Marketing Exam 3
Which of the following SERVQUAL dimensions refers to the degree to which the service provider genuinely cares about customers and takes the customer perspective into account when delivering service? A. Tangibles B. Responsiveness C. Reliability D. Empathy
Empathy
Which of the following refers to the process of translating an idea into a form of communication that will convey meaning? A. Medium B. Message C. Receiver D. Encoding
Encoding
________ refers to efforts that go into selling, such as the number and type of sales calls, expense account management, and a variety of non-selling activities, such as customer follow-up work and client service. A. Preapproach B. Output measure C. Input measure D. Close
Input measure
Which of the following refers to the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service? A. Perishability B. Capacity management C. Inseparability D. Intangibility
Inseperability
________ is a strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences. A. Integrated marketing communication (IMC) B. Word-of-mouth communication C. Communication model D. Multichannel promotional strategy
Integrated marketing communication
Which of the following logistics functions refers to a series of activities that occurs between the time an order comes into the organization and the time a product goes out the door? A. Order processing B. Warehousing C. Materials handling D. Distribution center
Order Processing
Which of the following refers to a type of technology that has led to an evolution in retailing by collecting sales data and is hooked directly into the store's inventory-control system? A. Point-of-sale (POS) system B. Experiential shopper C. Perpetual inventory unit control system D. Wheel-of-retailing hypothesis
POS
Which of the following utilizes a sales technique in which a company representative known as a consultant, distributor, or advisor makes a sales presentation to a group of people who have gathered in the home of a friend? A. Pyramid scheme B. Party plan system C. Virtual experiential marketing (VEM) D. Business-to-consumer (B2C) e-commerce
Party Plan
________ occurs when a company tries to move its products through the channel by convincing channel members to offer them. A. Push strategy B. AIDA model C. Pull strategy D. Bottom-up budgeting techniques
Push strategy
Which of the following involves an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public? A. Virtual experiential marketing (VEM) B. Pyramid scheme C. Network marketing D. Business-to-consumer (B2C) e-commerce
Pyramid scheme
Which of the following sales promotions allows the customer to recover part of the product's cost from the manufacturer? A. Trade promotions B. Rebates C. Frequency programs D. Premiums
Rebates
Which of the following refers to a consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased? A. Retailtainment B. Retail borrowing C. Shrinkage D. Experiential shoppers
Retail Borrowing
Which of the following refers to the management of flows among firms to maximize total profitability? A. Logistics B. Supply chain C. Physical distribution D. Supply chain management
SCM
________ is suitable for most shopping products, such as household appliances and electronic equipment for which consumers are willing to spend time visiting different retail outlets to compare alternatives. A. Selective distribution B. Exclusive distribution C. Intensive distribution D. Franchise organization
Selective Distribution
________ is the actual physical facility where the service is performed, delivered, and consumed. A. Disintermediation B. Servicescape C. Variability D. Service encounter
Servicescape
Which of the following is an advantage of rack jobbers? A. They are used by most small- to medium-sized firms B. They facilitate transactions for bulky products C. They ensure perishable items are delivered and sold efficiently E. They provide merchandising services to retailers
They provide merchandising services to retailers
Which of the following situations would be a poor use of personal selling? A. When there is a need for personal touch B. When the goods or services are complex or expensive C. When a firm needs to use a push strategy D. When the dollar amount of individual purchases is low
When the dollar amount of individual purchases is low
A ________ refers to a very large specialty store, like Home Depot, that carries a vast selection of products in its category. A. factory outlet store B. department store C. variety store D. category killer
category killer
Which of the following refers to a sales promotion where the manufacturer and the retailer share the cost? A. Frequency programs B. Co-op advertising C. Merchandising allowance D. Point-of-purchase (POP) displays
co op advertising
A(n) ________ provides at most one or more specialized services, such as media buying or creative development. A. advertising campaign B. creative services team C. limited-service agency D. full-service agency
limited service agency
A(n) ________ is a sales support person with a high level of technical expertise who assists in product demonstrations. A. missionary salesperson B. new-business salesperson C. order taker D. technical specialist
technical specialist
