Marketing Final Exam Practice Questions
Which of the following statements regarding a just-in-time logistics system is correct?
JIT logistics system allow producers and retailers to carry small inventories to lat for only a few days of operations
Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of __________ pricing.
bundling
Netflix recruits "Grammasters," influencers who have large Instagram followings. They travel around the world taking photos and creating videos. This is an example of using __________ as a personal communication channel.
buzz marketing
Which factor sets the ceiling on setting a product's price?
customers value perception
Which of the following statements is true regarding initiating price cuts?
cutting prices in an industry loaded with excess capacity may lead to price wars
__________ occurs when retailers set an artificially high "regular price" and then advertise a "sale price" which is actually close to their everyday price.
deceptive pricing
A(n) _____ shows the number of units the market will buy in a given time period at different prices.
demand curve
L.L. Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of __________.
experiential retailing
L.L.Bean has turned its flagship store and campus in Freeport, Maine into a full-fledged outdoor adventure center. There, customers can hike, kayak, or go seal watching at nearby Cisco Bay. This is an example of __________.
experiential retailing
__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.
full line forcing
Tiffany and Neiman Marcus are classified as __________ retailers.
full service
Which of the following statements regarding green retailing is correct?
green retailing initiatives extend to helping consumers be more environmentally responsible
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________.
high low pricing
As marketers adopt richer but more fragmented media and promotion mixes to reach their diversemarkets, they risk creating a communications hodgepodge for consumers. To prevent this, companies have adopted the concept of __________.
integrated marketing communication
From the producer's point of view, a greater number of levels of marketing channel means__________.
less control and greater channel complexity
Within each retail establishment of Kmart, external vendors stock and maintain the magazine department of the stores, but do not actually take possession of the product. Which type of wholesaler best describes these vendors?
limited service wholesalers
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 seller higher volume
In which type of competition do fast-food restaurants operate?
monopolistic competition
The goal of the competition-based pricing is __________.
not to match or beat competitors price
__________ retailing refers to the creation of a seamless cross-channel buying experience.
omni channel
Which of the following statements about major retail trends is true?
online buying is growing at a much brisker pace than retail buying as a whole
Companies now use __________ and supply chain management software to help recruit, train,organize, manage, motivate, and evaluate channel partners.
partner relaitonship management
To which category of the marketing communication mix do sales presentations, trade shows, and incentive programs belong?
personal selling
__________ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
power centers
The pricing method in which sellers combine several products and offer a reduced price is known as __________.
product bundle pricing
Which factor sets the floor on setting a product's price?
product cost
Whirlpool washers and dryers are offered in many different models. Whirlpool will use __________ pricing to determine the price steps between the different models.
product line
Hammerpress must decide how to price the standard run-rate items it sells, such as business cards, wedding invitations, and posters. Which type of pricing strategy is this?
product line pricing
Wholesalers add customer value through the __________ they offer.
products and services
If Brady, the owner of Hammerpress, strategically discounts the price of all gift cards by 20% during the holidays and runs a campaign to encourage gift card purchases, he is implementing which type of pricing?
promotional
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as __________.
psychological pricing
Specific promotional tools used in __________ include press releases, sponsorships, events, and web pages.
public relations
In which type of market does no buyer or seller have much impact on setting the going market price?
pure competition
Under __________, the market consists of many buyers and sellers trading in a uniform commodity.
pure competition
After 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
In terms of location, most stores today cluster together. What is the primary reason for this?
to increase their customer pulling power
Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and otherin-park features. This is called __________.
two part pricing
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of __________.
value added pricing
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 and 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
The company, suppliers, distributors, and customers who "partner" with one another to improve the performance of the entire system make up the __________.
value delivery network
What are the four major functions of logistics?
warehousing, inventory management, transportation, and logistics information management
Which of the following is a concern when using optional-product pricing?
which products to include in the base price and which to offer as options
Which of the following statements regarding wholesaling is correct?
wholesalers must make decisions regarding their marketing mix
One form of influence that carries great weight, especially for products that are expensive, risky, or highly visible is __________.
word of mouth
The Kmart commercials depicted in the video utilized both advertising and entertainment. This is known as which of the following?
Madison and Vine
The largest trading bloc after NAFTA and the EU is __________.
