Marketing Exam 4 Sample Quiz Questions

________ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs. Contribution margin analysis Break-even analysis Predatory pricing Total cost calculation Fixed cost analysis

- Break-even analysis

________ power is when one channel member threatens to punish or punishes another channel member for not undertaking certain tasks, such as delaying payment for a late delivery. Coercive Referent Expertise Legitimate Information

- Coercive

According to your text, what is the most likely result of the buy-online-and-pick-up-in-store option? - It will save the store money to pull individual orders. - Customers will likely not shop in-store again. - Stores will reduce their number of employees. - Customers will be more likely to make additional purchases while in store. - Stores will not have to invest in customer service.

- Customers will be more likely to make additional purchases while in store.

In terms of a pricing strategy, ________ adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. cost-based pricing high/low pricing predatory pricing EDLP competitor-based pricing

- EDLP

________ means allowing employees to make decisions about how service gets provided to customers. Reliability The zone of tolerance Empowerment The zone of assurance Empathy

- Empowerment

Why would a store use a vendor to ship items instead of a distribution center? - It helps control inventory levels. - If there are only a few stores, it would be more cost-effective. - Retail space is cheaper than at a distribution center. - It gets merchandise to the stores faster. - It makes sales forecasts more accurate.

- It gets merchandise to the stores faster.

________ is a tactic in which a firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best or for whom price does not matter. Target return pricing Target profit pricing Status quo pricing Competitive parity Premium pricing

- Premium pricing

________ measures how changes in price affect the quantity of the product demanded. Break-even analysis Competitive parity Target return pricing Market-oriented pricing Price elasticity of demand

- Price elasticity of demand

________ occurs when one or more firms collude to control prices. Predatory pricing Price discrimination Bait-and-switch pricing Price fixing Loss-leader pricing

- Price fixing

________ power is exhibited when one channel member wants to be associated with another channel member; the channel member with whom the others want to be associated has the power to get them to do what they want. Coercive Referent Reward Legitimate Information

- Referent

________ is a customer's perception of how well a service meets or exceeds his or her expectations. Service quality Product quality Cognitive dissonance Zone of tolerance Assurance

- Service quality

What does it mean when a firm's performance on one of the dimensions of service quality is above the highest point in the zone of tolerance? - The firm is overcharging for its offerings. - The firm has achieved its highest level of profitability. - The firm has the opportunity to reach new customer segments. - The firm has exceeded customer expectations on that dimension. - The firm has fallen short of meeting customer expectations on that dimension.

- The firm has exceeded customer expectations on that dimension.

________ buy products from manufacturers and resell them to retailers. Fulfillment centers Customers Distribution centers Direct marketing channels Wholesalers

- Wholesalers

In ________, one firm provides the product or service in a particular industry, which results in less price competition. a monopoly an oligopoly monopolistic competition oligopolistic competition pure competition

- a monopoly

When a manufacturer ships HDTVs to Best Buy's distribution center, it sends a(n) _________ to the distribution centers to tell the retailer exactly what to expect in the shipment. universal product code radio frequency identification tag advanced shipping notice electronic data interchange merchandise shipping confirmation

- advanced shipping notice

In the soft drink industry only a few firms dominate, which is characterized as a monopoly. an oligopoly. pure competition. competitive parity. monopolistic competition.

- an oligopoly.

Medical professionals often hang framed copies of their educational accomplishments in order to convey their competence in their field, thus addressing the ________ dimension of service quality. reliability responsiveness assurance empathy tangibles

- assurance

Shoe Emporium focuses on all aspects of service quality. The corporate office conveys trust by empowering its employees. If a customer is unhappy with a purchase, the employees are given discretionary resources to rectify the problem. Which service characteristic is the shoe store focusing on? responsiveness empathy tangibles reliability assurance

- assurance

Mobile task management technology is useful in - viral marketing programs. - buy-online-and-pick-up-in-store purchases. - direct marketing channels. - franchises. - direct store deliveries.

- buy-online-and-pick-up-in-store purchases.

By using point-of-sale purchasing information, the ________ can send information to stores about overall sales for the chain, ways to display the merchandise, and upcoming promotions. wholesaler buyer customer manufacturer distribution center

- buyer

When Lei and Harold planned their tenth wedding anniversary weekend at a ski resort, they discovered that the price advertised was not available during the weekend and that a three-day minimum stay was required. This scenario reflects a(n) _______ gap between Lei and Harold, and the ski resort. knowledge standards delivery communication ethical

- communication

Jim is the sales manager for a firm located in the Northwest that is clearly the market leader. He suggests his firm implement a regionwide price reduction of all product lines to discourage new firms from entering the lucrative market. Which company objective is involved? profit orientation sales orientation competitor orientation customer orientation market orientation

- competitor orientation

The ________ is the price less the variable cost per unit. profit margin break-even point target return price contribution per unit fixed cost

- contribution per unit

The international fashion retailer Zara's parent company, Inditex, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of a(n) independent marketing channel. vertical marketing system. administered vertical marketing system. contractual vertical marketing system. corporate vertical marketing system.

