Test 2 study guide

In which of the following does a producer direct marketing activities​ (primarily personal selling and trade​ promotion) toward channel​ members?

A push strategy

Which of the following is an example of vertical channel​ conflict?

A retailer complaining about receiving damaged electronics goods from a wholesaler

The primary purpose of​ _________ websites is to do more than just sell products or move them closer to a direct purchase.

brand community

After segmenting and defining their target​ markets, retailers must then decide​ ________.

how they will differentiate and position themselves

The goal of a push strategy is to​ _________.

induce channel members to carry and promote the product

Personal selling can be more effective than advertising in complex selling situations because it is​ __________.

interpersonal

Email marketing​ ________.

is an important​ business-to-business tool

Direct mail marketing​ ________.

is still heavily used by most retailers

​P&G sales reps are integrated into Customer Business Development​ (CBD) teams. Each CBD team is assigned to a major​ P&G customer, such as​ Walmart, Safeway, or CVS Health.​ P&G has adopted a​ ________ sales force structure.

market

The massive shift in how and where people buy calls for​ _________.

massive shifts in how store retailers operate

In the context of advertising​ media, ________ is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time.

reach

A​ ________ has from 50 to more than 100​ stores, including two or more​ full-line department stores.

regional shopping mall

Before meeting and greeting a​ buyer, a salesperson should​ ________.

research the buyer to prepare for the meeting

A direct marketing channel​ ________.

sells directly to the consumer

Which of the following indicates the length of a​ channel?

The number of intermediary levels in the channel

Which of the following correctly defines a​ product? A. A product is anything offered to a market that might satisfy a need or want. B. Products include tangible objects and services but not events or people. C. Products are only tangible objects offered to a market to satisfy a want or need. D. A product is not a part of the overall market offering. E. Products have two​ levels: the actual product and the augmented product.

A. A product is anything offered to a market that might satisfy a need or want.

Which is the final stage of the product life​ cycle? A. Decline B. Introduction C. Maturity D. Commercialization E. Growth

A. Decline

Which link in the service profit chain involves employee selection and​ training? A. Internal service quality B. Satisfied and loyal customers C. Satisfied and productive suppliers D. Healthy service profits and growth E. Greater service value

A. Internal service quality

​__________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. Product stewards B. Product managers C. Ombudsmen D. Brand managers E. Attorneys

A. Product stewards

Which of the following statements is true regarding standardizing products for international​ markets? A. Standardization decreases product​ design, manufacturing, and marketing costs. B. Standardization increases product​ design, manufacturing, and marketing costs. C. Standardization helps a company develop a different image in different countries. D. Standardization ensures that products will succeed in foreign markets. E. Markets and consumers all over the world are​ alike, so a company should always standardize international products.

A. Standardization decreases product​ design, manufacturing, and marketing costs.

Laws prohibit​ ________, meaning a manufacturer cannot require dealers to charge a specified retail price for its products. A. resale price maintenance B. ​price-fixing C. deceptive pricing D. price discrimination E. predatory pricing

A. resale price maintenance

New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing? A. ​Value-added pricing B. EDLP C. ​Cost-plus pricing D. ​High-low pricing E. ​Break-even pricing

A. ​Value-added pricing

​________ is any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor.

Advertising

At which step in the personal selling process does a salesperson meet the customer for the first​ time?

Approach

What is the first step of the new product development​ process? A. Idea screening B. Idea generation C. Concept testing D. Marketing strategy and development E. Concept development

B. Idea generation

Which of the following statements about new product development strategy is​ correct? A. A new product will succeed as long as it is priced correctly. B. Innovation can be very expensive and very risky. C. New products are not a major source of growth for companies. D. Good advertising creates successful new products. E. New products are usually successful because consumers like new things.

B. Innovation can be very expensive and very risky.

Which of the following offers a way to establish different features that appeal to different customer​ segments, lock up more reseller shelf​ space, and capture a larger market​ share? A. ​Co-branding B. Multibranding C. Licensing D. Line extension E. Brand extension

B. Multibranding

Services cannot be stored for future use. Which characteristic of services does this​ describe? A. Intangibility B. Perishability C. Tangibility D. Inseparability E. Variability

B. Perishability

In which stage of the new product development process would a company use a​ hackathon? A. Idea screening B. Product development C. Idea generation D. Marketing strategy development E. Commercialization

B. Product development

Adding a new product line to an existing portfolio means that the line has​ _________. A. extended product line length B. increased product mix width C. altered its product mix consistency D. increased product support services E. differentiated its product mix depth

B. increased product mix width

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) __________ approach to new product development. A. crowdsourced B. intrapreneurial C. ​customer-centered D. systematic E. sequential

D. systematic

When a product is in the maturity stage of the​ PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as​ ___________. A. milking the market B. modifying the market C. market maintenance D. market stimulation E. harvesting the market

B. modifying the market

Bath​ & Body Works uses​ _________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers). A. ​captive-product B. product bundle C. ​two-part D. ​by-product E. product line

