MKTG 3650 Exam 3

Two questions ago assume the correct break-even point is 6,000 units. What will the break-even in the market share if industry sales are expected to be 28,000,000?

10%

The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit). 10 11 12 13 14

11

New product development (NPD) is essential because it leads to ___________. Sustainable points of differentiation Sustainable competitive advantages Lower costs and higher profits A and b above A, b, and c above.

A and b above

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? A well-established, international company A large cereal manufacturer that has developed a gluten-free cereal line A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon An international sporting goods manufacturer that wants to add a line of snow toboggans A company that wants to introduce product line extensions to its current market.

A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon

Chain stores with 11 or more retail units or locations are technically called as ______________ . Multi-unit chains Corporate chains Independent retailers Rack jobbers Superstores.

Corporate chains

Factory outlet malls contain a variety of stores some of which are owned and operated by the manufacturer of the products sold in the store. Such true factory outlets are examples of:

Corporate vertical market systems

Which of the following is being used when a manufacturers engages in "full-line forcing." Exclusive dealing. Refusal to deal. Tying contracts. Exclusive territories.

Tying contracts.

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties. selling agent manufacturers' agent drop shipper broker commission merchant

broker

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a: selling agent. manufacturers' agent. drop shipper. broker. commission merchant.

broker.v

Hamphrey Studio sells reproductions of European antiques, last year sales were disappointing. The studio owner increases prices at 25%. Next year there was a 20% increase in units sold. The studio experienced:

Inverse Demand

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________. Reduced probability of price wars with other firms. Firms can differentiate based on product attributes and other elements of the marketing mix. Greater ability to build brand image and equity. Lower propensity for firms to collude with one another to maintain prices Reduced ability to raise prices.

Reduced ability to raise prices.

Fitness Evolution employs a pricing structure where a family plan with two or more family members enroll at one time and pay a slightly lower price per person than charged for a single person membership. This is an example of a ____ discount?

Second markets

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions which can cut down on the odds of failure for these smaller retailers? Seek to tailor their merchandising and customer service to the precise needs of their local market Idenfity a unique niche not targeted by competitors in which they can attain a differential advantage Seek to become part of a franchise organization Seek to become part of an established vertical marketing system Seek to become part of an established network marketing system.

Seek to become part of an established network marketing system.

A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. Selling agent Manufacturers' agent Drop shipper Broker Commission merchant.

Selling agent

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a: Selling agent Manufacturers' agent Broker Specialty wholesaler Truck jobber.

Selling agent

__________ exist(s) when a supplier agrees to provide a product to a supply chain member only if that member will buy additional products from the supplier. Refusals to deal Tying agreements Exclusive territories Exclusive dealing.

Tying agreements

Many manufacturers require that their distributors purchase a full line of products as part of their contractual arrangement. Such contracts are referred to as?

Tying contract

When franchisors demand that their franchisees buy all products from the franchisor in order to assure the quality of franchise's products, they are employing ______________ Exclusive dealing. Refusal to deal. Tying contracts. Exclusive territories.

Tying contracts.

Which geographic pricing strategy is the buyer likely to have the highest freight charge?

FOB (Free of Board) factory pricing

With which of the geographic pricing strategy is the seller likely to have the lowest freight charge?

FOB factory pricing

With which geographic pricing strategy is the seller likely to have the lowest freight charge? Freight absorption pricing. FOB mill pricing. Uniform delivered pricing. Geographic pricing. Zone-delivered pricing.

FOB mill pricing.

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use? Freight absorption pricing Uniform delivered pricing FOB plant pricing Zone-delivered pricing FOB destination pricing.

FOB plant pricing

Logistics is most closely associated with which of the following elements of the marketing mix?

Place

Compute the change in TR associated with the increase of price from $5 to $6. The change is closest to?

$105

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point. $13,000 $13,100 $13,200 $13,300 $13,400.

$13,100

A seller currently prices its product at $10 per unit sold. Sales at this price were 1,500 units in the last quarter. The seller is considering lowering the price to $9.50 per unit, anticipating that an additional 100 units can be sold. What is the expected change in total revenue if the price is lowered? Select the closest answer. $15,000 $15,500 $16,000 $16,500

$15,000

A manufacturer sells a product to a wholesaler, and the wholesaler sells it to a retailer. The manufacturer's variable costs are $80 per unit and its desired mark-up based on cost is 25%. The wholesaler's normal mark-up based on cost is 30%. The retailer prices the item to consumers to include a 40% mark-up, also based on cost. What is the selling price to the consumer (select the closest value)? $160 $170 $180 $190 $200

$180

A manufacturer has $1.0 million invested in the plant and equipment needed to produce a line of camping tents. The manufacturer has estimated its ATC for producing these tents at $125.00. Assuming that the manufacturer wishes to achieve a 30% ROI and anticipates that it will sell its entire standard volume of 5,000 units, what should be the selling pice to the wholesaler for these tents?

$185 $1,000,000 x .3/5,000 = 60 + 125 = 185

A manufacturer sells a product for $100 to a wholesaler, and the wholesaler sells it to a retailer for $125. The wholesaler's normal markup based on cost is 25%. The retailer prices the item to consumers to include a 50% markup, also based on cost. What is the selling price to the consumer (select the closest value)? $170 $190 $210 $230

$190

Assume that a manufacturer of recreational vehicles for sportsmen has TFC that equals $1.5 Million. The vehicles are distributed through a standard channel of distribution consisting of the manufacturer, several large wholesalers, and many sporting goods retailers. The manufacturer has decided that the selling price to consumers for the vehicle should be about $2,500, the price to the retailers should be $1,700, and the price to the wholesalers should be $1,200. If the manufacturer's AVC for the mower is $500, what is the producer's break-even point in DOLLARS? (Select the closest answer)? $2,500,000 $2,600,000 $2,700,000 $2,800,000 $2,900,000

$2,500,000

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer) $214 $215 $216 $217 $218

$214

A manufacturer sells a product to a wholesaler, and the wholesaler sells it to a retailer. The manufacturer's variable costs are $80 per unit and its desired mark-up is 25%. The wholesaler's normal markup is 30%. The retailer prices the item to consumers to include a 40% markup. What is the selling price to the consumer (select the closest value)? $220 $230 $240 $250 $260

$250

On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer). $225 $235 $245 $255 $265

$255

A manufacturer sells a product for $100 to a wholesaler, and the wholesaler sells it to a retailer for $135. The wholesaler's normal markup is 26%. The retailer prices the item to consumers to include a 50% markup. What is the selling price to the consumer (select the closest value)? $250 $260 $270 $280 $290

$270

Assume initial average variable costs for the production of a new notebook computer are $360 per unit. If the manufacturer anticipates an experience effect (experience constant) of .95, what will be the expected average variable costs per unit with the third doubling of cumulative output? Select the closest answer. $350 $325 $300 $275

$300

Farmer Brothers Coffee produces an excellent line of restaurant-grade drip coffee-maker machines sold to restaurants and delis. The weighted average total variable costs for making an average coffee maker in the line are $47.50. The weighted average selling price for the average unit is $125.00. Farmer Brother's fixed costs of production and sales are $200,000 per month. What is the break-even in dollars? (Pick the closest answer) $322,000 $322,500 $323,000 $323,500 $324,000

$322,500

Farmers Brothers Coffee produces drip coffee-maker machines sold to resturants. The weighed average total variable cost for making an average coffee maker in the line are $120. The weighted average selling price for the average unit is $320. Fixed cost of production and sales are $1,000,000 per month. If they desire $2,000,000 in profits each month how many units must be sold each month?

$6,000 320x = 120x + 1,000,000 + 2,000,000 - 200x = 1,200,000

A manufacturer has average variable costs of $5.00 per unit produced and expects to be able to product (and sell) 700,000 units. Fixed production costs are $1,000,000. If the producer wishes to earn $500,000 in profits, what should be the product's price? $6.00 $6.50 $7.00 $7.50 $8.00

$7.00

A manufacturer sells a product for $50 to a wholesaler and the wholesaler sells it to a retailer. The wholesaler's normal markup based on cost is 25%. The retailer prices the item to consumers to include a 50% markup also based on cost. What is the selling price to the consumer?

$90.00

A manufacturer sells product for $50 to a wholesaler and a retailer sells it at $62. The retailers normal markup is 30%. What is the selling price to the consumer?

$90.00

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as: AVC declines by 90% with each doubling of cumulative output AVC declines by 9% with each doubling of cumulative output *AVC declines by 10% with each doubling of cumulative output AVC declines by 1% with each doubling of cumulative output None of the above is correct

*AVC declines by 10% with each doubling of cumulative output

• Palouse Red, makers of jalapeño sauce, can't afford its own sales force. The company is most likely to comply with which form of channel to reach consumers?

- Producer to agent to retailer to consumer (PARC)

Assume 5 manufacturers distribute directly to 5 retailers. A total of 25 transactions is required to accomplish this task. The introduction of a single wholesaler into this channel of distribution could theoretically reduce the number of transactions required to ___:

10

Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 5% 10% 15% 20% 25%

10%

Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed. 72 14 18 36 22

14

Assume that a manufacturer of riding lawnmowers has TFC that equals $3 Million. The mowers are distributed through a standard channel of distribution consisting of the manufacturer, several large wholesalers, and many lawn and garden retailers. The manufacturer has decided that the selling price to consumers for the mower should be about $1,000, the price to the retailers should be $700, and the price to the wholesalers should be $550. If the manufacturer's AVC for the mower is $350, what is the producer's break-even point in units sold (Select the closest answer)? 12,500 15,000 17,500 20,000 22,500

15,000

Farmer Brothers Coffee produces an excellent line of restaurant-grade drip coffee-maker machines sold to restaurants and delis. The weighted average total variable costs for making an average coffee maker in the line are $47.50. The weighted average selling price for the average unit is $125.00. Farmer Brother's fixed costs of production and sales are $200,000 per month. What is the break-even in units sold? (Pick the closest answer) 2,400 2,500 2,600 2,700 2,800

2,600

Assume that a manufacturer of recreational vehicles for sportsmen has TFC that equals $1.5 Million. The vehicles are distributed through a standard channel of distribution consisting of the manufacturer, several large wholesalers, and many sporting goods retailers. The manufacturer has decided that the selling price to consumers for the vehicle should be about $2,500, the price to the retailers should be $1,700, and the price to the wholesalers should be $1,200. If the manufacturer's AVC for the mower is $500, what is the producer's break-even point in MARKET SHARE if industry sales are expected to reach $100,000,000? (Select the closest answer)? 1% 2% 3% 4% 5%

3%

In the last question assume that the correct break even is 6,000 units. What is the break even in dollar sales?

3,300,000 6,000 x 550

Given the following data, find the break-even point in units: TFC = $1,500,000 per year. Price = $.79. AVC = $.39. (Select the closest answer). 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000.

3,750,000

Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit). 450,000 units 300,000 units. 60 units. 750,000 units. none of the above.

