marketing practice exams 3

Which of these examples demonstrates how the digital marketspace creates customer value through form utility?

Bluefly.com, an apparel company, encourages customers to create their own uniquely designed shirts

One of the consumer benefits of online shopping is that consumers often do not pay sales tax on online purchases. However, a recent US Supreme Court ruling has altered this benefit in which of the following ways?

It allowed states to collect sales tax from companies that have no "physical presence" in the state.

Karl Wholesale is an independent wholesale company that carries an inventory of children's toys. Karl Wholesale sells their products to a number of different retailers. Karl Wholesale does not offer credit, they don't do market research, and they don't offer sales training. What type of Wholesaler is Karl Wholesale?

Jobber

Yesterday, Jacob's bike broke. He's had his bike for 10 years and decided to invest in another one. He's considered going to a few brick-and-mortar stores or using online retail. Which of the following would be the most important reason for Jacob to use electronic retailing to find a new bike?

Large number of alternatives

Julia is a very sporty girl; she regularly goes to the gym. She loves wearing cool and comfy gym clothes, so she starts searching for brands. After researching, Julia ends up wanting to buy Lululemon leggings. She is trying to decide whether to order the pants from Lululemon's webpage or go to the Lululemon store in the mall. Lululemon's webpage is a (n) ______ channel, while the Lululemon store (which is owned by Lululemon) is a (n) _______ channel.

Direct, Direct

Nike is looking to increase its market share in athletic wear. The table below shows data about the market. Nike Athletic Wear Total Sales $9,000,000 Nike Athletic Wear Gross Margin $2,000,000 Total Industry Sales $90,000,000 Total Industry Marketing Effort $15,000,000 Nike Athletic Wear wants to expand its market share by 4 points by investing in additional marketing effort. What is the expected profit or loss if their strategy is successful?

Loss of $100,000

While at dinner, Corey saw his friend Ethan with a cool shirt from All Saints. Corey took out his phone to look up the shirt on Amazon and ended up ordering the shirt on his iPhone. What type of commerce did Corey engage in?

M-commerce

If you visit a McDonald's in another country, it will not be the same McDonald's that you know in the United States. McDonald's develops their menu in each country based on the tastes and interests of that country. In Egypt, you will find the McArabia, a flatbread sandwich, and in France, you will find macaroons on the menu. What type of global marketing approach is used by McDonalds in its menu development?

Multinational marketing

Francesca's French Fry Factory has an annual fixed cost of $30,000. Each order of fries has a variable cost of $0.25. During the 2020 fiscal year, 55,000 orders of fries were sold. Francesca's French Fry Factory aims to make a $80,000 profit. What should they have charged per order of fries using the Target Profit Pricing model?

$2.25

Suppose Downtown Limo Service is expecting a large influx of customers due to an upcoming event in town. The manager, Shea, is trying to determine what price she should charge to rent her 40 limos. She has total fixed costs of $8,000 and variable costs of $20 per limo. She is expecting all the limousines to be rented. What is the breakeven price Shea should charge for her product?

$220 per limo

Suppose that after extensive market research, a new product is expected to sell to consumers at $500. The retail markup percentage is 35%, and the manufacturer of the product is using demand-minus pricing. Using this information, what should the wholesale price of the product be?

$325.00

Attire is an online store that focuses on selling trendy clothing for men, women and children. They try to make shopping very enjoyable for their consumers as they promote their clothing with engaging videos. Attire can be described as a(n)

Transactional Website

The recently-renegotiated trade agreement covering relations among Canada, the U.S., and Mexico is

USMCA

A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of the following would be the wisest wholesaler choice for its requirements?

a rack jobber

Under Armour just released their new Independence Day Collection featuring the HOVR Sonic Running Shoe. The shoes cost $90 to manufacture and have a selling price of $200. What is Under Armour's percentage markup?

