MARKETING FINAL Chapter 14-19 multiple choice

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The __________ is the primary enforcement agency for mass media advertising. A. FDA B. FCC C. FTC D. BATF E. USPS

Carol's Studio, located in a shopping mall, offers Zumba dance classes for all ages. Carol's Studio is known as a(n) A. service retailer. B. category specialist. C. specialty store. D. outlet studio. E. small-box specialist.

In recent years, the component of IMC that has received the greatest increase in aggregate spending is A. media advertising. B. direct marketing. C. public relations. D. sales promotions. E. publicity.

Developing pricing strategies for __________ is one of the most challenging tasks a manager can undertake. A. cost-based pricing B. seasonal rebate items C. new products D. zone pricing products E. quantity discounts

Manufacturers use wholesalers and retailers because A. they have no other choice. B. they do not cost much. C. they create value for customers through convenience and cost savings. D. wholesalers control retailers. E. most manufacturers are not familiar with logistics.

Advertising in which medium relies on a mix of visual and auditory techniques? A. radio B. magazines C. newspapers D. television E. direct marketing

Unlike product, promotion, or place, price is the only part of the marketing mix A. that offers the opportunity for an oligopoly. B. that is subject to gray market manipulation. C. that leads to competition. D. that generates revenue. E. that is determined by the consumer.

__________ is the practice of colluding with other firms to control prices. A. Competitive favoritism B. Industry tightening C. Monopolistic competition D. Price fixing E. Regressive pricing

In a vertical marketing system, if the system is _______, the less likely conflict will occur. A. less formal B. more independent C. less independent D. more conventional E. more formal

Which of the following is not a communication channel used in the IMC process? A. radio B. television C. newspaper D. Internet E. supply chain

Which of the following is not an advantage of using a distribution center? A. More accurate sales forecasts are possible. B. Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries. C. It is easier to avoid running out of stock or having too much stock. D. Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store. E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

"Buy one, get one free" is a __________ sales promotion. A. deal B. coupon C. sample D. sweepstake E. rebate

A __________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company. A. corporate blog B. faxed newsletter C. Super Bowl ad D. full-page ad in selected newspapers E. public relations campaign

A pricing strategy is A. a long-term approach to setting prices in a companywide integrated effort. B. the use of one-time seasonal discounts to reduce inventory. C. the use of slotting allowances to gain access to distribution channels. D. a short-term approach to setting prices. E. associated with competitive threats in the marketplace.

A(n) _______ is used in the shipment of products directly to customers. A. fulfillment center B. distribution center C. administration center D. data warehouse E. vendor warehouse

A(n) __________ is a 13-digit code retailers can use to track inventory. A. UPC B. CFPR C. pick ticket D. ASN E. EDI

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a A. partnering relationship. B. shared mission statement. C. common marketing system. D. corporate vertical marketing system. E. linked supply chain.

For consumer products like toothpaste and groceries, things consumers purchase throughout the year, most advertisers would use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

From a retailer's perspective, a(n) _______ is helpful in order to know exactly what will arrive in a particular shipment from a supplier. A. ASN B. EDI C. UPC D. VMI E. RFID

Generally, less money is spent on advertising in B2B markets because A. B2B marketing usually involves more personal selling. B. B2B marketing is too expensive to use advertising. C. business customers prefer coupons. D. B2B markets are too homogeneous to use advertising. E. publicity is the most effective advertising in B2B markets.

Generally, the larger and more sophisticated the channel member, the less likely that it will A. use supply chain intermediaries. B. rely on marketing research. C. use omnichannel marketing. D. use intensive distribution. E. be concerned about competitive actions.

In _______ many firms provide similar products that are considered substitutes for each other. A. pure competition B. oligopolistic competition C. monopolistic competition D. a monopoly E. a duopoly

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? A. sender B. transmitter C. encoder D. channel E. receiver

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a _______ pricing strategy. A. customer-oriented B. target profit C. target return D. status quo E. maximizing profits

Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to A. identify the target audience. B. set the advertising objectives. C. determine the advertising budget. D. evaluate and select the media. E. create the advertisements.

Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will most likely focus on A. in-store promotions. B. billboard and other outdoor advertising. C. supply chain relationships. D. off-price wholesaling. E. mass media advertising.

Kohl's, JCPenney, and Bloomingdales are examples of A. department stores. B. off-price retailers. C. discount stores. D. extreme value stores. E. category specialist stores.

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 A. an indicator of quality. B. a reflection of status quo pricing. C. an indicator of the variety. D. a measure of scarcity. E. a measure of the income effect.

Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of A. the purchases she had made. B. purchases other customers had made that day. C. manufacturer clearances and overruns. D. products she may have returned to the company. E. items the retailer no longer carries.

Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of A. providing products at the right time. B. providing products at the right locations. C. providing the right quantities. D. satisfying the service levels supply chain participants expect. E. minimizing systemwide costs.

One product strategy used by retailers to differentiate themselves from competitors is A. the use of private-label brands. B. discount pricing. C. removing brand labels from their merchandise offerings. D. JIT product delivery. E. offering brand-name merchandise.

Paul's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major and he has recommended that his family's business should A. emphasize fresh, locally sourced perishables. B. target the broadest possible customer base. C. eliminate customer frills and extras. D. offer fewer private-label brands. E. offer more national brand packaged goods and few perishables.

Personal selling is an especially important part of IMC in A. business-to-business markets. B. cause-related marketing. C. event sponsorships. D. stealth marketing. E. web tracking.

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model. A. innovators; early adopters B. early adopters; the early majority C. the early majority; the late majority D. the late majority; laggards E. laggards; innovators

Retailers use _______ to get rid of slow-moving or obsolete merchandise. A. markdowns B. slotting allowances C. price lining D. rebates E. seasonal allowances

Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as A. aided recall. B. unaided recall. C. top-of-mind awareness. D. brand preference. E. brand indifference.

The Clayton Act and the Robinson-Patman Act forbid certain types of A. price discrimination. B. bait-and-switch pricing. C. predatory pricing. D. everyday low pricing strategies. E. loss leader pricing.

The __________ stage of the advertising campaign planning process can be described by the question, "Whom are we trying to talk to?" A. identifying target audience B. setting advertising objectives C. conveying the message D. assessing the impact E. determining the advertising budget

The basic goal of integrated marketing communications is to A. communicate the value proposition to the target market. B. create desire. C. manipulate consumers. D. outspend competitors. E. tell the world about your company.

The head of the marketing area told Alex to find the most stringent federal regulations on advertising to create the toughest standards. "If we can pass those, we should be able to get by all regulations." One real problem is A. state regulations are not always consistent with federal standards. B. FCC regulations create a uniform standard that preempt all other regulations. C. European countries have agreed to follow the U.S. standards, so it's a matter of working with the U.S. federal regulations. D. as long as the advertising does not contain sexually explicit content, there are no regulations. E. in most cases, standards are changing almost daily.

The local furniture store will purchase outdoor furniture only during the winter months because the manufacturer offers a better price to the furniture store. This type of pricing tactic is known as a A. seasonal discount. B. cash discount. C. slotting allowance. D. customary discount. E. flexible price.

The percentage of a customer's purchases made from a particular retailer is referred to as A. share of wallet. B. share of market. C. customer loyalty. D. customer relationship management. E. customer value ratio.

The process of charging different prices for goods or services based on the type of customer, level of demand, or time of the day, week, or season is referred to as A. dynamic pricing. B. the substitution effect. C. the income effect. D. the target return effect. E. cross-price elasticity.

Value-based pricing can be difficult to implement because A. the way consumers perceive value constantly changes. B. this method requires all costs be identified and calculated on a per-unit basis. C. value depends on variable costs and not fixed costs. D. everyday low pricing has neutralized the impact of price on consumers' purchase decisions. E. it is difficult to determine how competitors will price their products.

What is the difference between a coupon and a rebate? A. The retailer handles coupons while manufacturers handle most rebates. B. Coupons are issued for products and rebates are issued for services. C. Coupons are for "cents/dollars off" while rebates are for "percentages off" the listed price. D. There is no difference between coupons and rebates. E. The manufacturer handles coupons while retailers handle rebates.

When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise. A. floor-ready B. repurposed C. just-in-time D. quick response E. horizontal channel

When Toro offers its lawn mower dealers an additional discount if they place their orders and receive delivery before April 1, prior to the lawn mowing season, Toro is offering a A. seasonal discount. B. cash discount. C. slotting allowance. D. zone price discount. E. price line discount.

When a company offers consumers the ability to make purchases via a smartphone, this is known as A. M-commerce. B. smart retailing. C. cell selling. D. P-commerce. E. channel expansion.

When it comes to measuring consumers' price sensitivity, products are viewed as either A. elastic or inelastic. B. fixed or variable. C. complementary or substitutable. D. necessary or optional. E. dynamic or rigid.

Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts? A. jewelry store B. convenience store C. liquor store D. secondhand clothing store E. bakery

Which of the following strategies is designed to place products in as many outlets as possible? A. intensive distribution B. exclusive distribution C. selective distribution D. surplus distribution E. contractual distribution

While JIT systems have many benefits, they A. make the logistics function more complicated. B. interfere with new product development functions. C. confuse customers. D. work only in vertical marketing systems. E. decrease the accuracy of demand forecasts.

A ____________ advertising schedule uses heavy advertising during some periods followed by periods of no advertising. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) _______ price elasticity demand. A. elastic B. inelastic C. cross-price D. income effect E. substitution effect

Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort? A. industry-oriented B. sales-oriented C. competitor-oriented D. innovation-oriented E. customer-oriented

Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time to stock up on Campbell's Soup." During the storm the ads said, "Stay home and stay warm with Campbell's Soup." The first ad was __________ advertising, while the second ad was __________ advertising. A. informative; persuasive B. persuasive; reminder C. reminder; persuasive D. discussive; informative E. institutional; persuasive

Charming Charlie's, a fashion accessories retailer, encourages visitors to its stores to "check in" using a smartphone app. In return, customers receive an instant coupon toward that day's purchase. This is an example of A. personal selling. B. mobile marketing. C. online marketing. D. social media. E. advertising.

Compared to conventional supermarkets, warehouse clubs have A. a broader assortment of food items. B. a lower level of service. C. slightly higher prices. D. no products appealing to small businesses. E. lower annual fees.

Cross-price elasticity is the A. percentage change in quantity of a product demanded divided by the percentage change in its price. B. percentage change in quantity demanded of product A compared to the percentage change in price of product B. C. change in price of product A divided by change in quantity demanded for product B. D. change in quantity of a product demanded divided by the change in its price. E. change in quantity of a product demanded divided by the change in its elasticity.

Firms are willing to offer generous rebates because A. the retailer and manufacturer always split the cost. B. rebates increase sales, but firms may not have to pay off all the rebates offered. C. they are easier for the consumer to use than are coupons. D. rebates are the only type of sales promotion proven to impact sales. E. they tend to generate repeat customers.

Firms can use __________ to bring customers together to share experiences around the products. A. surveys B. social media C. consumer outlets D. brand associations E. public relations

For brick-and-mortar retailers, when making decisions regarding place, a key ingredient to success is A. product placement promotion. B. convenient locations. C. private-label merchandise. D. off-price placement. E. customer relationship management.

Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that A. natural gas creates more environmental greenhouse effects than coal. B. an increase in the price of natural gas will increase demand for his electrical heating systems. C. gas heating systems and electrical heating systems are complementary goods. D. when the price of natural gas goes up, the quantity demanded also rises. E. the demand for natural gas is price elastic.

Full-line discount, category specialist, and specialty stores are all types of __________ retailers. A. food B. general merchandise C. price sensitive D. limited demand E. special appeal

Generally speaking, all advertising messages are designed to A. meet the needs of society. B. inform, persuade, or remind customers. C. comply with FCC rules combined with FTC antitrust regulations. D. entertain or apprise. E. match production scheduling with consumer demand.

If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd most likely choose A. a category specialist. B. a specialty store. C. a department store. D. an extreme value retailer. E. a warehouse club.

In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office. A. UPC B. POS terminal C. VMI D. ASN E. data warehouse

In a(n) __________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members. A. cooperative B. independent C. contractual D. administered E. corporate

In determining the price of his company's new small-business accounting software, Raymond is assessing how much better his company's software is as compared to alternative products available in the market. Raymond is using _______ pricing. A. cost-based B. improvement value C. reference-based D. cost of ownership E. market-based

In retailing, a just-in-time delivery system is called a _______ system. A. cross-docking B. quick response (QR) C. UPC D. EDI E. lead time

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms. A. 100 B. 1,500 C. 20,000 D. 1,000 E. it cannot be determined from the information provided

Lamar is assessing the long-termeffectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions. A. fixed price B. reference price C. seasonal price D. leader price E. cost-based price

Mary decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer. By sending proof of purchase and the receipt to the manufacturer, she could receive a $40 check in return, making the final price $60. This pricing tactic is known as a A. markdown. B. rebate. C. coupon. D. cash discount. E. price line.

Of the following retailers, the best example of a category killer is A. Dollar General. B. Staples. C. Kohl's. D. Target. E. Costco.