450,000 units

Assume a seller offers a cash discount of 3/10, n30. What is the approximate analyzed interest rate the buyer is paying if he or she does not take advantage of the discount?

50%

Assume you are the purchasing agent for a company and have been offered the following cash discount: 2/15, net 30. What is the implied annual interest rate you will pay if you do not take advantage of the discount? Assume a 365-day year. Select the closest answer. 45% 50% 55% 60%

50%

Assume that a manufacturer of lawnmowers has total fixed costs that equals $1.5 million. Mowers are distributing through a standard channel of distributors. Consisting of the manufacturers, several large wholesalers, and many lawn and garden retailers. The selling price is $1,000 and price to retailers should be $700, and price to wholesalers should be $550. If the manufacturer AVC for the mower are $350, what is the producers break even point in units sold?

7,500 units 550x = 350x + 1500000 - 200x = 1,500,000

Savanna is the buyer for a large convenience store chain. A primary supplier has offered Savanna a cash discount on her most recent purchase. The discount has been quoted as: 4/10, net 30. Savanna is wondering whether it is worth her while to take advantage of the discount. As a result, she has decided to compute the implied interest rate her firm would be paying at the invoice due date rather than paying early. Assume a 365 day year. The implied interest rate she computed is approximately (pick the closest answer): 54% 18% 73% 40% 120%

73%

Farmer Brothers Coffee produces an excellent line of restaurant-grade drip coffee-maker machine sold to restaurants and delis. The weighted average total variable costs for making an average coffee maker in the line are $200.00. The weighted average selling price for the average unit is $400.00. Farmer Brother's fixed costs of production and sales are $1,500,000 per month. If Farmer Brothers desires $100,000 in profit each month, how many units must it sell each month? (Pick the closest answer) 7,000 7,500 8,000 8,500 9,000

8,000

With respect to ROI pricing standard volume is typically set at ____ of plant capacity?

90%

Ritchie Bass Construction specializes in demolishing buildings and, as a result, recycles much of the steel recovered from these buildings. Ritchie currently has about 300 tons of steel to sell and is looking for interested buyers. Ritchie probably should seek the services of a: A rack jobber A scrap jobber A broker A selling agent.

A broker

• Humphrey Studio sells antiques and sales were disappointing. The studio owner decided to decrease prices 5%, the next year there was a 20% increase in total revenue. Demand for the reproduction was clearly:

A case of inverse demand

Apple's introduction of the iPhone 6s is: A discontinuous innovation A dynamically continuous innovation A continuous innovation An absolute product failure All of the above.

A continuous innovation

Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website? A direct channel to consumers Producer to retailer to consumer Producer to agent to retailer to consumer Producer to wholesaler to retailer to consumer Producer to agent to wholesaler to retailer to consumer

A direct channel to consumers

Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy? A large, highly price-elastic market exists for the product The product is protected by patents The product is associated with a high capital investment serving as a 'barrier to competitive entry' Strong brand preferences exist due to the product's unique characteristics Producer has control over a critical material needed for production of the product.

A large, highly price-elastic market exists for the product

Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY: A merchant wholesaler A drop shipper An agent middleman A manufacturer's agent A rack jobber.

A merchant wholesaler

When large-scale retailers, such as Walmart and Target, vie with one another for sales and market share, they are engaging in ____________. Vertical channel conflict. A mild form of horizontal channel conflict. Unhealthy competition. Monopolistic competition.

A mild form of horizontal channel conflict.

Kansas Textile Mills produces a range of high quality fabrics used in the fashion garment industry. Kansas has no desire to do its own marketing. Instead, it contracted Allied Distributors to take over its marketing functions. Apparently, Allied is : A rack jobber A manufacturer's agent A broker A selling agent.

A selling agent.

Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods? A desk jobber A commission merchant A truck jobber A manufacturer's sales office A broker

A truck jobber

An experience constant of .95 means Average variable costs decline by 95% with each doubling of cumulative output Average variable costs decline by 5% with each doubling of cumulative output

Average variable costs decline by 5% with each doubling of cumulative output

Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were disappointing as revenues were not even high enough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ? Relative failure. Absolute failure. Miserable performer. Marginal failure. Market failure.

Absolute failure.

Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function? Accumulating Allocating Negotiating Assorting Sorting.

Accumulating

Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called:

Accumulating

Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called: Allocating Assorting Facilitating exchange Accumulating Buying and selling.

Accumulating

The "making bulk" channel function is formally called: Accumulating Allocating Negotiating Assorting Sorting.

Accumulating

Ralston Purins, with its line of cereal, snack foods, and pet foods has each brand equity and market position that is able to coordinate distribution activities through its market power. The distribution illustrates?

Administered VMS

General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n): Contractual VMS. Administered VMS. Voluntary Chain. Corporate VMS. Franchise system.

Administered VMS.

Firms that are pursuing a strategy of price competition are more likely to: Employ follow-the-leader pricing in order to avoid price wars in their industry Aggressively use lower prices to buy market share from competitors Set prices higher than competitors to signal greater value to buyers Set prices lower than competitors to enhance the quality images of their brands. Price their brands in a comfortable competitive range to avoid "rocking the boat."

Aggressively use lower prices to buy market share from competitors

For which of the following products would a manufacturer be most likely to offer a seasonal discount? Aspirin. Weight-training gloves. Air conditioning system. Microwave ovens. Forklift trucks.

Air conditioning system.

What should be the first step when designing dashboards? Choose the metrics Acquire the data Align marketing and business outcomes

Align marketing and business outcomes

Which of the following is an advantage of vertical marketing systems? Improved cooperation between channel members Better service to ultimate consumers Reduced conflict in the channel Improved efficiencies and reduced costs All of the above are advantages.

All of the above are advantages.

Which of the following is not an advantage of vertical marketing systems? Improved cooperation between channel members Better service to ultimate consumers Reduced conflict in the channel Improved efficiencies and reduced costs All of the above are advantages.

All of the above are advantages.

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads? Target upscale shoppers who are less price-elastic Focus on higher margin products such as clothing, jewelry, and cosmetics Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." All of the above are being employed Only a and b above.

All of the above are being employed

When consumers assign "value" to products and services they take into account which of the following? The price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service All of the above are part of the value equation.

All of the above are part of the value equation.

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that: any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges.

All of the above are possible defenses against price discrimination charges.

The likely consequences of firms choosing to engage in price competition include all of the following except __________. Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences.

All of the above are potential consequences.

Which of the following are metrics used to gauge performance of a specific NPD project i.e., specific new product? Time to break-even. Profitability (NPV, operating profits) Market share obtained. Performance to budget. All of the above are project-specific metrics.

All of the above are project-specific metrics.

As practiced today, telemarketing is used for which of the following? Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above.

All of the above.

The AVC curve is typically 'u-shaped' because: Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above. None of the above.

All of the above.

With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects? Cold-calling from existing phone lists. Random digit dialing Lists of current or past customers Lists purchased from third party vendors All of the above.

All of the above.

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: Demand changes by -1.5% for each 1% change in price. For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above.

All of the above.

You have overheard a conversation between two co workers. Sam, who is the current sales manager, is of the opinion that new product development isn't really needed if current products are aggressively marketed. Sam has apparently forgotten that ___ . New products provide additional benefits to firms such as enhanced image and market position. Firm's that innovate often have a 'differential advantage' over competitors New products can help the firm reduce risks via diversity. Eventually, all products enter a sales decline that no amount of aggressive marketing can prevent All of the above.

All of the above.

Burroughs-Welcome, the makers of retrovir in the 1980's, chose to hold the line on its current price even in the face of the severe criticism by consumer advocacy groups and AIDS patients, and some legislators. Which of the following was cited by BW for making this decision?

All the above

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? Accumulating Allocating Sorting Assorting

Allocating

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? Accumulating Allocating Sorting Assorting. Grading

Allocating

Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function? Matching Allocating Negotiating Assorting Sorting.

Allocating

The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers. Matching Allocating Negotiating Assorting Sorting.

Allocating

The classification scheme for new products is based on: Degree of effort consumers expend in the buying decision process The amount of risk consumers perceive to be attached to product purchase Consumer involvement with the product category Uniqueness of the technology upon which the new products are based Amount of consumer learning or 're-learning' required.

Amount of consumer learning or 're-learning' required.

Merchant wholesalers: Are the smallest segment of wholesaling firms when measured by number of establishments. Are independently owned firms that engage primarily in wholesaling and take title to products being distributed. Are independently owned firms that do not take title to the products being distributed. Are manufacturer-owned organizations that perform primarily wholesaling tasks for their owner companies. Engage in both wholesaling and retailing activities for manufacturers and consumers.

Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

What is NOT a criterion for evaluating a KPI? Attainable Actionable Accurate Assembled

Assembled

One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function. Accumulating Allocating Negotiating Assorting Sorting.

Assorting

Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores. Accumulating Assorting Allocating Buying and selling Sorting.

Assorting

Walmart centers bring together a large variety of different kinds of products from a wide range of manufacturers. Walmart is performing the ____ function when based on what each stores trend are at the time it combines a number of different products together for shipping to each of its Walmart stores?

Assorting

When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function. Accumulating Allocating Negotiating Assorting Sorting.

Assorting

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in ___ . Accumulating Allocating Sorting Assorting

Assorting

The internal and external physical characteristics of stores that shape the retail store's image are referred to as: Atmospherics Retail personality Retail position Retail brand image

Atmospherics

• ____ arises when a retailer performs some distribution and manufacturing activities such as operating warehouses or designing private label merchandise/

Backward Integration

__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise. Globalization Product-related marketing Backward integration Horizontal integration Forward integration

Backward integration

Jerry's Used Cars advertises some of its cars at prices that are "too good to be true." When potential customers visit the car lot, they are told that these cars have already been sold and try to show the prospects alternative cars at higher prices. Jerry's is using __ . Quality pricing Bait pricing Skimming pricing Captive pricing Predatory pricing.

Bait pricing

Which of the following is not consistent with employing a skimming pricing strategy? Customer demand is price inelastic The effects of competition on pricing can be minimized Bait pricing Initial production and marketing costs are high Price connotes high quality or prestige.

Bait pricing

When pricing industrial products the goal of the life cycle pricing is to set a price that provides buyer with?

Both A and B: Lower total life cycle cost for the seller's product as compared with a reference, Superior perceived value for the seller's product vis-à-vis is a reference point

The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use: Selling agents Manufacturers' agents Drop shippers Brokers Commission merchants.

Brokers

Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using Flexible pricing. Bait pricing. Prestige pricing. Bundled pricing. Promotional pricing.

Bundled pricing.

Which survey-bases method for estimating demand curves is probably your best bet for a new product yet to be introduced to the market?

Buy-Response data

An experience curve constant of .95 means that: Average variable costs decline by 95% with each doubling of output Average fixed costs decline by 95% with each doubling of output Average variable costs decline by 5% with each doubling of output Average variable costs with each doubling of output are 95% of what they were with the previous doubling C and d are both correct.