UNASUR
Which of the following is an example of horizontal channel conflict?
a Ford dealer complaining that another Ford dealer is advertising in their territory
Which of the following statements regarding a customer intimacy strategy is correct?
a customer intimacy strategy requires quickly responding to customer needs
What are the four elements of a compensation plan for salespeople?
a fixed amount, a variable amount, expenses, and fringe benefits
John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere's sales force works with Lowe's, The Home Depot, and other channel members. This is an example of using __________for promotion.
a push strategy
L'Oréal, a French origin firm, is considered a(n) __________.
a truly global organization
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is considered __________.
advertising
Which of the following best reflects the role of retailing in the distribution channel?
all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use
Which of the following statements does not accurately reflect PR's role in marketing?
as the use of earned and shared digital content grows rapidly, PR is a playing a smaller role in marketing content management
What is the stage in competitor analysis in which marketing management tries to find outcompetitors' objectives?
assessing competitors
One framework for designing an effective message is the AIDA model. In the AIDA model__________.
attention leads to interest, which hopefully leads to desire and then action
Which of the following statements is true regarding costs?
average costs tends to decrease with accumulated production experience
When Sam Farber started OXO and launched never-before-seen products that were targeted at people with dexterity problems, in which stage of buyer-readiness was his target market?
awareness
One new technology being adopted by retailers is __________. For example, when opted-in customers enter a store, a signal wakes up an app on their smartphone or tablet, which welcomes them and alerts them to location-specific rewards and personalized product recommendations within the store.
beacon technology
__________ is/are considered a consumer-controlled digital media.
blogs
Many company websites are now designed to do more than just sell product. These websites, known as __________ websites, attempt to build closer customer relationships and generate engagement with and between the brand and its customers.
brand community
NutriSystem maintains a website that engages consumers and includes videos, blogs,activities, and other features that build closer customer relationships and generate engagement. This indicates that NutriSystem employs a(n) __________.
brand community website
It is common to see product placement— embedding brands as props within other programming, such as TV shows or movies. Product placements are a form of __________.
branded entertainment
How do brokers and agents differ from merchant wholesalers?
brokers and agents do not take title and perform a limited number of specialized functions
A sales contest is considered a part of
business promotions
Which statement does not describe sustainable companies?
by setting guidelines, sustainable companies can resolve all the difficult ethical decisions
Companies that make products that must be used along with a main product are using__________.
captive product pricing
Hammerpress utilizes different pricing strategies than other printing companies, which sell printers to thehome-printing market at a low price point and then sell the continual ink cartridge purchases at a high price point. Which type of pricing strategy is this?
captive product pricing
Recently, superstores that are actually giant specialty stores, such as Petco and Home Depot, have seen tremendous growth. These types of superstores are called __________.
category killers
Which of the following statements regarding marketing channel design is correct?
channel alternatives should be evaluated against economic, control, and adaptability criteria
Using a push strategy, a firm directs its promotional efforts toward __________.
channel members
Which of the following statements is correct regarding the functions channel members perform?
channel members create greater efficiencies than manufactures could achieve on their own
The aim of transaction-oriented marketing is to help salespeople __________.
close specific sales
Regardless of the size of the budget, to succeed, advertising must engage consumers and__________.
communicate well
Rather than standardizing their advertising globally, some companies follow a strategy of__________, fully adapting their advertising messages to local markets.
communication adaptation
Conscientious marketers face many dilemmas, which include all of the following except __________.
companies and their managers are not responsible for making moral judgement
Which of the following statements regarding customer value-based pricing is correct?
companies often find it hard to measure the value customers attach to their product
Why should companies use mobile marketing responsibly?
companies risk angering already ad weary consumers
When a company directly or indirectly compares its brand with one or more other brands in anadvertisement, they are using __________.
comparative advertising
When companies set their promotion budgets to match competitor's outlays, they are using the__________ method.
competitive parity
Which orientation could result in a firm simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers?
competitor centered
"Kodak didn't lose out to competing film makers such as Fuji; it fell to the makers of digital cameras that use no film at all." This statement is a classic example of __________.
competitor myopia
Toro ran a preseason promotion on its snowblower models offering a rebate if the snowfall in the buyer's market area turned out to be below average. This is an example of __________.
consumer promotion
One reason there is a need for integrated marketing communications is that __________.
consumers dont distinguish between content sources the way marketers do
Which of the following tools can be used as both consumer and trade promotions?
contests, premium, and displays
In __________ the company makes agreements with manufacturers in the foreign market to produce its product or provide its service.
