Marketing Test 5
If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective. a. product quality b. cash flow c. survival d. market share e. return on investment
a. product quality
When a satellite dish company uses bundling to combine phone, dish, and broadband Internet access prices, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy. a. psychological b. promotional c. competitive d. cost-based e. competition-based
a. psychological
Marketers generally view ____ as the minimum price a product can be sold for. a. moderate losses b. costs c. profits d. fixed costs e. variable costs
b. costs
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as a. community shopping centers. b. traditional business districts. c. neighborhood shopping centers. d. free-standing structures. e. traditional shopping centers.
b. traditional business districts.
In order to justify direct-response marketing, a product really needs to be priced above a. $5. b. $50. c. $20. d. $10. e. $100.
c. $20.
An example of an emerging type of power shopping center might contain a. JC Penney's, Sears, some specialty shops, McDonalds, and Dairy Queen. b. Liz Claiborne, Van Heusen, Corning Ware, and Mikasa outlets. c. Michael's, Office Depot, T.J. Maxx, and Circuit City. d. a Supercenter Walmart. e. Safeway, CVS, and Subway.
c. Michael's, Office Depot, T.J. Maxx, and Circuit City.
Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be a. the exchange valuations. b. his bill. c. the price. d. his expenses. e. his charges.
c. the price.
A single leader who controls and organizes a marketing channel is called a a. channel champion. b. distribution leader. c. marketing maverick. d. channel captain. e. lead distributor.
d. channel captain.
Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called a. discount stores. b. retail groups. c. hypermarkets. d. warehouse clubs. e. warehouse showrooms.
d. warehouse clubs.
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price. a. base-point b. postage-stamp c. transfer d. F.O.B. destination e. F.O.B. factory
e. F.O.B. factory
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the a. variable costs. b. price elasticity. c. elasticity of demand. d. the sum of fixed costs. e. breakeven point.
e. breakeven point.
For most firms in the United States, demand curves are a. c-shaped. b. completely vertical. c. completely horizontal. d. upward sloping. e. downward sloping.
e. downward sloping.
Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a. demand-based pricing. b. competitive pricing. c. non-price competition. d. price differentiation. e. price competition.
e. price competition.
Matt's girlfriend tells him she wants a cashmere sweater for Christmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a ____ store. a. discount b. convenience c. catalog d. department e. traditional specialty
e. traditional specialty
Marginal analysis involves examining a. the extra revenue produced by the sale of one more product. b. the difference between marginal cost and total cost. c. the extra cost incurred by the production of one more unit. d. the difference between marginal revenue and total revenue. e. what happens to a firm's costs and revenues when production is changed by one unit.
e. what happens to a firm's costs and revenues when production is changed by one unit.
Chapter 15
Chapter 15
Chapter 16
Chapter 16
Chapter 20
Chapter 20
Chapter 21
Chapter 21
The target market of a regional shopping center typically includes at least ____ people. a. 50,000 b. 150,000 c. 250,000 d. 100,000 e. 25,000
b. 150,000
What equation shows organizations the relationship between price and profit? a. Total Costs = (Price x Quantity Sold) - Profits b. Price = Profit per Item x Number of Units Sold c. (Price x Quantity Sold) - Total Costs = Profits d. (Price - Profits) ´ Total Costs = Sales e. Total Variable Costs + Total Fixed Costs = Sales - Profit
c. (Price x Quantity Sold) - Total Costs = Profits
Which of the following is the most commonly used channel for distributing business products? a. Producer, agents, industrial distributors, organizational buyers b. Producer, industrial distributors, organizational buyers c. Producer, agents, organizational buyers d. Producer, organizational buyers e. Industrial distributors, organizational buyers
d. Producer, organizational buyers
Bundle pricing may be perceived to be of value by customers because a. they can purchase items that are consumed frequently in larger quantities. b. they are purchasing complementary products, which is convenient for them. c. the companies selling the products can sell them at a lower price because their costs of packaging are lower. d. they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. e. they always pay a lower price per item than they would have if they bought each item separately.
d. they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.