C and d are both correct.

The Gillette Fusion razor with one replacement blade can be purchased for as little as $9. However when it's time to buy replacement blades you can expect to pay $20 or more for a pack of 4 blades. Gillette is using ____ . Quality pricing Prestige pricing Skimming pricing Captive pricing Predatory pricing.

Captive pricing

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as _________ . Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Category killers

____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition. Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Category killers

_________ are groups of two or more retail stores operated by th same entity. Chain stores Independent retailers Corporate chains Internet retailers Rack jobbers.

Chain stores

_____ occurs when one supply chain member perceives that another supply chain member is making decisions in a manner that interferes with the ability of the first supply chain member to achieve its own objectives. Channel conflict. Objective divergence. Decision dissonance. Channel dissonance.

Channel conflict.

Wilson Farms, a Colorado-based grower, is harvesting its annual sugar beet crop. Wilson has contracted with Henry Taylor & Co. to take possession of the crop, and sell it at the produce market in Denver. Taylor & Co. is empowered to negotiate prices and arrange for any shipping, inspection, and storage that may be required. Taylor & Co. probably is a(n) ___ . Broker Manufacturers' agent Selling agent Commission merchant.

Commission merchant.

The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end. Price floor Price ceiling Competitive price range Demand curve Optimal price

Competitive price range

Market skimming is a common strategy employed by firms during the introductory stage during the PLC because of all the reasons except:

Consumers are highly price sensitive

Market skimming is a common strategy employed by firms during the introductory stage of the PLC because of all the following except:

Consumers are highly price sensitive

Which of the following is least associated with the concept of 'price competition?' There is a stronger likelihood of price wars occurring Governmental agencies are more likely to monitor and intervene in pricing activities Firms aggressively employ price as a part of the marketing mix Consumers are more likely to be price inelastic All of the above are unlikely.

Consumers are more likely to be price inelastic

Which of the following is least associated with the concept of price competition?

Consumers are more likely to be price inelastic

__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices. Supercenters Supermarkets Discount stores Category killers Convenience stores

Convenience stores

7-Eleven, Quick-Trip, and Circle K, and On the Run are all examples of ________ . Supercenters Supermarkets Discount stores Category killers Convenience stores.

Convenience stores.

In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities. Conventional supply chain Vertical marketing system Horizontal marketing system Traditional supply chain.

Conventional supply chain

Polo Ralph Lauren not only manufacturers clothing, but also operates its own retail stores. Polo is an example of?

Corporate VMS (Vertical Marketing System)

Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n): Contractual VMS. Administered VMS. Wholesaler-sponsored voluntary chain. Corporate VMS. Franchise system.

Corporate VMS.

The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? Administered vertical marketing system Corporate vertical marketing system Franchise system Retailer cooperative Voluntary chain.

Corporate vertical marketing system

According to info in class, John D. Rockefeller's success in building Stanford Oil of Ohio can primarily be attributed to?

Cost and price advantages accruing from scale economies

Break-even analysis is normally conducted during the __________ stage of the price setting process. Setting price objectives Identifying price strategies Setting base price Cost-volume-profit analysis Pricing management.

Cost-volume-profit analysis

Joanna is the buyer for a local privately-owned convenience store. She places frequent orders from a local truck distributor that delivers fresh product on a daily basis. Joanna particularly likes doing business with this distributor since he offers substantial discounts at the end of each quarter based on the amount of product purchased that quarter. Evidently, the distributor is employing a: Cumulative quantity discount program Seasonal discount program Non-cumulative discount program Cash discount program Promotional pricing program.

Cumulative quantity discount program

A retail firm that uses leader pricing is: Engaged in legal, but unethical price gouging. Cutting the regular price on a few items with the hope of attracting customers. Leading the industry in pricing and encouraging its competitors to raise their prices, too. . Selling its most popular products at higher prices. Raising the price of its best-selling products

Cutting the regular price on a few items with the hope of attracting customers.

A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution. Selective Indirect Intensive Direct Administered

Direct

With respect to the product life cycle, prices are usally lowest during the ___________ stage. Conceptualization Introduction Growth Maturity Decline.

Decline.

Which of the following best defines the meaning of "e" - the coefficient of elasticity? Defines the change in total revenue for a given change in price. Defines the percent change in price for every one percent change in revenue. Defines the percent change in revenue for every one percent change in price Defines the percent change in quantity demanded for every one percent change in price. None of the above.

Defines the percent change in quantity demanded for every one percent change in price.

The "law of demand" is associated with: Demand curves in which demand increases as price increases. Demand curves in which demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above.

Demand curves in which demand decreases as price increases.

The "law of demand" is associated with: Demand curve in which demand increases as price increases. Demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above.

Demand decreases as price increases.

As price increases, the total revenue for that product declines. This suggests that: Marketers have not planned very well. Demand for the product is extremely low. Demand for the product is essentially price elastic Demand for the product is essentially price inelastic. None of the above.

Demand for the product is essentially price elastic

When pricing objectives center around generating sales volume,(--------------------------) strategies that focus on low prices are appropriate. Demand is assumed to be price elastic. Demand generation Premium pricing Product line pricing Competitive pricing.

Demand generation

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ . Direct marketing Direct selling In-store retailing Soft marketing as opposed to brick and mortor retailing Distance marketing.

Direct marketing

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ . Off-price retailers Specialty stores Discount stores Category killers Department stores.

Discount stores

___________ offer a wide assortment of product lines, each provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers. Off-price retailers Specialty stores Discount stores Category killers Department stores.

Discount stores

Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner. Warehouses Distribution centers Storage facilities Cold storage warehouses Assembly facilities.

Distribution centers

Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________. Warehouses Distribution centers Storage facilities Cold storage warehouses Assembly facilities

Distribution centers

Cole sales fiberglass wire to the many small sailboat manufacturers in Southern California. He takes title to the product, but does not handle them. Instead they are shipped in 50-gallon barrels directly from the producer to the sailboat manufacturer. Cole is a ___?

Drop shipper

Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a: Cash & carry wholesaler Manufacturer's agent Specialty wholesaler Drop shipper Selling agent.

Drop shipper

_________ are wholesaling middleman that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemens' buyers. Drop shippers Agents Commission merchants Merchant wholesalers Retailer cooperatives.

Drop shippers

Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a: Cash-and-carry wholesaler. Manufacturers' agent. Specialty wholesaler. Drop-shipper. Selling agent.

Drop-shipper.

Farmers Brothers distributes coffee to restaurants through a variety of channels to eventually reach the same customers. Farmers Brothers are engaging in the practice commonly referred to as?

Dual distribution

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___ . Multi-channel marketing and distribution Direct distribution Dual distribution Retail distribution.

Dual distribution

The tendency for producers to employ multiple channels of distribution to reach the same target markets is called: Dual distribution Multiple channel distribution Channel adaptation Channel proliferation None of the above.

Dual distribution

What is NOT among the Top 10 Marketing KPIs? ROI Incremental Sales Net Promoter Score EBITDA

EBITDA

The new product adopter category most likely to contain 'opinion leaders' is the: Innovator category Laggard category Late majority category Early majority category Early adopter category

Early adopter category

A small manufacturer of children's clothing wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? A direct channel to consumer, with sales via the internet Selling to wholesalers who, in turn, sell to furniture retailers Employing an agent to handle sales to other intermediaries Selling directly to large scale retailers of custom furniture.

Employing an agent to handle sales to other intermediaries

A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? A direct channel to consumer, with sales via the internet Selling to wholesalers who, in turn, sell to furniture retailers Employing an agent to handle sales to other intermediaries Selling directly to large scale retailers of custom furniture.

Employing an agent to handle sales to other intermediaries

Non-cumulative quantity discounts are primarily offered by a seller in order to?

Encourage larger individual orders

The Olympics store is the only place in Chicago where a collector of Olympic memorabilia can buy a set of eight Olympic Pins priced at $300,000. What kind of distribution coverage strategy is being used?

Exclusive

____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution.

Exclusive distribution

With an __________ policy, a manufacturer agrees to establish a single distributor in a restricted geographic area. Refusal to deal Tying agreement Exclusive territory Exclusive dealing.

Exclusive territory

What are the 3 layers of dashboards? Systematic, Operational, Tactical Executive, Operational, Tactical Strategic, Organizational, Technical

Executive, Operational, Tactical

A manufacturer has set the initial price of its product below the products average variable cost. The manufacturer assumes that the low price will be attractive to enough consumers so that market share is attainted AVC will be reduced substantially. In fact, when total cumulative sales hit the 20,000 unit point the producer expects AVC to drop below price. The manufacturer is most likely making use of

Experience curve effect

The form of F.O.B. pricing in which the seller fundamentally pays all shipping and handling costs is: F.O.B. Mill F.O.B. Desination F.O.B. Point of Origin F.O.B. City Limits F.O.B. Basing Point

F.O.B. Desination

New York Steel Co. is trying to sell high grade stainless steel to a customer located in Denver Colorado. However, extremely high shipping costs make New York Steel's product more expensive to buyers than steel sold by a local producer in Pueblo Colorado. New York Steel should consider using which form of F.O.B pricing? F.O.B. Mill F.O.B. Destination F.O.B. Point of Origin F.O.B. Basing Point F.O.B. Zone

F.O.B. Destination

The form of F.O.B. pricing in which the buyer fundamentally pays all shipping and handling costs is: F.O.B. Mill F.O.B. Desination F.O.B. Point of Origin F.O.B. City Limits F.O.B. Basing Point

F.O.B. Mill

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailing intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________. Investment banker Financial broker Financial agent Industrial distributor Facilitating agent.

Facilitating agent.

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________. Facilitating agents Physical distributors Logistical agents Distribution agents Vertical integrators.

Facilitating agents

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________. Storage intermediaries Facilitating agents Vertical integrators Warehousing agents Channel integrators.

Facilitating agents

_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents.

Facilitating agents.

__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems. Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Factory outlets

T or F: A major distinction between agent and merchant wholesaling middlemen is that agents take title to the products they sell while wholesalers do not.

False

T or F: Burroughs-Wellcome, when deciding whether or not to lower the price for AZT, considered several issues before deciding to hold the line on its current price. BW's decision illustrates a classic case of penetration pricing based on the assumption that demand for AZT was highly price elastic.Type: True or False

False

T or F: Coupons, free samples, and other incentives are commonly employed for new products to stimulate consumer awareness (1st stage of the adoption process) more than in any other stage in the new product adoption process.

False

T or F: Normally geographic roll-out for a new product begins in geographic areas distant from the product's original test market locations in case further test marketing may be required for fine-tuning the marketing mix as commercialization progresses.

False

T or F: The adoption and diffusion of personal computers was initially slow, even given the tremendous relative advantage they offered. The major culprit may have been that computers also scored poorly on 'communicability.'

False

T or F: The most important reason underlying newproduct failures is poor execution of theirmarketing programs.

