a pure monopoly e. a black market
pure competition
Act mouthwash has used a ________ style of advertising to convince buyers that Act is better than other brands at fighting bad breath and gingivitis since it uses a special flouride compound that adheres to your teeth. a. testimonial evidence b. technical expertise c. scientific evidence d. mood or image e. fantasy
scientific evidence
Stores that provide very limited, if any, sales assistance because they carry convenience products which customers need very little, to no, information are called ________ retailers. a. self-service b. full-service c. off-price d. limited-service e. convenience
self-service
Which of the following is an impact of the Great Recession on retailing trends? longer retail life cycles tighter consumer spending patterns economic shift toward higher prices prohibition on new retail forms lower costs for retailers
tighter consumer spending patterns
One major objective associated with a market-penetration pricing strategy is to ________. attract buyers willing to pay a higher price win a large market share skim off small but profitable market segments avoid everyday low pricing prevent customer dissatisfaction
win a large market share