Competition-based pricing is a. not able to increase sales. b. used when competing products are heterogeneous. c. not useful as a method of increasing market share. d. used when costs and revenues are secondary to competitors' prices. e. not useful if the competing products are homogeneous.
d. used when costs and revenues are secondary to competitors' prices.
The difference between an agent and a broker is that an agent a. is an intermediary, whereas a broker is not. b. seeks profit, whereas a broker does not. c. determines who the consumers are, whereas the broker does not determine the customers. d. usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis. e. represents the seller and a broker represents the buyer.
d. usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.
What is a primary difference between an industrial distributor and a manufacturers' agent? a. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b. A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c. An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d. A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e. An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.
a. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time? a. Location b. Product mix c. Production depth d. Scrambled merchandising e. Retail positioning
a. Location
The "White Sale" that many department stores have every year a few weeks after Christmas is an example of a. periodic discounting. b. secondary pricing. c. captive pricing. d. off-peak pricing. e. random discounting.
a. periodic discounting.
For most consumers, there is an assumed relationship between a. price and quality. b. prestige prices and value. c. internal and external reference prices. d. value and price consciousness. e. value and cost.
a. price and quality.
Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel. a. producer-to-business buyer b. producer-to-industrial-distributor-to-business buyer c. producer-to-agent-to-business buyer d. equipment e. consumer
a. producer-to-business buyer
Fiona is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of greeting cards in drugstores and discount stores. Her daily activities include straightening the cards, pulling outdated or slow sellers, and installing new cards. Fiona is called a(n) _____. a. rack jobbers. b. full-service stockers. c. in-store maintainers. d. specialty-line wholesalers. e. assemblers.
a. rack jobbers.
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called a. retail positioning. b. the marketing concept. c. scrambled merchandising. d. the wheel of retailing. e. targeted retailing.
a. retail positioning.
Using only some of the available outlets to distribute a product is called a. selective distribution. b. intensive distribution. c. channel conflict. d. vertical channel integration. e. exclusive distribution.
a. selective distribution.
Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives. a. marketing; promotional b. advertising; marketing c. overall; marketing d. overall; promotional e. overall; revenue
c. overall; marketing
Which of the following products is most likely to involve personal selling? a. Kindle Fire b. Picture frames at a hobby supply store c. Footballs at a sporting goods store d. Riding lawn mowers. e. Blenders at a department store
d. Riding lawn mowers.
Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____. a. Wholesaler; retailer b. Broker; agent c. Broker; retailer d. Wholesaler; broker e. Agent; retailer
a. Wholesaler; retailer
To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is a. a negative impact on consumers' perceptions of quality. b. poor survival chances. c. difficulty raising the prices later. d. higher developmental costs. e. a high return on investment level affecting tax balances owed.
a. a negative impact on consumers' perceptions of quality.
Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of a. a strategic channel alliance. b. exclusive distribution. c. dual distribution. d. horizontal channel integration. e. channel leadership.
a. a strategic channel alliance.
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n) a. department store. b. niche retailer. c. superstore. d. specialty retailer. e. category killer.
a. department store.
Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a. discount store. b. specialty store. c. department store. d. superstore. e. warehouse showroom.
a. discount store.
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a. dual distribution. b. industrial distribution. c. strategic channel alliance. d. supply chain management. e. an unethical marketing channel.
a. dual distribution.
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____ site for his retail business. a. free-standing b. regional shopping center c. traditional business district d. neighborhood shopping center e. community shopping center
a. free-standing
River City, Inc. is an independent business that takes title to products and carries inventories. River City, Inc. is most likely a(n) a. industrial distributor. b. intermediary. c. agency. d. wholesaler. e. producer.
a. industrial distributor.
If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a. long-term commitments. b. short-term commitments. c. easier to change than prices. d. easier to change than promotion. e. impossible to change.
a. long-term commitments.
Stores that are in a manufacturers' outlet mall, such as Ralph Lauren, Tommy Hilfiger, Clarks' Shoes, and Samsonite Luggage are most appropriately classified as a(n) a. off-price retailer. b. specialty retailer. c. category killer. d. discounter. e. department store.
a. off-price retailer.