False

T or F: The most important source of new product ideas (in terms of sheer number of ideas generated) is from the firm's major competitors.

False

T or F: The services offered by research firms such as National Family Opinion (NFO) to conduct panel surveys are typically most valuable during the test market stage of new product development.

False

T or F: When graphing fixed costs, the resulting fixed cost curvebegins at the origin and has an upward increasing slope.

False

Even when production stops (i.e. no units produced), the firm still generally incurs some _________. Variable production costs. Marginal costs. Psychological costs. Fixed production costs. Total values costs.

Fixed production costs.

Danni is planning to open a boutique coffee shop on the town square in Denton, Texas. She has run the numbers and estimates that she will need to serve 6,000 customers per month with average checks of $10 each to break-even. Based on industry trade association data and data compiled by the Denton Chamber of Commerce, Danni can expect average monthly receipts of $5,000. Based solely on this information, what should Danni do? Forego opening the coffee shop in Denton at this time. Definitely should open the coffee shop. Look for a potential partner that can share the costs. Consider an alternative location.

Forego opening the coffee shop in Denton at this time.

The mark-up pricing technique employed by manufacturers to estimate a suggested retail price (MSRP) is: Mark-up based on cost Mark-up based on selling price Forward chain mark-up pricing Backward chain mark-up pricing.

Forward chain mark-up pricing

Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to Specifying "F.O.B. Dallas" in its contracts. Uniform delivered pricing. Freight absorption pricing. Zone pricing. None of the above would help Texas Cable Corporation with its problem.

Freight absorption pricing.

If there a traditional cannel for consumer goods it is?

From producer to wholesaler to retailer to consumer (PWRC)

Which of the following is a distinct advantage of the smaller indepdent retailer over its coporate chain store competitors? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition.

Greater flexibility in operational decision-making at the individual store level

Which of the following is not an advantage of coporate chain stores over smaller independent retailers? Better financed with more resources Access to experienced expert management Scale economies in purchasing and promotion Greater flexibility in operational decision-making at the individual store level Greater brand recognition.

Greater flexibility in operational decision-making at the individual store level

Captive pricing is best illustrated by which of the following?

HP sells its ink jet printers for a low price, but makes up for the low margin with its sale of ink cartridges sold at higher prices

The strategy of market-skimming pricing is especially suited for new products because: Markets cannot be effectively segmented on an income basis. Price competition is typically most important in the introductory stage of the product life cycle. High initial prices can keep demand from exceeding supply. Profits are more important than recouping costs. All of the above are true.

High initial prices can keep demand from exceeding supply.

Products that are intended to convey prestigious or high quality images usually are priced _____________ . Lower than other brands in the product category Higher than other brands in the product category Competitively with lower priced versions of the product To avoid accusations of predatory pricing. To avoid scutiny by the FTC for possible price fixing.

Higher than other brands in the product category

Which method for estimating the demand curve is least appropriate for the market of a new product?

Historical Ratio

A lengthy series of past data relating sales to prices is required for constructing demand curves using: Test market data Historical ratios Laboratory experiments Buy response data None of the above.

Historical ratios

Which of the following would be the least expensive way to estimate the demand curve for a new product similar to one already produced by competitors? Using buy-response data from a survey A controlled test market in which several prices were tested in a number of test cities A laboratory experiment in which a sample of consumers are asked to respond to a number of test prices. Historical ratios based on sales of similar competitors' products

Historical ratios based on sales of similar competitors' products

Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likely to be accused of ____________ . Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling.

Horizontal price fixing

___________ entails pricing agreements between two or more firms operating at the same supply chain level. Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling.

Horizontal price fixing

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon? Price matching on select merchandise Adding value-enhancing services Liberal return policies Improved merchandising by expanding the merchandise mix Enhanced customer relationship management.

Improved merchandising by expanding the merchandise mix

Direct channels for products are most likely for _ . Consumer convenience goods Consumer shopping goods Consumer specialty goods Industrial supplies Industrial installation.

Industrial installation.

Direct channels for products are most likely for _________ . Consumer convenience goods Consumer shopping goods Consumer specialty goods Industrial supplies Industrial installation.

Industrial installation.

Retailers work hard to design in-store sensory environments that postively affect one or more of consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________. Internal atmospherics Internal personality Interior position Interior brand image

Internal atmospherics

Prices for products are usually at their highest point during the ________________ stage of the product's life cycle. Conceptualization Introduction Maturity Decline Harvesting.

Introduction

Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced: Profit programming. Expected price effects. Inverse demand. The law of demand. None of the above

Inverse demand.

The illustration to the right illustrates the use of ___ in distribution warehousing?

Kiva Robots

The new product adopter category described as the most risk averse, with the lowest discretionary income, and most likely to adopt new products only after the product is threatened with obsolescence is the: Innovator category Laggard category Late majority category Early majority category Early adopter category

Laggard category

Which of the following is not a federal law that regulates aspects of supply chain relationships? Sherman Anittrust Act Clayton Act FTC Act Lanham Trademark Act.

Lanham Trademark Act.

Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ . Leased department retailer Coporate chain Franchise retailers Internet retailer Rack jobber.

Leased department retailer

The supermarket form of retailing normally commands profit margins, on average, of: Less than 5% 5% - 10% 10% - 15% 15% - 20% More than 20%.

Less than 5%

The value-pricing technique in which a selling price for industrial products is set by comparing the total life-time costs of the seller's product with a competing reference product is ____ . Cost comparison pricing Life cycle pricing Breakeven pricing ROI pricing Experience curve pricing.

Life cycle pricing

Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a Manufacturers' agent Drop shipper Truck distributor Rack jobber Limited line (specialty) wholesaler.

Limited line (specialty) wholesaler.

____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep." General merchandise retailers Limited line retailers Specialized line retailers Restricted line retailes.

Limited line retailers

"Inventory in motion or at rest throughout the supply chain" is called: Channel management Materials management Physical distribution Logistics Transportation.

Logistics

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ____ by logistics

Logistics management

The final step in the price setting process is __________. Setting price objectives Managing price. Identifying price strategies Setting base price Adjusting base price with various discounts and allowances

Managing price.

Navarro Electronics Instruments, a Denver-based producer of sophisticated test equipment employed in non-destructive testing, wants to tap the growing market for non-destructive testing in the Gulf states. Navarro uses its own sales force for its current market, but does not want to invest in additional sales reps in the Gulf until the market proves itself. Navarro would be wise to use a(n) to initiate sales on the Gulf states. Commission merchant Manufacturers' agent Selling agents Broker

Manufacturers' agent

Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will most likely be distributed by a: Truck jobber Manufacturers' agent Drop shipper Broker Commission merchant.

Manufacturers' agent

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that she represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a: Rack jobber. Drop-shipper. Broker. Manufacturers' agent. Selling agent.

Manufacturers' agent.

Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: Rack jobber Broker Truck wholesaler Selling agent Manufacturers' agent.

Manufacturers' agent.

___ specialize in selling and work on a commission basis. They operate in limited geographic areas and represent two or more non-competing producers. Rack jobbers Manufacturers' agents Selling agents Auction companies.

Manufacturers' agents

When employing life cycle pricing for industrial products, which of the following costs to the buyer are not considered? Marginal costs Post-purchase costs The final sales price. Start-up costs

Marginal costs

The price for a gallon of 2% milk costs Kroger's $1.20 and Kroger's wants a 50% mark-up. The resulting selling price to Kroger shoppers is $1.20 + .5($1.20)=$1.80. This is an example of __ pricing. Mark-up based on cost Mark-up based on selling price Value Break-even pricing

Mark-up based on cost

The most common form of mark-up pricing, and the form of mark-up pricing to be used on all exams unless told otherwise is: Mark-up based on cost Mark-up based on selling price Value mark-up Break-even mark-up

Mark-up based on selling price

The Loyals Widget Co. sells 5,000 units in a given year. Total industry sales of widgets for that year are 100,000 units. The ratio of the company's sales to total industry sales is referred to as:

Market Share

The supply chain function in which buyers and sellers are brought together to perform exhanges is: Allocating Assorting Accumulating Matching Batching.

Matching

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians. Physical Distribution Management Logistics Management Materials Management Channel Management None of the above.

Materials Management

The movement of parts and materials from their sources of supply into the manufacturing process is ___ . Logistics management Materials management Physical distribution Supply chain management

Materials management

When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?. Matching Allocating Negotiating Assorting Sorting.

Negotiating

Convience stores, barber shops, hair stylists, manicurists, delis, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls.

Neighborhood centers

Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls.

Neighborhood centers

When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent: Price competition Economic diversification Market control Non-price competition Price fixing

Non-price competition

When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ . Price competition Monopolistic competition Non-price competition Promotion competition Competitive positioning.

Non-price competition

____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. In-store retailing Non-store retailing Internet retailing Social network retailing Out-bound retailing.

Non-store retailing

___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's. Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Off-price retailers

____________ sell seconds, production overruns, discontinued, outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Off-price retailers

Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function? Specifying invoice terms of 2/10, net 30 Offering a noncumulative quantity discount Using zone pricing Offering a cash discount Setting a skimming price.

Offering a noncumulative quantity discount

Marriott is considering opening an autograph series hotel in El Paso, Texas. The hotel will be in a converted downtown bank building. Estimates are that the hotel must average an occupancy rate of 57% to break-even. Based on historical sales data for its other autograph series hotels in similar cities, an average occupancy rate of 63% can be expected. What would be your recommendation to Marriott's management? Do not open the hotel, as break-even is less than projected occupancy rates. Open the hotel since break-even is less than projected occupancy rates. Do not open the hotel since break-even is greater than projected occupancy rates. Open the hotel since break-even is greater than occupancy projections.

Open the hotel since break-even is less than projected occupancy rates.

Which of the following companies is least likely to function as a channel captain in their respective supply chains? Pizza Hut Apple Walmart P&G Ralston-Purina

Pizza Hut

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to frequently visit the retailer's store in order to hit a sale?

Periodic discounting

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of a sale for those products the retailer intends to place on sale: Random discounting. Second market discounting Periodic discounting Deep discounting. None of the above.

Periodic discounting

The movement of finished goods from the manufacturer into the hands of final consumers is ____ . Logistics management Materials management Physical distribution Supply chain management

Physical distribution

The physical movement of finished goods from producers to middlemen and, everntually, to consumers is: Channel management Materials management Physical distribution Logistics Transportation.

Physical distribution

When pricing objectives suggest that price should be used as a cue or signal meant to produce a high quality or prestige image for the product, a ___ strategy is appropriate. Demand is assumed to be highly price inelastic. Demand generation pricing Premium pricing Product line pricing Competitive pricing

Premium pricing

A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described? Prestige pricing Average cost-pricing. Bait pricing. Penetration pricing. Experience curve pricing

Prestige pricing

The pricing strategy most appropriate for "positional products" is __ . Penetration pricing Prestige pricing Product line pricing Competitive pricing Predatory pricing.