One important reason manufacturers like rebates is that A. the transaction costs are the responsibility of the retailer. B. their redemption rates are low. C. rebates expire faster than coupons do. D. there are fewer price discrimination issues. E. they build strong brand recognition.

One of the difficulties in measuring the effectiveness of IMC efforts is the __________, where consumers do not act immediately after receiving a marketing communication. A. decoding decomposition effect B. lagged effect C. noncommittal effect D. viral effect E. click-through delay

Retailers use _____ because they believe their use will induce customers to try new products, convert first-time users to regular users, increase purchases, and protect market share. A. seasonal discounts B. coupons C. rebates D. cumulative quantity discounts E. noncumulative quantity discounts

Retailing is the primary activity in all of the following situations except A. buying and eating a fast-food meal. B. transporting pallets of Daisy brand dairy products. C. visiting a tile store which sells at wholesale prices. D. upgrading an airline ticket at the airport. E. purchasing one case of paper for the office at Office Max.

Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is A. easy. B. expensive. C. ineffective. D. overrated. E. simple.

Sophia could not afford expensive furnishings, but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Sophia likely responding to? A. integrated CRM B. brand image consistency C. pricing consistency D. integrated supply chain E. efficient distribution

Steve is working on the message to convey in his firm's advertising campaign. As a starting point, Steve should first consider A. the due date for his contribution to the campaign. B. touting the key benefits of his firm's services. C. what competitors are doing. D. which media he wants to use. E. whether or not he uses the product being advertised.

The _______ is the ratio of the percentage change in quantity demanded to the percentage change in price. A. cross-price elasticity of demand B. price elasticity of demand C. income elasticity of demand D. break-even point E. demand curve

The goals of IMC need to A. expand as the advertising budget expands. B. be explicit and measurable. C. be encoded before they can be decoded. D. include both the noise effect and the transmitter effect. E. be separate from budget.

The key to a successful emotional advertising appeal is to use the emotion to A. make consumers cry. B. create a bond between the consumer and the brand. C. get consumers to think about the benefits of the product. D. balance social marketing with product-focused advertising. E. deliver a logical message.

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that A. most consumers cannot remember what price they paid the last time they bought a particular product. B. it is easier to lose customers with a price increase than to gain customers with a price decrease. C. most consumers would rather skip buying a product than pay a higher price. D. most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes. E. firms gain more customers with price decreases than they lose with price increases.

The pricing method that considers what consumers may be willing to pay for a particular product based on the value received over the product's entire lifetime is the _______ pricing method. A. cost-based B. cost of ownership C. reference-based D. improvement value E. market-based

The saying "leaving money on the table" is associated with A. a price skimming strategy that forces consumers to choose between products. B. a market penetration strategy when there is an opportunity for price skimming. C. vertical price fixing in markets where horizontal price fixing would be more appropriate. D. a predatory pricing strategy that results in excessive seasonal discounts. E. loss leader pricing that drives consumers to competitors' products.

The three types of vertical marketing systems are administered, contractual, and A. cooperative. B. corporate. C. independent. D. coercive. E. conventional.

There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept? A. the income effect B. the substitution effect C. the break-even point D. the target return effect E. cross-price elasticity

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and A. the number of destinations. B. the number of impressions. C. the cost per click. D. how much time consumers spend viewing the ad or page. E. the total number of clicks recorded by the industry.

Tyler runs a parasailing business on Hilton Head Island, South Carolina. Tyler closes his business in winter when the water gets too cold. Tyler should use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering A. as recognized by competitors. B. as perceived by the consumer. C. relative to production costs. D. in relationship to fixed and variable costs. E. in order to minimize bundling charges.

Walmart's "Everyday low prices" selling proposition is effective primarily because it is A. unique to the industry. B. meaningful to the consumer. C. variable over time. D. a one-time message. E. generally unsustainable.

Which of the following is not a public relations tool? A. donating a portion of profits to a charitable cause B. coupons and rebates C. event sponsorships D. news releases E. websites

Which of the following is the least likely common emotional appeal for advertisers? A. fear B. anger C. humor D. love E. nostalgia

__________ are subtle forms of promotion that encourage shopping in retailers' stores. A. Electronic signs B. Store credit cards and gift cards C. Large stocks of popular national brands D. Quick response and just-in-time delivery systems E. Extreme value offers and specialty share of the wallet programs

__________ is when two or more firms join forces to reach a target audience in a short-term effort. A. Promotional co-branding B. Cross-promotion C. Joint-venture promotion D. Multi-target promoting E. Convenience promoting

A demand curve is built on the assumption that A. income is derived from demand. B. price remains the same, and fixed costs change. C. everything but price and demand remains the same. D. fixed costs change with quantity demanded. E. the firm does not advertise.

A(n) _______ market legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. A. black B. outsourced C. gray D. oligopolistic E. unauthorized

A(n) __________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area. A. intensive B. widespread C. selective D. collective E. variable

Actor Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser. A. promotional deal B. mass media buy C. product placement D. loyalty program E. sampling

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. an extended feedback loop. E. a flaw in the medium.

As the old cliché claims, the three most important things in retailing are A. size, location, and convenience. B. price, promotion, and place. C. location, location, location. D. price, price, price. E. before, during, and after the sale.

At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a(n) ______ inventory control system. A. cross-docking B. lead time C. just-in-time (JIT) D. pick ticket E. UPC

At the break-even point, A. costs are zero. B. price is maximized. C. profits are zero. D. fixed costs are zero. E. contribution per unit is zero.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably A. price sensitive. B. price elastic. C. price inelastic. D. income elastic. E. cross-price elastic.

Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this A. selective recall. B. free association. C. aided recall. D. recall mapping. E. top-of-mind awareness.

Cora will be a bridesmaid next summer, and has purchased her dress online. The next time she turned on her computer, Cora was surprised to see special offers for matching accessories. This is an example of which marketing strategy? A. sales promotions B. media advertising C. direct marketing D. personal selling E. public relations

David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following except A. ingredients used in preparing food. B. hours worked by cooks. C. rent on the restaurant building. D. energy costs. E. hours worked by the servers.

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? A. internal pricing B. profit-oriented pricing C. competitor-oriented pricing D. customer-oriented pricing E. sales-oriented pricing

Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing everyone well during the holiday season. This is an example of _________ advertising. A. informative B. persuasive C. reminder D. discussive E. institutional

Estella is trying to create an advertising message that communicates the tangible features of her company's laptop computers, telling consumers about the relative advantages of her products as compared to other offerings in the market. Estella is trying to create a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products are called _______ allowances. A. space B. shelf C. slotting D. placement E. location

Greg is planning an advertising campaign to promote his kayak tour company. The success of his ad campaign depends on A. the quality of his kayaks. B. how much money he spends. C. how well he can identify his target audience. D. how much consumers like him. E. whether he can gain commitments from manufacturers for complementary products.

In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours. A. traditional B. combination C. cross-docking D. vertical E. horizontal

In a market with _______ there are many firms providing differentiated products. A. pure competition B. oligopolistic competition C. monopolistic competition D. a monopoly E. a duopoly

In general, prices should not be based on costs because A. consumers are cost-conscious. B. producers rarely know what their costs are. C. consumers make their purchase decisions based on perceived value. D. producers need to avoid creating a cost competitive parity debate. E. customers are always right.

In the AIDA model, awareness leads to A. intention, which hopefully leads to desire and then action. B. integration, which hopefully leads to desire and then action. C. interest, which hopefully leads to desire and then action. D. intention, which hopefully leads to desire and then attention. E. interest, which hopefully leads to determination and then action.

Kevin is recognized by his friends as an activist on many fronts. He prefers to buy products from firms that will donate part of the total purchase price to organizations he supports. Marketers recognize that this approach can be an important competitive tool; it is called A. social activist marketing. B. voluntary premium pricing. C. cause-related marketing. D. business/social responsibility. E. the do-gooder syndrome.

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know A. if customers are using credit cards or cash to make purchases. B. how many employees the retailers have. C. where their target customers expect to find their products. D. whether the products will fill a customer's self-actualization needs. E. whether customers will find the store atmospherics appropriate to the location.

Many stores now e-mail codes to their customers that can be used on their websites or printed and brought into the store to receive discounts for products purchased. In this instance, the customer is using a _______ to receive the discount. A. size discount B. rebate C. coupon D. markdown E. seasonal discount

Naomi is the IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm's IMC efforts, her goals are likely to include A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______ pricing strategy. A. sales orientation B. target profit C. target return D. status quo E. competitive parity

Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save money. Recently, however, Natalie was given a pretty substantial raise. As such, she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. This is an example of A. the substitution effect. B. the price inelasticity coefficient. C. the income effect. D. the target return effect. E. cross-price elasticity.

The break-even point is estimated by A. multiplying revenue per unit times the quantity sold. B. dividing fixed contribution per unit by variable costs. C. multiplying fixed costs by contribution per unit. D. dividing fixed costs by contribution per unit. E. dividing variable costs by fixed costs.

The effectiveness of an advertising campaign is assessed during the campaign by A. pull strategies. B. push strategies. C. tracking. D. flighting. E. pretesting.

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. the primacy effect. B. aided recall. C. top-of-mind awareness. D. category dominance. E. elevated awareness.

The most common form of a quantity discount for consumers is a A. cash discount. B. markdown. C. size discount. D. coupon. E. rebate.

The three elements of any IMC strategy are the consumer, the channels, and A. the receiver. B. the product. C. evaluation of the results. D. the company. E. event sponsorship.

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand? A. Demand is cross-price elastic. B. Demand is price inelastic. C. Demand is price elastic. D. Demand maintains the status quo. E. Demand results in the income effect.

Which of the following is not one of the activities carried on in a distribution center? A. coordinating inbound transportation B. receiving, checking, storing, and cross-docking merchandise C. distributing paychecks and paystubs for retail employees D. getting merchandise floor ready E. coordinating outbound transportation

If a manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company be least likely to choose as a retailing partner? A. conventional supermarket B. supercenter C. warehouse club D. convenience stores E. full-line discount stores

Traditional demand curve economic theory is used by marketers to understand _______ in the five Cs of pricing. A. competitors B. channel members C. cost D. customers E. company objectives

Which of the following is not one of the five Cs of pricing? A. customers B. channel members C. cost D. collaboration E. company objectives

__________ is any interference in the IMC process. A. Translation B. Looping C. Excessive reach D. Noise E. Feedback

Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will most likely choose _________ distribution. A. luxury B. selective C. monopolistic D. intensive E. exclusive

Most manufacturing and retailing marketers worry constantly about whether or not their IMC efforts are paying off. They assess various forms of __________ to determine what is working and what is not. A. noise B. pretesting C. precoding D. encoding E. feedback

Pricing _______ products is especially challenging because little or nothing is known about consumers' perceptions of its value. A. cost-based B. seasonal C. service-related D. bundled E. new-to-the-world

Supercenters are large stores that combine a supermarket with a full-line discount store. _______ dominates this category with the vast majority of supercenters in the United States. A. Target B. Meijer C. Kmart D. Kroger E. Walmart

The key factor distinguishing retailers from other members of the supply chain is that A. they sell to consumers, businesses, and government. B. they utilize marketing to reach consumers. C. they use advertising to generate demand. D. they rarely engage in personal selling. E. they sell to customers for their personal use.

The IMC communication process includes all of the following except A. evaluation. B. the sender. C. the transmitter. D. the communication channel. E. the receiver.

Where does retailing fall in the supply chain? A. at the end B. in the center C. first D. second E. no where

Which of the following is the best example of a persuasive advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Better than average." D. "Now available—the latest fall fashions." E. "Serving the public since last Tuesday."

A ________ is a facility for the receipt, storage, and redistribution of goods to company stores. A. circulation center B. distribution center C. supply chain hub D. collaborative replenishment office E. floor-ready franchising center

Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store. A. department stores B. off-price retailers C. discount stores D. services retailers E. category specialist stores

Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Jacob, the contribution per unit is A. $100. B. $80. C. $800. D. $1,000. E. It cannot be determined from the information provided.

The IMC communication process begins with __________, who(which) must be clearly identified. A. the integrator B. the sender C. the transmitter D. the communication channel E. the receiver

When a product has gained a certain level of brand awareness, firms use __________ advertising to motivate consumers to take action. A. informative B. persuasive C. institutional D. discussive E. reminder

Which of the following is not one of the steps in the AIDA model? A. awareness B. intention C. action D. desire E. interest

Which of the following is the best example of a reminder advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Buy one, get one free." D. "Now available—the latest fall fashions." E. "New and improved!"

A __________ is an advertisement that focuses on public welfare issues. A. product-focused advertisement B. consumer-generated advertisement C. public service announcement D. reminder advertisement E. push strategy

A ____________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

A customer who is shopping for fashionable, but relatively low-cost merchandise in a pleasant environment is shopping at a(n) A. specialty store. B. extreme value retailer. C. full-line discount store. D. department store. E. convenience store.

A distribution center is typically operated by A. the marketing department. B. vertically integrated consumer networks. C. retailers, manufacturers, or distribution specialists. D. wholesalers. E. electronic data interchange services.

