MKT 4469 Final Exam
________ percent of the world's economic growth in the next 20 years is predicted to come from emerging markets, such as China and India.
75
Cho, the international sales manager at a fashion house, is concerned that the euro is stronger than the U.S. dollar. This would be identified in the ________ section of a global market research report.
economic
Data on consumer spending per capita or industrial purchasing trends would be identified in the ________ section of a global market research report.
economic
________ is the fastest-growing retail format.
electronic retailing
The development of promotional strategies most likely involves decisions about ________.
elements in the promotion mix
The fundamental philosophy behind ________ is to reduce investment in promotion and transfer part of the savings to lower price.
everyday low pricing
The rise of Walmart as one of the world's largest corporations has brought the concept of ________ to the forefront of global consumer consciousness.
everyday low pricing
________ is the most common method for entering foreign markets.
exporting
Ford Motor Co. introduced its automobile called Nova in Mexico. It faced difficulty in selling the car because "Nova" in Spanish means "It doesn't go." This illustrates a problem with ________.
fitting the product to the culture
To use target return pricing, one must first calculate total ________ costs.
fixed
A ________ is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.
franchise operation
An example of a contractual vertical marketing system is ________.
franchising
Firms and brands that continually attempt to operate in the ________ quadrant do not survive over the long run as customer trust is damaged. Some firms use price skimming strategies, especially on product introductions, even when all the bugs have yet to be worked out of the product.
high price, low benefits
________ is used by firms that rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.
high/low pricing
Unresolved channel conflict can result not only in an uncooperative and inefficient channel, but it can also ultimately impact end-user consumers through ________.
higher prices
The first step a manager should take in the promotion strategy process is to ________.
identify targets for promotion
The four characteristics of services are that they are ________.
inseparable, perishable, intangible, and variable
When the objective is to obtain maximum product exposure throughout the channel, a(n) ________ strategy is designed to saturate every possible intermediary.
intensive distribution
________ is the application of marketing concepts and strategies inside an organization.
internal marketing
A service is described as being inseparable because ________.
it is produced and consumed at the same time
Arthur's Auto Parts Inc. wants to enter the Russian market. Russian law prevents foreign entities from owning a majority position in a company there. The best method of entry for Arthur's is most likely ________.
joint venture
________ is the amount of price increase that can be taken without affecting customer demand.
just noticeable difference (JND)
In the context of identifying specific consumer trends, ________ is not a product issue for international consumer marketers.
manufacturing
In a push strategy, the focus is on ________
members of the channel who are targeted for promotion
In a push strategy, the focus is on ________.
members of the channel who are targeted for promotion
In addition to the company's primary website, many companies create smaller, more focused sites that deal with specific topics such as new product introductions or targeted products within a large product portfolio known as ________.
micro sites
________ require that a certain percentage markup be applied to all products.
minimum markup laws
Digital ads designed to blend in with the format and style of the content that a website delivers are called ________ ads.
native ads
Jenn, a production manager at a company, has decided to take a value network approach to create a competitive advantage over the company's competitors. In the context of network organizations, this approach will make the company's operations more ________.
nimble
Firms should be careful with a ________ strategy, as price is a cue for developing customer perceptions of product quality. The value proposition may be reduced if a low price belies the product's actual quality attributes.
penetration pricing
When a firm's objective is to gain as much market share as possible, a likely pricing strategy is ________, sometimes also referred to as pricing for maximum marketing share.
penetration pricing
A push strategy usually relies on a combination of sales promotion and ________ directed toward channel members.
personal selling
Starbucks has been successful in developing "ethically sourced" coffee that is socially responsible and environmentally safe. This demonstrates which element of TBL?
planet
Bright House wants Madhukar to buy the full gamut of entertainment products, and the more he buys—digital television, premium channels, downloadable movies, local and long-distance phone service, cellular service, high-speed Internet—the better the deal becomes compared to the total of the individual prices of each product. Bright House is using a ________ strategy.
price bundling
Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, and exchange rate fluctuations. This change in price from home country to foreign country is referred to as ________.
