BUSA 330 Exam 3

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets? a) product line pricing b) product bundle pricing c) captive product pricing d) by-product pricing e) optional product pricing

a

After determining its advertising objectives, a company's next step in developing an advertising program is to ________. a) set an advertising budget b) determine the media vehicle c) use cash rebate offers d) evaluate the advertising campaign e) develop a message strategy

a

Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include​ __________. A. launch a​ low-price fighter brand B. improve quality and decrease prices C. reducing perceived value D. raising prices E. decrease quality and increase prices

a

Cheese makers in Wisconsin sell their leftover brine to local city and county highway​ departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this​ represent? A. By-product pricing B. Product-bundle pricing C. Optional-product pricing D. Product line pricing E. Two-part pricing

a

Firms producing consumer​ electronics, furniture, and home appliance brands typically distribute their products​ __________. A. selectively B. through franchises C. exclusively D. intensively E. through value added resellers

a

In​ 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system​ (VMS)? A. Corporate B. Franchise C. Contractual D. Conventional E. Administered

a

Keeping the brand in a customer's mind during off-seasons is most likely a goal of ________ advertising. a) reminder b) attack c) informative d) covert e) competitive

a

One key function of channel members is​ __________, which involves shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging. A. matching B. promotion C. negotiating D. contact E. risk taking

a

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. a) the relative prices they charge b) the number of locations they have c) the strength of their Internet presence d) their sustainability and environmental policies e) the stability of their financial situation

a

Shifting away from mass marketing, marketers are developing ________ which are designed to build relationships with customers in more narrowly defined micromarkets. a) focused marketing programs b) horizontal diversification programs c) backward integration strategies d) new pull strategies e) new push strategies

a

The​ company, suppliers,​ distributors, and customers who open double "partner" double quote with one another to improve the performance of the entire system make up the​ __________. A. value delivery network B. upstream network C. downstream network D. marketing channel network E. supply chain network

a

When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser? a) informative advertising b) persuasive advertising c) reminder advertising d) developmental advertising e) comparative advertising

a

When setting channel​ objectives, companies should state the objectives in terms of​ __________. A. targeted levels of customer service B. competitor's objectives C. expected profitability D. exclusive distribution arrangements E. the length of the channel

a

When would a competitor most likely react to a​ firm's price​ change? A. When the number of firms involved is small B. When the product is differentiated C. When buyers are not well informed about prices D. When buyers are not well informed about the product E. When the number of firms involved is large

a

Which of the following brands most likely requires heavy advertising in order to be set apart from similar products? a) undifferentiated brands b) specialty brands c) international brands d) mature brands e) high-share brands

a

Which of the following is true of product line pricing? a) The price steps take cost differences between products in the line into account. b) The pricing strategy cannot be used by companies in developed countries. c) The price steps do not account for the prices of similar products from competitors. d) The pricing strategy involves overpricing products so that they appeal to the elite. e) The customer's perception of the value of different features is considered irrelevant.

a

Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations? a) sales promotion b) direct and digital marketing c) horizontal diversification d) public relations e) advertising

a

Which of the following statements regarding public policy and pricing is​ correct? A. Companies​ can, under some​ circumstances, price items below cost. B. It is legal in some industries for sellers to collude with competitors when setting prices. C. Companies are usually free to charge whatever prices they wish. D. Sellers are allowed to punish dealers who do not price a product at the​ manufacturer's suggested retail price​ (MSRP). E. Federal statutes apply to both interstate and intrastate commerce.

a

​Cross-functional teamwork within the​ company, building logistics​ partnerships, and third party logistics are all important elements of​ __________. A. integrated logistics management B. sustainable supply chains C. reverse logistics D. supply chain management E. multimodal transportation

a

A soda pop company offers a discount to a grocer. In​ exchange, the grocer agrees to provide​ in-store advertising for the soda pop and additional​ sales-support. This is an example of​ __________. A. trade-in allowances B. promotional allowances C. segment discounts D. cash discounts E. discounts

b

Advertising is used mostly by ________. a) governments b) business firms c) social agencies d) independent professionals e) not-for-profit organizations

b

Advertising objectives should be based on the marketing mix, positioning, and ________. a) differentiation b) past decisions about the target market c) costs of different media choices d) ability to create special events e) novelty of the product advertised

b

Companies now use​ __________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate channel partners. A. logistics B. partner relationship management C. customer relationship management D. channel management E. distribution centers

b

Due to changes in​ technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of​ __________. A. channel dissolution B. disintermediation C. channel distress D. disengagement E. a vertical marketing system

b

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. a) tiered b) direct c) platform d) vertical e) exclusive