When Amazon.com introduced its Kindle FireHD, it was available through Amazon.com, Staples office supplies store, and a few other retailers. The Kindle FireHD was most likely distributed through the _____ of distribution. a. selective level b. extensive level c. intensive level d. exclusive level e. agent form
a. selective level
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of a. supply chain management. b. a vertical marketing system. c. a horizontal marketing system. d. channel conflict. e. dual distribution.
a. supply chain management.
The Office Place is an office supplies company who has just adjusted its price levels so that it can increase its sales volume to match its expenses. The Office Place is most likely employing a(n) ____ objective. a. survival b. profit c. market share d. cash flow e. return on investment
a. survival
Drop shippers a. take title to but not physical possession of the goods. b. do not take title to but take physical possession of the goods. c. are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves. d. do not take title to or physical possession of the goods. e. take title to and physical possession of the goods.
a. take title to but not physical possession of the goods.
Which of the following pricing objectives sets prices to recover cash as quickly as possible? a. Product quality b. Cash flow c. Profit d. Market share e. Return on investment
b. Cash flow
For which of the following products would exclusive distribution be most appropriate? a. Gasoline b. Rolls Royce automobile c. Ray-Ban sunglasses d. Louis Vitton luggage e. Harley Davidson motorcycle
b. Rolls Royce automobile
Which of the following is most likely to be a product stocked solely by an industrial distributor? a. Tires b. Wind turbines c. Roofing nails d. Kitchen countertops e. Office supplies
b. Wind turbines
A concession in price in business markets to achieve a desired goal is called a(n) a. objective-oriented discount. b. allowance. c. cash discount. d. cumulative discount. e. trade discount.
b. allowance.
The types of prices that appear most often in ads are ___; while the types of prices that occur least often in ads are ____ prices. a. sale; reference b. bargain; premium c. discount; cost-plus d. comparison; cost-plus e. reference; comparison
b. bargain; premium
Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a. intermediary. b. captain. c. allocator. d. terminator. e. price leader.
b. captain.
Pricing the basic product in a product line low while pricing related items at a higher level is called a. price skimming. b. captive pricing. c. price lining. d. bait pricing. e. premium pricing.
b. captive pricing.
When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a. channel control. b. channel power. c. marketing leadership. d. a channel captain. e. distributive influence.
b. channel power.
By locating in the same general vicinity as other car dealerships, Hartfield Honda can a. create possession utility. b. facilitate comparison shopping. c. create exchange utility. d. create form utility. e. facilitate wholesale exchanges.
b. facilitate comparison shopping.
What a price means or what it communicates to customers is called a. response. b. interpretation. c. signaling. d. reference. e. internalization.
b. interpretation.
A product under nonprice competition would most likely not succeed in the market if a. it is packaged differently from similar products. b. it is easy to duplicate. c. a new advertising campaign is established for it. d. its quality has been upgraded. e. it is priced near the competitors' price.
b. it is easy to duplicate.
Location is important to a retailer because a. a desirable location appeals to consumers' emotions. b. location determines the trading area from which the store must draw its customers. c. location is the major determinant of store image. d. suppliers charge more to service stores in certain trading areas. e. convenient location is an essential customer service element.
b. location determines the trading area from which the store must draw its customers.
Shopping centers include a. free-standing, convenience, traditional, and regional. b. outlet, power, lifestyle, superregional, regional, neighborhood, and community. c. neighborhood, regional, superregional, power, and strip malls. d. community, rural, urban, and traditional business districts. e. outlet malls, lifestyle, strip malls, and shopping malls.
b. outlet, power, lifestyle, superregional, regional, neighborhood, and community.
U.S. banks provide their banking services through brick and mortar sites, by phone, and through on-line access. These various ways in which a customer can access their account information is called ______, while the brick and mortar site would offer the least amount of _____. a. place utility; face utility b. place utility; time utility. c. time utility; place utility. d. possession utility; time utility. e. place utility; possession utility.
b. place utility; time utility.
French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product. a. secondary-demand b. prestige c. reverse-demand d. standard e. inferior
b. prestige
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a. demand increases. b. quantity demanded goes down. c. quantity demanded increases. d. demand remains constant. e. breakeven increases.
b. quantity demanded goes down.