price escalation
Companies that collude to set prices at a mutually beneficial high level are engaged in ________.
price fixing
Marriott has branded its entire family of accommodations based on different value propositions, supported by clearly delineated pricing strategies. Its offerings include Ritz-Carlton and JW Marriott for the most discriminating patron, Marriott and Renaissance at the next level of full service, and an array of differentially positioned brands such Courtyard and Residence Inn. This is an example where ________ can occur at a level much broader in scope than individual products.
price lining
In proposing a ________ strategy, the marketing manager usually is convinced that a strong price-quality relationship exists for the product.
price skimming
Pricing objectives very frequently are designed to maximize profit, which necessitates a ________ pricing strategy.
pricing objectives
Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ________.
producers and consumers
Bistrone corn canned soup was made expressly for the Japanese market by Coca-Cola Japan. This is an example of ________.
product invention
Yoko is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest-priced tickets are for the least desirable seats and the highest-priced tickets are for the most desirable seats, with the rest of the ticket prices falling somewhere in between. Yoko is describing ________ pricing.
product line pricing
The text discusses the triple bottom line metric, and outlines an approach to consider the impact of TBL in marketing management. This includes people, planet, and ________.
profit
Veggie Vitality will send retailers a check if the retailer successfully includes its vegetable-based smoothies in promotional efforts. Veggie Vitality uses ________ to incentivize retailers.
promotional allowance
Dag runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Dag uses a ________ strategy.
psychological pricing
Gaining a potential customer's attention requires investment in mass appeal forms of promotion, most notably advertising and ________.
public relations
Which form of promotion is based on unpaid communication?
public relations
Introducing an intermediary into a channel may contribute to ________ that are necessary to complete an exchange.
reducing transactions
________ can occur when a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share.
a price war
If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, it results in ________.
a tying contract
The behavioral step of AIDA is ________.
action
As discussed in the text, Caesars Entertainment has found that customers who fall into the zone of ________ spend considerably more money and provide a substantially greater return on customer investment than others.
affection
In the context of the distribution channel, which of the following takes title to a product?
agent intermediaries
________ remit monies to purchasers after the fact.
allowances
At the ________ stage of the AIDA model, marketing managers mostly use promotions to gain awareness of the offering with the market's innovators and early adopters.
attention
The cognitive step of the AIDA model is ________.
attention
When a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of ________.
bait and switch
An intermediary works with large consumer product manufacturers as well as small local retailers. The company buys large quantities of products from the manufacturers and sells them in smaller quantities to retailers to better match quantities needed for space constraints and inventory turnover requirements. The intermediary is performing the distribution function of ________.
breaking bulk
Jonathon works in a hair salon. When a customer approaches him about a problem with a service she had purchased, he made excuses for the service provider and did not offer to help fix the problem. Jonathon demonstrated poor ________.
responsiveness
Priceline.com is a firm that serves as a clearinghouse for extra capacity from airlines, hotels, and cruise lines. It is an example of a firm that uses a(n) ________ strategy.
reverse auction
Venus Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. Venus collects the cartridges and then returns them to the producer for recycling. This is an example of ________.
reverse logistics
________ are typically expressed as greatly extended invoice due dates.
seasonal discounts
In markets where customers typically witness rapidly changing prices, ________ can provide a source of competitive advantage.
stability pricing
Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.
standardized
________ is one of the most commonly provided channel intermediary activities.
storage
As with average-cost pricing, the effectiveness of ________ pricing is highly dependent on the accuracy of the forecast.
target return
Hector is opening an appliance store. He has estimated a monthly profit goal based on his anticipated expenses and earning goals and uses it to set product prices. Hector is implementing a ________ pricing strategy.
target return on investment (ROI)
HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ___________.
captive pricing
Krista goes to a store to buy a new liquid soap dispenser. When she purchases a new dispenser from the store she gets two liquid soap refill packets for free, as part of a promotional offer, but she will need to purchase refills later. In this scenario, the pricing strategy used for the soap dispenser is ________ pricing.
captive pricing
Pricing objectives very frequently are designed to maximize profit, which necessitates a ________ pricing strategy.