B. product bundle

Sale​ days, early-bird​ savings, and bonus earnings for store​ credit-card holders are promotions employed in which type of pricing​ strategy? A. ​Value-added pricing B. ​High-low pricing C. Everyday low pricing D. ​Cost-based pricing E. ​Good-value pricing

B. ​High-low pricing

During which stage of the PLC do firms decide whether to​ maintain, harvest, or drop​ products? A. Maturity B. Introduction C. Decline D. Growth E. Product development

C. Decline

​When, if​ ever, is price discrimination​ allowed? A. If the seller can prove that it is allowable in certain states and local retailing​ areas, then it is legal. B. If the seller can substantiate that it is distributing​ internationally, then it is legal. C. If the seller can prove that its costs are different when selling to different​ retailers, then it is legal. D. If the seller can prove that its revenue is affected when selling to similar​ retailers, then it is legal. E. If the seller is selling via the Internet as its main​ channel, then it is legal.

C. If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

Which of the following statements regarding packaging is​ correct? A. Product safety is not impacted by packaging. B. Packaging has not been influenced by environmental concerns. C. Innovative packaging can give a company an advantage over competitors and boost sales. D. packaging has not yet evolved to allow brands to interact directly with customers. E. Packaging does not provide any marketing opportunities.

C. Innovative packaging can give a company an advantage over competitors and boost sales.

________ marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. A. Intangible B. External C. Interactive D. Inactive E. Internal

C. Interactive

​__________ is one major objective associated with a​ market-penetration pricing strategy. A. Avoiding everyday low pricing B. Skimming off small but profitable market segments C. Winning large market share D. Attracting buyers willing to pay a higher price E. Preventing customer dissatisfaction

C. Winning large market share

Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final​ buyer?

Channel levels

In which stage of the selling process does the salesperson ask for an​ order?

Closing

When we see Hello Kitty on​ children's clothing, Disney characters on​ lunchboxes, and SpongeBob SquarePants on breakfast​ cereals, which form of brand sponsorship is being​ used? A. Store branding B. National branding C. Private branding D. Licensing E. ​Co-branding

D. Licensing

Of the​ following, which is true about​ pricing? A. Companies have no obligation to consider broader societal pricing concerns. B. Federal law is the overriding authority on pricing. C. Companies do not need to communicate reasons for price increases to customers. D. Price competition is a core element of our​ free-market economy. E. Companies usually are free to charge whatever prices they wish.

D. Price competition is a core element of our​ free-market economy.

​________ is a measure of the sensitivity of demand to changes in price. A. Discount B. Variable cost C. A demand curve D. Price elasticity E. Price inelasticity

D. Price elasticity

Which type of consumer products and services are purchased less​ frequently, with consumers carefully comparing competing products in terms of​ suitability, quality,​ price, and​ style? A. Specialty products B. Industrial products C. Convenience products D. Shopping products E. capital products

D. Shopping products

Adjusting prices in real time to fit individual customer​ situations, locations, and buying behaviors is known as​ ________ pricing. A. psychological B. promotional C. cash rebate D. personalized E. segmented

D. personalized

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models. A. ​optional-product B. ​captive-product C. ​two-part D. product line E. product bundle

D. product line

__________ is perhaps the biggest advantage of social media.

Engagement and social sharing capabilities

Product mix width refers to​ ________. A. adding more items within the present range of the line B. the total number of items a company carries within all of its product lines C. lengthening the product line beyond its current range D. the number of different product lines the company carries. E. the number of items in the product line

D. the number of different product lines the company carries.

Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand​ equity? A. Distributor branding B. Private branding C. National branding D. ​Co-branding E. Store branding

D. ​Co-branding

Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function?

Development

What is the overall goal when retailers choose their product​ assortment?

Differentiate the retailer while matching target​ shoppers' expectations

​________ involves the use of​ technology-intensive platforms such as the​ internet, mobile networks and​ devices, and social media to engage directly with carefully targeted individual​ consumers, consumer​ communities, and businesses.

Digital marketing

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy does it​ employ? A. Brand extension B. Store brand C. New brand D. Multibranding E. Line extension

E. Line extension

Kroger, headquartered in​ Cincinnati, Ohio, is one of the​ nation's largest grocery chains. It owns several brands sold in its​ stores, including Private​ Selection, Heritage​ Farm, and Simple. These brands represent which type of brand​ sponsorship? A. Private labels B. ​Co-brands C. Generic brands D. ​Manufacturer's brand E. Private brands

E. Private brands

Which of the following is considered part of an augmented product rather than that of an actual product or core customer​ value? A. Design B. Brand name C. Packaging D. Product features E. Warranty

E. Warranty

Ad agency Young​ & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand​ ________ is defined in terms of how highly consumers feel the brand meets their needs. A. equity B. esteem C. differentiation D. knowledge E. relevance

E. relevance

To create successful new​ products, a company must​ _______. A. cut costs to keep the price of new products low while delivering acceptable quality B. obtain successful products through acquisitions instead of doing internal development C. focus its new product development efforts only on consumers and deliver value D. spend more on research and development​ (R&D) than its competitors and understand its consumers E. understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

E. understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

​__________ is a retailing technique of carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells.