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent? A. horizontal B. vertical C. indirect D. direct E. simple

In omnichannel retailing, what visible element must often be adjusted because of competition faced in different channels? A. supply chain B. return policies C. pricing D. distribution E. place

In the IMC communication process, the __________ encodes the marketing communication message. A. instructor B. sender C. transmitter D. communication channel E. receiver

In the movie Field of Dreams, one of the memorable phrases is, "If you build it, he will come." The AIDA model would suggest that after marketers "build" a product or service and create awareness among consumers, they need to A. determine the level of desire needed to sustain action. B. promote sufficiently to gain global attention. C. create interest among consumers, persuading them to investigate further. D. offer discounts to increase purchase intentions. E. take steps to encourage immediate purchase.

In which of the following tactics does a consumer pay a fee to purchase the right to use a product for a specific amount of time? A. lay-away B. bait and switch C. lease D. bundling E. rebate

Integrated marketing communications represents the __________ element in the four Ps of a firm's marketing mix. A. pricing B. product C. promotion D. place E. partnering

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to A. comply with Homeland Security requirements. B. shift from a general merchandise retailer to a private-label retailer. C. increase the share of wallet from their best customers. D. create traffic in their brick-and-mortar stores. E. reward customer loyalty.

Jackie is running errands on Saturday morning. First, she drives through CVS pharmacy to pick up a prescription, stops at the tailor to pick up a dress she had hemmed, and then heads to her manicure appointment. What kind of retailers is Jackie visiting? A. category killers B. category killers and services retailers C. services retailers D. convenience stores E. off-price retailers and specialty stores

Jamara knows that his spring break travel packages are the best deal on campus. He also knows his competitor is sloppy, often waiting until the last minute to provide the needed tickets and documents to students buying his island packages. Jamara wants to develop an advertising message that emphasizes the key benefits he provides. He will develop a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs to know A. the internal rate of return and the projected expenditure level. B. the total number of units sold and the total cost of sales. C. sales revenue and advertising cost. D. gross margin and advertising cost. E. the advertising cost and the total communications expenditures.

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she determines the cost for each product to be promoted. Julie is using the __________ method of establishing an IMC budget. A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver A. value-based posttesting. B. niche media emotional appeals to the mass market. C. a consistent and compelling message. D. selective, continuous pulsing. E. mild puffery.

Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, retailers should consider augmenting or even replacing the sales and customer service functions with A. expanded hours of operation. B. continuous use of promotions. C. in-store kiosks or self-checkout lanes. D. special attention to product placement in their stores. E. variable pricing strategies.

Retailers' coupons, rebates, and online discounts are types of A. in-store promotions. B. specialty product displays. C. pricing promotions. D. off-price wholesaling. E. mass media advertising.

Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of _______ on demand for his service. A. break-even points B. the price inelasticity ratio C. the income effect D. the target return effect E. cross-price elasticity

The contribution per unit is A. price minus total costs. B. price minus total variable cost. C. price minus variable cost per unit. D. total revenue minus total cost. E. break-even quantity divided by total fixed costs.

The difference between advertising and publicity is that advertising is A. more effective in reaching consumers. B. almost always used in conjunction with consumer satisfaction surveys. C. a paid form of marketing communication. D. designed to remind consumers, while publicity is used to persuade consumers. E. designed for very targeted audiences, while publicity reaches mass audiences.

The right communication channel to use in IMC is A. the traditional channel used in that particular retail sector. B. network advertising, local newspapers, and regional radio stations. C. the one that will connect to the desired recipients. D. the one with the best encoding capabilities. E. the one that maximizes decoding difficulty.

Thomas had conducted a thorough pretest before the new ad campaign, so he was fairly sure the elements would work together. A lot was riding on the success of the ad campaign, so he couldn't wait until the campaign was over to see how well it did. During the campaign, he will be monitoring the sales volumes on a daily basis as part of his A. cause-related marketing. B. pulsing. C. tracking. D. flighting. E. lifting.

While it is relatively easy to offer customers Internet options like an FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers' questions while they are visiting the websites. These firms are using ___________ to provide the customer with enhanced customer service. A. vendor-managed inventory B. web videos C. online chats D. EDI E. online games

One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and A. earn a cash discount. B. capitalize on the experience curve effect. C. will not fall prey to predatory pricing. D. will be less likely to switch brands. E. will be able to take advantage of zone pricing benefits.

Wholesalers sell to all of the following except A. businesses. B. manufacturers. C. retailers. D. consumers. E. industrial users.

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen. A. sales orientation B. target profit C. target return D. status quo E. maximizing profits

A demand curve shows the relationship between _______ in a period of time. A. income and demand B. price and costs C. price and elasticity D. profit and price E. price and demand

As the number of communication media has increased, the task of understanding how best to reach target customers has A. shifted from creating a value proposition to revising a value proposition. B. increased the use of rule-of-thumb targeting. C. become easier. D. focused on reducing communication noise. E. become more complex.

Because there are many firms in monopolistic competition markets, A. everyone is a price taker. B. producers do not have to consider the reactions of rival firms. C. government often encourages consolidation to reduce the number of competitors. D. price controls may be implemented. E. the many competitors will focus on product differentiation.

For which of the following is demand likely to be most sensitive to price increases? A. prescription drugs B. college tuition for last-semester seniors C. electricity D. hospital care E. a specific brand of soft drink

In the IMC communication process, the __________ is the person who reads, hears, or sees and processes the message being communicated. A. medium B. sender C. transmitter D. communication channel E. receiver

In vendor-managed inventory systems, A. corporations send information to retail customers, bypassing wholesalers and retailers. B. companies send information to cooperatives. C. customers send information to retailers. D. sales reps send sales information to the retailer. E. retailers send sales information to the manufacturer.

It is important to Joanne to get value for her money, but she does not want to spend time comparison shopping. Joanne will likely respond to _______ pricing, but not to _______ pricing. A. high/low; EDLP B. premium; high/low C. high/low; premium D. price skimming; high/low E. EDLP; high/low

Lars wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, as he knows most people enjoy them. Although he is not sure about specific products, Lars heads directly for a store selling Godiva Chocolates, because he knows this is a high-end brand. Lars can be said to have A. brand recall. B. aided recall. C. brand preference. D. brand image. E. brand awareness.

Loretta would like to know which, if any, of her firm's IMC efforts are working. She could use all of the following except __________ to provide feedback from her efforts. A. sales data B. complaints C. compliments D. coupon redemption rates E. the channel

Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these other fast-food restaurants will A. increase the income effect for Wendy's products. B. increase demand for Wendy's products. C. decrease the income effect for Wendy's products. D. increase the complementary effect for Wendy's products. E. decrease demand for Wendy's products.

Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration? A. What is the appropriate advertising strategy? B. When will customers want this product? C. What prices will customers be willing to pay? D. What assortment of products will customers want? E. How likely is it for certain retailers to carry this product?

Retailers use __________ to get customers into their stores. A. marketing channels B. specialty product displays C. supply chain relationships D. off-price wholesaling E. mass media advertising

A(n) __________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas. A. pick ticket B. warehouse receipt C. bill of lading D. certificate of origin E. RFID tag

Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n) A. direct marketing channel. B. distribution center. C. simplified transaction. D. wholesale operation. E. indirect marketing channel.

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because A. it happens behind the scenes. B. it conflicts with promotion. C. it occurs after making pricing decisions. D. no one is directly in charge of place decisions. E. the product itself is so much more important.

Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a _______ pricing tactic. A. leader B. bundling C. price lining D. cumulative quantity discount E. slotting

TT TOYS manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys' A. supply chain. B. corporate vertical marketing system. C. distribution center. D. CFPR. E. voluntary chain.

Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for __________ in his company. A. checking B. dispatching C. receiving D. JIT E. quick response

Tess is the marketing manager for a fast-food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to A. increase profits. B. increase sales. C. decrease competition. D. build customer satisfaction. E. broaden the product line.

The execution style of an advertising message must A. match the medium and the objectives. B. correspond with globally accepted norms. C. include a minimum of puffery and maximum media buy. D. selectively pull retailers into the marketing channel. E. cover new creative ground to be effective.

Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following except A. which competitors they should collaborate with. B. what should be made. C. how products should be configured. D. when products should be delivered. E. what products should cost.

__________ refers to the process by which the receiver interprets the sender's message. A. Decoding B. Feedback C. Precoding D. Encoding E. Tracking

A measure termed _______ describes how useful an ad message is to the consumer doing the search. A. reliability B. relevance C. impression D. awareness E. return on investment

An everyday low pricing strategy stresses the continuity of retail prices A. at a level above regular retail prices. B. at a level between the regular price and the deep-discount sale prices of competitors. C. based on variable production costs. D. at a price skimming level. E. at a level below the deep-discount sales prices of competitors.

Annabeth is looking for a Michael Kors chronograph watch, and assumes she can view and try them on at Macy's. She makes a special trip to the store to look at the watches, and selects the style she likes best. Which aspect of choosing a retail partner allowed Annabeth to confidently shop for this item at a particular store? A. channel structure B. customer expectations C. channel characteristics D. distribution intensity E. vertical integration of channel

Benton manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ___________ to identify these customers. A. website B. CRM database C. specialty store sales D. annual sales report E. inventory management system

Clark Manufactured Housing Company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from their factory. The company is using a _______ pricing tactic. A. uniformed delivered B. zone C. cumulative D. noncumulative E. horizontal

How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel? A. in use of SKU identification B. in quantity of items shipped C. in speed of order fulfillment D. in quality of tracking mechanisms E. in use of CRM technology

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is A. cross-price elastic. B. price inelastic. C. price elastic. D. status quo elastic. E. derived demand inelastic.

Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase _______ costs. A. sales force labor B. transportation C. promotional D. advertising E. new product development

Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has shown that A. effective branding requires marketers to encode messages identically for each market. B. each receiver decodes IMC messages in his or her own way. C. action is taken before desire and interest are determined. D. marketers can almost always use the same message for all audiences. E. messages are decoded in the manner intended by the encoder.

Marlie designs and manufactures specialty furniture. She has a number of unique products but can only produce in limited quantities. Marlie will probably not use a market penetration strategy because A. there are few barriers to competitive entry in the market. B. she could not meet a rapid rise in demand. C. a low price would indicate low quality. D. she would have to determine zone pricing discounts. E. the experience curve effect would drop unit costs too rapidly.

One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is A. price competition. B. the amount of merchandise that can be carried in a physical store. C. competition from other retailers. D. common zoning restrictions limiting the kinds of merchandise that can be offered for sale. E. interactive customer service.

P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used __________ advertising to reposition Tide several times over the product's life, trying to motivate new consumer segments to use the product. A. informative B. persuasive C. social marketing D. emotional E. institutional

Reese and Janelle own a boutique in the United States. Recently they took a trip to China and while there, the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States. Upon their return, the couple sold the handbags in their store for less than any other store in the area. This is an example of what takes place in a(n) _______ market. A. black B. gray C. unsupervised D. oligopolistic

The content of an advertising message is closely tied to A. the size of the advertising team. B. the characteristics of the media selected to carry the message. C. the opportunity for posttesting. D. the sales promotion opportunities. E. the coupon redemption rate.

The expression "3/10, n/30" means A. a 10 percent discount if paid in full within 3 days, or the net amount is due in 30 days. B. a 3 percent discount if paid in full within 10 days, or the net amount is due in 30 days. C. a 3 percent discount if paid in full within 3 days, or the net amount is due in 10 days. D. a 3 percent discount if paid in full within 30 days, or the net amount is due in 10 days. E. no discount is available on this order; the net amount is due between 10 and 30 days.

Brent is working on an advertising campaign to promote downtown businesses. He knows the increasing number of advertising communication channels available and changes in consumers' media usage A. will force him to use PSAs. B. increases consumers' preference for high-pressure persuasive advertising. C. makes his job more difficult. D. makes it easier to select media. E. makes budget more important, and creativity less important.

Brett has developed a vitamin-enriched crouton in crazy colors that can be added to children's salads to make them more nutritious and fun. She'd like to ethically advertise the product directly to the children, so she is examining A. the complete FCC regulations. B. the provisions of the Children's Television Act of 1990. C. the Better Business Bureau's Children's Advertising Review Unit guidelines. D. the federal GAO regulations on advertising. E. the Food and Drug Administration guidelines.

First Lady Michelle Obama has recorded an ad encouraging parents to teach their children good nutrition habits to stem the increase in child obesity. This message is an example of A. product-focused advertising. B. consumer-generated advertising. C. a public service announcement. D. reminder advertising. E. a flighting campaign.

For an advertiser, the target audience can be understood as A. consumers who currently use or like the product. B. consumers who do not use the product. C. consumers whom its research designates as its target market. D. consumers who prefer the competitor's product. E. consumers who are unaware of the product.

For consumers, shopping in a retail store instead of online offers the unique benefits of participating in a social experience and A. receiving meaningful product information. B. viewing a greater selection of products. C. obtaining immediate gratification. D. receiving personalized offers. E. viewing price matching by competitors.