b

In recent years, service differentiation among retailers has ________. a) increased at a steady rate b) decreased c) stayed the same d) increased exponentially e) tripled

b

Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of​ __________ pricing. A. captive-product B. product-bundle C. by-product D. two-part E. product line

b

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________. a) specialty store b) off-price retailer c) factory outlet d) wholesale club e) category killer

b

The length of a channel is determined by​ __________. A. the number of retailers in the channel B. the number of intermediary levels C. the number of final consumers D. the number of producers E. the number of wholesalers in the channel

b

The term supply chain is considered limited because it ________. a) ignores the make-and-sell aspect of the market b) suggests that planning begins with raw materials and factory capacity c) takes a step-by-step, linear view of purchase-production-consumption activities d) takes a sense-and-respond view of the market e) suggests that planning starts with identifying the needs of target customers

b

Today, ________ are flourishing due to the increased use of market segmentation and market targeting. a) chain stores b) specialty stores c) superstores d) discount stores e) off-price stores

b

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing. a) customer-segment b) location-based c) time-based d) product line e) captive product

b

Which of the following is a disadvantage of adding new channels in a multichannel distribution system? a) decreasing complexity of markets b) decreasing control over the system c) reducing opportunities for franchising d) lowering sales and market coverage d) minimizing publicity needs

b

Which of the following is an example of horizontal channel​ conflict? A. A retailer complaining about receiving damaged goods from a wholesaler. B. A Ford dealer complaining that another Ford dealer is advertising in their territory. C. A retailer complaining about a​ producer's pricing. D. A consumer complaining to a retailer about the service they received. E. A consumer complaining to a producer about the quality of a product.

b

What does the process of designing marketing channels start​ with? A. Setting channel objectives B. Evaluating major channel alternatives C. identifying the types of intermediaries to use D. Identifying the number of intermediaries to use E. Analyzing consumer needs

e

Which of the following is true of conventional distribution channels? a) Channel members have complete control over each other. b) Channel members seek to maximize their own profits. c) Channel conflict is governed by formal mechanisms. d) Channel members are assigned roles according to a clearly defined framework. e) Channel members work exclusively for the good of the organization.

b

Which of the following is true of optional-product pricing? a) It involves capitalizing on low value by-products. b) It involves pricing products that can be added to the base product. c) It is used to price a company's main product. d) It involves setting geographically specific prices. e) It is used to price products that must be used with the company's main product.

b

Which of the following product mix pricing strategies involves pricing multiple products to be sold together? a) product line pricing b) product bundle pricing c) optional product pricing d) by-product pricing e) captive product pricing

b

Which of the following statements is correct regarding the functions channel members​ perform? A. Channel members fulfill a variety of​ functions, but in doing so do not take any risks. B. Channel members create greater efficiencies than manufacturers could achieve on their own. C. Manufacturers can decrease costs by taking on more channel functions. D. Channel members do not get involved in financing-in other​ words, the acquisition and use of funds to cover the costs of the channel work. E. Finding and engaging customers and potential buyers is not a function performed by channel members.

b

Which of the following statements is true regarding initiating price​ cuts? A.When faced with falling​ demand, firms should not cut prices. B.Cutting prices in an industry with excess capacity may lead to price wars. C.If faced with excess capacity a firm should not cut its price. D.Firms never cut​ prices, they only raise them. E.Cutting price has no effect on costs

b

Which of the following statements regarding dynamic pricing is​ correct? A. Because of dynamic​ pricing, online consumers no longer compare prices. B. Dynamic pricing could cause consumer resentment and damage customer relationships. Your answer is correct.C. Dynamic pricing benefits only consumers. D. Dynamic pricing is only effective when used online. E. The dynamic pricing tactic of surge pricing is legally questionable.

b

Which of the following statements regarding marketing channel behavior and design is​ correct? A. A conventional distribution channel consists of one or more independent​ producers, wholesalers, and retailers acting as a unified system. B. The success of individual channel members depends on the overall​ channel's success. .C. Distribution channels are nothing more than simple collections of firms tied together by various flows. D. Vertical marketing systems lack leadership and​ power, often resulting in damaging conflict and poor channel performance. E. Conflicts rarely occur in marketing distribution channels.

b

Which of the following statements regarding marketing channel design is​ correct? A. It is important to let the responsibilities of channel members evolve as their relationship develops. B. Channel alternatives should be evaluated against​ economic, control, and adaptability criteria. C.Marketers should always maximize the number of intermediaries used in a channel. D. In global​ markets, channel systems are the same in different countries. E. Channel objectives should be set in terms of profitability.

b

Which of the following statements regarding marketing logistics is​ correct? A. Marketing logistics handle only outbound logistics. B. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost. C. Sustainability is not relevant to marketing channel logistics and the supply chain. D. The goal of marketing logistics is to maximize sales. E. It is important for companies to improve logistics even though logistics are not a source of competitive advantage.