55%

Because Gainesville is a major college town, Publix wanted to open a store in a location where grocery shopping would be easy and convenient for college kids. Since many college kids do not have cars, Publix opened a store right on the edge of campus - just a 5-minute walk from the business school. What factor was Publix focusing on when picking a site location?

accessibility

While shopping at Publix, Julia saw that a pound of high-quality Colombian coffee had a label on it that claimed the usual price of the bag was $20 but it was currently on sale for $15. Julia decided to buy a bag of the coffee since she felt that she was getting a good deal. The coffee label illustrates

an external reference price

Compared to marketing strategies, marketing tactics generally involve actions that

are detailed day-to-day operational decisions.

Store layout, colors, lighting, and music are all considered part of a store's retail

atmosphere

A dynamic pricing policy allows marketers to respond to

changes in demand, cost, and competitive factors.

Extending credit to customers is an example of a function

facilitating

Generally, as the proportion of middle-income households in a country , the _________ a nation's purchasing power.

increases; greater

A cost focus strategy refers to one of the generic business strategies that

involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments.

If the CEO of the Clorox Co. were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a objective

market share

The Migos Emporium is a small store in a mall in Atlanta. They have a narrow selection mostly centered around sunglasses, but they provide excellent service to their customers. What type of store is the Migos Emporium?

specialty store

Starbucks Coffee has a strong brand image and an extensive global supply chain. However, Starbucks Coffee also has higher costs than its competitors. Starbucks has recently identified high demand for coffee houses in the Middle East and parts of Asia where the firm currently has minimal presence. Which of the following SWOT analysis component(s) has/have NOT been mentioned in this analysis?

threats

ADT Security Systems has been working on improving their products and is focused on increasing their market share in the home security industry. In order to get their name around they've reached out to an external organization whose task is to sell the ADT products to customers (this external firm does not take physical possession of the ADT products). What type of channel member is the outside firm?

Agent

Which of the following statements about the factors that influence demand is true?

As real consumer income increases, the demand for a product increases.

Jenny Humphrey created a fashion-forward scrunchie line targeted towards teenagers. Jenny has been selling the scrunchies directly to consumers using her website, ScrunchiesbyJH.com. Jenny's sales fall into which class of Internet use?

Business-to-Consumer (B2C)

Albert owns a Gator football merchandise company. He had heard that the football merchandise industry's market growth rate would increase in 2020.In preparation for the season he decided to invest in expanding his range of merchandise by purchasing new supplies and machinery. However, the 2020 football season did not produce a higher growth rate but instead saw the lowest growth rate in the past 10 years. Luckily, Albert had prepared for this possibility and had a sequence of actions already outlined for him to take to reduce his losses. What component of the marketing plan allowed Albert to be prepared for the lower market growth?

Contingency Plan

Bloomingdale's offers a broad selection of items at high prices. It is known for being a high-end store due to the extensive services that it offers. From luxury purses and belts, to sneakers and apparel, you can find a wide range of products. Bloomingdale's is an example of what type of retailer?

Department store

Puppy's Paradise is a manufacturer of dog treats and toys. They have become so successful that they have decided to market their products overseas. They have decided that, since their company is doing so well in the U.S., they will market the same way in the foreign markets. This is an example of what type of marketing approach?

International marketing

Regarding goals and objectives, which of the following statements is most accurate?

Objectives convert an organization's mission and business into long- and short-term performance targets.

Adam is trying to find a very specific action figure for his little brother's birthday. He winds up on what seems like a reliable site for vintage action figures and finds exactly what he's looking for. The site also promises 2-day delivery for free, which makes Adam very happy. However, several weeks go by and he still hasn't received anything, even though money has already been taken out of his account. When he tries to email the company, his email bounces back as undeliverable. What has Adam most likely fallen prey to?

