Exam 3

John created his own small firm to sell advanced piping systems to chemical manufacturers. He knows a great deal about the various manufacturers of piping products and how and when they can be used together. As part of John's job, he carefully queries chemical manufacturers about their needs, and then helps them create a plan using the products of the leading piping manufacturers. Once this plan is completed, the chemical companies order the products direct from the piping manufacturers and hire technicians to install them. In this relationship, John can be categorized as a(n):

agent

Dual distribution refers to

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Amazon.com uses ________ to compare each user's purchases with the purchases of other users with similar preferences to create a list of purchase recommendations. Based on a customer's desire to purchase an author's e-book for her Kindle, Amazon might recommend an e-book by a similar author within the same genre.

collaborative filtering

An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as

competencies

Loss-leader pricing refers to

deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.

Channel conflict that arises when one member bypasses another member and sells or buys products directly is referred to as

disintermediation

Palatka, Florida, is known for having many family-owned business in its small town. It is a small town with many small families and traditional values. The Cheesecake Factory has decided that it wants to add a location in Palatka. Because the town wants to preserve its small local businesses, the town council is reluctant to accept a large chain restaurant. Which macro level factor in site selection did The Cheesecake Factory fail to consider?

Business climate

You've just begun to manufacture your own invention called the Flying Remote, a TV remote control that will fly to your hand when you don't want to get off the couch. You find that retailers want too big of a discount to stock your remotes, so you decide to sell directly to consumers through E-commerce. What practice are you engaging in?

disintermediation

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to independent drugstores in the United States. What method of distribution best describes the method used by pharmaceutical companies in this example?

dual distribution

According to research discussed in class, which of the following benefits of brick and mortar retailing is (so far) the hardest for e-commerce sites to provide?

entertainment

Henri Bendel is an expensive women's accessory store based in New York City. In order to maintain a brand image of prestige and exclusivity, Henri Bendel retails their products at only one store per geographical region. Their products are only available in their own stores, and these are located only in the most affluent cities and shopping districts. This accurately describes which of the following degrees of channel coverage?

exclusive channel coverage

Which of the following is a cost-oriented approach to pricing?

experience curve pricing

Nicole is a loyal customer of TJ Maxx, and the employees all know her because she's constantly shopping there. One of the employees, Camila, notices that Nicole doesn't have a Visa card to pay for her items. She tells Nicole that TJ Maxx offers a credit card to its customers that can be used only at TJ Maxx. Which channel function does the TJ Maxx credit card serve?

facilitating function

People in the marketing department traditionally operate at what organizational level?

functional level

Lay's Potato Chips held their annual "Do Us a Flavor" campaign and announced 2018's winning flavors of Lay's Fried Pickle and Lay's Lobster Roll a few months ago. They had a huge, one-time production of these two flavors and shipped them out to stores. They have a huge back stock of these two flavors in the warehouse ready to ship to the stores when more inventory is needed, and they will make more to satisfy lingering demand, but they don't want to spend any more money to promote the flavors. Lay's Potato Chips are adopting what type of strategy with the 2018 winning "Do Us a Flavor" winners?

harvest

Marketers may engage in value pricing, which is the practice of simultaneously ________ while maintaining or decreasing price.

increasing product and service benefits

Recently, the United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of

increasing protectionism

Recently, the United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of

increasing protectionism

Supply chain managers balance total logistics cost factors against customer service factors. Which of the following is not a customer service factor?

independence

Stephanie is an avid shopper. She prefers to buy from her favorite stores by using apps on her phone. Stephanie enjoys the convenience of having all her favorites at her fingertips. What is Stephanie partaking in?

m-commerce

When using a ________ strategy, there is no change in either the basic product line or the markets served. Instead, increased sales are generated by selling either more products through better promotion or distribution or the same number of products at a higher price.

market penetration

Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils under three months of age. Assuming it is marketing to a single segment of "young-pet owners," in terms of the market-product grid framework, Loving Care Pets is using a ________ strategy.

market specialization

The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as

marketing ROI (return on investment)

Hank's Halloween store has a layout that forces you to walk through the entire store and browse the large variety of costumes and decorations. You first go through scary costumes, then cute costumes, then "sexy" costumes, followed by a section for children and then pets. What type of store layout is this?

meandering

The primary purpose of a marketing metric is to

measure the quantitative value of a marketing activity

Which of the following statements regarding the seller's price is most accurate?

The seller's price is constrained by the type of market within which it competes.

