350 ch 7-14
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
Which of the following statements regarding packaging is correct?
Innovative packaging can give a company an advantage over competitors and boost sales.
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Integrated supply chain management
Which type of distribution strategy involves stocking the product in as many outlets as possible?
Intensive
Which link in the service profit chain involves employee selection and training?
Internal service quality
Which stage of the product life cycle is characterized by negative profits and high costs per customer?
Introduction
________ advertising is used when a company is attempting to build brand preference and prompt customers to purchase now.
Persuasive
Of the following, which most closely describes the method by which companies engage and create benefits for their customers?
Value delivery network
Total digital advertising spending now makes up ________ of all U.S. advertising spending.
over half
Adjusting prices in real time to fit individual customer situations, locations, and buying behaviors is known as ________ pricing.
personalized
In which of the following does a producer direct marketing activities (primarily personal selling and trade promotion) toward channel members?
A push strategy
________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.
brand equity
After segmenting and defining their target markets, retailers must then decide ________.
how they will differentiate and position themselves
In which stage of the new product development process would a company use a hackathon?
idea generation
What is the first step of the new product development process?
idea generation
Adding a new product line to an existing portfolio means that the line has _________.
increased product mix width
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as a(n) ________.
indicator of quality
The goal of a push strategy is to _________.
induce channel members to carry and promote the product
Groups of _________ products consist of materials and parts, capital items, and supplies and services.
industrial
Correcting false impressions and suggesting new uses for a product are objectives associated with ________ advertising.
informative
Buyers look for signals of service quality, drawing conclusions about quality from the place, people, price, equipment, and communications that they can see to address the issue of service ________.
intangibility
________ marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
interactive
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as ___________.
internal marketing
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ___________.
price discrimination
The first step in the selling process is ________.
prospecting
Stories, sponsorships, events, and webpages are promotional tools used in ________.
public relations
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 direct marketing channel ________.
sells directly to the consumer
What potential risk do marketers incur by using richer but more fragmented media and promotional mixes?
A communications hodgepodge for consumers
In early 2017, fidget spinners, dubbed the "hula hoop of Gen Z," took the market by storm. However, it wasn't long before sales started to fizzle and teens moved onto the next sensation. Fidget spinners are an example of which of the following?
A fad
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Channels often involve long-term commitments, and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?
Adaptability criteria
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
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
The franchise organization is associated with which type of marketing system?
Contractual VMS
________ occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.
Deceptive pricing
During which stage of the PLC do firms decide whether to maintain, harvest, or drop products?
Decline
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
________ let retailers personalize offers to individual customers with carefully targeted messages.
Digital promotions
__________ is perhaps the biggest advantage of social media.
Engagement and social sharing capabilities
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?
Multibranding
A salesperson standing behind the counter at a department store is fulfilling which selling function?
Order taker
________ is the step of the new product development process during which a review of the sales, costs, and profit projections for a new product is conducted to determine whether the new product is likely to satisfy the company's objectives.
business analysis
In which stage of the selling process does the salesperson ask for an order?
closing
Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that __________.
companies fail to integrate their various communication channels
A(n) ________ is a social online network of individuals who share a tightly focused interest.
nichework
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________.
service retailers
Focusing the entire marketing process toward turning potential consumers into buyers as they approach the point of sale is known as ________.
shopper marketing
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?
shopping products
Consumer digital personas ________.
should be developed for each targeted segment
REI, Williams-Sonoma, and LensCrafters are examples of ________, stores that carry a narrow product line with a deep assortment.
specialty stores
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
Exclusive dealing occurs when ________.
the seller requires that exclusive dealers not handle competitors' products
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
Firms spend ________ on personal selling as they do on advertising.
up to three times as much
A(n) _______ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
Sale days, early-bird savings, and bonus earnings for store credit-card holders are promotions employed in which type of pricing strategy?
High-low pricing
_________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.
A pull strategy
Which of the following is an example of vertical channel conflict?
A retailer complaining about receiving damaged electronics goods from a wholesaler
________ 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
________ 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
________ represent an external source of new product ideas for a company.
Distributors
Information can be shared and managed in many ways, but most sharing takes place through ________.
EDI
__________ 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
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
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.
The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?
It turned free-spending consumers into value-seeking ones.
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and higher sales volume
Which of the following statements about blogs is correct?
Many marketers now use influencer blogs.
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which of the statements is true regarding media and message decisions?
Media and message decisions should be closely coordinated.
Which of the following statements is true about public relations and a company's overall integrated marketing communications efforts?
PR should be blended smoothly with promotion activities.
_________ software systems enable companies to coordinate their whole-channel marketing efforts.
Partner relationship management
Services cannot be stored for future use. Which characteristic of services does this describe?
Perishability
Which of the following uses promotional tools such as presentations, trade shows, and incentive programs to engage customers, make sales, and build customer relationships?
Personal selling
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
________ is a measure of the sensitivity of demand to changes in price.
Price elasticity
Which of the following is NOT a common trade promotion tool?
Price packs
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
__________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
Product stewards
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.
________ platforms like TaskRabbit support social communities that link service providers and consumers.
Service networking
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
_________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
Target costing
Which is an action taken to address consumer privacy issues?
The General Data Protection Regulation
For a market-skimming pricing strategy to make sense, which condition must be present in the market?
The costs of producing a smaller volume cannot cancel the advantage of charging more.
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Which of the following statements about sales promotions is correct?
The heavy use of sales promotions has resulted in promotion clutter.
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more blurred.
Which is an external factor affecting pricing?
The nature of the market
Which of the following indicates the length of a channel?
The number of intermediary levels in the channel
Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called "high-low pricing." Which of the following correctly describes high-low pricing?
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
Which of the following statements is true regarding product life cycle curves?