Pharming

Disney is one of the biggest companies in the world, with theme parks and a cruise line that attract millions of visitors. Disney enjoys very strong customer loyalty that helps them continue to bring in higher and higher revenues. Disney has recently determined that they do not attract a lot of visitors from South America and Africa, but both regions have a strong consumer base and high demand. What two aspects of the SWOT analysis are described in Disney's situation?

Strength and Opportunity

Those in staff positions have the authority and responsibility to advise people in line positions

but cannot issue direct orders to them.

Nike is a recognized innovator in the use of for creating interactivity, individuality, and customer relationships. Its NikeID product configurator invites customers to create one-of-a-kind shoes, messenger bags, and backpacks by simply answering a few questions and viewing the finished product from numerous angles.

choice boards

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market products to large retail chains like Walgreens that distribute them to their stores across the nation. They also sell to drug wholesalers that sell to the remaining independent drugstores in the U.S. What method of distribution best describes that used by pharmaceutical companies in this example?

dual distribution

Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, and research and development) at the ________ level, where groups of specialists actually create value for the organization.

functional

McDonald's realized that a lot of food was being wasted due to overproduction when the food was pre-cooked. Additionally, their customers were not able to enjoy freshly made food. As a result, McDonald's only cooks or assembles food after a customer makes an order. What type of logistics approach is McDonald's using?

just-in-time inventory management

Using _________, many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and induce additional store traffic

loss-leader pricing

In the strategic marketing process, the is the result of the planning phase that proceeds to the implementation phase where it is carried out

marketing plan

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of global marketing product and promotion strategy?

product adaptation

Jenn goes to a new sporting goods store that just opened up called "Rick's Sporting Goods" because she needs to buy a new foam roller. When she gets there, she sees an elaborate stage set. After buying her foam roller, Rick Astley jumps out and invites Jenn to dance and sing "Never Gonna Give You Up" on stage with him. What sort of retail strategy is Rick's Sporting Goods pursuing?

retailtainment

The essence of marketing evaluation is comparing results with planned goals to identify deviations and

taking corrective actions

Blair Waldorf design has 40% market share and a 40% share of voice in the clothing industry. Research showed that the industry's total marketing effort is $6 million, and Waldorf's gross margin is $6,842,000. What is the short-term gain or loss for Waldorf design if it successfully increases its market share by 2 points by investing in the recommended additional share of voice?

$162,210 gain

Rick and Morty are in the business of producing and selling time machines. Their total fixed costs are $1.3 million, and they have a variable cost of $120 per unit. They invested $4.0 million into their business and have a target ROI of 20%. Rick and Morty believe they can sell 1,100 time machines. What should the price of each time machine be?

$2,029.09

Cookie Dough Deluxe is a raw cookie dough manufacturer that sells to numerous bakeries in Nashville through a distributor that uses a 25% markup. If Mimi's Sweets, a popular local bakery retailer, sells their baked cookies for $6.00 per dozen, with a markup of 45%, what price should Cookie Dough charge per dozen using the Demand-Minus Pricing method (rounded to the nearest cent)?

$2.48

Forever Quilting makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Forever Quilting's unit variable cost for its kits is

$50

A retailer called Gabby's Gadgets wants to calculate its net sales per square foot. They had $500,000 in sales last year, $100,000 in returns, and the store size is 800 square feet. What is their net sales per square foot?

$500 per square foot

The Gator Inn (which has 200 rooms) expects a large crowd for the UF/FSU game, which usually brings in enough visitors to reach 90% occupancy. With total fixed costs of $9,876 and a unit variable cost of $5, what price should the Gator Inn charge for one night in order to break even? Round your answer to two decimal places.

$59.87

The owner of the Chipotle on University is looking to get a new machine to build all the steak bowls. He has heard too many complaints about how long it takes to go through the line. The amount he would have to invest in this machine is $20,000, and he wants a 10% return on investment in the first month. He typically sells 2,500 steak bowls monthly, with a variable cost of $5 per bowl. Fixed costs are $10,000 per month. What should the Target Return-On-Investment price be?