When marginal cost is equal to marginal revenue, the firm should a. produce less to decrease total costs. b. stop producing additional units to maximize profits. c. intensify distribution to increase sales. d. produce more to increase profits. e. provide discounts to encourage purchases.
b. stop producing additional units to maximize profits.
At the breakeven point, a. profits are exactly equal to the difference between revenue and total variable costs. b. the money a company brings in from selling products equals the amount spent producing the products. c. the total fixed costs are exactly equal to the total variable costs. d. the marginal cost curve and the average cost curve will be identical for a particular product. e. the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit.
b. the money a company brings in from selling products equals the amount spent producing the products.
The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a. the consolidation of power. b. tightly controlled and bureaucratic management style. c. the ability to inhibit competitors. d. the sharing of responsibilities and information. e. increased bargaining power.
b. tightly controlled and bureaucratic management style.
When Coach, the producer of fine leather handbags and accessories, decided to open its own specialty shops to sell its merchandise, and its own retail outlet stores, the firm was engaging in a. multiple channel repetition. b. vertical channel integration. c. dual channel integration. d. horizontal channel integration. e. channel expansion.
b. vertical channel integration.
____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. a. Regional shopping centers b. Specialty shopping centers c. Outlet shopping centers d. Upscale shopping centers e. Off-price shopping centers
c. Outlet shopping centers
Which of the following may include special attractions such as amusement parks or skating rinks a. Regional shopping centers b. Neighborhood shopping centers c. Superregional shopping centers d. Community shopping centers e. Convenience shopping centers
c. Superregional shopping centers
Cassie and Julian both are buying new iPhones this week. Cassie goes to the Apple store because she wants to actually see the phone before she makes a final decision. Julian knows that he does not need to see the phone, because he just wants to update from his older version. Cassie is purchasing her phone through_____, while Julian is purchasing his through ___. a. an indirect-marketing channel; the most efficient channel of distribution. b. the most common type of marketing channel; an indirect channel. c. a retailer; a direct-marketing channel. d. a business-to-business channel; a direct-marketing channel. e. a retail channel; an indirect-marketing channel
c. a retailer; a direct-marketing channel.
Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products. a. wholesalers b. brokers c. agents d. merchants e. retailers
c. agents
The three major types of nonstore retailing are a. automatic vending, direct selling, and telemarketing. b. telemarketing, door-to-door, and mail-order. c. direct marketing, direct selling, and automatic vending. d. direct marketing, direct selling, and mail-order. e. direct selling, automatic vending, and catalog retailing.
c. direct marketing, direct selling, and automatic vending.
Cash and Carry is a store that carries food, clothing, and household goods at lower price margins than other nearby stores. There is little service provided and customers have to bag their own purchases. Cash and Carry is most likely an example of a(an)_ a. department store. b. supermarket. c. discount store. d. category killer. e. warehouse showroom.
c. discount store.
If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a. demonstrating sound channel leadership. b. insisting on exclusive exposure. c. exercising channel power. d. minimizing channel conflict. e. creating a coordinate system.
c. exercising channel power.
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) a. regional shopping center. b. neighborhood shopping center. c. lifestyle shopping center. d. outlet shopping center. e. community shopping center.
c. lifestyle shopping center.
Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _______; the second is to meet, but not beat, competitor's prices of cookie products, which is a _____ objective. a. market share; cash flow b. cash flow; market share c. market share; status quo. d. market share; survival e. survival; status quo
c. market share; status quo.
A measure of sensitivity of demand in relation to changes in price is a. a demand curve. b. a prestige graph. c. price elasticity of demand. d. quantity elasticity. e. marginal analysis.
c. price elasticity of demand.
Without wholesalers and other intermediaries, a. most products would be much less expensive because fewer companies would be handling the product. b. products would be cheaper because the functions of intermediaries would be eliminated. c. products would likely be more expensive due to the use of less efficient channel members. d. products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e. many products would be more expensive because retailers would expect more profit.
c. products would likely be more expensive due to the use of less efficient channel members.