Prestige pricing

A penetration pricing strategy is most likely to be used when pricing objectives focus on: Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins. Manipulating consumers' psychological impressions of price as an indicator of product quality or status. Maximizing profits on a per unit basis. Pricing at the same level as competitors to avoid potential price wars Penetration pricing cannot be used in any of the situations suggested above.

Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.

_______ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more. Price Value Exchange Utility Barter.

Price

_________ is a measure of the utility that exists or is perceived to exist in a product. Price Value Exchange Utility Barter.

Price

_________ is the only marketing mix element that generates revenue for the firm. Promotion Product Distribution Price All of the above yield substantial revenue for the firm.

Price

__________ is the amount of money or other form of remuneration that is charged for products or services. Price Value Exchange Utility Barter.

Price

A brand is fundamentally the same as those of its competitors with little 'value added.' In addition, the product is one such that little brand loyalty tends to exist. It is most likely that when setting prices for this brand, the seller must treat demand as ___ Price inelastic Price elastic Uniformly elastic Price inflexible Inverse.

Price elastic

When demand is (__) total revenue tends to increase as price increases. Price elastic Price sensitive Inverse Price inelastic Price invariant.

Price inelastic

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above.

Price objectives

In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above.

Price strategies

Understanding costs faced by the firm when making pricing decisions is important because: Costs constitute the maximum possible price that can be charged for a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs. Costs are directly proportional to prices charged by competitors.

Prices must be set with a knowledge of the costs required to make and sell the product.

Understanding costs faced by the firm when making pricing decisions is important because: Costs constitute the maximum possible price that can be chargedfor a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs. Costs are directly proportional to prices charged by competitors.

Prices must be set with a knowledge of the costs required to make and sell the product.

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product. Price objectives Pricing techniques Pricing discounts Pricing allowances Cost-volume-profit analysis.

Pricing discounts

The most common channel of distribution for consumer goods is ___ Direct from producer to consumer Producer --> Wholesaler --> Retailer --> Consumer Producer --> Retailer --> Consumer Producer --> Agent --> Retailer --> Consumer

Producer --> Wholesaler --> Retailer --> Consumer

Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use? Producer to user. Agent to industrial distributor to user. Producer to agent to retailer to consumer Producer to industrial distributor to user Producer to agent to industrial distributor to consumer.

Producer to agent to retailer to consumer

Blue Diamond is a __ in which almond growers have established their own wholesaling and distribution system. Producer's Coop Retailer's Coop Specialty wholesaler Truck distributor.

Producer's Coop

In general, there is a larger change in profits associated with a $1.00 reduction in costs than for the same $1.00 increase in revenue. This phenomenon is referred to as: Profit leverage of costs Profit leverage of revenue Profit elasticity of costs Price elasticity of demand Who knows?

Profit leverage of costs

Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of $100,000." This statement reflects: Revenue leveraging Profit leveragin of costs Supply chain profit leveraging Scale economies None of the above.

Profit leveragin of costs

An axiom in business is that given the chance between increasing sales revenue or decreasing some cost by the same amount generally favors cost reduction. For example, given initial sales of $100, is it better to increase sales revenue by $5 or reduce cost by $5. Which choice will have the greatest effect on net profits? This phenomenon is?

Profit leveraging cost

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level. Price objectives Pricing techniques Pricing discounts Promotion allowances Cost-volume-profit analysis.

Promotion allowances

Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a: Promotional allowance. Forward dating. Seasonal discount. Cash discount. Quantity discount.

Promotional allowance.

Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Cash discounts. Slottine fees. Trade discounts. Push money. Advertising allowances.

Push money.

Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a: Selling agent Rack jobber Cash & carry wholesaler Truck wholesaler (jobber) Manufacturers' agent.

Rack jobber

Lee Gabriel Distributors, based on Denton, TX, sells fast moving hardware items to small independent grocers in rural Texas. Lee often provide the displays, stock the shelves, and monitors inventory for his clients, charging them only after sales have been made. Apparently, Lee is a __ . Rack jobber Retailer's Coop Specialty wholesaler Truck distributor.

Rack jobber

A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager. The chain could use a: Cash-and-carry wholesaler. Specialty wholesaler. Rack jobber. Manufacturers' agent. Broker.

Rack jobber.

The pricing strategy that may induce price sensitive customers to periodically visit a retail store to see "what's on sales" is __ . Systematic discounting Random discounting Second market discounting Odd pricing Penetration pricing.

Random discounting

Which of the following is not a benefit of business format frachises for the franchisors? Risk is shared with franchisees Quicker to expand the franchise geographically to other market areas Less capital is needed by the franchisor for expansion. Reduced exposure to potential federal and state regulation.

Reduced exposure to potential federal and state regulation.

Which of the following is not a response by supermarkets to improve their profit margins? Reduced reliance on techology to cut costs Vendor assistance to help manage inventory and restock shelves Adding higher margin non-food product lines and services Adding private lable brands Using promotional mechanisms to build store loyalty.

Reduced reliance on techology to cut costs

Ralph Lauren displays its Ricky Alligator Bags ($14,000 price tag) next to its Tiffin Bags priced at only $2,500 in an attempt to make the Tiffin Bags appear to provide greater value in comparison. This is an example of ___ . Quality pricing Bait pricing Reference pricing Captive pricing Predatory pricing.

Reference pricing

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes to stimulate added sales by inducing the perception that consumers are getting a 'deal.' Alberston's is using: Captive pricing. Skimming pricing. Reference pricing. Price lining. Every-day low pricing.

Reference pricing.

America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides. Neighborhood center Community center Regional center Power center Factory outlet mall.

Regional center

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________. Neighborhood center Community center Regional center Power center Factory outlet mall.

Regional center

_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups. Neighborhood centers Community centers Regional centers Power centers Factory outlet malls.

Regional centers

The Robinson-Patman Act (1936) is designed to: Prohibit the formation of monopolies Regulate the information required on consumer packaged goods Regulate price discrimination between producers and their middlemen Regulate price discrimination on prices charged consumers Prohibit unfair business practices that may restrain trade.

Regulate price discrimination between producers and their middlemen

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparantley is evaluating the ___________ of the alternatives being considered. Risks Relative values Utilities Merits Exchange rates

Relative values

Willingness of consumers to postpone buying a particular product during periods of excess demand. Willingness of consumers to buy a particular product during periods of excess supply. Range of prices for a product category offered by competing firms. Price elasticity of demand refers to the: Responsiveness of quantity demanded to price changes. The effect a new competitor has on total industry sales.

Responsiveness of quantity demanded to price changes.

____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use. Wholesaling Consumption Retailing Distribution Logistics.

Retailing

_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers. Wholesaling intermediaries Retailing intermediaries Agents Industrial distributors Facilitating agents.

Retailing intermediaries

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________. Dot.com Wholesaling intermediary Internet distributor Retailing intermediary Facilitating agent.

Retailing intermediary

A danger with employing zone delivered pricing is that zones may be created that provide competitors in closer zones with lower delivered prices. If these competitors are in direct competition with competitors in more distant zones, competition between these competitors may be substantially damaged due to the price difference. The seller employing zone delivered pricing may be in violation of the: Sherman Antitrust Act Federal Trade Commission Act Robinson-Patman Act Clayton Act Fair Packaging and Labeling Act

Robinson-Patman Act

The typical markup (expressed as a percent) is the: Selling price minus the cost of the item, divided by the cost of the item--times 100. Selling price of an item, divided by its cost--times 100. Selling price minus the cost of the item, divided by the selling price--times 100. Selling price minus the cost of the item, divided by the average fixed cost--times 100. Cost of an item divided by its selling price--times 100.

Selling price minus the cost of the item, divided by the selling price--times 100.

Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ . Supercenters Supermarkets Discount stores Category killers Department stores.

Supermarkets

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ . That have the same number of customers So as to avoid charges of illegal price discrimination That are equal in dollar sales potential Such that the prices are the same for each zone That are equal in geographic size.

So as to avoid charges of illegal price discrimination

Which of the following is not a form of non-store retailing? Vending Party plan selling Telemarketing Direct mail Social network selling.

Social network selling.

The 'realistic competitive price range' is generally: Generally at the higher end of the demand curve. Somewhere between the price floor set by unit costs and the price ceiling set by customer demand. Generally at the lower end of the demand curve. Usually exactly in the middle of the demand curve. Who knows?

Somewhere between the price floor set by unit costs and the price ceiling set by customer demand.

Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients to choose. Merril-Lynch is peforming which channel function? Accumulating Allocating Negotiating Assorting Sorting.

Sorting.

When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed? Accumulating Allocating Negotiating Assorting Sorting.

Sorting.

A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a: Broker. Specialty (limited line) wholesaler. Truck distributor. Manufacturers' agent General merchandise wholesaler

Specialty (limited line) wholesaler.

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as: Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Specialty stores

____________ attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortemts of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. Off-price retailers Specialty stores Factory outlets Category killers Department stores.

Specialty stores

Alice Garrett runs her own distribution business in which she stocks a full range of specialty gift item for resale to gift shops. Alice is probably a _ . Drop shipper General merchandise wholesaler Retailer Cooperative Specialty wholesaler

Specialty wholesaler

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. Investment in equipment Upkeep on equipment Theft and vandalism of equipment Spoilage of products not purchased before their expiration date.

Spoilage of products not purchased before their expiration date.

When employing life cycle pricing for industrial products, any training, installation, design, and retooling costs are classified as __ . Start-up costs Marginal costs Post-purchase costs Investment costs.

Start-up costs

The inventory numbers given to products stocked by retailers are called: Stock Keeping Units Retail Inventory Units Slotting Units Stocking Inventory Units

Stock Keeping Units

Which channel function creates time utility for consumers? Accumulating Allocating Storage Assorting Sorting.

Storage

Which of the following is not one of the adopter categories responsible for the spread of innovations (new products)? Innovator Early adopter Early majority Late Majority Stragglers

Stragglers

____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers. Supercenters Specialty stores Discount stores Category killers Department stores.

Supercenters

_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers. Channels of distribution Supply chains Physical distribution Logistics channels Transportation.

Supply chains

The main difference between agent middlemen and merchant wholesalers is: That agent middlemen do not own the products they sell--while merchant wholesalers do. That no agent middlemen physically handle products--while all merchant wholesalers do. Their attitudes regarding the marketing concept. The kind of selling they do. There is no difference--an agent middleman IS a merchant wholesaler.

That agent middlemen do not own the products they sell--while merchant wholesalers do.

When setting prices, the price floor is usually defined by ______ of producing and marketing the product. The total costs The total fixed costs The average variable costs The average total costs None of the above.

The average total costs

When a seller offers a cash discount with terms of 3/10, n/60, this means: The buyer gets a discount of 10 percent if the bill is paid within 3 days; otherwise the entire amount is due in 60 days. Payment is due in 10 days, or else there is a 3 percent late-payment penalty. Payment is due in 60 days, or else there is a 3 percent late-payment penalty. The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days. If the buyer pays within 60 days, there is a 3 percent discount; beyond that is a 10-day grace period before there is a penalty.