$9.80

Tesla is developing a new and long-lasting battery for their Model S cars. Elon Musk decides to create the PERT chart below to plan and supervise the launch. He identifies different tasks and the amount of time required for each task to have a successful launch. The numeral on each link represents the number of months required to complete the task. How fast can Tesla launch the batteries (in months)?

28

Nike holds 30% market share in the running shoes market and also has a 30% share of voice. If Nike is looking to increase their market share to 45%, how much would Nike's share of voice need to be?

52.5%

Gigi is the manager of the BigLots store in Tampa, Florida. She wants to compare her stockturn rate to other BigLots locations. She has $500K of total sales. The beginning inventory for the store is $23K, the ending inventory is $37K and the cost of goods sold is $210K. BigLot's stockturn rate is:

7.0 turns per year

Mrs. Butterworth Maple Syrup budgets its marketing efforts using competitive parity. Its current market share and share of voice are both 42%. With the release of a new cannabis-infused flavor, Mrs. Butterworth wants to get its market share even higher. If Mrs. Butterworth wants to increase its market share to 48%, how many additional share of voice points do they need?

9

In October 2021, Amanda launched her new winter clothing line that keeps you warm even in the coldest weather. She projected that her sales would be $200,000 by the end of January. However, Amanda lives in New York where it was unexpectedly warm all winter. Amanda lost a lot of money because she was unable to adjust quickly to the warmer conditions. From this information, we can conclude that Amanda's marketing plan did not include:

A Contingency Plan

Monica has decided to launch her own coffee shop to compete with Central Perk, with the help of her friends Rachel and Phoebe. She has spent months planning the marketing of her new business and has even established a course of action, known as a ________, if sales do not meet her expectations.

Contingency plan

Francesca is looking to buy some summer outfits. She decides to go to Zorro (a very popular retail store). She finds a lot of cute outfits and patiently waits in line to buy them. Zorro is a franchisor based in Spain has many franchisees around the USA, as well as other countries. This is a _________ channel.

Contractual

Gigi Hadid was looking to purchase outfits for her winter break trip to Paris. She decided to go shopping at LillyPalooza (a popular retail clothing store). Gigi found lots of stylish winter clothes to take with her on her trip. LillyPalooza is a franchisor based in Italy and has many franchise stores around the United States, Canada, and other Version 1 10 countries. What type of channel is LillyPalooza using?

Contractual

Rock n Rags sells girls' clothing that fits a multitude of age groups. Their marketing team is looking to introduce new strategies in order for Rock n Rags to attain a larger share of the market for girls' clothing. In order to most effectively grow their market share, which strategy should they use, based on the research discussed in class?

Create a college brand ambassador program to expand their sales force

Kate and her friends decided to Uber to a concert downtown. When the concert ended, they called another Uber and noticed that the price was twice as much as it was earlier in the day. Because they did not drive, they had no other option but to pay the higher amount for the Uber. In this example, Uber is using what type of pricing strategy?

Dynamic pricing

Keep Movin' Co. sells surfboards and skateboards to their customers. In the last month, employees at Keep Movin' Co. have noticed that a few skateboards are missing from the shop. They don't want this to keep happening so they've installed a microchip into each item that tracks when it is purchased and automatically sends the information to their computer system. Which concept is Keep Movin' Co. using to monitor their product inventory?

Electronic Data Interchange (EDI)

Emily is always shopping at her favorite store, Bloomingdale's. She is constantly buying items for her husband, her daughter, and her granddaughter. One of her favorite employees at Bloomingdale's is Kirk. The last time Emily went shopping, Kirk told her about a new credit card that Bloomingdale's is offering to its customers that can be used only at their stores. Which channel function does the Bloomingdale's credit card represent?