Which of the following statements about nonprice competition is false? a. A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. b. When using nonprice competition, a company should promote the distinguishing characteristics of its brand. c. A firm using nonprice competition can build loyalty to both its company and its products. d. Companies that use nonprice competition do not need to keep track of their competitor's prices. e. Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.
d. Companies that use nonprice competition do not need to keep track of their competitor's prices.
What does the demand curve for a prestige product look like? a. It is a straight line where the quantity sold continues to increase as the price of each product increases. b. It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c. It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. d. It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. e. It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.
d. It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a. Producer, industrial distributors, retailers, consumers b. Producer, consumers c. Producer, wholesalers, retailers, consumers d. Producer, retailers, consumers e. Producer, agents, wholesalers, retailers, consumers
d. Producer, retailers, consumers
Which of the following is a requirement for setting pricing objectives? a. An evaluation of competitors' prices should be made. b. The objectives should be short-term oriented. c. There should be only one pricing objective. d. The objectives should be explicitly stated. e. The cost structure should be identified.
d. The objectives should be explicitly stated.
The supply chain includes a. producers, wholesalers, and retailers. b. suppliers, producers, intermediaries, and customers. c. suppliers and suppliers' suppliers. d. all entities that facilitate product distribution. e. buyers, seller, marketing intermediaries, and agents.
d. all entities that facilitate product distribution.
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to a. party-plan retailing. b. corporate chain retailing. c. vending. d. franchising. e. off-price retailing.
d. franchising.
Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a. product attributes. b. product packaging. c. available selection. d. product price. e. product performance.
d. product price.
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) a. department store. b. warehouse showroom. c. off-price retailer. d. specialty retailer. e. category killer.
d. specialty retailer.
Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a(n) a. discount stores. b. department stores. c. warehouse clubs. d. superstores. e. supermarkets.
d. superstores.
A merchant wholesaler a. does not take title or possession of goods but facilitates exchanges between any parties. b. deals exclusively with business products. c. arranges for transfer of goods directly to business and retail customers. d. takes title to goods, assumes risk associated with ownership, and buys and resells products. e. takes title and possession of goods and sells only to retailers.
d. takes title to goods, assumes risk associated with ownership, and buys and resells products.
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products? a. Catalog marketing b. Party plan c. Specialty retailing d. Direct selling e. Direct-response marketing
e. Direct-response marketing
What is the primary distinction between superstores and hypermarkets? a. Superstores offer a wider variety of products than hypermarkets. b. Superstores offer low prices while hypermarkets have moderate to high prices. c. Hypermarkets have fewer departments but deeper product lines than superstores. d. These two types of retailers carry very different types of products. e. Hypermarkets are larger and have more types of products than superstores.
e. Hypermarkets are larger and have more types of products than superstores.
At what point does a firm maximize profit? a. The point at which marginal cost equals marginal profits b. The point at which the firm sells its product at the highest price :c. The point at which marginal profits equal marginal revenue d. The breakeven point plus the adjusted marginaterm-67l cost e. The point at which marginal cost equals marginal revenue
e. The point at which marginal cost equals marginal revenue
One advantage of nonprice competition is that a. pricing is no longer a factor. b. marketing efforts are completely eliminated. c. market share becomes less important. d. a firm can react quickly to competitive efforts. e. a firm can build customer loyalty.
e. a firm can build customer loyalty.
Maintaining or increasing market share a. is an infrequently used pricing objective in most industries. b. depends upon the overall growth of the total industry. c. is directly tied to leading an industry in product quality. d. is a profit-related objective based on price. e. can be achieved even if industry sales are flat or decreasing.
e. can be achieved even if industry sales are flat or decreasing.
All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is a. shifting costs to suppliers. b. maximizing costs. c. maximizing technology implementation. d. cooperation with competitors. e. customer relationships.
e. customer relationships.