________ is the third step in the target marketing process. In this step, marketers develop a marketing mix that will create a competitive advantage in the minds of the selected target market. A. Positioning B. Targeting C. Segmentation D. Market fragmentation
positioning
________ are food stores that have a limited selection of items, few brands per item, and few refrigerated items. A. Category killers B. Box stores C. Hypermarkets D. Factory outlet stores
Box stores
A firm that establishes its budget by spending as much as its biggest competitor is using which method of budgeting? A. All-you-can afford B. Competitive-parity C. Top-down budgeting D. Percentage-of-sales
Competitive parity
A marketer utilizing the hierarchy of effects would use which of the following promotional efforts to accomplish the purchase objective? A. Slogans and jingles B. Product placement C. Contests D. Celebrity endorsements
Contests
Which of the following refers to a multiple-level distribution channel in which channel members work independently of one another? A. Contractual VMS B. Corporate VMS C. Administered VMS D. Conventional marketing system
Conventional marketing system
Which of the following refers to advertising that promotes the company as a whole instead of a firm's individual products? A. Institutional advertising B. Product advertising C. Public service advertisements (PSAs) D. Corporate advertising
Corporate Advertising
Which of the following refers to a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations? A. Retailer cooperative B. Corporate VMS C. Conventional marketing system D. Administered VMS
Corporate VMS
________ is a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations. A. Conventional marketing system B. Contractual VMS C. Administered VMS D. Corporate VMS
Corporate VMS
________ refers to a measure used to compare the relative cost-effectiveness of different media vehicles that have different exposure rateslong dash—the cost to deliver a message to 1,000 people or homes. A. Attitudinal measure B. Gross rating point (GRP) C. Unaided recall D. Cost per thousand (CPM)
Cost per thousand
Marketing managers have many different options in sales promotions. If a firm uses a certificate for money off on its products, often with an expiration date, and encourages product trial, what tool is being used? A. Coupon B. Contests/sweepstakes C. Continuity/loyalty programs D. Rebate
Coupon
Which of the following refers to one of the two ways distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to a large number of customers? A. Disintermediation (of the channel of distribution) B. Creating assortments C. Wholesaling intermediaries D. Transportation and storage
Creating Assortments
Buzz has tremendous power for marketers, but it also can be problematic in many ways. Which of the following descriptions about buzz is inaccurate? A. Messages should not be designed to deceive consumers. B. Brand gap can develop. C. Creating buzz can be an expensive element of the promotional budget. D. It should not be used to direct consumers to be destructive.
Creating buzz can be an expensive element of the promotional budget.
Which one of the following is an element by which the channels of distribution may encounter a slowdown of the movement of goods from the producer to the final consumer? A. Providing place utility B. Providing place utility C. Providing important customer services D. Creating larger quantities and smaller assortments
Creating larger quantities and smaller assortments
Which of the following pricing strategies would be used if a firm bases the selling price on an estimate of volume or quantity that it can sell in different markets at different prices? A. Trial pricing B. Cost-plus pricing C. Price leadership D. Demand-based pricing
Demand based pricing
Utilizing the models of marketing communication, which of the following tactics is used in the one-to-one model? A. Direct marketing B. Sales promotion C. Advertising D. Buzz building
Direct Marketing
Which of the following is a direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product? A. Direct-response TV (DRTV) B. Telemarketing C. Direct mail D. Direct-response advertising
Direct response advertising
Which of the following refers to a process of developing distribution objectives, evaluating internal and external environmental influences on distribution, and choosing a distribution strategy? A. Distribution planning B. Slotting allowance C. Conventional marketing system D. Distribution intensity
Distribution Planning
Which of the following refers to a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace? A. Internet price discrimination strategy B. Dynamic pricing C. Freemium strategy D. Online auctions
Dynamic Pricing
________ refer(s) to an online strategy in which the price can easily be adjusted to meet changes in the marketplace. A. Internet price discrimination strategy B. Dynamic pricing C. Online auctions D. Freemium strategy E. Price lining
Dynamic Pricing
________ means that the seller pays both the cost of loading and the cost of transporting to the customer, amounts it includes in the selling price. A. Captive pricing B. Freight absorption pricing C. F.O.B. origin pricing D. F.O.B. delivered pricing
FOB delivered pricing