Facilitating Function

Dan has created novelty Gator bottle openers and is gearing up to sell them on his new website. The cost to manufacture his Gator bottle opener in the United States is $3.50 a unit, while the cost to manufacture it in China is $1.25. He is intrigued by this cost difference and chalks it up to a disparity in labor wages between the countries. He has decided to outsource his manufacturing operation to China to achieve lower costs and higher margins. Which of the following does Dan's decision illustrate?

Foreign Competition

Apple just recently launched a new iPhone and is looking to implement an effective marketing strategy. In developing a marketing strategy, the company decides to create a single video advertisement that will be shown in all countries around the world. They will only alter the musical soundtrack in the advertisement to align with the musical taste in each country; the video will be constant across countries. What global marketing approach is being used by Apple?

Glocalization

Pandora has realized that their customers are no longer huge fans of their bracelets and that it would be better to invest in other products like necklaces and rings. Their plan is to begin to let the market share of their bracelets decrease over the course of the upcoming years. They do not want to discontinue bracelets permanently, but they want to make sure that they are investing in products that will generate the most income. Which of the following most accurately describes Pandora's objective for their bracelets?

Harvest

Samantha owns a store selling women's workout clothes. She purchases inventory from well-known manufacturers. The inventory is shipped to her store via FedEx from the suppliers' warehouses. Samantha's sales associates do a great job of waiting on her customers and ringing up sales efficiently. Which concepts appear in this example? i. Logistical function ii. Transactional function iii. Facilitating function iv. Just-in-Time Inventory v. Vendor-Managed Inventory

I and II only

In November 2021, Sarita and Sonali launched new seasonal drinks at their coffee shop. However, when they looked at how sales were doing in December 2021, they saw they were not selling very many new seasonal drinks. So, they sent some "mystery shoppers" to their coffee shop location. Based on these visits, Sarita and Sonali found out that their employee, Erica, was not informing customers about the new menu items. In addition, Erica, a minimum-wage worker who could really use a raise, said she was never told if or how she should promote the new menu. In order to improve the implementation of the new seasonal drink menu, what step(s) should the coffee shop take? I. Communicate II. Seek Feedback III. Reward Performance IV. Schedule Tasks

I and III only

Lululemon is known for its high-quality products and great customer service. It is currently facing a severely competitive U.S. market and is being targeted by Nike, Gap, and Fabletics. However, Lululemon has recently recognized the growth potential in emerging markets in Asia. Which of the following SWOT analysis component(s) has/have been mentioned in the analysis? i. Strengths ii. Weaknesses iii. Opportunities iv. Threats

I, III & IV only

American Eagle is analyzing the sales of their various products. They find that relatively few of their products, for example jeans and shorts, make up a very large portion of their sales. What concepts(s) discussed in the lecture are reflected here? I. Corrective Action II. 80/20 rule III. Sales Component Analysis IV. The Marketing Audit

II and III only

Viktor's Vitamins manufactures potent once-a-day multi-vitamins. Since the start of the coronavirus pandemic, they have become very popular in the United States. He wants to market these vitamins to other countries to increase profits. Since his sales are flourishing in the United States, he has decided to continue manufacturing here in the U.S. and market the vitamins the same way he does in the U.S. in various foreign markets. This is an example of what type(s) of marketing approach?I. Licensing II. Exporting III. International marketing IV. Multinational marketing V. Direct InvestmenT

II and III only

Sebastian owns Oahu, an açai bar, which currently operates in Ecuador. He wants to sell his products in Peru. After analyzing his options, he decides that he wants a partner in Peru so the risks are shared and market entry is easier. What type of market entry strategy is Oahu using?

Joint Venture

Chick-fil-A has limited storage capacity for the ingredients needed to make their delicious chicken sandwiches. They schedule the ingredients to be delivered every Monday and Thursday each week. This reduces the space and cost required to store their ingredients. What type of inventory management is Chick-fil-A using for their ingredients?