target return on investment (ROI)
Core Inc., a dealer of electronic items, enjoys economies of scale due to its large buying and selling operations and controls many aspects of the channel's operations. As a consequence of this, the company enjoys tremendous power in the market. In the context of administered vertical marketing systems, Core Inc. is a(n)________.
channel captain
___________ refers to the various ways a site enables user-to-user communications.
community
________ power is NOT a source of channel power.
consumer
Nadia works for a major soda distributor. The company decides to buy a transportation company to move its product from its own manufacturing facility to the consumer. This is an example of a(n) ________ vertical marketing system.
corporate
Michael Porter has consistently advocated that firms that are able to compete based on some extraordinary efficiency in one or more internal processes bring to the market a competitive advantage based on ________.
cost leadership
Coca-Cola intends to invest further in promotion to help maintain brand loyalty from its existing customers. Which of the following capabilities of promotion is Coca-Cola demonstrating?
to remind
The value of the Japanese yen has fluctuated widely during the 2000s compared to the U.S. dollar. A firm considering direct foreign investment would report this finding under the heading of ________.
transaction costs
A channel of distribution consists of interdependent entities that ________.
transfer possession of a product from producer to consumer
The internal processes at Southwest Airlines are highly efficient, giving it a competitive advantage over other airlines. Southwest has a very efficient maintenance process and also has a very simple process of booking passengers. Because of these efficiencies, the company is able to offer customers an appealing mileage-driven pricing structure while also increasing the airline's profit margin. In this scenario, Southwest's competitive advantage is based on ________.
cost leadership
Dyani runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Dyani looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Dyani is using ________.
cost-plus pricing
A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut _______ and maximize ________ every step of the way to market.
costs; process efficiencies
In the context of market channels, the use of local distribution networks to reach target customers is identified in the ________ channel factor.
coverage
The assessment of which of the following attributes would require customers to have expertise not generally shared by the public?
credence
In Serovia, most people eat dinner after 10:00 p.m. This would be identified in the ________ section of a global market research report.
cultural, societal
The color red means different things in different parts of the world. For example, in China, a bride traditionally would wear red but not white. White is a symbol of death. This would be identified in the ________ section of a global market research report.
cultural, societal trends
________, one of the seven design elements of the customer interface in a website, is a site's ability to tailor itself to different users or allow users to personalize the site.
customization
A stationary store offers a 5 percent discount on pens and pencils to students if they agree to purchase all the books needed for the academic year from the store. This is an example of a(n) ________.
tying contract
Giovanni's Gems is a high-quality Italian leather goods store in Manhattan. Giovanni also runs an Internet site where people can buy his products and he will charge the same delivery fee to any location within the 48 contiguous states. Giovanni utilizes ________ pricing.
uniformed delivered
The primary organizational patterns employed by organizations around the world are ________.
decentralized, centralized, and regionalized
Jameson purchased an alarm system for his car during a promotion. He considered the price after the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Jameson just experienced ________.
deceptive pricing
With services, continual investment in training, retraining, and good management of people is required if ________.
variability is to be consistently low
With ________ pricing, customers are allowed—even encouraged—to haggle about prices.
variable
Exceeding customer expectations is often referred to as customer ________.
delight
During the ________ stage of the AIDA model, promotional messages are altered so that a customer feels they simply must have the product and can't live without it.
desire
________ is the process of creating a video clip, image, message, e-book, or some other content in an effort to have the media passed on by individuals in a social network or by word-of-mouth.
viral marketing
___________ enables the spread of a marketing campaign to potentially large audiences through acts of individual users as marketing communication channels.
viral marketing
In a service blueprint, activities are divided between those above and those below the line of ________ to a customer.
visibility
________ are direct, immediate reductions in price provided to purchasers.
Discounts
Which of the following free on board (FOB) pricings indicates that until the goods arrive at the purchaser's location, title doesn't change hands and freight charges are the responsibility of the seller?
FOB-destination
________ costs are the sum of the fixed and variable costs.
Total costs