Jimmy Johns wants to expand to foreign markets, but knows that in order to succeed internationally, they will have to adjust their business model to fit the needs of new countries. Jimmy Johns decides to look at each country as a segment and adjust their menu to these segments. For example, in France they will offer brie and apple sandwiches, in Germany they will offer sandwiches with bratwurst, etc. This is an example of which type of marketing?

multinational marketing

Starbucks has locations in numerous countries across the globe. Starbucks uses a third-party market research group to gather information about their target consumers' preferences in each country. After analyzing the data, Starbucks decides to focus its marketing efforts on promoting its wide variety of drinks in Japan, while promoting the special discounts on drinks (e.g., Half Price Happy Hour) to attract consumers in the United Kingdom. This approach is best described as:

mutlinational marketing

Hydropax is a backpack company that was started by UF students. It features an insulated pouch to keep beverages warm or cold. When they first launched Hydropax, they released a number of different discount codes so that the actual purchase price would be lower. Once sales began to pick up, they retired the discounts and began charging full price for the backpack. Which of the following demand-based pricing strategies did Hydropax use?

penetration

ESPN allows users of its website to create a landing page that will always display favorite team scores and stories when they visit. ESPN.com uses the consumer-initiated practice of

personalization

The retail positioning matrix is an analytical tool that

positions retail outlets in terms of the breadth of product line and value added.

Best Pets of the West has been a prominent pet store in California for over 30 years. Yet, businesses noticed that Southern California is a great place to open pet shops, so they began to open up throughout the area. Best Pets of the West decided to lower their prices to a point that the other pet shops could not compete since they were too small. As a result, Best Pets of the West drove these other shops out of business. This illegal practice is an example of

predatory pricing

Suzanne, a successful author of romance novels, recently released her seventh book. As part of her efforts to attract readers. Suzanne has a website on which customers can explore her books, write reviews about her books, discuss them with one another, and read about her life. This website can be characterized as:

promotional website

Jessica loves being a PetSmart cardholder. As part of their PetPerks reward program she gets advance notice of upcoming sales, free samples for her dogs, and exclusive invitations for dog training classes by PetSmart's expert trainers. This is an example of a retailer adding value through:

providing services

The fashion brand Tommy Hilfiger has added new technology to its store in New York. When customers enter the store, they are invited to put on virtual reality headsets that give them the illusion that they have front row seats at the latest runway fashion show. This marketing technique is groundbreaking and offers customers a unique, completely immersive digital experience. The Tommy Hilfiger brand is engaged in:

retailtainment

Hewlett-Packard is taking a proactive role in reducing the amount of electronic merchandise dumped in landfills by using ________ to reclaim recyclable and reusable materials.

reverse logistics

Last month, the Samsung marketing team broke down the company's sales by product and region to diagnose any potential problems in their marketing. Samsung's marketing team used what process?

sales component analysis

Diversification refers to the marketing strategy of

selling new products to new markets

Hasbro is a more than $4 billion global toy company that prioritizes donating to organizations that help children, since this group and their parents comprise the target market for its business. This is an example of a

social responsibility goal

Kraft Foods is the exclusive distributor of Starbucks coffee in U.S. supermarkets and internationally. Kraft and Starbucks are using:

strategic channel alliance

Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) strategy, (2) execution, (3) culture, and (4) ________.

structure

The retailing mix includes all of the following except which?

target market

Marketing ROI (return on investment) refers to

the application of modern measurement technologies to understand, quantify, and optimize marketing spending

All of the following are demand factors except:

the form of promotion

Synergy analysis incorporates two business analysis tools, which are diversification analysis and

the market-product grid framework

Risk taking as a transactional function refers to

the need to stock merchandise in anticipation of sales.

Barter refers to

the practice of exchanging products and services for other products and services rather than for money.

Countertrade refers to

the practice of using barter rather than money for making global sales

Most companies become involved in direct exporting when

they believe their volume of sales will be sufficiently large and easy to obtain that they do not require intermediaries.

The description of how new forms of retail outlets enter the market is referred to as the

wheel of retaining

Hefty currently holds 31% market share in the trash bag market and wants to expand to 45% market share. If its current share of voice is 31%, Hefty's share of voice should increase by ____ to achieve this growth.

21 %

According to the research discussed in class, which of the following is NOT a commonly held myth about project champions?

Champions provoke antagonists

Nicole is meeting her classmates at Starbucks to work on their final marketing project. She arrives an hour before everyone else and decides to catch up on some lectures she missed from her class that week. She connects to the Starbucks Wi-Fi and watches a lecture, but within the next few hours her computer system is down and her account information has been hacked. Nicole was victimized by:

Evil Twin

Customers can build their own bicycle at SevenCycles.com by answering a few questions and choosing from a menu of options. The design of a customized bicycle is made possible through the use of a

choiceboard

Self-regulatory efforts to respond to online consumers' concerns about privacy and security include

awarding the TRUSTe trademark to companies that comply with privacy standards

Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a single sale can be made, this website can be categorized as

broker

Wholesalers that take title to merchandise but sell only to buyers that call on them, pay for and move/take away the merchandise themselves are referred to as

cash and carry wholesalers