Just-in-time Inventory (JIT)

You have decided that you want to take your brand abroad, but you are concerned with the level of risk in bringing your brand to a new country. To mitigate this risk, you allow a different company to manage your business for you under your brand name in exchange for royalties. Which market entry strategy did you employ?

Licensing

Hannah Montana is working on her annual marketing budget for her music sales. She decides to promote her music to a new target market: women ages 60-65.In order to do this, she decides that she has to distribute her music in additional stores as well as run advertisements during television programming that the age group tends to watch. As she considers each of her new marketing efforts, she records their costs into a spreadsheet. Finally, Hannah adds up all of the costs to create her marketing budget for the year. What method of budgeting is Hannah Montana using to create her marketing budget?

Objective & Task

Lauren recently ordered a dress on a boutique website called 'Vintage Finds'. Later that day, she received a call from her bank that her credit card information may have been stolen, due to a mysterious $300 charge from a gas station. She contacts 'Vintage Finds' and they apologize for the issue, explaining that they just learned that a fake Vintage Finds website has been intercepting their orders. This is an example of which form of Internet fraud?

Pharming

Ryan is really into professional sports. He decides to open a sporting goods store that sells jerseys, apparel, and memorabilia from the NFL, NBA, MLB, and NHL. Throughout the store there are certain attractions/experiences customers can participate in such as a baseball pitching cage that measures the speed of a customer's pitch and an NFL field goal kicking simulator. Ryan hopes that these attractions will engage customers and encourage them to spend more time in his store. What retailing practice is Ryan using?

Retailtainment

It's the end of the quarter, and Dove is evaluating their performance as a result of their marketing efforts. They look at their sales and determine that 45% of their sales consists of body washes, 25% consists of shampoos, 15% consists of hand sanitizers, 10% consists of soap bars, and 5% consists of deodorants. What is Dove using to evaluate their performance?

Sales component analysis

Andrew is part of the launch of a new ride at Disney. Disney likes to know how long each project will take so that it can allocate its resources correctly. Andrew's manager asked him to figure out how long it will take to get the new ride launched, so Andrew produced the PERT chart below. The numbers are in months. Yesterday, Andrew's boss learned that Universal is launching a new ride in 24 months, and he wants to know how Disney can speed up its process to beat Universal to market. Which of the following actions would accomplish that?

Shorten the F-G path by 5 months

Mark works for a large company that has headquarters in France. Mark, along with other company employees, works with many individuals from partner organizations all over the world, including the United States and Japan. Technologies such as Zoom make it easier for Mark and his coworkers to complete their work. What is the factor that facilitates this intercontinental coordination?

Shrinking globe

Publix wants to determine which of two cookie brands has the higher stockturn rate. On January 1st, 2020, Publix held $45,000 of inventory on Tate's Cookies and $60,000 on Oreo. On December 31st, 2020, Publix held $47,000 of inventory on Tate's Cookies and $58,000 on Oreo. The cost of goods sold for the two over the year was $660,000 for Tate's Cookies and $800,000 for Oreo. Which brand had the higher stockturn rate in 2020 and what was it? Round to the nearest tenth.

Tate's Cookies, 14.3

You go to a local retail store looking to purchase a high-end watch. You are willing to pay a high price, but the watch must have superior quality. Which quadrant of the Kahn Retailing Success Matrix would the store you're buying from fall into?

The product brand quadrant

Which of the following is NOT a general problem with cost- and profit-based pricing?

They focus too much on consumer demand

Wawa on W. University Ave. is open 24/7. Wawa is the closest convenience store to campus that is available to customers whenever they need something, such as a bite to eat from the deli, a soda, or chips. What type of utility is created by Wawa being open 24/7?

Time utility

Paris wants to sell his computer so he can afford a fancy new model. He drives to WeBuyComputers and they offer to purchase it for $200. Paris knows that his computer does not have any defects and even has an updated software system, so he believes this price is too low. He checks on howmuchismycomputerworth.org, and sure enough, his exact model is priced at $300. This is an example of

Use of internet as an information source

Madeline is working for an online business that looks to help people build relationships, connecting those who are looking to connect with others whether that is dating or friendships. Her business doesn't sell any products or services to the consumers who visit. Instead, the business generates revenue by selling banner ad space. Which of the following best describes the function Madeline's business performs?