The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.

When a seller offers a cash discount with terms 3/10, n60, this means?

The buyer gets a discount of 3% if the bill is paid within 10 days otherwise the entire amount is due in 60 days

The sequence of organizations and individuals through which finished consumers goods move is called: The channel of distribution Materials management Physical distribution Logistics Transportation.

The channel of distribution

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country. How should the company structure its sales program? The company should use sales branches everywhere, since it will cost more to use manufacturers' agents. The company will probably have to rely only on manufacturers' agents, since they will only be willing to take the widely scattered markets if they can have the good territories too. The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches. The company should use manufacturers' agents in the best territories and sales branches in the others, since good agents won't work the smaller territories. All of the above are good alternatives.

The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.

Manufacturers of a labor-intensive product wish to employ expensive curve to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 10,000 units AVC are $4 per unit. You may assume that this level of AVC is attained at the point where the first 10,000 units is produced. The producer expects an experience constant or rate of about 9. Based on this, answer the next three questions:

The experience constant or experience rate is interpreted as: AVC declines by 10% with each doubling of cumulative output - The third doubling of cumulative production volume is closest to: 15,000 units - The producer can expect AVC of ____ with the third doubling: $3.00

Innovative Technology manufacturers sophisticated electronics components. When setting its budget and projecting costs for its products, Innovative's management knows that with each doubling of cumulative output, they can expect the average variable costs of production to decline by a fixed percentage. Evidently, Innovative is predicting its costs based on _ . Supply and demand relationships Anticipated scale economies from production The experience curve Managerial judgement.

The experience curve

Producers of Murkat Pale Ale have faced serious cost increases for hops and other ingredients employed in brewing process. The brewer decided to raise its prices to offset these increasing costs rather than switch to lower cost ingredients. They were surprised to see that its total revenues increased with the price increase even though gallon sales declined slightly, they experienced?

The law of demand

The break-even point is: The level of sales where total revenue equals total costs The level of sales which maximizes profit The total profit likely to be earned at a given price Where supply equals demand

The level of sales where total revenue equals total costs

In which of the following situations is a manufacturer's exclusive territory agreement with a dealer likelty to be declared illegal? The manufacturer's products are sold by the dealer on consignment, meaning that the manufacturer retains ownership until the product is acutally sold to ultimate buyers. The manufacturer forbids the dealer from selling outside his territory. The dealer is part of the manufacturer's corporate vertical marketing system e.g. the dealer is a factory outlet. None of the above is likely to be illegal.

The manufacturer forbids the dealer from selling outside his territory.

Break even analysis allows marketers to examine the profit impact of charging a particular price for a product. The break-even point in such analysis is least likely to be interpreted as:

The point where Total Revenue just equals Total Cost

Which is least likely to cause problems when employing historical data to estimate demand curves?

The seller introduced several new products that were considered to be category extensions during the time in question

Which of the following is least likely to cause problems when employing historical data to estimate demand curves? Competitors experimented with multiple price changes during the time frame under analysis. Price controls were imposed on the industry by the Federal government during the period in which the pricing data were collected. The seller made several major changes to its promotion program during the time in question. The seller introduced several new products that were considered to be category extensions during the time in question. A consumer rights advocacy group mounted a major campaign against the company and its products during the time under analysis.

The seller introduced several new products that were considered to be category extensions during the time in question.

Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because: The current legal interpretation of the Robinson-Patman Act required the price differential The rules and regulations of the Federal Trade Commission required the price The seller set pricing differentials based on the existence of inverse demand The seller probably was using zone-delivered pricing. The seller was using cash discounts.

The seller probably was using zone-delivered pricing.

The entire set of organizations that are involved in supplying component parts to producers, these producers, and the organizations involved in moving finished goods to consumers is _ . Logistics management Materials management Physical distribution The channel of distribution The supply chain

The supply chain

For which of the following is a legitimate (legal) reason for a manufacturer to drop or "refuse to deal" with a supply chain member? The supply chain member fails to meet sales objectves or fails to adequatly service buyers of the producer's products. The supply chain member begins carrying the supplier's competitor's products; The supply chain member refusing to honor a tying contract with the producer. The supply chain member decises to set prices at levels other than specified by the supplier. All of the above are legal reason for "rufusing to deal."

The supply chain member fails to meet sales objectves or fails to adequatly service buyers of the producer's products.

The greatest limitation of all cost-based pricing techniques is that: It's difficult to estimate a product's costs The techniques are very difficult to understand The techniques do not take into account demand considerations at the price being set Cost-based techniques are only useful to manufacturers and cannot be employed by intermediaries

The techniques do not take into account demand considerations at the price being set

The primary factor that distinguishes between a merchant wholesaler and an agent is: The agent takes title; the wholesaler does not. The wholesaler takes title; the agent does not. The wholesaler provides many more services than does the agent. Wholesalers account for a larger sales volume than do agents None of the above.

The wholesaler takes title; the agent does not.

The first four steps in the new product development process are particularly crucial because: These steps are relatively inexpensive compared to the fifth step in which the physical product is actually produced. The new product test market occurs during these steps and this information is critical for making the go -no go decision to commercialize. These steps will determine whether a concept test is required, which is the most expensive element of new product development. These steps are important for predicting the potential life cycle of the new product. All of the above.

These steps are relatively inexpensive compared to the fifth step in which the physical product is actually produced.

Factory outlet malls usually are located in outlying, rural areas in order to: Better serve the needs of smaller communities To avoid the higher costs of doing business in urban locations To avoid traffic congestion associated with urban locations To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands. All of the above.

To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

A retailer might expect a stocking allowance: To pass along to retail salesclerks who aggressively sell the product. To offset the handling costs for a new product. For paying the supplier's invoice before the product is delivered. If the manufacturer can't fill an order by the promised delivery date. None of the above--stocking allowances only apply to wholesalers.

To offset the handling costs for a new product.

In price determination, given a particular selling price, the break-even point is where: Profit is maximized Sales volume is maximized Marginal cost equals total sales Marginal cost equals marginal revenue Total costs of the product equals total sales revenue from the product.

Total costs of the product equals total sales revenue from the product.

Examine the graph. Line "A" represents ___ (straight horizontal line) Total fixed costs Total variable costs Total costs Average fixed costs Marginal costs.

Total fixed costs

__________ involves the physical movement of finished goods, raw materials, and component parts between channel members. Accumulating Allocating Transportation Assorting Sorting.

Transportation

Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product's pain-relieving benefits were any better than those of the brand she currently uses. Janet is most likely in the ___________ stage of the new product adoption process. Awareness Evaluation Trial Information Adoption

Trial

_____ carry a select line of perishable products and deliver them by trucks to retail stores. Full-service wholesalers Rack jobbers Truck jobbers Commission merchants Drop shippers.

Truck jobbers

Demand is elastic for the change in price?

True

Expenses, markdowns, and profits are generally computed as percent of sales. Such practices are offered as justification for why markups are normally expressed as a function of selling price rather than costs. T/F?

True

T or F: Assuming the law of demand holds true for a specific demand curve, high prices are not likely to be profitable for the seller because too few units will be sold to cover the firms total fixed costs.

True

T or F: For an invention to become an innovation requires that the invention be capable of offering better solutions to recognized consumer problems.

True

T or F: In the arena of new product development, the number of "inventions" exceeds the number of "innovations."

True

T or F: In the previous pricing scenario, demand for the product is price elastic.

True

T or F: Relative new product failure rates exceed absolute failure rates.

True

T or F: The term "price competition" in a marketing context

True

The geographic pricing technique in which a single price is employed for all customers regardless of geographic location and includes the average cost of shipping and handling is: F.O.B Mill F.O.B Destination Zone delivered pricing Uniform Delivered Pricing

Uniform Delivered Pricing

Postage stamp pricing is technically termed: Zone Delivered pricing Uniform Delivered pricing F.O.B. Mill pricing F.O.B Delivered pricing

Uniform Delivered pricing

Which method for estimating demand curves is least appropriate for the marketer of a new product. Using buy-response data. Using historical ratios. Using test market data. Using managerial judgement.

Using historical ratios.

____ is generally a function of the perceived benefits obtained from a product and the price plus any other cost incurred to obtain that product:

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product. Price Value Exchange Utility Barter.

Value

The principle adopted from psychology that predicts how much a stimulus must change for that change to be noticed is: Parkinson's Principle Weber's Law Pavlov's Principle Skinner's Law None of the above.

Weber's Law

Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price. Fair trade. Value. Psychological. Cost-plus. Penetration.

Value.

Larry and Allen are college students. To make money they operated a snack booth at the beach for 3 months. A month before opening, Larry found a location that rented for $400 a month and a small refrigerator unit, which rented for $50 a month. Alan found food distributors and paper products they would need. They purchased a business license for $100 and bought 3 months of liability insurance for $150. The cups, straws, napkins, and extra sales people needed are all examples of:

Variable costs

When production stops (i.e. no units produced), _________becomes zero. Variable costs of production. Marginal costs. Total costs. Fixed production costs. Total fixed costs.

Variable costs of production.

Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of: Marginal costs. Break even points. Variable costs. Fixed costs Average costs.

Variable costs.

When production stops _____ becomes zero?

Variable production cost

Even when production stops the firm will generally incur some:

Variable production costs

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? Vending Direct response advertising Direct selling Mechanical marketing None of the above.

Vending

____________ is most likely to arise when manufacturers attempt to bypass with wholesalers or retialers and sell direct to consumers. Horizontal supply chain conflict. Verical supply chain conflict. Vertical channel dissonance. Contract conflict.

Verical supply chain conflict.

Which is NOT a possible structure of the Marketing Dashboard? Flow-Based Structure Grouping Structure Vertical Structure Relationship Structure

Vertical Structure

____ is when a firm performs more than one set of activities in a marketing channel or supply chain?

Vertical integration

General Mills, snacks and cereal, has a brand equity and market position that is able to coordinate distribution activities through market power. This is an example of the ___?

Voluntary chain

____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee. Supercenters Supermarkets Discount stores Warehouse clubs Convenience stores.

Warehouse clubs

Hershey's recently changed ingredients in candies to reduce cost. Hersey's was betting most consumers would not notice the change. Which process would help Hershey's predict how much of a change they could make before their customers would notice?

Weber's Law

Schlitz Beer some years ago decided to modify the quality of its beer by employing lower cost ingredients in the brewing process. Changes were made incrementally a little at a time hoping that consumers would not notice the changes. Schlitz probably relied on __ to predict the amount of change that could be made. Parkinson's Principle Weber's Law Pavlov's Principle Skinner's Law None of the above.

Weber's Law

Microwave ovens, automatic dishwashers, and instant coffee were somewhat slow to be adopted and diffuse due to: Lacked relative advantage Too complex to understand and use Lacked social visibility (communicability) Could not be sampled on a limited basis (trialability) Were not compatible with cultural and other usage expectations.