________ refer(s) to functions of channel intermediaries that make the purchase process easier for customers and manufacturers. A. Risk-taking functions B. Facilitating functions C. Transportation and storage D. Breaking bulk
Facilitating Functions
________ refers to activities after the sale that provides important services to customers. A. Sales B. Approach C. Preapproach D. Follow-up
Follow up
Which of the following is a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more features, greater functionality, or greater capacity? A.Dynamic pricing B.Internet price discrimination strategy C.Price lining D.Online auctions E.Freemium strategy
Freeminum strategy
________ refers demand in which changes in price have little or no effect on the amount demanded. A. Inelastic demand B. Break-even point C. Cross-elasticity of demand D. Elastic demand
Inelastic Demand
Which of the following refers to a measure used for comparing the effectiveness of different media vehicleslong dash—average reach frequency? A. Unaided recall B. Aided recall C. Attitudinal measures D. Gross rating points (GRPs)
Gross rating points (GRPs)
________ refers to a social trend in which people use technology to get the things they need from each other, rather than from traditional institutions like corporations. A. F-commerce B. Advertising C. Groundswell D. Buzz
Groundswell
When a firm surprises a consumer and inserts promotional content about its product or brand in an unexpected place, such as in a novel, what is that tactic called? A. Special events B. Lobbying C. Writing a press release D. Guerrilla marketing
Guerrilla marketing
Which of the following refers to the marketing activity in which a firm "ambushes" consumers with promotional content in places they are not expecting to encounter this kind of activity? A. Guerrilla marketing B. Ambient advertising C. Corporate identity D. Sponsorships
Guerrilla marketing
Which of the following is an objective of public relations? A. Introducing new products B. Conducting speech writing C. Creating press releases D. Performing guerrilla marketing
Introducing new products
Which of the following refers to an inventory management and purchasing process that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed? A. Supply chain management B. Inventory control C. Just in time (JIT) D. Stock outs
Just In Time
A firm utilizing infomercials to promote its product is attempting to achieve which of the following communication objectives in the hierarchy of effects model? A. Knowledge B. Loyalty C. Purchase D. Desire
Knowledge
A Picture Me portrait studio found in a Walmart store is an example of which of the following types of retailers? A. Leased departments B. Off-price retailers C. Warehouse clubs D. Department stores
Leased Departments
Which of the following refers to networks that integrate sophisticated GPS technology that enables users to alert friends of their exact whereabouts via their mobile phones? A. Location-based social networks B. Product review sites C. Social networks D. Virtual worlds
Location based social networks
What is the process of designing, managing, and improving the movement of products through the supply chain called? A. Just in time (JIT) B. Reverse logistics C. Sustainability D.Logistics
Logistics
Which of the following refers to the process of designing, managing, and improving the movement of products and includes purchasing, manufacturing, storage, and transport? A. Supply chain management B. Reverse logistics C. Logistics D. Supply chain
Logistics
Some retailers advertise items at very low prices or even below cost and are glad to sell them at that price because they know that once in the store, customers might buy other items at regular prices. Marketers call this ________. A. surge pricing B. price fixing C. predatory pricing D. loss-leader pricing
Loss leader pricing
Which of the following characteristics favors an exclusive distribution strategy? A. Low cost of serving individual customers B. Oriented toward mass markets C. Overlapping market coverage D. Low customer density and service and cooperation as priorities
Low customer density and service and cooperation as priorities
________ is an element of the vulnerability phase in retailing. A. Low-end facilities B. Increased quality merchandise C. Luxurious facilities D. Low margin
Luxurious Facilities
________ is a direct marketing approach that involves promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such as smartphones and personal digital assistants (PDAs). A. Telemarketing B. Direct-response TV (DRTV) C. Direct mail D. M-commerce
M commerce
________ are independent salespeople who carry several lines of noncompeting products. They have contractual arrangements with manufacturers that outline their territories, selling prices, and other specific aspects of the relationship but provide little, if any, supervision. A. Manufacturers' showrooms B. Commission merchants C. Merchandise brokers D. Manufacturers' agents or manufacturers' reps
Manufacturers' agents or manufacturers' reps
Which of the following refers to an amount added to the cost of a product to create the price at which a channel member will sell the product? A.Markup B. List price or manufacturer's suggested retail price (MSRP) C. Retailer margin D. Wholesaler margin