Virtual Community

Katalina joined a Facebook page where Jeep owners post about their Jeeps. The page posts meetups and tips on driving a Jeep. The Facebook page is not an official Jeep page; it is "owned and operated by" Jeep owners. What use of the internet does this Facebook page demonstrate?

Virtual community

A situation where products are bought in a country with lower prices from a manufacturer's authorized reseller, shipped to countries with higher prices, and then sold through unauthorized retailers below the manufacturer's suggested retail price is referred to as

a gray market

Each phase of the strategic marketing process creates its own unique type of output report. Which of the following would be associated with the implementation phase?

action memos that tell who is to do what by when

Julio is working for a company in the clothing industry. His company arranges sales of clothes from various clothing manufacturers to different retailers. His company charges a fixed percentage of every sale made, but does not actually purchase or own any of the clothes. Which of the following best describes the role of Julio's company?

agent

A Tokyo shopkeeper would have been wise to use ________ to verify the accuracy of the new sign in English he purchased for his dry cleaning business. The sign read, "Drop your pants here for best results," which he did not know had another suggestive meaning to native English speakers.

back translation

Taehyung is ordering a meal from McDonald's. He originally plans to buy only a cheeseburger, but when he gets to the register to place his order, the cashier tells him he can get an entire meal consisting of a burger, drink, side and dessert for cheaper than if the items were bought separately. What type of pricing is McDonald's employing in this scenario?

bundle pricing

Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. To meet the demand of his many customers, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the in the channel of distribution.

channel captain

When you view a selection at Amazon.com and see "Customers who bought this (item) also bought...," you are seeing the application of

collaborative filtering

Netflix is a company that delivers DVD movies and TV shows to consumers either by mail or streaming over the Internet. It faces many competitors, but continues to grow both in the United States and abroad. Part of what has driven Netflix's success in recent years is its original content, with movies and shows like Bird Box and Stranger Things, popular programming that cannot be seen elsewhere. Its original content provides Netflix's

competitive advantage

In Detroit, a woman came back from lunch to find a nasty note on her Toyota Camry about failing to support the American economy by purchasing a foreign vehicle. The person who left the note was exhibiting

consumer ethnocentrism

Hard Candy is a cosmetics company that markets the Palm Palette—all the makeup a "girl-on-the-go" needs without a cumbersome makeup bag. It comes in three shades— glam, funky, and girly. Hard Candy specifically targets women who are 20-somethings. Which one of the generic business strategies is Hard Candy using?

differentiation focus

American Airlines decided to terminate its relationship with Orbitz and Expedia, two online ticketing and travel sites, and sell directly through their own website, AA Direct Connect. This is an example of

disintermediation

Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains such as Walgreens. In addition, they sell products to drug wholesalers that sell to independent drugstores in the United States. What method of distribution is being used by pharmaceutical companies?

dual distribution

Yield management pricing is a form of

dynamic pricing

John Deere manufactures and distributes industrial and farm equipment. This type of equipment is considered to be a specialty product. Which type of market coverage does John Deere most likely use?

exclusive distribution

All of these are forms of nonstore retailing except which?

factory outlets

Sally's Soda is a company that owns various soda brands including Coocoo-Cola, Spirit, and Diet Croak. Coocoo-Cola and Spirit are succeeding in the market, but Diet Croak isstruggling. Sally's Soda decides to continue with Diet Croak's distribution where demand exists, but will not invest in marketing the product. Which type of strategy is Sally's Soda using for Diet Croak?

harvest

In Europe, stores called are based on the concept of one-stop shopping for consumers. Such retail stores, which use scrambled merchandising, typically encompass over 200,000 square feet of floor space and offer quality, variety, and low price for food and groceries and general merchandise.