Were not compatible with cultural and other usage expectations.

The major distinction between a retail and a wholesale transaction is: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a retailer or a wholesaler. Whether the product involved is sold at a wholesale or a retail price. The quantity of goods involved.

Whether the product will be used by an organization or by a consumer.

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on: Whether the seller is a wholesaler or a retailer. Whether the product will be used by an organization or by a consumer. Whether the seller procured the product from a manufacturer or a wholesaler. Whether the product involved is sold at wholesale or retail price. The quantity of goods involved.

Whether the product will be used by an organization or by a consumer.

The primary distinction between voluntary chains and retailer cooperatives is: Whether they are set-up by wholesalers or by retailers Voluntary chains tend to offer more benefits to members than do coops. Retailer cooperatives tend to be more profitable than voluntary chains Voluntary chains are limited to hardware stores, while coops serve the grocery industry.

Whether they are set-up by wholesalers or by retailers

The main difference between retailer cooperatives and voluntary chains is:

Who organizes them

The main difference between retailer cooperatives and voluntary chains is: Their offensive vs. defensive postures The length of the distribution channel The types of promotion used Who organizes them Their pricing strategies.

Who organizes them

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________. Retailing Wholesaling Channel management Logistics Distribution management.

Wholesaling

___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses. Retailing Wholesaling Channel management Logistics Distribution management.

Wholesaling

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. Grainger is a _____________ . Retailing intermediary Wholesaling intermediary Facilitating agent Manufacturer's agent Broker.

Wholesaling intermediary

In the previous pricing scenario, should the price be lowered as proposed? Yes No

Yes

A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of: full-line pricing. value in use pricing. price lining. bait pricing. leader pricing.

bait pricing.

The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of: a single-price strategy. leader pricing. cost-plus pricing. price lining. penetration pricing.

leader pricing.

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a: cash-and-carry wholesaler. specialty wholesaler. rack jobber. manufacturers' agent. broker.

rack jobber.

Which of the following retailers is most likely to be a member of a retailer cooperative? A hardware store A toy store A video rental store A gourmet store featuring Thai cuisine. A fruit and vegetable stand.

A hardware store

Beta tests during NPD normally use: The firm's own employees. Actual consumers in focus groups. Actual consumers during normal use. Members of the NPD team only.

Actual consumers during normal use.

Which of the following are common metrics that gauge overall NPD performance in the firm? Percentage of the firm's revenues and profits coming from new products launched. Percentage of the firm's new product successes, failures, and kills. Average time to market for NPD projects (idea to launch. Percentage of the firm's NPD projects that are on-time and on-budget; All of the above are NPD metrics.

All of the above are NPD metrics.

Which of the following are true for commercializing new products via geographic roll-out. Each step during roll-out provides added funds for financing further roll-out. Each step during roll-out amounts to a further test of the new products probably success. Each step allows marketing managers to analyze and refine the new products marketing program. Each step allows marketers to find ways to cut costs and improve margins. All of the above are true.

All of the above are true.

Under which of the following conditions is a tying contract likely to be declared as legal? The supplier alone can provide products of the required quality, as in the case of some franchise situations. A new small company is entering the market and desires full line representation. Under these circumstances adverse effects on competition are minimal. A supplier carries competing lines that can be offered to buyers, thereby assuring market access to competing firms. All of the above increase the likelihood that a tying contract will be legal.

All of the above increase the likelihood that a tying contract will be legal.

Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose. Matching Allocating Negotiating Assorting Sorting.

Allocating

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in _______ . Accumulating Allocating Sorting Assorting Matching.

Assorting

___________ is a more structured form of brainstorming session in which the characteristics and functions of a specific product (e.g. a screw driver) are presented to the group and the task is to brainstorm ways to improve on those characteristics and functions. Problem analysis. Attribute listing. Functional analysis. Structural analysis.

Attribute listing.

Apple's Newton PDA and McDonalds' Arch Deluxe both were new product failures primary due to: They lacked sufficient relative advantage over existing products. They were simply products that consumers did not want. Bad timing of launch. Both were launched before the market was ready for them. The marketing programs for both products were poorly executed.

Bad timing of launch. Both were launched before the market was ready for them.

Being too quick to criticize new product ideas is considered to be one the biggest pitfalls of _______________ . Focus groups. Problem analysis. Attribute listing. Brainstorming. Test marketing.

Brainstorming.

For which of the following products is exclusive distribution most likely? Cartier watches Intel micro-processors Chevrolet Camaros Polo sportswear Channel perfume.

Cartier watches

For which of the following products is exclusive distribution most likely? Caterpillar tractors Citizen watches Ford Mustangs Intel micro-processors Gillette razors.

Caterpillar tractors

When microwave ovens were introduced in the early 1960s, they were slow to be adopted. Although the ovens scored very high on relative advantage, they were deemed to be inconsistent with the wife's role in the kitchen and perceptions on how food should be prepared. Which of the following factors that influence how rapidly new products diffuse was most likely the culprit?' Relative advantage Compatibility Trialability Communicability Complexity.

Compatibility

In 1990, Coors launched Coors Rocky Mountain Spring Water, attempting to leverage its images of beer brewed with Rocky Mountain spring water. The product failed because: It lacked any significant incremental advantage or value compared to other existing spring waters. Consumers simply did not want the product. Coors means beer, not water. The timing was wrong. It was introduced in the winter. Insufficient funds were channeled into the promotion program. Coors' existing distribution network was hesitant to stock the product.

Consumers simply did not want the product. Coors means beer, not water.

Apple's introduction of the iPhone X can be considered a _____________ . Discontinuous innovation Dynamically continuous innovation Continuous innovation Absolute product failure All of the above.

Continuous innovation

Bush's Baked Beans recently decided to reposition itself to parents as a "vegetable" that kids will eat and love. In terms of NPD, this repositioning attempt is categorized as a(n) _____________. Discontinuous innovation Dynamically continuous innovation Continuous innovation Discontinuous technology Dynamically continuous technology.

Continuous innovation

By far the most common category of new products is the ___________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Continuous innovations

Clothing manufacturer Van Heusen produces lines of its apparel specifically targeted to consumers who visit its factory outlet stores. These lines are slightly lower in quality and sell at significantly lower price points. In terms of NPD, these additional product lines are categorized as _____________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Dynamically continuous technologies.

Continuous innovations

Line extensions, flanker brands, and brand extensions are classified as: Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Continuous innovations

Most private label products added to retailers' product portfolios are derived from existing brands already produced by other firms. Such "new to the firm" products are examples of __________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Continuous innovations

The Chevrolet Camaro and Ford Mustang have undergone major redesigns in the last decade to improve sales, profits, market share, and brand image. In terms of NPD, these repositioning attempts are categorized as _____________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Continuous innovations

Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of: Off price retailing Retailer cooperatives Administered vertical marketing systems Corporate vertical marketing systems. None of the above.

Corporate vertical marketing systems.

The classification scheme for new products is based on: Degree of effort consumers expend in the buying decision process The amount of risk the consumer perceives to be attached to product purchase Consumer involvement with the product category Uniqueness of the technology upon which the new products are based. Degree of consumer learning or 're-learning' required for the new product.

Degree of consumer learning or 're-learning' required for the new product.

Once new product ideas are screened to weed out poor promising ideas, the next step is to: Take the idea into the business analysis phase Develop the ideas into workable 'product concepts' for possible testing with consumers Build a prototype of the product for further testing Test market the ideas None of the above.

Develop the ideas into workable 'product concepts' for possible testing with consumers

In commoditized markets, the likelihood of price and market share wars can be reduced if firms successfully ______________ their brands through their NPD efforts. Market Advertise Position Differentiate Distribute

Differentiate

The _____ of a new product is the process by which an innovation is spread through a social system over time. Osmosis Diversification Differentiation Adoption Diffusion

Diffusion

The rate at which new products are adopted by users throughout a particular market, population, nation, or global region is ____________. Osmosis Diversification Differentiation Adoption Diffusion

Diffusion

When first introduced, products such as VCRs, PCs, automobiles, aircraft, and electricity were ____________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Discontinuous innovations

____________ are new products that require customers to learn new things, acquire new experiences, and adapt their current consumption behaviors before they can be properly used. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Discontinuous innovations

____________ are usually based on new technologies, provide dramatically different solutions to existing consumption-related problems, and require that consumers learn new ways of solving old problems. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Discontinuous innovations

Standard test markets are most likely to be conducted for which type of new product innovation? Discontinuous innovations. Dynamically continuous innovations. Continuous innovations. All of the above are equally likely candidates for conducting a test market.

Discontinuous innovations.

A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user. Logistics network Production channel Distribution channel Marketing channel Wholesale channel.

Distribution channel

Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as: Dual distribution Multiple channel distribution Channel proliferation Channel adaptation Channel penetration

Dual distribution

Today's smart phones are highly evolved extensions of the older communications and computer technologies. The core function and benefit of smart phones is still that they permit people to communicate with other people. Smart phones when initially introduced as a product category were ___________. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Dynamically continuous innovations

____________ generally arises when two or more product ideas are combined in such a way that customers face some re-learning with respect to the new product's functions and usage. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies

Dynamically continuous innovations

____________ generally arises when two or more product ideas are combined in such a way that customers face some re-learning with respect to the new product's functions and usage. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Dynamically continuous innovations

____________ innovations are significant improvements on their parent innovations, but not nearly as disruptive in terms of the amount of re-learning involved to adopt the innovation for personal use. Examples include notebook computers, DVRs, commercial and military jet aircraft, and digital photography. Discontinuous innovations Dynamically continuous innovations Continuous innovations Discontinuous technologies Dynamically continuous technologies.

Dynamically continuous innovations

Controlled test markets are most likely to be conducted for which type of new product innovation? Discontinuous innovations. Dynamically continuous innovations. Continuous innovations. All of the above are equally likely candidates for conducting a test market.

Dynamically continuous innovations.

In which of the adopter categories will opinion leaders most likely be found? Early adopters Innovators Laggards Early majority Late majority

Early adopters

_________ are being employed when a producer prohitits its dealers from carrying its competitors' products, Tying agreements Exclusive dealing agreements Exclusive territories Refusals to deal.

Exclusive dealing agreements

If there is a traditional channel for consumer goods, it is: From producer to consumer From producer to retailer to consumer From producer to agent to retailer to consumer From producer to wholesaler to retailer to consumer From producer to agent to wholesaler to retailer to consumer.

From producer to wholesaler to retailer to consumer

When a manufacturer requires that its dealers carry its entire line or the dealer will be dropped, the manufacturer is engaged in _______ Exclusing dealing. Full-line forcing. Exclusive territories. None of the above.

Full-line forcing.