b

Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop? a) self-service retailer b) full-service retailer c) off-price retailer d) limited-service retailer e) convenience retailer

b

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? a) warehouse clubs b) department store c) factory outlet d) merchant wholesaler e) category specialist

b

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. a) Franchising b) Retailing c) Brokering d)Wholesaling e) Disintermediation

b

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. a) Limited-service b) Self-service c) Full-service d) Specialty-service e) Wholesaling

b

​Recently, Amazon.com has been accused of​ __________, which is the practice of selling products below cost to harm competitors. A. price discrimination B. predatory pricing C. retail price maintenance D. price fixing E. deceptive pricing

b

What is the purpose of the​ Robinson-Patman Act? A. To prevent deceptive pricing B. To prevent predatory pricing C. To prevent price fixing D. To prevent scanner fraud E. To prevent unfair price discrimination

e

A ________ VMS integrates successive stages of production and distribution under single ownership. a) contractual b) contingency c) corporate d) conventional e) communal

c

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. a) product line b) product delivery network c) marketing channel d) consumer base e) resource bank

c

A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools? a) the product mix b) product line filling c) the promotion mix d) the price mix e) horizontal diversification

c

CVS pharmacy stores have recently stopped selling cigarettes. For cigarette​ manufacturers, this highlights the challenge of​ __________ channel members. A. evaluating B. motivating C. selecting D. compensating E. rewarding

c

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________. a) service mix b) pricing c) product assortment d) store atmosphere e) distribution strategy

c

Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other​ in-park features. This is called​ __________. A. optional-product pricing B. product line pricing C. two-part pricing D. by-product pricing E. product-bundle pricing

c

Some sellers require that dealers not handle​ competitor's products. This strategy is called​ __________. A. full-line forcing B. a tying agreement C. exclusive dealing D. intensive distribution E. exclusive distribution

c

Using​ __________, the customer shares​ real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries. A. just-in-time logistics systems B. reverse logistics C. vendor-managed inventory D.. RFID E. piggybacking

c

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of​ a(n) __________ vertical marketing system​ (VMS). A. franchise B. contractual C. administered D. corporate E. conventional

c

When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________. a) informative advertising b) reminder advertising c) comparative advertising d) covert advertising e) institutional advertising

c

Which of the following is the most frequently visited type of retail store? a) convenience store b) department store c) supermarket d) superstore e) off-price retailer

c

Which of the following statements regarding a​ just-in-time logistics system is​ correct? A. Just-in-time logistics systems allow producers and retailer to carry large amounts of inventory. B. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. C. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. D. Just-in-time logistics systems eliminate the need for forecasting. E. Just-in-time logistics systems greatly increase​ inventory-carrying and​ inventory-handling costs.

c

Whirlpool washers and dryers are offered in many different models. Whirlpool will use​ __________ pricing to determine the price steps between the different models. A. product-bundle B. captive-product C. product line D. optional-product E. two-part pricing

c

________ includes sales presentations, trade shows, and incentive programs. a) Direct and digital marketing b) Sales promotion c) Personal selling d) Public relations e) Advertising

c

​__________ occurs when retailers set an artificially high​ "regular price" and then advertise a​ "sale price" which is actually close to their everyday price. A. Price discrimination B. Retail price maintenance C. Deceptive pricing D. Predatory pricing E. Price fixing

c

After the company has defined its channel​ objectives, it should next identify its major channel alternatives in terms of the types of​ intermediaries, the number of​ intermediaries, and​ __________. A. consumer needs B. economic criteria C. the length of the channel D. the responsibilities of channel members E. whether to use intensive or exclusive distribution

d

Basic price adjustments known as​ __________ are used to reward customers for certain responses. A. discounts and allocations B. segmented prices C. ​location-based pricing D. discounts and allowances E. psychological prices

d

Encouraging customers to switch brands is most likely the objective of ________ advertising. a) informative b) reminder c) covert d) persuasive e) institutional

d

HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________. a) messaging b) decoding c) sending d) encoding e) responding

d

Of the various digital marketing categories, ________ is the fastest-growing category. a) blogs b) e-mail c) social media d) mobile e) brand Web sites

d

One form of​ __________ is when movie theaters charge one price for adults and a different price for senior citizens. A. product form pricing B. promotional allowances C. location-based pricing D. customer-segment pricing E. psychological pricing

d

Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________. a) upstream partnerships b) marketing channels c) inventory providers d) supply chain e) downstream partnerships

d

When Apple Computer Company introduced their​ iPhone, they priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing​ a(n) __________ pricing strategy. A. by-product B. captive-product C. optional-product D. market-penetration E. market-skimming