contract manufacturing
The franchise organization is the most common type of __________ VMS (vertical marketingsystem).
contractual
Historically, __________ have lacked leadership and power, often resulting in damaging conflict and poor performance.
conventional distribution channels
Logos, stationery, brochures, signs, business cards, buildings, and uniforms are all types of__________.
corporate identity materials
A fast-food restaurant determines the cost of producing its chicken nuggets then adds a percentage to that cost to determine the price charged to consumers. This indicates that the restaurant is utilizing which of the following pricing strategies?
cost plus pricing
A tool considered useful for assessing competitor strengths and weaknesses is __________.
costumer value analysis
To bring the message strategy to life in a distinctive and memorable way, advertisers develop what is known as the "big idea". This big idea becomes the __________.
creative concept
Which of the following best describes the highest price that a customer is willing to pay for a fast-food chain's products?
customer perception
One form of __________ is when movie theaters charge one price for adults and a different price for senior citizens.
customer segment pricing
A(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of various competitors' offers.
customer value analysis
__________ uses buyers' perceptions of value as the key to pricing.
customer value based pricing
Which of the following correctly identifies the three major pricing strategies used by marketers?
customer value based, cost based, and competition based pricing
The concept of salesperson-owned loyalty means that __________.
customers become loyal to salespeople as well as companies they represent
Which of the following statements about price is correct?
customers have put increasing pricing pressures on many companies
Some companies still treat sales and marketing as separate functions. One effect this can have is to __________.
damage customer relationships
What is the first decision made in sales force management?
designing sales force strategy and structure
What is the first step in the media selection process?
determining reach, frequency, impact, and engagement
A winning strategy for competitive positioning in which the company concentrates on creating a product line and marketing program so that it comes across as the class leader in the industry is referred to as __________.
differentiation
The fastest growing form of marketing is __________.
direct and digital 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
Using door to door salespeople what marketing channel is used?
direct marketing
Infomercials are a form of marketing considered a part of
direct response television marketing
Direct mail is well suited for which of the following?
direct, one to one communications
Basic price adjustments known as __________ are used to reward customers for certain responses.
discounts and allowances
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________.
disintermediation
What are the two main forms of online advertising?
display ads and search related ads
One primary PR responsibility is to create content that __________.
draws consumers to a brand
The key to Hammerpress's capability to meet its customers' needs and budget goals, while maintaining itsprofitability, lies in which of the following pricing tactics?
dynamic pricing
Buyers have increased their use of direct and digital marketing because they are __________.
eas, convenient, and private
In the content of a message, marketers often use __________ appeals such as joy, love,humor, fear, and guilt.
emotional
In the communication process, putting thought into symbolic form is called __________.
encoding
Marketing strategy often passes through three stages. At which stage is a company started by an individual who visualizes an opportunity?
entrepreneurial Marketing
Sales reports, call reports, and expense reports are all used in the process of __________ salespeople.
evaluating
Delta Faucet partnered with Warrior Dash, which sponsored several 5k mud run races around the country over the summer. At each event, Delta built a huge custom shower station, complete with 184 Delta showerheads, where mud-soaked competitors could meet and wash off after the race. This is an example of which type of promotion?
event marketing
GlaxoSmithKline has stated in its ads, "Today's medicines finance tomorrow's miracles." Considering the criticisms of marketing this statement can be related to __________.
excessive mark up
Some sellers require that dealers not handle competitor's products. This strategy is called__________.
exclusive dealing
There are three ways that market leaders can expand total market demand. They can expand total demand by __________.
finding new users of the product, promoting new uses for the product, and encouraging more usage of its products
Which of the following is an objective for business promotions?
generating business leads
Which of the following is an objective for trade promotions?
getting retailers to carry new items and more inventory
Department stores such as Kohl's and Macy's practice high low pricing by
having frequent sales days for store credit card holders high low pricing- thrill of the chase for the lowest price, constant sales EDLP- lowest cost of all prices
What is the first thing a company does when analyzing competitors?
identify the company's competitors
The first task for a communicator in preparing marketing communications is to __________.
identify the target audience
Developing effective marketing communications starts with __________.
identifying a target audience
Which of the following is true regarding the price-demand relationship?
if demand is elastic, sellers will consider lowering their price
Which of the following statements about advertising is correct?
in addition to businesses, advertising is used by many types of organizations
Which of the following best describes the value that was added when agents were added toProgressive's marketing channel?