Developing an NPD protocol is a major component of which stage in the NPD process? Go-to-market strategy Idea development Screening and evaluation Business analysis Commercialization

Go-to-market strategy

Toys "R" Us employed its purchasing power with toy producers Mattel and Hasbro to coerce them into not selling to competing retailers such as Costco and Sam's Club. Toys "R" Us actions resulted in ___________ . Horizontal channel conflict. Vertical channel conflict. Exclusive dealing conflict. Increased competition between these retailers.

Horizontal channel conflict.

'Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process? Idea generation. Idea screening. Prototype development. Test market. Commercialization.

Idea screening.

Which of the following is least associated with the geographic roll-out of new products? Distribution of the new product occurs incrementally from one geographic area to the next Each incremental step in the roll-out process amounts to an additional test of the new product's viability Each incremental step in the roll-out process provides funding to help finance additional roll-out Incremental steps in the roll-out process are accompanied with changes in the marketing mix tailored to meet the requirements of each geographic market

Incremental steps in the roll-out process are accompanied with changes in the marketing mix tailored to meet the requirements of each geographic market

__________ refers to an overall process whereby inventions are transformed into commercial products that can be sold profitably. Innovation NPD Production Market development Diversification

Innovation

Customers in the __________ adopter category, on average, possess higher discretionary incomes, are often higher in social status, and more knowledgeable about new products. These adopters are most willing to take more consumption-related risks. However, this category is less likely to contain opinion leaders that influence others to buy. Early adopters Innovators Laggards Early majority Late majority

Innovators

The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ . Dual distribution Multi-modal transportation Intermodal transportation Bi-modal transportation.

Intermodal transportation

___________ means creating something that is new or unique. Invention NPD Production Market development Innovation

Invention

The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because: It lacks value compatibility. Lacks relative advantage. Is difficult to sample on a 'trial' basis. Is too complex of a vehicle to operate. Lacks aesthetic appeal.

It lacks value compatibility.

Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category. Early adopters Innovators Laggards Early majority Late majority.

Laggards

The requirement that a new product (innovation) be reasonably easy to understand and use means that the new product possesses ____________ . Relative advantage Communicability Low complexity Adoptability Compatibility

Low complexity

Which of the following is not a metric for gauging overall NPD performance in the firm? Market share obtained for a specific new product. Percentage of the firm's new product successes, failures, and kills. Average time to market for NPD projects (idea to launch. Percentage of the firm's NPD projects that are on-time and on-budget; Percent of NPD projects meeting objectives.

Market share obtained for a specific new product.

With respect to the diffusion of innovations, the combined categories Early Majority and Late Majority are said to comprise the _____________ for a given product. Mass market Target market Primary market Center market.

Mass market

Movement of parts and materials from their sources of supply into the manufacturing process is called: Channel management Materials management Physical distribution Logistics Transportation

Materials management

The preferred approach to organizing for NPD is: New product development teams. Sequential product development. Linear product development. Progressive product development. Dynamic product development.

New product development teams.

Which of the following is not a metric used to gauge performance of a specific NPD project i.e., specific new product? Time to break-even. Profitability (NPV, operating profits) Number of retail outlets penetrated. Market share obtained. Performance to budget.

Number of retail outlets penetrated.

Olivia is current president of the American Marketing Association student chapter at UNT. She is an extremely intelligent and outgoing leader. Other students in the marketing degree program at UNT look to her for advice a range of academic and professional issues. Olivia, apparently, is a(n) ___________. Innovator Front-runner Majority leader Trend setter Opinion leader

Opinion leader

___________ are individuals who have a strong propensity to pass on both positive and negative word-of-mouth communications to other consumers. Innovators Innovators Early majority Late majority Opinion leaders

Opinion leaders

Most new product failures resulting from overestimating demand probably can be traced to ____________ . Poorly conducted marketing research or no research. Poor management of the new product introduction. A critical change in the economy during the product's introduction. Competitive actions intended to damage sales of the new product.

Poorly conducted marketing research or no research.

Probably the single most important invention in history that changed the world forever was the ___________ . Micro-processor Printing press Digital photography Cellular phone Drug Penicillin.

Printing Press

Often conducted in a focus group setting, ______________is usually a customer-based process in which consumers are asked to elucidate on issues they have encountered using certain products or brands. Attributed listing. Problem analysis. Functional analysis Focused brainstorming.

Problem analysis.

Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for product modifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likely employing which new product idea generation technique? Brainstorming. Attribute listing. Depth interviewing. Problem analysis. Test marketing.

Problem analysis.

Which distribution channel is the manufacturer of small fireprood safes for businesses most likely to use? Producer to user. Producer to industrial distributor to user Producer to agent to user Agent to industrial distributor to user None of the above.

Producer to industrial distributor to user

A ________ is a concise statement of the proposed new product's characteristics and desired market position. This statement includes identification of the relevant target market; the desired product or brand image; the key functions and benefits the product will provide; and the specific attributes or characteristics that will deliver these functions and benefits. Brand position. Product concept. Value statement. Value position.

Product concept.

A firm that wants to sustain its revenues should engage in new product development because: Federal regulations require that a certain percentage of a company's products must be new Products inevitably pass through a life cycle that culminates in the demise of the product. Consumers do not buy products that are not new and innovative New products are always more profitable Patent protection lasts for only 17 years and new products must be ready when patents expire.

Products inevitably pass through a life cycle that culminates in the demise of the product.

Which of the following is not one of the things learned from product use tests in the NPD process? Consumers' initial sensory reactions to sensations of color, speed, durability, reliability, and functionality of the product. Early use experiences that provide information about the basic functionality of the product in use. Knowledge of whether the actual benefits delivered by the product match those intended by designers. Projections of anticipated sales and fine-tuning costs of production.

Projections of anticipated sales and fine-tuning costs of production.

Google has in place a set of procedures that generally guide future new product developmental efforts. These procedures summarize the roles of proposed new products in the firm's existing product portfolio; establishes tentative revenue, market share, and profitability goals for the new product; and tentatively sets aside resources that may be needed to produce, promote, and distribute the new offering. These procedures are called the new product development ____________ . System Protocol Prototype Process or procedure None of the above.

Protocol

During which stage of NPD is a demonstrable and reproducible version of the physical product developed? Concept testing. Strategic business analysis. Prototype development. Test market. Commercialization.

Prototype development.

Product use test (user tests) are normally conducted during which stage of NPD? Concept testing. Strategic business analysis. Prototype development. Test market. Commercialization.

Prototype development.

Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate. Aesthetics Compatibility Complexity Trialability Relative Advantage

Relative Advantage

The requirement that a new product (innovation) perform in a superior manner at fulfilling customers' needs (as compared to existing products) means that the new product possesses higher ____________ . Incremental value Market value Profit potential Relative value Comparative value

Relative value

____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments. Direct distribution Selective distribution Exclusive distribution Intensive distribution Mult-channel distribution.

Selective distribution

_____________ is the traditional organization for new product development, is a linear structure in which individual departments work their portion of the project and then hand-off the results to the next department to begin their part. New product development teams. Sequential product development. Linear product development. Progressive product development. Dynamic product development.

Sequential product development.

For which of the following products is a manufacturer most likely to use intensive distribution? Vacuum cleaners Silk flowers Mountain bikes Softdrinks Latex paint.

Softdrinks

When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function. Accumulating Allocating Negotiating Assorting Sorting.

Sorting.

Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product. Strategic business analysis Environmental audit Idea screening Test market Prototype development

Strategic business analysis

Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product. Strategic business analysis Environmental audit Idea screening Test market Prototype development

Strategic business analysis

Detailed financial projections associated for proposed new products that build on the product's are made during which stage of the new product development process? Idea screening. Concept testing. Strategic business analysis. Prototype development. Test market.

Strategic business analysis.

Ongoing NPD programs in firms are important for all of the following reasons except: Firms' older existing products eventually enter decline Firms can use NPD efforts to create points of differentiation with their competitors Firms can use NPD efforts to create sustainable competitive advantages over other firms. Strong NPD programs yielding creative new products increases the firm's ability to compete in global markets. Strong NPD programs increases the firm's ability to compete with lower prices in global markets.

Strong NPD programs increases the firm's ability to compete with lower prices in global markets.

The channel of distribution for consumer products does not include which of the following? The producer Intermediaries, such as wholesalers and retailers Ultimate consumers of the distributed product Suppliers of component parts to the producer.

Suppliers of component parts to the producer.

Which of the following is not true about using NPD teams? The teams are cross-functional with personnel drawn from multiple departments in the firm. Suppliers and customers may be team members. The use of teams transforms the NPD process into a holistic process. The diversity of the NPD team makes is much easier to manage. Each team member has an equal stake and remains on the team for the duration of the process.

The diversity of the NPD team makes is much easier to manage.

Most new product ideas come from: The firm's customers. The firm's own employees and supply chain partners. Closely monitoring competitors' new product introductions. Critical review of the firm's quality assurance programs.

The firm's own employees and supply chain partners.

Alpha tests during NPD normally use: The firm's own employees. Actual consumers during focus groups. Actual consumers during in-home use. Members of the NPD team only.

The firm's own employees.

For which of the following situations is a test market least likely to be needed? Consumer acceptance of the new product is uncertain. Sales and profit potential are difficult to estimate. Costs of developing consumer interest and trial are uncertain. A major investment is required in the new product's production and marketing. The new product is a line extension in the firm's existing portfolio.

The new product is a line extension in the firm's existing portfolio.

Which of the following is the most common reason why new product innovations fail? Failure of marketing research that overestimates demand for the product The product possesses insufficient relative advantage for existing products Product has design flaws or deficiencies that cannot be overcome One or more components of the marketing mix are executed poorly One or more competitors aggressively retaliated.

The product possesses insufficient relative advantage for existing products

Probably the single-most important factor for speeding the new product adoption and diffusion process and assuring the product's success is: The product's relative value compared to existing products. Assuring the new product's design is simplified to its most fundamental nature i.e., the product is not overly complex to understand and use. The new product's marketing program is well-designed with all elements of the marketing mix working together to present a unified message to buyers. The product's launch is timed to coincide with rising economic trends.

The product's relative value compared to existing products.

The first four steps in the new product development process are particularly critical because: These steps deal with ideas or 'concepts on paper' and are the least expensive. These steps provide the best information for projecting whether the product will succeed or fail. These steps include actually developing the physical product so that we can see how it will really function before committing to commercialization. These steps are mandated by federal law. We must be able to demonstrate that for all new products introduced that these steps were adequately performed. None of the above is true of the first four steps.

These steps deal with ideas or 'concepts on paper' and are the least expensive.

Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers. Horizontal supply chain conflict. Verical supply chain conflict. Vertical channel dissonance. Contract re-negotiations.

Verical supply chain conflict.

_____________ is when a firm performs more than one set of activities in a marketing channel or supply chain. Channel diversification Horizontal development Horizontal integration Vertical development Vertical integration

Vertical integration

Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a: cash-and-carry wholesaler. manufacturers' agent. specialty wholesaler. drop-shipper. selling agent.

drop-shipper.