- corporate vertical marketing system.

For the sake of expediency, marketers creating a ________ assume that the firm will not increase its expenditures on advertising and that the economy will not change in any significant way. price point analysis break-even analysis demand curve product curve price elasticity curve

- demand curve

When Chin Lee sells the jewelry she makes at craft fairs or on her personal website, she is utilizing a(n) ________ marketing channel. modified indirect secondary ancillary direct

- direct

A ________, which may be operated by retailers, manufacturers, or distribution specialists, is a facility for the receipt, storage, and redistribution of goods to company stores. logistics center fulfillment center distribution center marketing channel supply chain

- distribution center

Sharon's dinner at Tex Mex Cantina came out cold and was not what she had ordered. She wants to be compensated a fair amount for this mistake. This is the idea behind service quality. procedural fairness. distributive fairness. the zone of tolerance. cognitive dissonance.

- distributive fairness.

Airlines that offer lower fares on seats shortly before the flight's departure date to fill empty seats are utilizing what type of pricing tactic? status quo pricing premium pricing cross-pricing complementary pricing dynamic pricing

- dynamic pricing

In a(n) ________ demand scenario, relatively small changes in price will generate fairly large changes in the quantity demanded. elastic inelastic target profit target return competitive parity

- elastic

Managers provide _______ to service providers when they demonstrate a concern for their well-being and stand behind their decisions. instrumental support procedural support emotional support assurance distributive fairness

- emotional support

Park Memorial Hospital uses patient questionnaires to determine that the bedside manner of each of its doctors on staff meets patient needs, thus monitoring the ________ dimension of service quality. empathy tangibles reliability assurance responsiveness

- empathy

The five distinct service dimensions that customers use to evaluate how well a service meets or exceeds their expectations include reliability, responsiveness, assurance, tangibles, and empathy. ethics. sympathy. friendliness. courtesy.

- empathy.

When using a market penetration strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. This is due to markdowns. price lining. seasonal discounts. improvement value. experience curve effects.

- experience curve effects.

If Target decides to carry a new brand of clothing in its stores, and decides how to market the products without consulting the maker of the clothing, Target is using its ________ power. coercive referent expertise legitimate information

- expertise

A ________ is an individual who pays a lump sum plus a royalty on all sales to a specific company in return for the right to operate a business in a specific location. retailer wholesaler franchisee supplier franchiser

- franchisee

Bank tellers have been replaced by ATMs, which provide consistent levels of service and are never late, sick, or in a bad mood, thus overcoming the ________ nature of services. inseparable heterogeneous perishable intangible unexaminable

- heterogeneous

When there is disagreement among members at the same level of marketing channels, such as when Home Depot and Lowe's engage in a price war on Samsung appliances, ________ channel conflict can occur. vertical independent competitive horizontal administered

- horizontal

Because Amazon Prime offers super-fast, free shipping, many other retailers have had to offer the same type of shipping in order to compete. This is an example of vertical channel conflict. horizontal channel conflict. coercive power. legitimate power. a conventional marketing channel.

- horizontal channel conflict.

When the members of a marketing channel operate to satisfy their own objectives and maximize their own profits, often at the expense of the other members, the channel operates as a(n) vertical marketing system. independent marketing channel. corporate vertical marketing system. contractual vertical marketing system. administered vertical marketing system.

- independent marketing channel.

Automobile manufacturers such as Ford and General Motors often use ________ distribution, such that dealers act as retailers. modified indirect secondary ancillary direct

- indirect

In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is elastic. inelastic. price-sensitive. expandable. flexible.

- inelastic.

The concept of services being ________ is highlighted in the fact that a hairstylist can positively impact the overall customer experience by having a friendly, attentive attitude. heterogeneous intangible perishable immutable inseparable

- inseparable

Service providers require the systems and equipment to deliver the service properly. This is known as instrumental support. procedural support. emotional support. assurance. distributive fairness.

- instrumental support.

Service providers must offer cues to help their customers experience and perceive their service more positively because the service is inseparable. heterogeneous. perishable. intangible. unexaminable.

- intangible.