For marketers to advertise a price as their __________ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price. A. fixed B. zone C. regular D. leader E. cost-based

Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy. A. maximizing profits B. target profit C. sales orientation D. status quo E. target return

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from A. "I want it" to "I like it." B. action to desire. C. "I like it" to "I want it." D. interest to awareness. E. feeling to thinking.

One advantage of a retail store that is not shared with an Internet channel is A. providing meaningful product information. B. offering a greater selection of products. C. accepting cash payments. D. collecting information about how consumers shop. E. price matching competitors.

One of the advantages of niche media is it often allows marketers to A. reach a larger audience than mass media. B. use major events like the Super Bowl. C. change and personalize messages for different audiences. D. sell cooperative advertising space to cosponsors. E. spend fewer advertising dollars.

One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market. A. wholesaling opportunities B. persuasive advertising C. the right mix of merchandise and services D. corrective price controls E. category killing profitability

Personal selling is particularly important for retailers selling A. online services. B. discount items. C. products that are complicated or expensive. D. low-cost services. E. trend or fashion items.

Persuasive advertising is often used when competition A. is nonexistent. B. is cooperating. C. is most intense. D. is declining. E. is ineffective.

Retailing is defined as the set of business activities that A. focuses on a firm's core values. B. focuses on transactions, but not relationships. C. adds value to products and services sold to final consumers. D. separates wholesaling from manufacturing. E. occurs only in brick-and-mortar space.

Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n) A. horizontal contractual notice. B. vendor-managed inventory alert. C. advanced shipping notice. D. universal product code report. E. EDI tag.

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of __________ marketers use to assess the effectiveness of their IMC efforts. A. decoding B. pretesting C. feedback D. simulations E. encoding

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products. A. dynamic pricing B. the price inelasticity coefficient C. the income effect D. the target return effect E. cross-price elasticity

When Costco sells to consumers directly, it acts as a _______; when it sells to other businesses, such as a restaurant owner, it acts as a _______. A. wholesaler; retailer B. retailer; manufacturer C. retailer; wholesaler D. manufacturer; wholesaler E. marketing channel; supply channel

When Microsoft introduces a new version of its Windows operating system, it typically uses selected magazine, Internet, and direct mail advertising. This combination of advertising outlets represents Microsoft's A. niche buy. B. advertising plan. C. media mix. D. product placement. E. supply chain messaging.

When Toyota introduced its Scion line of cars, the lowest-price model was listed for $15,000 while the highest-priced model was listed for $21,000, with two other list prices in between. Each price point represented distinct differences in the features and quality of the cars. Toyota used a ______ pricing approach. A. market penetration B. zone C. price lining D. loss leader E. slotting

Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? A. soybeans B. pens and pencils C. smartphone service providers D. men's clothing E. electrical service to the home

Yana has identified the target audience for her line of Russian jewelry. For optimum success, she is creating an advertising plan that will A. allow her to skip the assessment stage at the end of the campaign. B. offer discounts to media as an incentive to carry out her plan. C. clarify the specific goals that the advertising is designed to accomplish. D. encapsulate her unique selling proposition. E. maximize puffery.

Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used to paying for quality and associates high quality with high prices. In this instance, Yurgen should probably not use a market penetration pricing strategy because A. he might be missing out on customers who would only pay less for his products. B. there are moderate barriers to competitive entry in the market. C. a low price might signal low quality. D. he would have to determine zone pricing discounts. E. the experience curve effect would drop unit costs too rapidly.

__________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs. A. B2B programs B. Trade incentives C. Sales promotions D. Push programs E. Targeted leader items

__________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service. A. Product familiarity B. Brand association C. Brand awareness D. Marketing recall E. Cognitive association

"Now available—the latest fall fashions" is an example of a(n) __________ advertising message. A. persuasive B. reminder C. socially responsible D. informative E. institutional

A customer orientation toward pricing implicitly invokes the concept of A. knowing the dimensions of the target market. B. positioning. C. the income effect. D. value. E. profit.

After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders. A. supply chain B. distribution center C. quick change directory D. electronic data interchange system E. checking system

After using market research to identify the target audience for his advertising campaign, Jorge will next use this information to A. develop creative advertising copy. B. assess the potential effectiveness of his ad campaign. C. buy advertising time. D. set explicit and measurable objectives for the campaign. E. develop PSAs for distribution in lieu of advertising.

All of the following are interactive elements of an IMC strategy except A. personal selling. B. consumer contests. C. mobile marketing. D. public relations. E. online marketing.

Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through A. repeat business. B. rapid delivery. C. expanded market presence. D. personalized offerings. E. interactive offerings.

Because there are only a few firms in markets with oligopolistic competition, A. everyone is a price taker. B. producers do not have to consider the reactions of rival firms. C. government often encourages consolidation to reduce the number of competitors. D. price wars may occur. E. the many competitors will focus on product differentiation.

Generally, which of the following media outlets relies on a mix of visual and auditory techniques and is typically very expensive? A. Internet B. newspaper C. radio D. television E. billboards

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of A. mutual trust. B. common goals. C. a contractual arrangement. D. credible commitments. E. open communication.

In the IMC communication process, the __________ is the medium that carries the message. A. feedback loop B. sender C. transmitter D. communication channel E. receiver

The full price of a product or service includes all of the following except A. taxes. B. shipping. C. travel costs. D. the price of alternative products and services. E. value of the consumer's time.

The individual elements of an IMC strategy can be viewed on two axes: __________ (from the consumer's perspective) and ________. A. passive and interactive; tangible and intangible B. mobile marketing and direct marketing; tangible and intangible C. offline and online; low cost and high cost D. passive and interactive; offline and online E. static and changing; offline and online

To get us to remember their ad and the product or brand in the ad, advertisers must first A. use persuasion. B. offer incentives. C. create effective PSAs. D. get our attention. E. vary between flighting and pulsing scheduling.

__________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise. A. Vertical channel integration B. Cross-channel leverage C. Horizontal channel integration D. Omnichannel retailing E. Opportunistic retailing

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center. A. Quick response B. Checking C. Combination warehousing D. Cross-docking E. Horizontal merchandising

Cosmetic manufacturers that sell shampoo and conditioner together as one package at a lower price rather than selling each item separately are using A. price lining. B. slotting allowances. C. cumulative quantity discounts. D. loss leaders. E. price bundling.

Cost-based pricing assumes that costs A. will vary with the level of prices. B. are used to estimate value. C. are calculated based on historical consumer perceptions of what things should cost. D. will continue to decrease as production increases. E. will not vary much for different levels of production.

Customers interacting with omnichannel retailers most desire a(n) ________ experience. A. unique B. speedy C. distinctive D. inexpensive E. seamless

__________ price fixing occurs when competitors collude to control prices, and __________ price fixing occurs within a marketing channel to control prices passed on to consumers. A. Industry; supply chain B. General; specific C. Widespread; integrated D. Strategic; tactical E. Horizontal; vertical

Benefits of the traditional retail store as a channel include the ability to A. provide personalized and meaningful product information. B. offer a greater selection of products. C. offer an expanded market presence for all consumers. D. efficiently collect information about how consumers shop for a particular product. E. quickly compare prices across multiple channels.

Bertone's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog, and also to sell its products online. Bertone's is adopting A. an omnichannel strategy. B. exclusive distribution. C. selective distribution. D. an extreme value strategy. E. a service retailing philosophy.

Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers, and grabs bread and milk on the way home when he stops to buy gas. Brian probably does the majority of this shopping at a A. convenience store. B. warehouse club. C. conventional supermarket. D. drugstore. E. category specialist.

Chandra owns a pet sitting service. He recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of A. M-commerce. B. smart retailing. C. cell selling. D. P-commerce. E. channel expansion.

Compared to mass media advertising, a key advantage of direct marketing is A. it allows for personalization of the message. B. it reaches a larger audience. C. it involves face-to-face contact. D. it uses the rule-of-thumb budgeting method. E. it is used almost exclusively for B2B marketing.

If the price for a product increases, the demand for the complementary product will A. decrease. B. increase. C. stay the same. D. become more elastic. E. become more inelastic.

If you ever watched a television commercial and at the end of the message wondered what they were promoting, you may have had trouble __________ the IMC message. A. decoding B. transmitting C. precoding D. encoding E. tracking

If you send an e-mail and include a link, you can track how many people took the desired action of clicking on the link. This is known as A. the click-through rate. B. impressions. C. frequency. D. gross rating points. E. reach.

If you walk into a(n) __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops. A. department store B. off-price retailer C. discount store D. specialty store E. category specialist

In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers. A. indirect B. vertical C. horizontal D. simple E. direct

In a(n) _______ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases. A. high/low B. EDLP C. price skimming D. uniform delivered E. bait-and-switch

In the AIDA model, the think stage is the __________ stage. A. awareness B. action C. interest D. desire E. intention

In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or A. competing messages. B. an extended feedback loop. C. indirect encoding. D. inhibited decoding. E. excessive reach.

In which of the following categories would a dry cleaning business be placed? A. services retailer B. specialty store C. category killer D. superstore E. discount store

Mario is the first retailer in town to sell games for Sony's new PlayStation 4 machine. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a __________ pricing strategy. A. market penetration B. bundling C. price fixing D. reference E. skimming

Marketers __________ an advertising campaign to ensure that various elements of the campaign will work in an integrated fashion and do what they are intended to do. A. pretest B. posttest C. monitor D. flight E. pulse

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by A. reducing the price elasticity of demand. B. making demand more oligopolistic and less monopolistic. C. increasing the income effect. D. reducing fixed costs and increasing the gray marketing effect. E. shifting the market from a monopoly to pure competition.

Milton owns a lawncare business. From experience, Milton has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Milton's perception about its products makes _______ pricing a logical choice. A. cost of ownership B. cost-based C. reference-based D. improvement value E. market-based

Neville is trying to create an advertising message that tells consumers how his company's cell, pager, instant messaging, and Internet services differ from other alternatives in the market. Neville is trying to create a(n) A. unique selling proposition. B. proportional benefit communication. C. institutional advertising message. D. PSA. E. flighting ad strategy.

One difficulty associated with using advertising as part of a marketer's IMC efforts is A. it is hard to break through the clutter of other messages targeted for the same audience. B. it is more expensive than personal selling. C. it works only when communicating to the most uninformed consumers. D. government regulations have significantly decreased allowable advertising frequencies. E. it is considered old-fashioned by many younger consumers.

One of the benefits of EDI is that it can reduce lead time, which is A. the time between the decision to place an order and the receipt of the merchandise. B. the time from when an RFP is announced to the time a consumer purchases the finished product. C. the time from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received. D. the time between when finished goods leave the manufacturer until the time they arrive, floor-ready, at the retailer. E. the time between when an item is sold to a customer and when a replacement is made available for purchase by another customer.

One problem in relying on price elasticity and demand curves when setting prices is A. the way a product or service is marketed can have a profound impact on price elasticity. B. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. C. only economists can properly analyze demand curves and set prices using this tool. D. competitors can construct the same demand curves, so there is no advantage in using them. E. marketing split from economics over the ideas of demand and elasticity.

Public relations is the component of IMC that A. supports other promotional efforts by generating "free" media attention. B. has received the greatest increase in spending. C. converts mass media advertising into direct marketing. D. most effectively uses IMC encoding. E. generates the most gross rating points.

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this? A. sales promotion B. direct marketing C. public relations D. mobile marketing E. advertising

Reminder advertising is primarily used to A. prompt repurchase of a product. B. create and build brand awareness. C. accelerate market acceptance. D. gather information about consumers. E. persuade consumers to change existing perceptions.

Retailers that offer a broad variety of merchandise, limited services, and low prices are known as A. full-line discount stores. B. convenience stores. C. home improvement stores. D. category specialists. E. department stores.

Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking. A. floor-ready B. flattened C. lead time synchronized D. aggregated E. synthesized

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent? A. mobile marketing B. public relations C. personal selling D. sales promotions E. advertising

The sender of an IMC message hopes the receivers are A. the people for whom the message was originally intended. B. the people with the most buying power. C. consumers who are capable of discerning value. D. consumers who have purchased the firm's products in the past. E. the market segment with the most gross rating points.

Today, __________ dominate supply chains. A. large retailers B. manufacturers C. government agencies D. wholesalers E. distributors

When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a(n) __________ pricing strategy. A. skimming B. introductory C. slotting allowance D. market penetration E. cost-based

When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product. A. intensive B. exclusive C. selective D. collective E. variable

When Greenbelt Construction Company began building houses in a large subdivision with many other builders, the company priced its homes slightly higher than its competitors and promoted the added quality features found in Greenbelt's homes. Greenbelt was using a(n) _______ pricing strategy. A. competitor-based B. value-based C. improvement-based D. premium E. reference-based

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were A. 160. B. 1,600. C. 400. D. 40.

When a new product is not being sold at the rate originally forecasted, the retailer may reduce the price in order to reduce the inventory of the product. This reduction is known as a A. markdown. B. rebate. C. coupon. D. cash discount. E. quantity discount.

A noncumulative B2B quantity discount is A. used to encourage consumers to purchase larger quantities each time they buy. B. based only on the amount purchased in a single order. C. considered illegal under the Robinson-Patman Act. D. used primarily to attract new retail customers. E. offered only to one-time purchasers.