increased customer service
Umpqua's vision is "to become the world's greatest bank." The company sees its competitors as other financial institutions that preform banking services. This is taking a _________ of its competition.
industry point of view
When iPhone was first introduced into the market, Apple highlighted its benefits and qualities. This type of advertising is referred to as __________.
informative advertising
The concept of __________ recognizes that providing better customer service and trimming distribution costs require teamwork.
integrated logistics management
Disadvantages of direct marketing to sellers include __________.
interaction with limited number of customers
Social media is ideal for starting and participating in customer conversations and listening to customer feedback. This is because social media is __________.
interactive
In complex selling situations, personal selling can be very effective because it is __________.
interpersonal
According to the text, what is the toughest public policy issue now confronting the direct marketing industry?
invasion of privacy
As with many companies, NutriSystem's marketing strategy hopes to achieve a brand community. Which of the following would be an example of NutriSystem's brand community?
its customer interaction through social media, blogs, and website content
Many consumers today rent DVDs from a vending machine called Redbox that can be found in retail stores and other locations. Redbox is which type of direct marketing tool?
kiosk
One major objective of a market-penetration pricing strategy is to __________.
large market share
One of the challenges of social media marketing is that social media __________.
largely user controlled
What action(s) can a company take in order to bring marketing and sales functions together?
let brand managers tag along on sales calls
defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group is using an ______ point of view
market
Regarding their competitive position, Walmart, Amazon, Coca-Cola, and Facebook are all examples of __________.
market leaders
A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market penetration pricing
When Apple Computer Company introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a(n) __________ pricing strategy.
market skimming
One drawback to viral marketing is that __________.
marketers cannot control where users pass along the message
Which of the following is a reason that producers use marketing channels and channelintermediaries?
marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers
One key function of channel members is __________, which involves shaping offers to meet thebuyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
__________ have shifted the balance of power between retailers and producers.
mega-retailers
__________ are the largest single group of wholesalers.
merchant retailers
Advantages of mobile marketing include all of the following except __________.
mobile marketing may risk irritating consumers
Retailing today requires __________, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
mono-channel retailing
Which of the following statements about setting an advertising budget is correct?
new products typically need relatively large advertising budgets to build awareness and to gain cosnuerm trial
Indian government regulation requires foreign retailers in India to buy 30 percent of the merchandise they sell from local small businesses. This obstacle in global marketing is an example of setting__________ by host countries.
non tariff trade barriers
Which of the following strategies would be utilized by a market challenger?
observe what has made the market leader successful and improve on it
Which of the following correctly identifies forms of digital direct marketing?
online marketing, social media marketing, and mobile marketing
When a company provides superior value by leading its industry in price and convenience, it is pursuing a(n) __________ strategy.
operational excellence
Most companies manage their international activities by first __________.
organizing an export department
Companies such as Walmart and Spirit Airlines offer lower prices than competitors. Which competitive strategy are they using?
overall cost leadership
To avoid being intrusive and annoying, most legitimate email marketers practice __________, which means sending email pitches only to customers who "opt in."
permission based email marketing
At certain stages of the buying process, which element of the promotional mix is most effective in building up buyers' preferences, convictions, and actions?
personal selling
Which promotional tool includes presentations, trade shows, and incentive programs?
personal selling
Consumers may receive an email, supposedly from their bank or credit card company, saying that their account's security has been compromised. The sender asks them 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
__________is a type of identity theft that uses deceptive emails and fraudulent online sites.
phishing
Critics have charged that some companies use __________, causing their products to become unfashionable before they actually should need replacement.
planned obsolescence
According to the environmentalism movement, at the most basic level, a company can practice ____
pollution prevention
Federal legislation on __________ states that sellers must set prices without talking to competitors.
price fixing
How is price determined using cost-plus pricing?
price is set by adding a standard mark up to the cost of the product
A company has a(n) __________ orientation when it is not customer-centered and is also notcompetitor-centered.
product
In South Korea, Dunkin' Donuts sells an olive oil and tapioca starch donut, called Chewisty. This is an example of __________ strategy.
product adaptation
Retailers must decide on which three major product variables?
product assortment, services mix, and store atmosphere
It is likely that salespeople at First Flavor try to identify potential business customers to utilize the Peel-n-Taste product in their marketing campaigns. Which of the following best describes this step of personal selling process?
prospecting
The first step in the personal selling process is __________.