The major levels of intensity at which a company can choose to distribute its products are ____ distribution. a. vertical and horizontal b. cooperative, conflicting, and integrated c. intensive, extensive, and exclusive d. selective, cooperative, and conflicting e. exclusive, selective, and intensive
e. exclusive, selective, and intensive
The primary function of most wholesalers is to a. provide information system tracking of inventory for the ultimate consumer. b. provide for the unique needs of the individual retailers buying their merchandise. c. support the needs of the manufacturers and provide them with market information. d. develop and share database information about customers. e. perform physical distribution of products from manufacturers to retailers.
e. perform physical distribution of products from manufacturers to retailers.
Consumers receive the benefits of place utility when a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they can stock up on products they need but not use them right away. d. they make purchases with credit and debit cards. e. products are available in locations where consumers want to buy them.
e. products are available in locations where consumers want to buy them.
Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n) a. wholesaler. b. broker. c. agent. d. intermediary. e. retailer.
e. retailer.
In contrast to industrial products, consumer products are often purchased because of a. necessity. b. rational needs. c. economic planning. d. prior planning. e. social influences.
e. social influences.
Rovio, the parent company of the popular Angry Birds app, recently made several marketing mix decisions that were considered to be part of its distribution. Which of the following was not a decision that relates to distribution? a. downloads of the game Angry Birds b. the sale of t-shirts and stuffed birds and pigs through its website c. the sale of halloween costumes through Amazon d. the opening of retail stores in Finland and China e. the licensing of the Angry BirdsTM to producers of t-shirts and costumes
e. the licensing of the Angry BirdsTM to producers of t-shirts and costumes
Channel decisions are important to marketers mostly because a. they are relatively flexible to change quickly. b. consumers value reasonable prices delivered through marketing channels. c. they dictate what promotional strategies companies should use. d. many businesses are marketing intermediaries. e. they involve long-term commitments and affect customer accessibility.
e. they involve long-term commitments and affect customer accessibility.
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of a. an external reference price. b. cumulative discounts. c. seasonal discounts. d. internal referencing. e. base-point pricing.
a. an external reference price.
Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on a. atmospherics. b. retail positioning. c. scrambled merchandising. d. location. e. value-pricing.
a. atmospherics.
Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called a. markup pricing. b. value pricing. c. cost discounting. d. differential pricing. e. cost-plus pricing.
a. markup pricing.
When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing a. bait and switch. b. bait pricing. c. price lining. d. captive pricing. e. penetration pricing.
b. bait pricing.
Reference pricing is a. listing the manufacturer's suggested retail price on the price tag along with the store's lower price. b. using a consumer's internal perceptions of what the appropriate price should be to help price a firm's products. c. pricing a product at a moderate level and positioning it next to a more expensive model or brand. d. using prices in advertising so that customers will have a point of reference when they come to the retail facility. e. mentioning the price that other retailers charge for the same product on the display for the product.
c. pricing a product at a moderate level and positioning it next to a more expensive model or brand.
Kendra has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's a. quality relative to the quality of competing brands. b. quality and functional attributes. c. quality attributes. d. price and durability. e. price and brand name.
c. quality attributes.
Some grocery stores collect data on competitive prices a. on a quarterly basis. b. through stores' purchase data. c. from their resellers. d. by using full-time comparison shoppers e. by calling their competitors.
d. by using full-time comparison shoppers
Chris is planning three sales during the third quarter of the year at Toys R' Us. The first is at the beginning of the school year, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be a. sales promotion pricing. b. psychological pricing. c. calendar discounting. d. special-event pricing. e. captive pricing.
d. special-event pricing.
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos? a. Secondary-market b. Demand-based c. Markup d. Competition-based e. Cost-plus
e. Cost-plus
Which of the following statements about markup pricing is correct? a. Using markups makes pricing a time-consuming, difficult process. b. Markup pricing is a demand-based pricing method. c. Markup pricing results in a high price when demand is high and a low price when demand is low. d. Markup pricing is inconvenient to use. e. The use of similar markups reduces price competition.
e. The use of similar markups reduces price competition.
The newest version of a product like Bose headphones is likely to use _____, while the new version of Red Bull is likely to use _____ . a. psychological pricing; penetration pricing b. price skimming; psychological pricing. c. price skimming; promotional pricing. d. penetration pricing; price skimming. e. price skimming; penetration pricing
e. price skimming; penetration pricing