A reference price is A. the total price including tax. B. the price against which buyers compare the actual selling price. C. the manufacturer's cost. D. a cumulative quantity discount price. E. the external horizontal fixed price.

According to a typical demand curve, the higher the price, A. the greater the income effect. B. the lower the quantity consumers will buy. C. the lower the output of producers. D. the greater the production costs. E. the lower the cross-price elasticity.

After creating awareness that the firm's products or services exist, the next goal of integrated marketing communications is to A. generate consumer action. B. increase the level of interest among consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. create intentions to purchase the product.

Amber has developed a line of organic lotions and handmade soaps with unique, herb-based scents and a touch of bee balm. She plans to sell these products to the wealthy residents of a nearby resort town. Which level of distribution intensity is probably best for this product? A. intensive B. exclusive C. selective D. collective E. variable

Because market and operating conditions are different in each target market A. all consumers will react similarly to the firm's pricing strategy. B. the choice of a pricing strategy should be specific to the target market. C. prices need to be held constant because everything else is changing. D. only horizontal price fixing should be used. E. external reference prices will always be the best strategy.

Considering what you know about their target markets and merchandise, which of the following retailers is least likely to have an online presence? A. department stores B. convenience stores C. category specialists D. off-price retailers E. full-line discount stores

Especially for marketers with new products or services, IMC is needed because A. consumers need to know all about the features of new products before making a purchase decision. B. consumers are unlikely to buy products they are not aware of. C. it is impossible for products to sell themselves through word-of-mouth communication. D. pricing decisions cannot be made without IMC. E. new products and services need to be integrated into the supply chain value proposition.

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) A. cross-docking exchange. B. electronic data interchange system. C. vendor-managed inventory system. D. vertical conflict reduction system. E. radio frequency identification system.

Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation. A. profit B. sales C. competitive D. customer satisfaction E. product development

Getting merchandise floor-ready entails A. distributing and dispatching. B. ticketing and marking. C. vertical supply chain wholesaling. D. intensive cross-docking. E. selective checking.

Gray markets can be a challenge to marketers because A. they are just as illegal as black markets. B. they may tarnish the manufacturer's image. C. they are legal in some states and illegal in others. D. consumers are against them, but retailers support them. E. they may result in price increases across the board.

Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain. A. department stores B. extreme value retailers C. big-box retailers D. services retailers E. category specialist stores

In marketing's four Ps, place refers to all activities required to get A. the design of the terminal location for products accomplished. B. the right products to the right customer when that customer wants it. C. access to the physical space within a retail establishment. D. consumers to the destination. E. demand chain management functionally operable.

In the AIDA model, the do stage is the __________ stage. A. awareness B. action C. interest D. desire E. intentions

Integrated marketing communications include all of the following except A. advertising. B. supply chain management. C. direct marketing. D. public relations. E. sales promotion.

Janelle is shopping for a unique outfit for a benefit dinner dance. She wants it to sparkle and shine, but still feel light, silky, and comfortable. For the highest satisfaction, Janelle likely should A. shop via catalog. B. shop in traditional retail stores. C. start browsing the Internet. D. use M-commerce. E. price match multiple competitors.

Price advertisements should never A. include "puffery." B. deceive customers to the point of doing harm. C. include the MSRP. D. use advertising allowances to increase sales promotion. E. use price skimming after using price penetration.

Price is the _____________ a consumer is willing to make to acquire a specific product or service. A. amount of money B. overall sacrifice C. fixed cost D. target return E. substitution

Price reductions offered on products and services to stimulate demand during off-peak seasons are referred to as A. markdowns. B. seasonal discounts. C. price lining. D. predatory pricing. E. zone pricing.

Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be A. $500,000. B. $550,000. C. $650,000. D. $450,000. E. $605,000.

The major objectives associated with a market penetration pricing strategy are to A. capture the high end of the market demand curve and lower introduction costs. B. quickly build sales and market share. C. minimize customer dissatisfaction and maximize reference price value. D. provide an incentive to purchase a less desirable product to obtain a more desirable product. E. match competitors' prices and communicate high quality.

The major text portion of a print advertisement that should arouse a desire for the product and move the consumer to action is contained in the A. headline. B. body copy. C. brand elements. D. photo credits. E. subheads.

U.S.-based global marketers have often found that A. anything goes when advertising outside the United States. B. EU advertising laws are more restrictive than those in the United States. C. children in other countries are less influenced by advertising. D. self-regulatory groups are especially demanding of U.S. advertisers. E. outside the United States, standards are subject to UN approval.

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Joe's demonstrates which kind of power? A. coercive B. reward C. referent D. expertise E. information

When Walmart communicates to consumers that, for any given group of often-purchased items, its prices will tend to be lower than that of any other competitor, Walmart is exhibiting what type of pricing strategy? A. high/low B. EDLP C. price skimming D. uniform delivered pricing E. bait and switch

When comparing the various communication channels available to marketing professionals, it becomes apparent that A. consumers prefer advertising over other channels. B. no single channel is better than another channel. C. public relations is the least expensive, but the most successful. D. personal selling is the most expensive and the least successful. E. online marketing is taking the place of advertising and public relations.

A reference price might be considered deceptive if A. the internal reference point is different from the external reference point. B. the reference price is more than two times the cost of the item. C. the reference price has been inflated or is fictitious. D. the reference price has changed more than once in the past 12 months. E. it reflects actual manufacturing costs plus 50 percent.

A weakness associated with cost-based pricing methods is that they A. are too difficult to calculate. B. do not consider profit when calculating. C. do not recognize the role consumers or competitors' prices play in the marketplace. D. do not consider fixed or variable costs. E. are structurally inflexible and ignore vertical price-fixing alternatives.

After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise. A. quick time B. the advance notice C. lead time D. float time E. supply chain conflict time

An emotional appeal aims to satisfy consumers' __________, while an informational appeal speaks to consumers' __________. A. needs; desires B. institutional focus; personal focus C. emotional desires; utilitarian needs D. top-of-the-mind awareness; bottom-of-the-mind reactions E. cost-consciousness; imaginations

For which of the following is demand likely to be least sensitive to price increases? A. spring break vacations B. a specific brand of cereal C. prescription drugs D. theater tickets E. restaurant meals

Gretchen has just started as a fashion marketing intern for an up-and-coming design firm. She expected to begin right away implementing the four Ps she had learned about in class. Instead, she was asked to work on a project identifying important events where celebrities might wear the fashions. Gretchen soon realized that this activity was part of __________, directly related to marketing. A. sales promotions B. cause-related marketing C. public relations D. press release development E. a push-pull strategy

Gypsy just bought a gift and jewelry store on Main Street. She knows from the previous owner that almost 60 percent of her sales take place during the Christmas holiday season, with the other 40 percent of sales evenly distributed over the rest of the year. Gypsy will probably use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market. A. pure competition B. oligopolistic competition C. monopolistic competition D. monopoly E. duopoly

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC channel. E. the reach/frequency ratio.

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of A. vertical contractual notice. B. VMI requirement. C. advanced shipping notice. D. universal product code report. E. RFID tag.

Traditionally, marketers have seen the role of __________ as generating short-term results, whereas the goal of __________ was to lead to long-term results. A. public relations; institutional advertising B. advertising; personal selling C. sales promotion; advertising D. advertising; public relations E. corporate blogs; public relations

What is one of the drawbacks of using a price skimming strategy? A. It is difficult to lower prices on an introductory product. B. Price skimming allows competitors to easily enter the market. C. Firms must consider the high costs associated with producing a small volume of product. D. Price skimming does not work well with new-to-the-market, innovative products. E. Price skimming is often challenged as being illegal.

When a customer purchases a DVD at a Best Buy Electronics store, all of the following information flows in the supply chain are started except A. the sales associate scans the UPC recording the sale. B. the sale is transmitted to Best Buy's distribution center to adjust inventory data. C. the purchase is added to the customer's purchasing habit records. D. Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer. E. the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

When developing an advertising message, the message should focus on A. the producer. B. the advertising environment. C. solving problems for consumers. D. creating investment opportunities. E. niche media balance.

__________ appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built around relevant issues, explaining key benefits of the firm's products and services. A. Emotional B. Niche marketing C. Informational D. Institutional E. Reminder

__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services. A. Warehouse clubs B. Supercenters C. Convenience stores D. Department stores E. Extreme value retailers

__________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages. A. Category killers B. Department stores C. Extreme value retailers D. Specialty stores E. Warehouse club stores

A firm's marketing communication strategy is formulated specifically to A. increase its frequency ratio. B. control its public image. C. increase its social media presence. D. communicate the value of its product(s). E. increase its return on investment.

A major airline sells an aggressively low priced ticket compared to a new low-fare airline which is trying to enter the market. The airline may be accused of engaging in the unethical practice of A. leader pricing. B. price skimming. C. price fixing. D. predatory pricing. E. deceptive reference prices.

A major factor contributing to the growth in the use of direct marketing IMC efforts is A. reduced government regulation of deceptive advertising practices. B. expanded use of personal selling. C. a shift from objective-and-task to rule-of-thumb budgeting. D. increased use of credit and debit cards, and online shopping by consumers. E. the reduction in IMC noise, allowing for a decreased lagged effect.

A pricing tactic is A. a long-term and broad-based approach to pricing. B. an integrative pricing approach based on the five Cs. C. an approach that can be used only with consumers. D. a short-term approach that is often in response to a competitive threat. E. an approach that can be used only in a business-to-business setting.

A(n) ________ is a brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer. A. store brand B. manufacturer's brand C. national brand D. exclusive brand E. brand extension

Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to the getting the products to the customers. As he chooses retail partners, which of the following is least important in this process? A. looking at the channel structure B. determining where target customers will expect to find this product C. considering characteristics of channel members D. encouraging new bicycling enthusiasts E. considering distribution intensity

Advertising slogans such as "Don't text and drive" and "Buy flood insurance before it is too late" are examples of ads designed to A. provide information. B. remind consumers. C. recruit employees. D. persuade consumers to take action. E. generate goodwill.

After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to __________, __________, or __________ potential and/or existing students. A. create; stimulate; or ignore B. beg; borrow; or steal C. pay; buy; or entertain D. inform; persuade; or remind E. push; pull; or sell

Anne's Pita Bread Chips offers free POP (point-of-purchase) displays to retailers ordering its product. Anne's is using a __________ strategy. A. pull B. puffery C. publicity D. push E. posttesting

As an omnichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure? A. separation of all operations B. escalation of costs across all channels C. growth of retail channel and diminishment of Internet channel D. operational integration of all channels E. growth of Internet channel and diminishment of retail channel

Ashley was nervous about making the ___________. She knew it was likely to be the largest expense in the advertising budget. A. publicity plan B. media flight plan decision C. media mix choice D. media buy E. monitoring and evaluation plan decision

Everyday low pricing (EDLP) provides value to consumers by A. continually offering items on sale. B. minimizing the number of options a consumer can evaluate. C. offering noncumulative quantity discounts. D. reducing their search costs. E. creative use of reference pricing.

Firms using a(n) _______ pricing method set their prices relative to what other firms are charging. A. improvement value B. value-based C. cost-based D. competitor-based E. reference-based

Florida Heat Pump Manufacturing Company is offering a free, all-expenses-paid trip to Las Vegas for HVAC dealers that sell at least 20 units this year. Florida Heat Pump is using a __________ promotional strategy. A. pull B. puffery C. publicity D. push E. posttesting

For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely A. leave the market. B. discontinue the product and create a new one. C. offer deep discounts to create a loss leader pricing strategy. D. lower the price to capture the next most sensitive market segment. E. use zone pricing to maximize differences.

For retailers, promotion refers to A. supply chain communication. B. the relationship between price and product. C. the image a store attempts to maintain through its pricing strategy. D. both their in-store environment and their media communications. E. the seasonal discounts offered to move end-of-season items.

Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a "look and feel" that will get customers to relax and return. Henri is focusing on which aspect of the marketing mix? A. price B. place C. policy D. promotion E. product

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through A. department stores. B. category specialist stores. C. extreme value retailers. D. specialty stores. E. convenience stores.

In very simple words, advertising is really about A. improving brand image. B. personal selling. C. linking emotions with products. D. getting consumers' attention. E. being creative.

Integrated marketing communications include all of the following except A. personal selling. B. advertising. C. public relations. D. supply chain management. E. direct marketing.

It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit. A. the Better Business Bureau B. federal regulators C. the American Marketing Association D. marketers themselves E. industry standards boards

Regardless of the objective of an advertising campaign, each campaign's objectives must be A. sincere and emotional. B. consistent with those of the available media. C. either informative or persuasive but not both. D. specific and measurable. E. designed for use in both a pull and a push strategy.

Regina just bought a gourmet bagel store. She is working with a freelance graphic artist who is designing her logo and print advertisements. Regina is spending days looking over the various designs and color options. She needs to remember that the creative aspect of advertising design A. is everything. B. will determine pretesting and posttesting options. C. dictates tracking alternatives. D. should not overshadow the message. E. should always include coupons.

Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing A. reciprocity. B. simplicity. C. discounting. D. storage. E. extreme value labeling.

Stores like Home Depot and Costco act as wholesalers when they A. take delivery in whole-lot quantities. B. sell directly to consumers. C. sell products for distributors. D. sell to contractors or restaurant owners. E. compete with each other.

The more substitutes that exist in a market, A. the lower the price elasticity for each product. B. the greater the income elasticity for each product. C. the easier it will be to utilize a target profit pricing strategy. D. the more sensitive consumers will be to changes in the price of a particular product. E. the more likely the market will be characterized as an oligopoly.

The primary reasons manufacturers offer seasonal discounts to retailers are to more easily plan production schedules and to A. reduce advertising allowances. B. increase price skimming. C. control vertical pricing. D. lessen inventories of finished goods. E. alter consumers' perceived reference price.

There is an old saying "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with A. cross-shopping. B. competitive parity pricing. C. target return value. D. prestige pricing. E. break-even point pricing.

Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent? A. indirect B. vertical C. horizontal D. direct E. simple

Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of A. promotional discounts. B. mass media gimmicks. C. mobile marketing. D. in-store promotions. E. co-op advertising.

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

Variable costs change with A. changes in fixed costs. B. changes in cross-price elasticity. C. changes in target return pricing. D. changes in the quantity being produced. E. competitive parity.

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a _______ pricing strategy. A. maximizing profits B. target profit C. target return D. competitor-oriented E. sales oriented

When a manufacturer chooses one or more retailing partners, the overriding consideration must be A. if customers can participate in mobile commerce. B. the retailers' customary distribution intensity. C. the satisfaction of the retailing partners. D. the greatest possible customer convenience and satisfaction. E. the overall cost to the manufacturer.

Which of the following is most effective in building brand image, listing details about retail locations and educating customers about products and services? A. corporate blog B. faxed newsletter C. Super Bowl ad D. corporate website E. Twitter

Which of the following is not a common business-to-business pricing tactic? A. seasonal discounts B. slotting allowances C. quantity discounts D. loss leader pricing E. advertising allowances

Which of the following is not a major consideration in determining an advertising budget? A. role of advertising in overall promotional objectives B. the product life cycle C. the nature of the market D. the budgeting method used E. the nature of the product

Which of the following is not one of the federal agencies that regulate advertising activities? A. FDA B. FCC C. FTC D. FRS E. USPS

Which of the following is not true about public relations? A. PR has become increasingly important as costs of other forms of marketing communications continue to increase. B. Consumers have become increasing skeptical of marketing claims made in conventional media. C. Media coverage generated by PR is seen as more credible than paid advertising. D. Because of its high cost, the use of PR has waned in recent years. E. Public relations activities often support other promotional efforts.

Which of the following is the best example of a mass media advertising channel? A. Weight Watchers Magazine B. Red State Talk Radio (WRS) C. Home and Garden TV (HGTV) D. USA Today E. The Golf Channel Mass media advertising

Which of the following is the least interactive IMC strategy? A. personal selling B. mobile marketing C. online marketing via social media D. direct marketing via catalog E. direct marketing via telemarketing

Which of the following represents the best reason a manufacturer of high-end products might consider selling products in a warehouse club? A. There are no high-end shopping centers within a 100-mile radius of the warehouse club. B. The warehouse club has a good reputation. C. The manufacturer is trying to increase market share. D. The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers. E. The warehouse club wants to upgrade its image.

A "no haggle" pricing policy is a type of _____ pricing strategy. A. maximizing profits B. sales orientation C. target return D. status quo E. customer-oriented

According to your text, research has consistently shown that consumers usually rank which of the four Ps as one of the most important factors in their purchase decisions? A. Promotion B. Place C. Product D. Perception E. Price

After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to A. logistical support. B. new product development. C. advertising assessment. D. determining why they should advertise. E. creation of the advertisement.

An advertisement featuring a cartoon Smokey the Bear saying "Only you can prevent wildfires" is an example of a successful A. push-and-pull advertisement. B. puffery campaign. C. sales promotion. D. product-focused advertisement. E. public service announcement.

Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and its prices are low. Bertone's is a(n) A. warehouse club. B. extreme value retailer. C. off-price retailer. D. full-line discount retailer. E. category specialist.

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively A. increased the income effect for its products. B. increased the cross-price elasticity for its products. C. focused on the competitive parity point for its products. D. shifted the golf ball market from a monopoly to pure competition. E. reduced the price elasticity of demand for its products.

Brad is working on the creative design for his company's new ad campaign. This is his first major assignment. His boss reminds him that when writing a headline, it should A. represent the main text of the ad. B. identify the sponsor of the ad. C. use jargon and complex terminology. D. overshadow the visual message. E. be short and use simple words.

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of A. sales promotions. B. advertising. C. public relations. D. price reductions. E. direct marketing.

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price A. penetration. B. bundling. C. fixing. D. referencing. E. skimming.

Cross-promotion is most successful when A. one product is well known and one product is less known. B. the firms have a prior marketing relationship. C. the two products are similar in price. D. the promotion takes place over a very short time period. E. the two products appeal to the same target market.

Dynamic pricing is also referred to as _______ pricing. A. complementary B. substitution C. break-even D. target return E. individualized

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best seller is less certain. The bookstore's primary inventory management challenge is A. how to get the author to sign copies of the book. B. whether to price the books in the distribution center or at the retail store. C. which other books to promote along with this book. D. whether or not to display the book at the checkout counter. E. having enough books to satisfy customer demands versus the cost of having the inventory.

Historically, prices were A. the center of attention in almost all marketing strategies. B. analyzed and changed constantly. C. calculated to minimize contribution per unit. D. allowed to vary seasonally as cross-shopping tendencies fluctuated. E. rarely changed except in response to radical shifts in market conditions.

How can a company find its way out of a market characterized by pure competition? A. Consistently offer the lowest price until other competitors leave the market B. Increase prices and attract different, quality-oriented customers C. Decrease the amount of available product until the market reacts D. Increase the amount of available product to flood the market E. Differentiate the product in some way, even by packaging, so customers will see it as distinct

If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution. A. moderate B. compromise C. luxury D. evolutionary E. selective

If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with A. loss leader pricing. B. bait-and-switch pricing. C. price fixing. D. unfair slotting. E. predatory pricing.

One of the difficulties associated with value-based pricing is that A. costs used in this method are difficult to compute. B. only the creator of a new product can fully understand its value to consumers. C. value depends on variable costs and not fixed costs. D. everyday low pricing has neutralized the impact of price on consumers' purchase decisions. E. it necessitates a great deal of consumer research to be implemented successfully.

Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often A. the responsibility of the dispatcher. B. too complex for sales personnel to manage. C. done in conjunction with supply chain promotional allowances. D. the responsibility of the logistics department and not the marketing department. E. inefficient and expensive.

Shorter lead times allow retailers A. access to a more diverse supply chain. B. to reduce the need for pick tickets. C. to skip advanced shipping notices. D. to replace JIT systems with VMI systems. E. to reduce the needed level of inventories.

When purchasing books on Amazon.com, customers are shown other books and a message saying "Customers who purchased (your book) also purchased . . ." This is an example of A. mass media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships. A. conventional B. vertical C. horizontal D. administered E. interdependent

Which of the following is not one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer? A. choosing retail partners B. identifying types of retailers C. developing retail strategy D. managing an omnichannel strategy E. lowering production costs

With more frequent shipments associated with quick response (QR) systems, a retailer is A. likely to have lower shipping costs. B. more likely to add extra floor-ready merchandise. C. less likely to use radio frequency identification tags. D. more likely to engage in predatory pricing behavior. E. more likely to have what customers want.

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for __________ data. A. parity and affordability B. sales and promotion C. attitude change D. rule-of-thumb E. frequency and reach

_______ channel conflict occurs when members of the same marketing channel, for example, manufacturers, wholesalers, and retailers are in disagreement or discord. A. Horizontal B. Independent C. Conventional D. Coercive E. Vertical

_______ products are products whose demands are positively related and as such, they rise or fall together. A. Substitute B. Premium C. Elastic D. Inelastic E. Complementary

________ power is based on getting a channel member to behave in a certain way because of a contractual agreement. A. Coercive B. Reward C. Referent D. Expertise E. Legitimate

__________ can purchase merchandise at substantial discounts from the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments. A. Department stores B. Specialty stores C. Category specialists D. Drugstores E. Off-price retailers

An advertisement for Titleist golf balls that airs on the cable television Golf Channel station is an example of what type of media channel? A. niche B. mass C. select D. product placement E. institutional

Jordan directs her salespeople to increase the company's share of wallet. Jordan is directing her salespeople to A. focus on increasing sales to their best customers. B. focus on male consumers, and not female consumers. C. sell more store brands and fewer private-label products. D. become omnichannel salespeople. E. expand retailing elasticity.

To discourage consumers from buying in gray markets, some manufacturers have A. warned consumers that warranties will become null and void if the product is purchased through a gray market supplier. B. shifted advertising resources from gray markets to black markets. C. increased the price to gray markets while maintaining existing prices to blue markets. D. petitioned government regulators to impose price controls. E. lowered the quality of their products to reduce gray market demand.

Unlike advertising, public relations A. supports promotional efforts by generating "free" media attention. B. accounts for a greater increase in marketing spending. C. converts mass media advertising into direct marketing. D. is considered a human resource function. E. should not be considered part of the marketing area.

What makes a high/low pricing strategy appealing to sellers? A. It attracts two distinct market segments. B. It allows the seller to market itself as an "everyday low price leader." C. It doesn't require the seller to continually offer sales or deep discounts. D. It allows sellers to capture the most profit from a new product or service. E. It reduces the need for slotting and advertising allowances.

What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route? A. horizontal price fixing B. vertical price fixing C. horizontal price discrimination D. vertical price discrimination E. loss leader pricing

When Apple's famous 1984 "Big Brother" ad aired during the Super Bowl, it reached an estimated 500 million viewers. It aired only once on commercial television, but was seen in later years in at least 10 television programs recalling great commercials. For its target audience, the frequency of this ad is measured as A. 1. B. 10. C. 500 million. D. one-tenth. E. 5 billion (10 times 500 million).

When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power. A. coercive B. reward C. referent D. expertise E. legitimate

Which of the following is a true statement about distribution centers? A. They enable retailers to carry less merchandise in individual stores. B. Distribution center space is typically more expensive than retail space. C. They are appropriate for all retailers, from the largest to the smallest. D. They are the quickest way to get all products to retailers. E. They complicate the process of predicting accurate sales forecasts.

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers announcing the arrival of this season's new clothing? A. mobile marketing B. social marketing C. personal selling D. sales promotions E. advertising

Which of the following is most likely to be characterized by pure competition in the United States? A. soybeans B. cereal C. soft drinks D. computer operating systems E. fast-food restaurants

With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service. A. market penetration B. bundling C. price fixing D. reference E. skimming

Merchandise that arrives in the delivery truck ready to be sold is considered A. quick-response packaged. B. ahead of the curve. C. lead time synchronized. D. floor-ready. E. synthesized.

The __________ occurs when unit cost drops as the quantity sold increases. A. slotting allowance benefit B. price fixing return C. improvement value effect D. experience curve effect E. cumulative bundling benefit

In a(n) __________ marketing channel, none of the participants have any control over the others. A. cooperative B. corporate C. contractual D. administered E. conventional

A(n) __________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption. A. marketing channel B. distribution center C. logistics chain D. strategic relationship E. electronic data interchange

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the __________ for this telecast. A. frequency B. reach C. gross rating points D. ROI E. click-through rate

As firms become more sophisticated in their communication efforts, the trend is toward company blogs becoming more A. interactive. B. expensive. C. company-controlled. D. consumer-controlled. E. entertainment-oriented.

Automobile manufacturers often use television advertising showing an attractive man or woman driving the manufacturer's stylish new car on a winding road along an ocean vista. These types of ads have __________ appeal. A. emotional B. ethical C. informational D. institutional E. reminder

B2B quantity discounts are legal if A. the discounts are available to all customers. B. they do not exceed 25 percent of the regular price. C. they are not short term. D. new customers can "buy up" to reach the minimum quantity. E. cumulative discounts do not run for more than a calendar year.

Because advertising is the most visible form of marketing, A. many people think of marketing and advertising as synonymous. B. it is the most important part of a marketing mix. C. everyone prefers to be in advertising. D. marketing budgets always emphasize advertising over other forms of communication. E. it is the largest source of employment opportunities for marketing graduates.

Because there are many firms with similar products in purely competitive markets, A. price is determined by the laws of supply and demand. B. consumers develop personal preferences. C. firms find it easy to build strong, distinct brands. D. advertising is heavily used. E. the many competitors will focus on variable cost pricing.