The sales of a typical product follow an S-shaped curve made up of five stages.
Which of the following is related to antitrust concerns?
The size and dominance of companies like Amazon, Apple, and Google
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
Which of the following is true regarding omni-channel buyers?
They shift easily across online and in-store channels.
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
Which of the following is a pure tangible good?
Toothpaste
Which of the following are used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising?
Trade promotions
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
After recruiting and selecting salespeople, what is the next major step in sales force management?
Training salespeople
Audi showrooms provide customers with tablets that allow them to select any car model and customize each element. They then put on a headset and earphones to experience the sights and sounds of their customized car. They can move around the outside of the car, open the trunk and doors, check under the hood, and even sit in the driver's seat. Which advance in retail technology does this exemplify?
Virtual reality
In terms of multimodal transportation, the term fishyback refers to the use of which types of transportation?
Water and trucks
What event or circumstance has made mobile marketing a must for most brands?
Widespread surge in mobile devices and traffic
__________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
The four elements of a compensation plan for salespeople are __________.
a fixed amount, a variable amount, expenses, and fringe benefits
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _________.
acquisition
Organic search results ________.
are selected and ranked by algorithms as most useful and relevant to the search term and searcher
The primary purpose of _________ websites is to do more than just sell products or move them closer to a direct purchase.
brand community
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
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
corporate VMS
The key to good omni-channel marketing is ________.
creating that critical seamless, anywhere, anytime, omni-channel shopping experience that today's customers seek
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
Which is the final stage of the product life cycle?
decline
The goal of integrated marketing communications is to _________.
deliver clear, consistent, and compelling messages about the organization and its brands
Detailed, nuanced, and tangible representations of prototypical consumers to be targeted by the digital marketing campaign are known as ________.
digital personas
Personal selling can be more effective than advertising in complex selling situations because it is __________.
interpersonal
New product commercialization takes much thought and planning. The first critical step in the commercialization process is __________.
introduction timing
Email marketing ________.
is an important business-to-business tool
Direct mail marketing ________.
is still heavily used by most retailers
The three functions of __________ include identifying, describing, and promoting the product.
labeling
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
licensing
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
line extension
The retail marketing mix is made up of the product and services assortment, price, promotion, and ________.
location
When a college or university charges more for out-of-state students than in-state students, it is practicing ________ pricing.
location-based
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
Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed a(n) ________ website.
marketing
The massive shift in how and where people buy calls for _________.
massive shifts in how store retailers operate
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ___________.
modifying the market
Programmatic digital display ad spending now accounts for ________ percent of digital display advertising across all digital platforms.
more than 88
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 of the primary advantages of marketing logistics is _________.
potentially high cost savings and improved customer satisfaction
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a(n) __________ new product pricing strategy.
premium pricing
One consumer promotion tool is _______, which are goods offered either free or at low cost as an incentive to buy a product.
premiums
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
private brands
Bath & Body Works uses _________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ________ pricing.
promotional
A ________ has from 50 to more than 100 stores, including two or more full-line department stores.
regional shopping mall
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.
relevance
Laws prohibit ________, meaning a manufacturer cannot require dealers to charge a specified retail price for its products.
resale price maintenance
Before meeting and greeting a buyer, a salesperson should ________.
research the buyer to prepare for the meeting
When a company uses more than one but fewer than all of the intermediaries who are willing to carry a company's products it is engaging in ________ distribution.
selective
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
More than a territory, compensation, and training, new salespeople need ________.
supervision and motivation
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development.
systematic
A variation of break-even pricing is _________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
target return pricing
When setting marketing channel objectives, companies should state the objective in terms of ________.
targeted levels of customer service
When teams acknowledge that a single salesperson can't handle all of a large customer's needs, they use ________ selling to service large, complex accounts.
team
During the presentation step in the personal selling process, the salesperson should ________.
tell the buyer a "value story"
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
Justin, Inc., a U.S.-based watch manufacturer, sells its products in China, Russia, France, and India. To manage sales, Justin appoints a number of sales representatives to each location. Justin has adopted a ________ sales force structure.
territorial
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle __________.
the company would see rising profits
Product mix width refers to ________.
the number of different product lines the company carries
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
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
warranty
To set its sales force size, a company can group accounts into different classes by size, account status, or other factors related to the amount of effort required to maintain the account then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the ________ approach.
workload
As companies become more market-centered, a customer-focused sales force _________.
works to produce both customer satisfaction and company profit
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
Which budgeting method involves setting a company's promotion budget to match the standard outlays for the industry?
Competitive-parity method
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
________ means sending email pitches only to customers who "opt in."
Permission-based email marketing
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
________ pricing is the opposite of free onboard pricing. Here, the company charges the same price plus freight to all customers, regardless of their location.
Uniform-delivered
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
The goal of logistics is to provide a targeted level of service at the least or lowest possible cost. To achieve this goal, which of the following are logistical functional areas?
Warehousing, inventory management, transportation, and logistics information management
Americans eat some 9 billion chickens a year but not the feet. But thanks to the huge demand in China, chicken feet are now a huge profit center. Perdue sells some $40 million of the otherwise valueless by-product to China annually. This is an example of ________ pricing.
by-product
Nintendo makes little or no profit on its Switch video game consoles. However, it hopes to more than make up for thin console margins through sales of Switch video games, which yield much higher unit sales and margins. Nintendo is using a strategy of ________ pricing.
captive-product
The benefits of digital marketing for buyers are that they are ________.
easy, convenient, and private
The PLC concept also can be applied to what are known as styles, fashions, and fads. A ________ is a currently accepted or popular ________ in a given field.
fashion; style
The seven-step selling process takes a __________ approach to selling. In other words, its aim is to help salespeople close a specific sale with a customer.
transaction-oriented