In order to be successful, P&G relies on its relationship with Walmart to stock its products and Walmart relies on its relationship with P&G to increase sales. This best exemplifies which factor of successful strategic relationships? interdependence unique goals credible commitments open communication mutual trust

- interdependence

One result of stores using a distribution center over receiving orders from a vendor directly is that - it is harder to keep track of inventory since it's spread out. - more backup inventory is needed. - it helps stores avoid running out of stock or having too much stock. - it is more costly. - merchandise can be delivered to all the stores in one area more economically.

- it helps stores avoid running out of stock or having too much stock.

In order to get the latest seasonal fashions in its stores for consumers to buy as soon as possible, H&M uses a(n) viral marketing program. just-in-time (JIT) inventory system. fulfillment center. direct marketing channel. independent (conventional) marketing channel.

- just-in-time (JIT) inventory system.

If George expects his hotel room to be ready when he arrives, but encounters a wait because the room is not ready, this reflects a(n) ________ gap on the part of the hotel because it did not understand the customer's expectations. knowledge standards delivery communication ethical

- knowledge

The use of ________ power gets a channel member to behave in a certain way because there is a contractual agreement between two firms. referent legitimate expertise coercive information

- legitimate

In a service recovery situation, the extent to which a customer perceives the benefits of the "solution" compared to the costs of the inconvenience associated with the service failure will determine the level of assurance. level of distributive fairness. level of procedural fairness. zone of tolerance. communication gap.

- level of distributive fairness.

The key to distributive fairness is charging low prices. hiring experienced workers. never having a service failure. listening carefully to the customer. training customer service employees.

- listening carefully to the customer.

When Taran undertakes a postpurchase evaluation regarding the haircut she received and decides she is satisfied, this will most likely lead to ambivalence. dissonance. tolerance. loyalty. distributive fairness.

- loyalty.

To create strong partnering relationships, supply chain members must develop mutual trust, openly communicate, have common goals, recognize the benefits of interdependence, and - maximize market share. - set out to make the most profits. - make tangible investments in the relationship. - minimize transportation expenditures for suppliers. - maximize the profitability of the largest channel member.

- make tangible investments in the relationship.

The Service Gaps Model is designed as a diagnostic tool to highlight specific areas where - marketers deliver better quality service compared to the physical goods they sell. - manufacturers are cutting costs on product quality. - marketers are falling short in their service delivery. - marketers can take advantage of unsuspecting customers. - there is a gap in product quality compared to service quality.

- marketers are falling short in their service delivery.

The most common form of competition is ________, where many firms compete for customers in a given market but with differentiated products. oligopolistic competition market saturation pure competition competitive parity monopolistic competition

- monopolistic competition

Demand for movie tickets is high on weekends and holidays. To compensate for low ticket sales during the week, some movie theaters offer discounted tickets to stimulate weekday demand. This is an example of the ________ nature of services. variable intangible inseparable immutable perishable

- perishable

Services are ________ in that they cannot be stored for use in the future. variable intangible perishable immutable inseparable

- perishable

Direct store delivery from vendors is ideal for large seasonal items. only small items that can be stored easily. perishable goods. expensive products. fragile products.

- perishable goods.

When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is engaged in monopolistic competition. gray market pricing. predatory pricing. competitive parity. the substitution effect.

- predatory pricing.

With ________ products and services, a higher price demonstrates how rare and exclusive it is, increasing the value for the customer. status quo prestige predatory price elastic substitute

- prestige

A local pizza parlor located on campus offers a student rate for its pizza lunch special. This is a form of predatory pricing and is legal. predatory pricing and is illegal. bait-and-switch pricing and is legal. price discrimination and is illegal. price discrimination and is legal.

- price discrimination and is legal.

When the iPhone X was released, it was priced at $999, but two years later, the price decreased to $600. This is an example of what type of pricing strategy? price skimming penetration price strategy reference price high/low pricing everyday low pricing

- price skimming

Sometimes reactions to prices in oligopolistic markets can result in a ________, which occurs when two or more firms compete primarily by lowering their prices. recession price war lawsuit profit-oriented strategy competitor-oriented strategy

- price war

Customers tend to believe they have been treated fairly if the service providers follow specific company guidelines. This pertains to customer service. distributive fairness. procedural fairness. the zone of tolerance. the standards gap.

- procedural fairness.

Variable costs are affected by profit margins. production volume. marketing outlays. contribution per unit. the break-even point.

- production volume.

As the marketing vice president of her firm, Jaqueline is implementing a companywide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this? profit orientation sales orientation competitor orientation customer orientation market orientation

- profit orientation

Standardized products such as grains and mineral products, where consumers perceive them as substitutable, are characteristic of monopolies. oligopolies. pure competition. competitive parity. monopolistic competition.

- pure competition.