Compared with other methods used to set prices, _______ pricing is relatively simple. A. cost-based B. value-based C. improvement value D. reference-based E. cost of ownership

Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. to be among the first to buy sale items. Dan would likely respond to a _______ pricing strategy. A. high/low B. premium C. price skimming D. slotting E. uniform

Danielle is creating an advertising message designed to appeal to consumers' fears of having their home broken into. Danielle's message will focus on a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

Distribution intensity is commonly divided into three levels: A. intensive, exclusive, and selective. B. primary, secondary, and tertiary. C. administered, vertical, and independent. D. global, national, and local. E. corporate, contractual, and independent.

Earl was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Earl perceived price as _______ for a good or service, while most consumers recognize price as the _______ made to acquire a good or service. A. the money paid; overall sacrifice B. a variable cost; fixed cost C. a fixed cost; variable payment D. the overall sacrifice; monetary payment E. the break-even amount; total cost

Generally, when advertising to consumers, the objective of an advertising campaign is A. a pull strategy—to get the product into stores by having consumers demand it. B. a push strategy—to stimulate interest among members of the supply chain. C. to win advertising awards. D. to offset sales promotion costs. E. to maximize media planning.

If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used? A. horizontal price fixing B. vertical price fixing C. horizontal price discrimination D. vertical price discrimination E. loss leader pricing

If marketing communications are effective, they will A. result in purchases by some consumers receiving the communications. B. offset any negative publicity the firm may have received. C. minimize the number of communication channels used by the firm. D. generate interest in the product in over half the consumers reached. E. include all steps of the AIDA model with equal weighting to each step.

In the early stages of an ad campaign, the objectives are established. To determine if those objectives have been met, the marketer will A. posttest. B. conduct feedback analysis. C. initiate content analysis. D. pretest. E. arrange for peer analysis.

Johan owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this? A. service retailer B. specialty store C. category specialist D. extreme value retailer E. off-price retailer

John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms A. perform many different channel functions themselves. B. have less control in the channel. C. are generally less efficient. D. spend more money wastefully. E. use more independent salespeople.

__________ are combating competitive pressures by increasing the amount of exclusive and private-label merchandise they sell, and expanding their online presence. A. Convenience stores B. Department stores C. Full-line discount stores D. Extreme value stores E. Off-price retailers

The sender of an integrated marketing communication A. must work with the advertising specialists to ensure all recipients interpret the message accurately. B. can assess the manner in which receivers interpret the message through gross rating points. C. has little control over what meaning any individual receiver will take from the message. D. controls the meaning all receivers take from the message. E. should attempt to control how the message is received.

Which element of the marketing mix specifically deals with supply chain management? A. product B. price C. place D. promotion E. production

National manufacturers and retailers often pay a service provider to monitor television ads around the country, to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. a flaw in the medium. E. an extended feedback loop.

One of the limitations associated with break-even analysis is that A. it assumes fixed costs are zero. B. it cannot adjust for high variable costs. C. it tells marketers only what price is needed to break even. D. it assumes that there is only one price. E. it assumes that demand is extremely inelastic.

One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that A. few consumers understand a penetration strategy. B. a price skimming strategy lowers the value for consumers. C. a price skimming strategy targets all product adopters equally. D. it is easier to lower prices than to raise them. E. price skimming is legal while price penetration is not.

Radio frequency identification tags are A. selective distribution designs used to maximize geographic efficiency. B. electronic discount information tags used to provide reduced prices to select customers. C. VMI demand scheduling data tags. D. tiny computer chips that transmit information about a container's contents. E. information tags used for floor-ready merchandising.

Special in-store displays for magazines and chewing gum are most likely to be effective if located A. near the entrance to the store. B. near the restrooms. C. along the aisle or wall to the far right of the customer as he or she enters the store. D. near the checkout counter. E. in the window at the front of the store.

Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely A. canceled orders and shifted the business to competitors. B. increased promotional outlays to overcome customer dissatisfaction. C. used exclusive geographic territories to reduce supply chain inefficiencies. D. stockpiled inventory, adding to the cost of providing auto parts. E. returned to traditional distribution center logistics.

The California Raisin Advisory Board used to run ads featuring "The California Raisins," a fictitious R&B musical group composed of dancing raisins that boogied to the song "I Heard It Through the Grapevine." The ads, which were hugely popular and which gave rise to a line of raisin-themed merchandise, were designed to encourage raisin consumption. This campaign was an example of A. product-focused advertising. B. consumer-generated advertising. C. public service announcements. D. institutional advertising. E. push strategies.

Having no intermediaries between the buyer and seller is a defining characteristic of a(n) _______ marketing channel. A. indirect B. vertical C. horizontal D. simple E. direct

In simple terms, the AIDA model is also known as the __________ model. A. intention, action, interest B. stop, look, listen C. want, need, desire D. inform, persuade, act E. think, feel, do

The goal of any marketing communication is to A. maximize personal selling. B. increase public relations click-through rates. C. overwhelm negative publicity with commercial speech. D. replace cause-related marketing with non-cause-related marketing. E. get the right message to the right audience through the right media.

Which type of store is small and offers a limited merchandise assortment at very low prices? A. specialty stores B. extreme value retailers C. outlet stores D. limited assortment supermarkets E. convenience stores

Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a _______ pricing strategy. A. maximizing profits B. target profit C. target return D. status quo E. sales orientation

In integrated marketing communications, encoding involves A. converting consumers' ideas into value propositions. B. differentiating noncommercial speech from commercial speech. C. converting the decoder into the receiver. D. interpreting click-through rates. E. converting the sender's ideas into a message.

It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because A. they do not carry enough merchandise. B. consumers no longer recognize brand equity. C. big-box food retailers are shifting into specialty store product lines. D. there is not enough merchandise to go around. E. competitors can purchase and sell many of the same popular brands.

Jami is managing an extended advertising campaign for a local convenience store chain. The campaign includes a series of television, radio, and print messages. As part of monitoring the campaign, which of the following offers a good indicator of advertising effectiveness? A. the cost of the media buy B. past economic conditions C. planned store expansions in similar markets D. new advertising concepts E. the daily and weekly sales volume

Labor, materials, and energy are typically __________ costs. A. fixed B. incidental C. prestige D. inelastic E. variable

Sarah goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Paige doesn't read newspapers, let alone look through them for coupons. But Paige filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Paige? A. loyalty program B. contest C. deal D. premium E. sweepstakes

The proliferation of new media alternatives has led many firms to shift their promotional budgets from A. publicity to public relations. B. personal selling to advertising. C. integrated marketing communications to disintegrated marketing communications. D. indirect marketing to viral marketing. E. advertising to direct marketing and website development.

Though a picture may be worth a thousand words, the most important facet of encoding is A. who draws the picture. B. the self-visualization process. C. not what is received, but rather what is sent. D. the sponsor rather than the receiver. E. not what is sent, but rather what is received.

As a type of retailer, category specialists are fierce competitors using A. a broad assortment of merchandise. B. highly trained personnel throughout the stores. C. a complete assortment in a specific category at low prices. D. highly attractive loyalty programs. E. a limited, but complementary merchandise assortment.

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution. A. primary B. independent C. intensive D. exclusive E. selective

The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store to be available for sale is referred to as A. quick time. B. an advanced shipping notice. C. lead time. D. float time. E. supply chain conflict time.

Which of the following is not one of the typical outlets used by retailers? A. catalogs B. the Internet C. business-to-business requests for proposals (RFPs) D. brick-and-mortar stores E. restaurants and hotels

Which of the following is not required to build a successful strategic relationship? A. mutual trust B. open communications C. creation of a joint venture D. common goals E. credible commitments

Which of the following is the best example of puffery? A. "Take two and call us in the morning." B. "Happy hour every Friday." C. "You have tried the rest, now try the best." D. "All natural ingredients." E. "Northwestern, the quiet company."

Which of the following is the most logical example of complementary products? A. hot dogs and hamburgers B. VCRs and DVD players C. hot dogs and hot dog buns D. Honda cars and Toyota cars E. a university and a corporation

The commercial airline industry is considered what type of market? A. duopoly B. monopoly C. monopolistic competition D. pure competition E. oligopolistic competition

In the past, __________ controlled supply chains. A. retailers B. manufacturers C. government agencies D. wholesalers E. distributors

_______ refers to the process of evaluating and selecting the _______. A. Advertising; media buy B. Media planning; media mix C. Promotion planning; advertising mix D. Media buying; media mix E. Media mixing; media buy

The additional sales that can be attributed to an advertising campaign are known as A. payload. B. impact. C. lift. D. the campaign increment. E. ROI.

Reaching the right audience with marketing communications is becoming more difficult because A. consumers are bored. B. government regulations are constraining free speech. C. personal selling is becoming less expensive, making it more competitive with advertising. D. the media environment has become more complicated. E. the AIDA model no longer represents how marketing communication works.

Retailers can gain valuable knowledge about their customers from the transaction process and from A. trade industry profiles. B. store brand/private-label brand ratios. C. omnichannel flow process. D. the insights of store personnel. E. end-of-aisle positioning studies.

________ must always be aligned with other elements of a retailer's strategy in order to accurately define the value of the product and a retailer's image. A. Mobile commerce B. Transportation C. Distribution D. Price E. Labeling

A firm that places an emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy. A. personal selling B. mobile marketing C. advertising D. direct marketing E. public relations

The _____________ loop allows the receiver to communicate with the sender in the IMC process. A. decoding B. pretesting C. precoding D. encoding E. feedback

A(n) __________ is a supply chain whose members act like a unified system. A. vertical marketing system B. independent marketing system C. concentrated marketing system D. conventional marketing system E. strategic marketing system

In the United States, the regulation of advertising involves a complex mix of laws and informal restrictions designed to A. protect consumers from deceptive practices. B. stimulate domestic demand. C. reduce international competition. D. promote social marketing. E. institutionalize pull strategies.

Yesenia is working on an advertisement to promote consumer awareness of the danger of solar radiation causing skin cancer. Yesenia's first concern will be to A. get consumers' attention. B. enlist creative advertising designers. C. make sure firms producing sunscreen lotions approve. D. collect a petition in support of controls against global warming. E. use public relations to buy advertising space.

_______ channel conflict occurs when there is disagreement or discord among members at the same level in a marketing channel, such as two competing retailers or two competing manufacturers. A. Horizontal B. Independent C. Conventional D. Coercive E. Vertical

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can A. organize cooperative agreements among competing manufacturers to reduce oversupply. B. reduce inventories needed to satisfy retailers' demand. C. use exclusive geographic territories to centralize production. D. effectively eliminate the need for a dispatcher. E. replace independent supply chains with corporate supply chains.

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carl must recognize that each IMC alternative A. will stand on its own. B. is part of the whole. C. is part of noncommercial free speech. D. doesn't help communicate value to the consumer. E. is dictated by the nature of the supply chain.

Chet was struggling selling his golf photography outside a PGA event. When he offered a tee shirt with a golf photograph on it with any framed golf photo, sales picked up. Chet discovered the value of sales promotions—specifically _________—in encouraging customers to buy. A. deals B. premiums C. samples D. sweepstakes E. rebates

In the "create advertisements" step when planning and executing an ad campaign, often the execution style for the ad will A. determine the pretesting pulse of the ad. B. dictate the type of medium used to deliver the message. C. determine which push-pull strategy will accompany the ad. D. dictate how advertising will be flighted. E. deliver integrated marketing.

Informative advertising is used to A. prompt repurchase of a product. B. create and build brand awareness. C. trigger an emotional response. D. gather information about consumers. E. convince consumers to take action.

Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back. A. cross-docking exchange B. electronic data interchange C. vendor-managed inventory D. vertical conflict reduction E. radio frequency identification

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated? A. never, after the first product/service B. once, for each individual product and service C. once, by each management team member D. only when a product is removed from the line E. when the prior year's budget is exceeded

Whenever the major beverage companies develop a new product, they advertise it heavily using television and print media. These efforts are designed to A. generate goodwill for the company. B. pull the product into retail stores through consumer demand. C. signal strategy changes to market competitors. D. make it easier to do posttesting. E. push the product into retail stores so customers can purchase it. Consumer advertising is usually part of a pull strategy, in which the goal is to have consumers demand the product of retailers. In contrast, a push strategy promotes a product to members of the supply chain.

Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of A. sales tactics. B. channel conflict. C. retail strategy tension. D. passive aggressive behavior. E. a failure of EDI processes.

Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had supposedly been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as A. loss leader pricing. B. desperation selling. C. bait and switch. D. off-season deceptions. E. inventory reduction pricing.

Franchising involves a(n) __________ vertical marketing system. A. cooperative B. corporate C. contractual D. administered E. conventional

George wants to increase the number of visits to his insurance firm's website, which specializes in rental insurance for college students. George decides to target Internet browsers who use the terms apartment, insurance, and student. Which of the following will be most helpful to George? A. Twitter B. corporate blog C. Google AdWords D. Google Chrome E. Google Analytical Thinking

If a market penetration pricing strategy results in lower per-unit cost, competitors might be discouraged from entering the market because A. selective consumer demand will increase gross profit margins. B. a high/low cost-based pricing strategy will not work. C. they would likely need to quickly produce a large volume in order to compete. D. profits would increase too rapidly. E. they would be able to advertise only to the same target market as the firm that introduced the original product.