Markup
________ refers to the moving of products into, within, and out of warehouses. A. Warehousing B. Transportation C. Distribution center D. Materials handling
Materials Handling
Which of the following refers to the total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups? A. Merchandise depth B. Merchandise breadth C. Merchandise assortment D. Merchandise mix
Merchandise Mix
In the traditional promotion mix, which of the following is a negative effect of advertising? A. Might not be an efficient means of communicating with some target audiences, because of the high cost to produce and distribute B. Costs more per contact than mass appeals C. Lack of control over the message that is eventually transmitted and no guarantee that the message will ever reach the target D. High cost per contact with customer
Might not be an efficient means of communicating with some target audiences, because of the high cost to produce and distribute
________ is a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited. A. Business-to-consumer (B2C) e-commerce B. Virtual experiential marketing (VEM) C. Multilevel marketing D. Pyramid scheme
Multilevel marketing
Which of the following is an illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business? A. Loss-leader pricing B. Predatory pricing C. Bait-and-switch D. Surge pricing
Predatory Pricing
Which of the following refer to the assignment of value, or the amount the consumer must exchange to receive the offering or product? A. Total cost B. Prestige products C. Market share D. Price
Price
Pricing, like all elements of the market mix, is influenced by a variety of external environmental factors. Which of the following is a factor related to consumers that the marketer needs to consider in setting the price? A. The firm's competitive environment B. Economic trends, such as inflation and recession C. Government regulations D. Price elasticity
Price Elasticity
Knowing that consumers may express emotional or psychological responses to prices, marketers need to deal with several psychological factors in setting prices. Which one of the following is an economic influence on price? A. Prestige pricing B. Price lines C. Odd-even pricing D. Reference pricing E. Price fixing
Price Fixing
Which of the following occurs when two or more companies conspire to keep prices at a certain level? A. Loss-leader pricing B. Predatory pricing C. Price fixing D. Surge pricing
Price Fixing
Which of the following refers to claims made in advertising of product superiority that cannot be proven true or untrue? A. Greenwashing B. Puffery C. Crowdsourcing D. Corrective advertising
Puffery
Which of the following is an advantage of mail-order wholesalers? A. Facilitate transactions for bulky products B. Provide reasonably priced sales options to small organizational customers C. Provide merchandising services to retailers D. Used by most small- to medium-sized firms
Provide reasonably priced sales options to small organizational customers
Which of the following refers to a retailer, like Things Remembered, that carries only a few product lines but offers a good selection within the lines that it sells? A. Hypermarket B. Factory outlet store C. Category killer D. Specialty store
Specialty Store
In which step of the price planning process does a firm analyze the economy, competition, government regulations, consumer trends, and the internal environment? A. Step 4 B.Step 5 C. Step 1 D. Step 3 E. Step 2
Step 4
Which of the following refers to an allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing communication? A. Percentage-of-sales method B. Competitive-parity method C. Bottom-up budgeting techniques D. Top-down budgeting technique
Top down budgeting technique
________ is/are usually set percentage discounts off the suggested retail or list price for each channel level. A. Quantity discounts B. Cash discounts C. Price bundling D. Trade discounts
Trade Discounts
Which of the following utilizes many manufacturers to showcase their products to attendees? A. Trade shows B. Co-op advertising C. Trade promotions D. Point-of-purchase (POP) displays
Trade shows
Which of the following refers to an online marketing strategy that uses enhancements including colors, graphics, layout and design, interactive videos, contests, games, and giveaways to engage experiential shoppers online? A. Business-to-consumer (B2C) e-commerce B. Pyramid scheme C. Network marketing D. Virtual experiential marketing (VEM)
VEM
Which of the following explains how retail firms change and become more upscale as they go through their life cycle? A. A perpetual inventory unit control system B. An automatic reordering system C. Wheel-of-retailing hypothesis D. A point-of-sale (POS) system
Wheel-of-retailing hypothesis
Which of the following pricing strategies is heavily used by hospitality companies like airlines, hotels, and cruise lines because these businesses charge different prices to different customers in order to manage capacity while they maximize revenues? A. Price leadership B. Cost-plus pricing C. Demand-based pricing D. Trial pricing E. Yield management pricing
Yield management pricing