hypermarkets

James recently went to Sam's Club to stock up on dorm room snacks. He was on a mission to find enough Cheez-Its to last him the rest of the semester. Sam's Club offered a case of 12 boxes of Cheez-Its for $18.00. James thought that was a great deal, because one 16 oz. box at Publix would have cost him $6. James was able to pay a lower unit price at Sam's because he was willing to perform which function(s) that retailers usually perform? I. Holding Inventory II. Providing Services III. Breaking Bulk IV. Providing Assortments

i and iii only

The Four Seasons chain of luxury hotels has recently been working hard to bring their traditional direct marketing efforts into the digital age. They now provide podcasts and interactive exhibits that help customers plan activities during their stays. They also maintain a database of customers' specific needs and desires which can be used both to market vacation opportunities and to provide superior service to their guests. Their use of digital technologies to improve their direct marketing is best considered an example of

interactive marketing

American tech companies that use business models based on scale have found China to be an attractive market. Groupon was concerned about their understanding of local culture and laws, and decided to partner with Chinese tech company Tencent to form online deal marketplace Gaopeng, which later failed. Airbnb instead decided to open a separate Chinese home-sharing start-up, Aibiying, which is fully controlled by the Chinese branch of Airbnb in Beijing. Groupon's market entry strategy is best characterized as , while Airbnb is using a(n) strategy.

joint venture; direct investment

Four basic business and management practices are "what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. Which of the following is not one of the four identified in this research?

leadership

The task of assigning the proportional credit to each channel and consumer touchpoint across all online and offline channels for a desired consumer action (such as a purchase) is extremely complex. The practice and techniques used to credit or value a particular channel and consumer touchpoint is referred to as

marketing attribution

Target, an American corporation, has entered the market in a few other countries. Before entering a new country, Target completes a full market study on each individual country. By looking at each country as a separate market, Target was able to market its brand ideally to each country's preferences. What global marketing approach does Target use?

multinational marketing

The department store Nordstrom is well known for its combination of instore, catalogue, and online options that make shopping easy. For instance, when returning a product to Nordstrom, customers can go directly into the store, return it online, or select the curbside return option on the website. What sort of retail strategy does Nordstrom use?

omni-channel retailing

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million in 2013. This is an example of a

prestige pricing strategy

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

price elastic

According to the BCG Growth-Share Matrix, which of the following describes the "success sequence" life cycle of a product?

question mark → star → cash cow

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

raising its price

Trendy Threads is a clothing brand for teenage girls. Currently, Trendy Threads' items are sold in a few department stores in most shopping malls across the US. However, Trendy is not sold in stores such as Target and Walmart. What degree of channel coverage does Trendy Threads use?

selective

For over 25 years, Tyler has owned a store in Florida where he sells all kinds of glasses, from prescription glasses to blue-light glasses to sunglasses. Tyler's glasses are manufactured in China and imported due to lower production costs and faster manufacturing time. Throughout the 25 years that Tyler has been working with the factory in China, he has noticed that shipping and communication have become much more efficient. Which of the following concepts explains this increased speed in transportation and communication?

shrinking globe

The latest in appliance technology allows your refrigerator to send messages to your smartphone and even photos of the interior to remind you of what you need to pick up at the store. Taking advantage of strong consumer demand for technology-enabled products, marketers set prices for these refrigerators at thousands of dollars above other models. These marketers are using a ________ pricing strategy.

skimming

Russell's Ruffalicious is a pet store that sells specialized toys, foods, and services for all pets. The store is currently franchised throughout the United States, but Russell wants to expand his business into other countries, starting with Mexico. Before expanding, Russell performs a cross-country analysis that alerts him that Mexican citizens feel very passionate about buying from Mexican-owned businesses. What sector in a cross-country analysis does this finding relate to?

social