In an administered vertical marketing system, A. no individual participant has control over the others, since a third-party administrator oversees the entire supply chain. B. independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict. C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. D. independent firms join together formally to decide as a group how the marketing channel will operate. E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is A. collaboration creates transactional relationships. B. the most powerful member of the supply chain always wins. C. each party wants something from the others. D. the participants must create the best possible EDI system. E. retail floor salespeople need emotional support from management.

Sales promotions include all of the following except A. coupons. B. rebates. C. online ads. D. point-of-purchase displays. E. free samples.

The __________ is the combination of media used and the frequency of advertising in each medium. A. media plan B. media buy C. media mix D. communications tactical plan E. communications operational plan

The advantage of zone pricing to the seller is the shipping charges typically A. are not marked down during the off season. B. complement the advertising allowances. C. reflect more closely the cost of delivery. D. result in a cumulative quantity discount. E. are the same for all shipments, making it easy to calculate total price.

The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing A. supply chain relationships. B. extreme value retailing efforts. C. increased customer loyalty. D. global private-label brands. E. omnichannel retailing.

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of A. data warehousing. B. a push marketing strategy. C. vendor-managed inventory. D. manufacturer-managed distribution. E. cross-docking.

The manufacturer of Beats by Dr. Dre headphones decides to advertise in the "lifestyles" sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? A. The message was decoded incorrectly. B. The message was not transmitted. C. The message was not received by its intended audience. D. The message was encoded incorrectly. E. The sender was not clearly identified.

_______ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers. A. Cross-docking B. UPC C. Just-in-time (JIT) D. Pick ticket E. Lead time

Although conflict is likely to occur in any supply chain, it is generally more pronounced when A. the supply chain members are geographically too close to each other. B. manufacturers pressure retailers. C. retailers pressure manufacturers. D. the supply chain members are independent entities. E. the economy is booming.

An advertising plan is crucial to an ad campaign because it A. is the basis for sales commissions. B. is required by the accounting department. C. offers insights into the creative leadership of mass media buyers. D. will later be used to measure the success or failure of the campaign. E. stimulates demand for a product category.

Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect A. a 10 percent decrease in quantity demanded. B. a 2 percent increase in quantity demanded. C. a 10 percent increase in quantity demanded. D. a 2 percent decrease in quantity demanded. E. a 5 percent decrease in quantity demanded.

Because PSAs are a special class of advertising, FCC rules require A. consumers to listen to them. B. court approval before they are aired. C. all advertisers to contribute to them. D. broadcasters to devote a specific amount of free airtime to them. E. that they use only the informative or reminder advertising appeals.

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are A. difficult to define. B. more important than great products. C. always situated near supply chain members. D. a competitive advantage that few rivals can duplicate. E. almost always locations next to big-box discounters.

Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment. A. quick-response packaged B. ahead of the curve C. lead time synchronized D. floor-ready E. synthesized

Compared to other IMC alternatives, advertising is extremely effective for A. closing a sale. B. decoding messages efficiently. C. reducing the potential for noise. D. creating awareness and generating interest in a product. E. repositioning consumers in the AIDA model.

Dawn works for a firm that buys products directly from the manufacturer and resells them to retailers, who then sell the products to consumers. Dawn works for a A. retail distribution center. B. retail jobber. C. store representative. D. wholesaler. E. manufacturer's representative.

Each generation of cell phones has provided greater clarity, range, security, and multifunctionality. If marketers of cell phones use these features as a basis for pricing, they would be using _______ pricing. A. cost-based B. EDLP C. reference-based D. improvement value E. market-based

Especially in the fashion industry where styles and trends change rapidly, a quick response system can A. allow retailers to better forecast long-term demand. B. reduce logistical overlay. C. increase cross-docking promotional effectiveness. D. align deliveries more closely with actual sales. E. allow manufacturers to introduce unpopular styles and still be successful.

Even the best marketing communication can be wasted if the sender does not first A. generate consumer action. B. offer testimonials from past consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. stimulate interest among stealth marketing consumers.

If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using A. department stores. B. specialty stores. C. category specialists. D. off-price retailers. E. supercenters.

In a __________ pricing tactic, sellers advertise very low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price. A. fixed offer B. reference C. seasonal D. bait-and-switch E. cost-based

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is not a good characterization of the flow of information in a supply chain? A. A manufacturer will send and receive information from buyers, stores, and distribution centers. B. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers. C. Distribution centers will send and receive information from stores and manufacturers. D. Customers will send and receive information from stores and manufacturers. E. Buyers will send and receive information from stores and manufacturers.

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy. A. improvement value B. odd-even prices C. everyday low pricing D. reference prices E. cost of ownership

Jenna has a large family and likes to stock up on large packs of basics like toilet paper, paper towels, and large bottles of condiments like ketchup. Jenna would most likely prefer to shop for these items at A. a convenience store. B. an off-price retailer. C. a specialty store. D. a warehouse club. E. a category killer.

Jennifer has worked for many years reviewing and approving print ads for her firm. She has memorized a checklist of key points to review. Which of the following would not be on her checklist? A. headline B. body copy C. brand elements D. photo credits E. subheads

Manufacturers trying to implement a just-in-time delivery system need to start with A. routing software. B. shipping schedules. C. distribution center design. D. knowledge of customer demand. E. intensive distribution.

Manufacturers use cash discounts primarily because it allows them to benefit from A. uniformed delivered pricing. B. seasonal slotting allowances. C. price skimming. D. the time value of money. E. high/low pricing.

Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the __________, which refers to a decrease in unit cost as product volume increases. A. slotting allowance benefit B. price fixing return C. improvement value effect D. experience curve effect E. cumulative bundling benefit

Retailers focusing on increasing sales to their best customers are attempting to A. slay the category killers. B. compete with off-price retailers. C. drive their supply chain. D. increase their share of wallet. E. combat the inroads made by big-box specialty retailers.

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, "Ask your doctor about (our medicine)." In addition to creating awareness about their drugs, the companies are most likely hoping to A. reduce deceptive advertising. B. signal encoding symbols to simplify the feedback loop. C. offer objective-and-task marketing communications. D. stimulate interest, persuading consumers to investigate further. E. promote public interest social responsibility communications.

The advertising message "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes" suggests that advertising messages need to A. emphasize technology. B. focus on quality. C. inform consumers about opportunities. D. focus on solving problems. E. engage in mild puffery.

Which statement best describes personal selling? A. It involves a larger audience than advertising. B. It is primarily indirect communication. C. It is primarily informational communication, not persuasive communication. D. It is the two-way flow of communication between a buyer and a seller. E. It involves encoding while advertising involves only decoding.

_______ channels are used to reach a broad audience; _______ channels are used to reach a narrower segment of consumers. A. Niche media; mass media B. Media mix; media buy C. Media buy; media mix D. Mass media; niche media E. Promotion; institutional

_______ occurs when members of the marketing channel collude to control the prices passed on to consumers. A. Loss leader price fixing B. Bait-and-switch price fixing C. Horizontal price fixing D. Vertical price fixing E. Predatory pricing

__________ is a particularly good advertising medium for groceries and fast food. A. Television B. Internet C. Direct mail D. Radio E. Newspaper

__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations. A. Department stores B. Off-price retailers C. Discount stores D. Extreme value retailers E. Category specialists

__________ offer an inconsistent assortment of brand-name merchandise at low prices. A. Department stores B. Specialty stores C. Category killers D. Off-price retailers E. Full-line discount stores

__________ pricing tactics lower the price of a product below the store's cost. A. Fixed B. Zone C. Regular D. Loss leader E. Cost-based

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods and groceries, as well as health and beauty aids. A. Category killers B. Specialty stores C. Factory outlets D. Extreme value retailers E. Convenience stores

___________ means converting the sender's ideas into a message, which could be verbal, visual, or both. A. Decoding B. Integrated marketing communications C. Precoding D. Encoding E. Tracking

Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal is to A. maximize rating points. B. minimize marketing communication expenditures. C. shift encoding into decoding. D. use personal selling to augment public relations. E. drive the receiver to action.

For a price skimming strategy to work, the product or service must A. be bundled with products or services already available on the market. B. be similar to what consumers are already comfortable with. C. have wide market appeal. D. have low production costs. E. offer consumers some new benefit currently unavailable in alternative products.

Generally, a _______ represents either a short-term response to a competitive threat or a broadly accepted method of calculating a final price for the customer that is short term in nature. A. pricing strategy B. reference price C. high/low strategy D. loss leader price E. pricing tactic

Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity. A. luxury B. variable C. monopolistic D. intensive E. exclusive

In a corporate vertical marketing system, A. conflict tends to be a major problem. B. independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict. C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives. D. independent firms join together formally to decide how the marketing channel will operate. E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of A. rejection of advertising. B. subliminal advertising. C. product underwhelm. D. IMC strategy. E. the lagged effect.

Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow A. wholesalers to evaluate promotional discounts. B. retailers to improve the shopping experience through an improved product line assortment. C. customers to increase their share of wallet spending. D. retailers to avoid competition from knock-off products. E. customers to try before they buy.

Some consumers make it a point to go shopping the day after Christmas to stock up on discounted wrapping paper and bows for the following year. These consumers are A. enjoying the benefits of size discounts. B. taking advantage of everyday low pricing strategies. C. avoiding bait and switch strategies. D. taking advantage of zone pricing discounts. E. taking advantage of seasonal discounts.

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations, and has contributed to the rapid growth in A. media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

The most common type of contractual vertical marketing system is a A. wholesale agreement. B. joint venture. C. licensing arrangement. D. partnership. E. franchise.

Traditionally, retailers treated all their customers ________, but today, successful retailers ________. A. based on demographics; treat customers based on share of wallet B. based on share of wallet; treat all customers identically C. identically; base customer attention on demographics D. based on demographics; provide more value to mobile commerce customers E. identically; provide more value to their best customers

When Apple Computer Company introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Hoping to attract innovators and early adopters, Apple was most likely pursuing a __________ pricing strategy. A. market penetration B. slotting allowance C. price fixing D. reference price E. price skimming

When marketers establish a price floor and a price ceiling for an entire line of similar products and then set price points in between for differences in quality among the products, they are using a _______ pricing approach. A. loss leader B. zone C. price bundling D. price skimming E. price lining

In developing marketing strategies, why is price often the most challenging of the four Ps to manage? A. because most managers feel it is the least important element of the marketing mix B. because it is the least understood element of the marketing mix C. because it has to be based on the promotion budget for the product D. because it is difficult to calculate markups for products E. because managers don't understand the relationship between benefits and costs

_______ measures consumers' sensitivity to price changes. A. Cross-price elasticity of demand B. Price elasticity of demand C. Income elasticity of demand D. Competitive profit elasticity of demand E. Inelastic demand price parity

Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on A. a demand curve. B. the law of averages. C. multiple regression analyses. D. target return strategies. E. a sales orientation.

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the A. contribution per unit. B. fixed cost margin. C. break-even point. D. unit cost. E. marginal revenue.

Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that A. rarely is the lowest-price offering the dominant brand in a market. B. prestige products need to be competitively priced. C. companies can gain market share by offering low-quality products at a high price. D. total value equals total cost minus variable costs leading to price escalation. E. price wars are the way to become the dominant brand.

Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because there were few places to dock these boats. Yachts and spaces to dock them are an example of A. substitute products. B. purely competitive products. C. status quo pricing products. D. complementary products. E. competitive parity products.

The improvement value method and the cost of ownership method are two approaches for setting prices that are _______ methods. A. cost-based B. competitor-based C. production-based D. value-based E. market-based

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy A. leads the marketer to being the low-cost seller. B. is supported by consistent advertising and distribution strategies. C. challenges consumers to discard their perceptions of value. D. is consistent with a competitive target return strategy. E. is measured against the competition.

Break-even analysis is useful because it allows managers to A. quantify the relationship between price elasticity and product elasticity. B. reposition products based on their break-even positioning revenue. C. estimate the quantity they will need to sell at a given price to break even. D. determine the relationship between price and quantity demanded. E. analyze the different elements contributing to their variable costs.

When firms set prices similar to those of competitors, they are following a strategy of A. me-too pricing. B. copycat pricing. C. competitive parity. D. market-broadening pricing. E. industry-standard pricing.

Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is making 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a(n) _______ pricing method. A. improvement value B. value-based C. cost-based D. EDLP E. reference-based

In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using _______ pricing. A. improvement value B. EDLP C. reference-based D. cost of ownership E. premium

In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a _______ pricing strategy. A. maximizing profits B. target profit C. target return D. competitive parity E. sales oriented

Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Ryan told the manager to always match the gasoline prices of the other store. Ryan is using a _______ pricing strategy. A. maximizing profits B. target profit C. target return D. status quo E. sales

Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering A. a top of market strategy. B. the value of quality. C. advantageous pricing. D. premium pricing.

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is A. 100 units. B. 4,000 units. C. 20 units. D. 1,000 units. E. 250 units.

When a firm sets its pricing strategy based on how it can add value to its products or services it has embraced a(n) _______ orientation to pricing. A. industry B. sales C. competitor D. production E. customer

MARKETING FINAL Chapter 14-19 multiple choice

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