e

Promotional pricing tactics include​ __________. A. ​discounts, limited time​ offers, and reference prices B. functional​ discounts, limited time​ offers, and​ location-based pricing C. discounts, geographical​ pricing, and​ special-event pricing D. discounts, special-event​ pricing, and limited time offers E. customer-segment pricing,​ location-based pricing, and​ time-based pricing

d

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a ________. a) sample b) promotional allowance c) product bundle d) discount e) product line

d

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive. a) product bundle b) optional product c) captive product d) by-product e) product line

d

What are the four major functions of​ logistics? A.Inventory​ management, transportation,​ shipping, and warehousing B. Warehousing, inventory​ management, retailing, and logistics information management C. Warehousing, inventory​ management, transportation, and​ retailing D. Warehousing, inventory​ management, transportation, and logistics information​ management. E. Retailing, inventory​ management, transportation, and logistics information​ management

d

Which of the following is one of the four major communication functions? a) coordination b) distribution c) noise d) response e) preference

d

Which of the following statements is true concerning new product pricing​ strategies? A. When using a​ market-skimming strategy, marketers do not need to focus on the​ product's quality and image. B. For a​ market-penetration strategy to​ work, production and distribution costs must increase as sales volume increases. C. A​ market-penetration strategy should be used if the market is not highly price sensitive. D. For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. E. If competitors can easily enter the​ market, a​ market-skimming strategy should be used.

d

Which of the following statements regarding initiating price increases is​ correct? A. Prices should be increased when there is a lack of demand. B. Cost inflation is not a factor in price increases. C. Companies do not need to communicate reasons for price increases. D. The company should consider ways to meet higher costs or demand without raising prices. E. Price increases do not impact profits.

d

Which of the following statements regarding international distribution channels is​ correct? A. Global marketers find that it is unnecessary to adapt their channel strategies in different countries. B. For Western​ companies, India's distribution system is easy to navigate. C. Rural China now has a​ centralized, adequate distribution system. D. Due to logistics costs in​ China, the majority of companies can only access affluent areas of major cities. E. Distribution systems do not vary widely from country to country.

d

While using integrated marketing communications, the communications process should start with a(n) ________. a) advertising strategy b) competitive-parity analysis c) long-term public relations plan d) audit of all potential customer touch points strategy for implementing e) a social media presence

d

When McDonald's offers its products inside of a Walmart store, it is using a(n) ________. a) conventional marketing system b) corporate VMS c) contractual VMS d) administered VMS e) horizontal marketing system

e

A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use? A. Optional product pricing B. Psychological pricing C. Market-skimming pricing D. Captive-product pricing E. Market-penetration pricing

e

Display media includes ________. a) newspapers b) magazines c) television d) company Web sites e) billboards

e

Gillette charges a fairly low price for their razors​ (relative to​ costs) and a high price for razor blades. They are using a strategy of​ __________ pricing. A. by-product B. product-bundle C. product line D. two-part pricing E.captive-product

e

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict. a) equilateral b) vertical c) multitiered d) communal e) horizontal

e

One major objective of a​ market-penetration pricing strategy is to​ __________. A. attract buyers willing to pay a higher price B. set a high price to gain profits C. skim off small but profitable segments D. prevent customer dissatisfaction E. win a large market share

e

Pepsi being prominently featured on episodes of Empire is an example of ________. a) advertainment b) buzz marketing c) personal selling d) sales promotion e) product placement

e

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy. a) by-product b) product line c) penetration d) Skimming two-part

e

Which of the following is a concern when using​ optional-product pricing? A. How to price products that must be used with the main product B. How to determine the price steps between different products in a product line C. Whether to set a fixed fee or a variable usage rate D. Which products should be bundled at a lower price E. Which products to include in the base price and which to offer as options

e

Which of the following is a reason that producers use marketing channels and channel​ intermediaries? A. Marketing channel decisions require only a​ short-term commitment. B. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. C. Using channel intermediaries increases the number of contacts with customers. D. Using marketing channels allows producers to retain full control over how and to whom they sell their products. E. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

e

__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. A. Exclusive dealing B. An exclusive territorial agreement C. Intensive distribution D. Exclusive distribution E. ​Full-line forcing

e

true or false: Advertising involves a personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

false

True or False: Pricing strategies tend to change and evolve as the average product passes through its life cycle.

true

True or false: A company's channel decisions directly affect the prices of its products.

true

True or false: For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

true

true or false: A specific communication task to be accomplished with a specific target audience during a specific period of time is called an advertising objective.

true

true or false: Advertising is a good way to engage, inform, and persuade, regardless of the objective of the message.

true