Marketing Final Exam
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
______ means sending email pitches only to customers who "opt in."
permission-based email marketing
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price-fixing
The seven-step selling process takes a __________ approach to selling. In other words, its aim is to help salespeople close a specific sale with a customer.
transaction-oriented
Catalogs, online and social media, and mobile marketing are some of the specific promotional tools used in _________________________.
direct and digital marketing
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
Press releases, sponsorships, events, and web pages are promotional tools used in _____________.
public relations
Companies like Amazon and Expedia.com that sell products and services directly to final buyers over the Internet are known as _______.
e-tailers
The benefits of direct and digital marketing for buyers are that they are _________.
easy, convenient, and private
Companies today see channel members as ______________ and practice strong partner relationship management.
first-line partners
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided
. variability
_______________________ is an example of horizontal channel conflict.
A Subaru dealer complaining that another Subaru dealer is advertising in its territory
What potential risk do marketers incur by using richer but more fragmented media and promotional mixes?
A communications hodgepodge for consumers
The four elements of a compensation plan for salespeople are __________.
A fixed amount, a variable amount, expenses, and fringe benefits
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
In which of the following does a producer direct marketing activities (primarily personal selling and trade promotion) toward channel members?
A push strategy
Which of the following statements about blogs is correct?
Blogs can be difficult for the company to control.
Which of the following are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople?
Business promotions
Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer?
Channel levels
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?
It turned free-spending consumers into value-seeking ones.
Which of the following is a form of traditional direct marketing?
Kiosk marketing
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
Which of the statements is TRUE regarding media and message decisions?
Media and message decisions should be closely coordinated.
Which of the following types of wholesalers are Independently owned businesses that take title to all merchandise handled?
Merchant wholesalers
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
___________________is used to build and maintain national or local community relationships and is one of the functions of public relations.
Public affairs
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Which of the following statements about sales promotions is correct?
The heavy use of sales promotions has resulted in promotion clutter.
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more blurred.
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas?
Warehousing, inventory management, transportation, and logistics information management
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
Which of the following statements about wholesaling is true?
Wholesalers must make decisions regarding their marketing mix.
What event or circumstance has made mobile marketing a must for most brands?
Widespread adoption of mobile devices
________________________ is one major objective associated with a market-penetration pricing strategy
Winning large market share
In place of traditional media, marketers are using __________________________ to engage smaller customer segments with more personalized, interactive content.
a broad selection of more specialized and highly targeted media
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________.
a fad
After the presentation and demonstration step in the sales process, a salesperson should next be prepared to _______.
handle objections
Crowdsourcing is used in the _______________________ step of the new product development process.
idea generation
Adding a new product line to an existing portfolio means that the line has __________________.
increased product mix width
The goal of a push strategy is to _____________________________.
induce channel members to carry and promote the product
Groups of __________________ products consist of materials and parts, capital items, and supplies and services.
industrial
Social media are ideal for participating in customer conversations and listening to customer feedback because they are _____________.
interactive
Many consumers today rent DVDs from a vending machine called Redbox, which can be found in retail stores and other locations. Redbox is type of ________ marketing.
kiosk
The three functions of __________ include identifying, describing, and promoting the product.
labeling
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ______________________.
modifying the market
A blog is a(n) ______.
online forum
Websites, online advertising, email, online video, and blogs are all forms of ______.
online marketing
GE Healthcare employs different sales forces for diagnostic imaging, life sciences, and integrated IT products and services. GE Healthcare has adopted a ______ sales force structure.
product
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting
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
Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale is known as ______________________.
shopper marketing
One challenge of social media marketing is _____________________
social networks are largely user-controlled
The fastest-growing sales trend today is ______________.
social selling
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
A(n) _____ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
The digital version of word-of-mouth marketing that involves creating videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called _______.
viral marketing
What is the final step in the seven-step personal selling process?
Follow-up
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
It's time for the Super Bowl, and the end-of-the-aisle displays at the supermarket feature chips, dips, and soft drinks. What type of sales promotion tool is this?
Point-of-purchase
Which of the following does NOT represent one of the major trends and developments in retailing?