Experiential retailing

​________ are the objectives of business promotions.

Generating business​ leads, stimulating​ purchases, rewarding​ customers, and motivating salespeople

Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply​ chain?

Integrated supply chain management

Which type of distribution strategy involves stocking the product in as many outlets as​ possible?

Intensive

Cookies that track what consumers do in the digital space and apps that track the​ real-time locations of consumers have raised concerns about which public policy​ issue?

Invasion of privacy

​__________ is perhaps the toughest public policy issue now confronting the direct marketing industry.

Invasion of privacy

Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as​ full-line forcing. Which of the following statements is true regarding​ full-line forcing?

It may or may not be legal.

Which of the following statements about blogs is​ correct?

Many marketers now use influencer blogs.

Which of the statements is true regarding media and message​ decisions?

Media and message decisions should be closely coordinated.

Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of​ media?

Omni-channel marketing

Which of the following statements is true about public relations and a​ company's overall integrated marketing communications​ efforts?

PR should be blended smoothly with promotion activities.

​________ advertising is used when a company is attempting to build brand preference and prompt customers to purchase now.

Persuasive

Which of the following is NOT a common trade promotion​ tool?

Price packs

Which of the following BEST describes a​ company's efforts to engage​ customers, persuasively communicate customer​ value, and build customer​ relationships?

Promotion mix

​_________ is used to build and maintain national or local community relationships and is one of the functions of public relations.

Public affairs

Which consumer promotion tool is like​ coupons, except that the price reduction occurs after the purchase rather than at the retail​ outlet?

Rebates

Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying​ process?

Retailing

​________ are​ short-term incentives to encourage the purchase or sale of a product or service

Sales promotions

Which of the following statements about personal selling is​ correct?

Salespeople are often the only direct contact with a customer.

Which of the following statements is correct regarding sellers and their use of digital​ marketing?

Sellers have opportunities to engage in​ real-time marketing.

​_________ entails managing upstream and downstream​ value-added flows of​ materials, final​ goods, and related information among​ suppliers, the​ company, resellers, and final consumers.

Supply chain management

Which is an action taken to address consumer privacy​ issues?

The General Data Protection Regulation

Which of the following statements about sales promotions is​ correct?

The heavy use of sales promotions has resulted in promotion clutter.

Which of the following statements about public relations is​ correct?

The lines between advertising and public relations are becoming more blurred.

Which of the following is related to antitrust​ concerns?

The size and dominance of companies like​ Amazon, Apple, and Google

Which is an example of a retailer using augmented​ reality?

The​ Sherwin-Williams Color Visualizer app lets you​ "Color It Before You Paint​ It!" by uploading actual room images and painting them virtually.

What is the definition of consumer​ omni-channel navigation​ behavior?

The​ buyer's use of multiple marketing​ channels, both digital and​ nondigital, across stages of the consumer buying decision process

What is the goal of​ advertising?

To help move consumers through the buying process

After recruiting and selecting​ salespeople, what is the next major step in sales force​ management?

Training salespeople

Organic search results​ ________.

are selected and ranked by algorithms as most useful and relevant to the search term and searcher

Over the past​ decade, in one campaign after​ another, Samsung has run ads smugly depicting iPhone owners as either disappointed in their phones or secretly envious of people using the latest Galaxy model. This is an example of​ ________ advertising.

comparative

Total digital advertising spending now makes up​ ________ of all U.S. advertising spending.

over half

Consumers may receive an​ email, supposedly from their bank or credit card​ company, saying that their​ account's security has been compromised. The sender asks consumers to log on to a provided web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called​ ________.

phishing

One consumer promotion tool is​ _______, which are goods offered either free or at low cost as an incentive to buy a product.

premiums

REI, Williams-Sonoma, and LensCrafters are examples of​ ________, stores that carry a narrow product line with a deep assortment.

specialty stores

When setting marketing channel​ objectives, companies should state the objective in terms of​ ________.

targeted levels of customer service

The structure decision is simple if the company sells only one product line to one industry with customers in many locations. In that case the company would use a​ ________ sales force structure.

territorial

When the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________.

the responsibilities of channel members

Firms spend​ ________ on personal selling as they do on advertising.

up to three times as much

The digital version of​ word-of-mouth marketing that involves creating​ videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called​ _______.

viral marketing

To set its sales force​ size, a company can first group accounts into different classes according to​ size, account​ status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the​ ________ approach.

workload

​It's time for the Super​ Bowl, and the​ end-of-the-aisle displays at the supermarket feature​ chips, dips, and soft drinks. What type of sales promotion tool is​ this?

​Point-of-purchase