Eduardo's Restaurant maintains its five-star rating by focusing on all aspects of service quality. When employees are trained to always greet the customers, accurately answer questions about the menu, and give a realistic wait time, what service characteristic is the restaurant focusing on? reliability responsiveness assurance tangibles empathy

- reliability

Hilton Hotels has a customer relationship management system whereby the preferences of regular customers are tracked and used to anticipate customer desires and special requests, which helps facilitate the registration process. This corresponds to which component of service quality? empathy tangibles reliability assurance responsiveness

- responsiveness

Due to increased customer demand, Best Buy asked its manufacturer to speed up production of its newest smartphone, giving them a bulk discount in the process. Best Buy is using what kind of power? reward referent coercive legitimate information

- reward

Mateo's firm is entering a new market and he plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which company objectives? profit orientation sales orientation competitor orientation customer orientation market orientation

- sales orientation

If firms can set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance, they generally can close the ________ gap. knowledge standards delivery communication ethical

- standards

Office Depot will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using premium pricing. competitive parity. status quo pricing. target return pricing. target profit pricing.

- status quo pricing.

In a ________, marketing channel members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. franchise direct marketing channel corporate vertical marketing system strategic relationship power relationship

- strategic relationship

Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their manufacturers, warehouses, transportation intermediaries, stores, and suppliers. customers. competitors. buying centers. top-level executives.

- suppliers.

Which term represents the most fundamental difference between a product and a service? heterogeneity tangibilityCorrect perishability serviceability inseparability

- tangibility

Dr. Whitehall's dental office staff makes sure the waiting room is clean and that the magazines are current and accessible to patients, thus addressing the ________ dimension of service quality. reliability responsiveness assurance empathy tangibles

- tangibles

In the past, 'Matilda's vacation time has been spent at home catching a few local attractions when she could afford them. This year, she received a big bonus at work and decides to finally take the trip to Europe that she has always dreamed about. Matilda's 'purchasing behavior has changed due to the income effect. the substitution effect. cross-price elasticity. the complementary products effect. the substitute products effect.

- the income effect.

Radio frequency identification tags are - demand scheduling data tags. - information tags used on floor-ready merchandise. - shipping tags used to record weight limits of different types of trucks. - tiny computer chips that transmit information about the contents of containers. - electronic discount information tags used to provide reduced prices to select customers.

- tiny computer chips that transmit information about the contents of containers.

The best way for a firm to close the knowledge gap is to - be more realistic about the services it can provide and at the same time manage customer expectations effectively. - empower service providers, provide support and incentives, and use technology. - understand customer expectations. - set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance. - advertise more frequently.

- understand customer expectations.

Each participant in a successful marketing channel adds time. overhead. inefficiencies. value. pricing pressure.

- value.

When supply chain members that buy and sell to one another are not in agreement about their goals, ________ channel conflict can occur. vertical independent competitive horizontal administered

- vertical

The popular video series, "Will It Blend?" by Blendtec, showcases how strong its blender product is by blending any number of inanimate objects, from iPhones and DVDs to soccer balls and markers. The company even takes requests from the audience and sometimes features celebrities. This is an example of a(n) direct marketing channel. viral marketing program. indirect marketing channel. strategic relationship. expertise power.

- viral marketing program.

An ongoing marketing research system that assesses how well companies are meeting their customers' expectations by collecting customer inputs and integrating them into managerial decisions is called a ________ program. zone of tolerance voice-of-customer instrumental support standards gap distributive fairness

- voice-of-customer

When firms ask a series of questions about each service quality dimension that relate to customers' perceptions of how well the focal service performs and how well a competitive service performs, from low to high, they are defining the voice-of-the-consumer. zone of tolerance. dimensions of service quality. standards gap. service recovery.

- zone of tolerance.

Susanna estimates that the fixed costs associated with opening her new hair salon are $100,000. She expects the salon to attract 500 new customers in the first year, each of which will cost her $25 to service. Susanna expects to generate $50,000 per year in revenue. For Susanna, the total cost of opening her hair salon and staying in business for one year will be $50,000. $87,500. $100,000. $112,500. $150,000.

-$112,500.

If the fixed costs of manufacturing a new jet ski are $24,000, the sales price is $9,000, and the variable cost per unit is $1,000, the break-even point is 1 unit. 2 units. 3 units. 4 units. 5 units.

3 units.

________ indicates that the demand for related products can either be positively or negatively related. The income effect The substitution effect Cross-price elasticity Complementary products effect The supply curve

Cross-price elasticity

Customer orientation and competitor orientation strategies are examples of which of the five Cs of pricing? company objectives competition customers costs channel members.

company objectives