prospecting
__________ identifies qualified potential customers and is the first step of the personal selling process.
prospecting
Although Kmart received praise for creating one of the funniest commercials of its time, the company was also criticized for it, causing marketers to combat the negativity through press releases. Which of the following marketing mix elements is mostly aligned with the marketers' decision to issue press releases?
public relations
__________ consists of activities designed to engage and build good relations with thecompany's various publics.
public relations
Many manufacturers have to pay retailers to get shelf space. This is an example of which type of promotion?
push money
Digital marketing can link brands to important moments in customer's lives. This aspect of digital marketing is called __________.
real time marketing
Which type of advertising is important for mature, established brands?
reminder
__________ advertising is more suitable for mature products.
reminder
__________ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service.
sales promotion
__________ products have low immediate appeal but may benefit consumers in the long run.
salutary
Retailers need to differentiate and position their store and make decisions regarding their retail marketing mix. Before making those decisions, retailers must first __________.
segment and define their target market
In __________pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.
segmented
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________.
selectively
What is predatory pricing?
selling below cost with the intention of punishing a competitor
Marketing means that the company should define its strategy in broad social terms rather than narrow product terms.
sense of mission
What are the four broad characteristics used to classify retail stores?
service, product lines, price, and organization
Marketing management must first __________ when developing an advertising program.
set advertising objectives
What is target costing?
setting a price and then setting costs that will ensure that the price is met
Which execution style shows one or more "typical" people using the product in a normalsetting?
slice of life
Which of the following statements regarding mobile marketing is correct?
smartphones can be very useful in shopping situations
NutriSystem includes Facebook, Twitter, blogs, and Instagram in its marketing strategy. This indicates that NutriSystem is involved in which type of marketing?
social media
First Flavor does not use online, mobile, or social media to engage customers, indicating that First Flavor is not engaged in which of the following?
social selling
A company holds a news conference to announce a new product launch. Which PR tool are they using in this example?
special events
What is the key idea in a market nicher strategy?
specialization
Market nichers who focus on companies such as Walmart or General Motors are referred to as__________.
specific customer nicher
__________ and __________ are core PR strengths and that plays well into the use of online, mobile, and social media.
storytelling and engagement
Helping salespeople to "work smart" by doing the right things in the right ways is the goal of ______, whereas getting them to work hard is the goal of _______
supervision, motivation
The __________calls for socially and environmentally responsible actions that meet the present needs of consumers and needs of future generations.
sustainable marketing concept
When McDonald's offers healthy menu choices and uses recyclable packaging, it is most appropriately following the __________.
sustainable marketing concept
__________ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
During a sales presentation, which of the following would best fit a relationship marketingapproach?
tell a value story
What is meant by the term "the Internet of Things" (IoT)?
that everyone and everything may soon be connected digitally
Which of the following statements is true regarding salespeople?
the best sales people are the ones who work closely with customers for mutual gain
Which of the following statements does not reflect the role of salespersons within a company?
the concept of salesperson - owned loyalty describes the loyalty that salespersons have toward the company
Which of the following statements regarding the changing communications landscape iscorrect?
the dominance of television, magazines, newspapers and other traditional mass media is declining
Which of the following statements regarding marketing logistics is correct?
the goal of marketing logistics should be to provide a targeted level of customer service at the least cost
Which of the following statements about public relations is correct?
the line between advertising and public relations are becoming more and more blurred
The reasons for considering public relations, which has a greater impact at a much lower cost thanadvertising, include __________.
the possibility of stories to be picked up by different media
Based on consumerism, the traditional sellers' rights include all of the following except __________.
there right to be protected against questionable products and marketing practices
What is benchmarking used for?
to assess competitor's strengths and weaknesses
the most preferred orientation for companies is
to be market oriented
What is the goal of integrated marketing communications?
to deliver clear, consistent, and compelling company and brand messages
What is the goal of a blue-ocean strategy?
to make competition irrelevant by finding uncontested market spaces
___________ refers to sales promotions tools used to persuade resellers
trade promotions
When First Flavor promotes its products to other organizations as a marketing tool, the company may wish to showcase its product to numerous potential customers at once. Which promotional tool would you recommend to First Flavor?
trade shows
Which wholesaler channel function helps reduce inventory holding costs?
warehousing
When does persuasive advertising become comparative advertising?
when a company directly or indirectly compares its brand to others
When would a competitor most likely react to a firm's price change?
when the number of firms involved is small