Social e-tailing
_____________________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.
A pull strategy
Channels often involve long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?
Adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
________________________ is the first step in marketing channel design.
Analyzing consumer needs
At which step in the personal selling process does a salesperson meet the customer for the first time?
Approach
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management?
Maturity
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
Which of the following is NOT a product life cycle (PLC) stage?
Commercialization
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement?
Convenience products
Which of the following represents the four major classifications of retail organizations?
Corporate chains, voluntary chains, retailer cooperatives, and franchise organizations
What are the two major elements in developing advertising strategy?
Creating advertising messages and selecting advertising media
_____________________ is the value of customer relationships that a brand creates.
Customer equity
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
Customer value-based pricing
A form of television marketing which persuasively describes a product and give customers a toll-free number or an online site for ordering is known as _________________.
DRTV marketing
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function?
Development
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations
Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships?
Direct and digital marketing
_______________________ uses tools that engage directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Direct and digital marketing
____________________ is perhaps the biggest advantage of social media.
Engagement and social sharing capabilities
Advertising decisions involve multiple steps culminating in the measurement of the sales effects of advertising or brand content. Which of the following considers return on investment?
Evaluation
Companies such as Breitling watches and Pandora charm bracelets use which of the following types of distribution strategy?
Exclusive
_____________________ is a retailing technique of carefully orchestrating the store's layout and displays, background music, colors, and smells.
Experiential retailing
In which of the following is vertical conflict, conflict between different levels of the same channel, common?
Franchise organizations
_________________________ are the objectives of trade promotions.
Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
Which of the following statements regarding packaging is correct?
Innovative packaging can give a company an advantage over competitors and boost sales.
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Integrated supply chain management
__________________ represent an internal source of new product ideas for a company.
Intrapreneurial programs
____________ is perhaps the toughest public policy issue now confronting the direct marketing industry.
Invasion of privacy
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extension
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and higher sales volume
Many vital and key functions are performed by marketing channels. Of the following, which is NOT one of those key functions?
Manufacturing and assembly
Which of the following accurately describes a company's efforts to engage customers, persuasively communicate customer value, and build customer relationships?
Marketing mix
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?
Maturity
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
New brand
Which of the following is correct regarding the forms of direct and digital marketing?
New digital and the more traditional forms of direct marketing must be blended and integrated
Which of the following represent the newer tools of digital direct marketing?
Online marketing, social media marketing, and mobile marketing
Which of the following represents a new trend in logistics to save costs, increase efficiencies, and gain faster and more effective access to global markets?
Outsourcing logistics functions
Which of the following statements is TRUE about public relations and a company's overall integrated marketing communications efforts?
PR should be blended smoothly with promotion activities.
_____________________ software systems enable companies to coordinate their whole-channel marketing efforts.
Partner relationship management
________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.
Perishability
Which of the following uses promotional tools such as presentations, trade shows, and incentive programs to engage customers, make sales, and build customer relationships?
Personal selling
___________________ advertising is the type of advertising objective used when attempting to build brand preference and prompting customers to purchase now.
Persuasive
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
Private brands
Which of the following makes up the retail marketing mix?
Product and services assortment, price, promotion, and location
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
______________________ is the step of the new product development process during which a physical product is first developed.
Product development
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
Product stewards
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere
Which consumer promotion tool is like coupons, except that the price reduction occurs after the purchase rather than at the retail outlet?
Rebates
Which advertising objective is best suited to maintaining customer relationships and for more mature products?
Reminder
Which of the following retail trends is making differentiation more difficult?
Retail convergence
Which of the following statements about retailer marketing decisions is correct?
Retailers identify three critical factors for retail success: location, location, and location.
What does the phrase "omni-channel buying calls for omni-channel retailing" imply for retailers?
Retailers should integrate all available shopping channels and devices into a seamless customer shopping experience.
Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying process?
Retailing
Which of the following statements about personal selling is correct?
Salespeople are often the only direct contact with a customer.
Which of the following is described as "always on" and is a large component of the digital advertising mix?
Search advertising
Which of the following statements is correct regarding sellers and their use of direct and digital marketing?
Sellers have opportunities to engage in real-time marketing.
Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of media?
Social shopping retailing
Which of the following would be an appropriate strategy during the growth stage of the product life cycle?
Spend a lot of money on product improvement, promotion, and distribution.
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
_______________________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
What characteristics are possessed by the best salespeople?
The best salespeople are the ones who work closely with customers for mutual gain.
Which of the following indicates the length of a channel?
The number of intermediary levels in the channel
Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called "high-low pricing." Which of the following correctly describes high-low pricing?
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
Which of the following statements is true regarding product life cycle curves?
The sales of a typical product follow an S-shaped curve made up of five stages.
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
Which of the following is TRUE regarding omni-channel buyers?
They shift easily across online and in-store channels.
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
Which of the following accurately represents the three characteristics of advertising appeals?
To be meaningful, to be believable, and to be distinctive
What is the goal of advertising?
To help move consumers through the buying process
Which of the following is a pure tangible good?
Toothpaste
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
After recruiting and selecting salespeople, what is the next major step in sales force management?
Training salespeople
Which of the following statements regarding managing service quality is correct?
Unlike product quality, service quality will always vary.
Of the following, which most closely describes the method by which companies engage and create benefits for their customers?
Value delivery network
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?
Value-added pricing
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________.
acquisition
Progressive wholesalers recognize that their only reason for existing is to ____________________.
add value
Roshika 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 quality
The primary purpose of _________ websites is to do more than just sell products or move them closer to a direct purchase.
brand community
After market strategy is developed, the next step of the new product development process is _______________.
business analysis
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.
captive-product
Best Buy, Home Depot, Petco, and Bed Bath & Beyond, which are actually giant specialty stores characterized by immense size and deep assortments of merchandise, are sometimes called _______________.
category killers
Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that _________________________.
consumers don't distinguish between content sources the way marketers do.
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
corporate VMS
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
After segmenting and defining their target markets, retailers must then ____________________.
decide how they will differentiate and position themselves
The goal of integrated marketing communications is to __________________________________.
deliver clear, consistent, and compelling messages about the organization and its brands
The first decision a manager must make in sales force management is _______________.
designing sales force strategy and structure
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ___________ is defined in terms of how highly consumers regard and respect the brand.
esteem
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________.
internal marketing
Personal selling can be more effective than advertising in complex selling situations because it is ______________________________.
interpersonal
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________.
introduction timing
Marketing logistics addresses not only outbound logistics but also inbound logistics and reverse logistics, which means it ____________________________.
involves the entire supply chain management
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?
market-penetration pricing
Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed a(n) ______ website.
marketing
The massive shift in how and where people buy calls for __________________________.
massive shifts in how store retailers operate
Which of the following is used to engage customers anywhere, anytime during the buying and relationship-building processes?
mobile marketing
Consumers may receive an e-mail, supposedly from their bank or credit card company, saying that their account's security has been compromised. The sender asks consumers to log on to a provided Web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called ______.
phishing
One of the primary advantages of marketing logistics is __________________.
potentially high cost savings and improved customer satisfaction
Most companies today want their salespeople to _______, which means demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company.
practice value selling
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
One consumer promotion tool is _______, which are goods offered either free or at low cost as an incentive to buy a product.
premiums
More than a territory, compensation, and training, new salespeople need ________________.
supervision and motivation
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development.
systematic
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
When setting marketing channel objectives, companies should state the objective in terms of ______.
targeted levels of customer service
During the presentation step in the personal selling process, the salesperson ______________.
tells the buyer a "value story"
Justin, Inc., a U.S.-based watch manufacturer, sells its products in China, Russia, France, and India. To manage sales, Justin appoints a number of sales representatives to each location. Justin has adopted a ________ sales force structure.
territorial
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________.
the company would see rising profits
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________________.
the responsibilities of channel members
To set its sales force size, a company can first group accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the ______ approach.
workload
As companies become more market-centered, a customer-focused sales force __________________.
works to produce both customer satisfaction and company profit
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing
________ involves sending an offer, announcement, reminder, or other item to a person at a particular address.
Direct-mail marketing
Which of the following are common trade promotion tools?
Discounts, free goods, allowances, and free advertising specialty items