Marketing A343 Final Exam Review

Market-Penetration Pricing

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?

B

A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n) ________ economy. A) subsistence B) raw material exporting C) emerging D) developed E) industrial

lower margins and higher sales volume

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?

Channel Level

A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.

Decide how they will differentiate and position themselves in the market.

After segmenting and defining their target markets, what should retailers do next?

Administered VMS

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?

Corporate VMS

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.

Optional Product

A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.

B

Sleek Designs markets a wide range of kitchen cabinets, countertops, and ceramic tile. Its salespeople are initially divided on the basis of their expertise in a product category. They're then further divided into teams addressing large home improvement retailers, kitchen and bath suppliers, and specialty home improvement stores. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer

category killers

Superstores that are actually giant specialty stores and have seen tremendous growth recently are called_______.

Product Line

The Ford Mustang is offered in several different models. Ford will use __________ pricing to determine the price steps between the different models

The number of intermediary levels

The length of a channel is indicated by ___________.

E

Carboi is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. Carboi offers contribution packages for driving, flying, and home energy use. Through Carboi, consumers can pay some of the ________ costs of their private goods and services. A) promotional B) safety C) recovery D) distribution E) social

Adaptability criteria

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?

Warehousing, inventory management, transportation, logistics information management

What are the four major functions of logistics?

Analyzing consumer needs.

What is the first step in marketing channel design?

the responsibilities of channel members

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 __________________.

If demand is elastic, sellers will consider lowering their price.

Which of the following is true regarding the price-demand relationship?

E

Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

Cutting prices in an industry loaded with excess capacity may lead to price wars.

Which of the following statements is true regarding initiating price cuts?

Product Bundle

Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10. This is an example of _______ pricing.

E

Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers — The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system. A) direct B) administered vertical C) corporate vertical D) contractual vertical E) horizontal

Experiment Retailing

Carefully orchestrating the​ store's layout and​ displays, background​ music, colors, and smells is related to​ ________.

partner relationship management

Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.

partner relationship management

Companies today see channel members as first-line customers and practice strong ________.

B

GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales-force structure. A) market B) product C) customer D) territorial E) complex

Captive-Product

Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.

The company's overall marketing strategy, objectives, and marketing mix

Internal factors that affect pricing include ________.

Indicator of quality

Margaret 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

C

Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative

Value Added Pricing

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?

Matching

One key function performed by channel members is ___________, or shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

Price Fixing

Over the years, U.S. air carriers have been accused numerous times of collusion when setting prices. This illegal practice is called _______.

Intensive

Producers of convenience products typically use ______ distribution.

Good-Value Pricing

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?

Predatory Pricing

Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business is an illegal practice called _______.

Showrooming

The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called​ _______.

Zone Pricing

UPS charges different prices for shipping depending on an item's destination. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?

Vendor-managed inventory

Under which type of system does the customer share real-time data on sales and current inventory levels with the supplier, and the supplier then takes full responsibility for managing inventories and deliveries?

Franchise

What is the most common type of a contractual VMS? Franchise

Market-Skimming

When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy.

targeted levels of customer service

When setting channel objectives, companies should state the objectives in terms of ______.

Suppliers

Which channel partners in a company's supply chain are upstream from a manufacturer or producer?

Breakeven Pricing

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

Reduce Price

Which of the following is a potentially effective action a company could take in response to a competitor's price cut?

A Ford dealer complaining that another Ford dealer is advertising in its territory.

Which of the following is an example of horizontal channel conflict?

B

Which of the following is most likely a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.

Wherever possible, the company should consider ways to meet higher costs or demand without raising prices.

Which of the following statements is true regarding initiating price increases?

Each seller is alert and responsive to competitors' pricing strategies and marketing moves

Which of the following statements is true regarding oligopolistic competition? Each

Radio frequency identification

Which technology could one day make the entire supply chain intelligent and automated?

Specialty stores

Which type of retailer carries a narrow product line with deep assortments within those lines?

Shopper marketing

_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.

A

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. A) Warehouse clubs B) Department stores C) Convenience stores D) Specialty stores E) Superstores

C

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

Customer Value Based Pricing

________ refers to setting price based on buyers' perception of value rather than on the seller's cost.

Retailing

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Promotional

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of _________ pricing.

conventional distribution channel

A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers.

Value Delivery Network

A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

B

3) Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) intermediation B) disintermediation C) vertical marketing systems D) horizontal marketing systems E) corporate vertical marketing systems

service retailers

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 ________.

E

Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. For which of the following could Trendy Teens be easily criticized in this scenario? A) deceptive promotion B) redlining C) high-pressure selling D) planned obsolescence E) perceived obsolescence

Corporate chains, voluntary chains, retailer cooperatives, and franchise organizations.

What are the four major types of retail organization?

D

Kimlee, a food manufacturer based in China, recognizes the immense demand for noodles in the Australian market. Kimlee forms a new business venture to manufacture instant noodles and decides to share possession and control of the new business with a local food processing company. In this case, Kimlee has entered a foreign market through ________. A) licensing B) contract manufacturing C) direct investment D) joint ownership E) management contracting

department store

Macy's carries several product —typically clothing, home furnishings, and household goods—with each line operating as a separate department managed by specialist buyers or merchandisers. Macy's is best described as a(n) ________.

It may or may not be legal.

Full-line forcing 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. Which of the following statements is true regarding full-line forcing?

Target Costing

Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craftbeer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as ________.

D

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

Disintermediation

Online marketers taking business from traditional brick-and-mortar retailers is an example of _____.

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which of the following is a reason that producers use marketing channels and channel intermediaries?

B

Which of the following is most likely true about the digital age with regards to marketing? A) The number of businesses connecting people over digital networks is in decline. B) Digital networks allow marketers many ways to build customer relationships. C) The Internet has had little impact on the ways consumers purchase products. D) Most firms are shifting back to traditional marketing forms to build customer value. E) Online-only marketing is more commonly used by firms than multichannel marketing.

A

Which of the following is true of viral marketing? A) It is the digital version of word-of-mouth marketing. B) It refers to online marketing problems caused by technical glitches. C) It is another term for the unethical invasion of online privacy. D) It is an automated system that manages digital sales and marketing functions. E) It is a system that allows a supplier to access a customer's inventory levels online.