PM: Exam 4

1) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. A) sales promotion B) direct marketing C) advertising D) personal selling E) public relations Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Easy 2) Advertising is used mostly by ________. A) governments B) business firms C) social agencies D) independent professionals E) not-for-profit organizations Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Easy 3) The decisions about impact and engagement of an advertisement fall into the category of ________ decisions. A) sales objectives B) budget C) message D) media E) advertising evaluations Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Easy 4) Competitive parity and task methods are considered when making decisions about ________. A) sales objectives B) budget C) message structure D) media selection E) message effectiveness Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Easy 5) Advertising is the least used of the major promotion tools, although it has great potential for building consumer awareness and reference. Answer: FALSE AACSB: Written and oral communication Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Moderate 6) Marketing management must make four important decisions when developing an advertising program. Briefly describe these four decisions. Answer: Marketing management should first set advertising objectives, which can be classified by primary purpose: to inform, persuade, or remind. Next, the advertising budget needs to be determined, which will often depend on the product's stage in the product life cycle. The third step is to develop an advertising strategy, which involves message decisions and media decisions. The last step is to evaluate the effectiveness of the advertising campaign. AACSB: Analytical thinking; Written and oral communications Skill: Concept Objective: LO 15.1: Define the role of advertising in the promotion mix. Difficulty: Moderate 7) An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________. A) reciprocate B) compete C) remind D) explain E) suggest Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 8) Which of the following is most likely an objective of informative advertising? A) build brand preference B) change customer perceptions of brand value C) encourage customers to switch brands D) suggest new uses for a product E) keep the brand in customer minds during off-seasons Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 9) When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser? A) informative advertising B) persuasive advertising C) reminder advertising D) developmental advertising E) comparative advertising Answer: A AACSB: Reflective thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 10) When the advertising objective is to build primary demand for a new product category, ________ advertising will most likely be used. A) persuasive B) informative C) comparative D) patronage E) institutional Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 11) Which of the following is an objective of persuasive advertising? A) communicate customer value B) correct false impressions C) describe available services and support D) keep the brand in a customer's mind during off-seasons E) change customer perceptions of product value Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 12) ________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand. A) Institutional advertising B) Informative advertising C) Reminder advertising D) Not-for-profit advertising E) Persuasive advertising Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 13) Persuasive advertising becomes ________ advertising when a company directly or indirectly compares its brand with one or more other brands. A) informative B) reminder C) attack D) covert E) institutional Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 14) Comparative advertising is also known as ________ advertising. A) attack B) institutional C) covert D) reminder E) informative Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 15) When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________. A) informative advertising B) reminder advertising C) comparative advertising D) covert advertising E) institutional advertising Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 16) Encouraging customers to switch brands is most likely the objective of ________ advertising. A) informative B) reminder C) covert D) persuasive E) institutional Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 17) Which of the following types of advertising will most likely result in an advertising war? A) covert advertising B) institutional advertising C) informative advertising D) comparative advertising E) reminder advertising Answer: D Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 18) Describing available services and support is most likely a goal of ________ advertising. A) reminder B) competitive C) covert D) attack E) informative Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 19) Keeping the brand in a customer's mind during off-seasons is most likely a goal of ________ advertising. A) reminder B) attack C) informative D) covert E) competitive Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 20) Which of the following is one of the primary goals of reminder advertising? A) maintain customer relationships B) build brand preference C) correct false impressions D) inform the market of a price change E) restore company image Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 21) A product in the maturity stage will most likely require ________ advertising. A) informative B) comparative C) persuasive D) reminder E) covert Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 22) After determining its advertising objectives, a company's next step in developing an advertising program is to ________. A) set an advertising budget B) determine the media vehicle C) use cash rebate offers D) evaluate the advertising campaign E) develop a message strategy Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 23) Which of the following most likely requires the smallest advertising budget? A) products in competitive markets B) undifferentiated brands C) new products D) low-share brands E) mature brands Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 24) Which of the following brands most likely requires heavy advertising in order to be set apart from similar products? A) undifferentiated brands B) specialty brands C) international brands D) mature brands E) high-share brands Answer: A Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 25) Brands in a market with many competitors and high advertising clutter must ________. A) have very high prices compared to competitors B) be advertised only through print and social media C) be advertised more heavily to be noticed in the marketplace D) never be advertised using informative advertising E) be advertised only during the mature stage of the product life cycle Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 26) Which of the following would be the most likely result of slashing ad spending for a product? A) increased popularity B) reduced long-term market share C) improved brand image D) increased short-term sales E) increased long-term market share Answer: B Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 27) Which of the following is a major element of developing an advertising strategy? A) selecting advertising media B) using sophisticated statistical models C) setting advertising objectives D) evaluating advertising campaigns E) setting the advertising budget Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 28) With the help of ________ systems, consumers can avoid watching ads. A) USB B) CCTV C) HDMI D) DVR E) XBMC Answer: D AACSB: Information technology Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 29) To break through the clutter, many marketers have subscribed to a new merging of advertising and entertainment, dubbed ________. A) Madison & Vine B) Wall St. & Fifth Ave C) buzz marketing D) podcasting E) webisodes Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 30) The aim of ________ is to make an advertisement so useful or entertaining that people want to watch it. A) branded entertainment B) advertainment C) viral marketing D) buzz marketing E) word-of-mouth advertising Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 31) Product placement in television programs and movies is an example of ________. A) branded entertainment B) advertainment C) direct marketing D) buzz marketing E) sales promotion Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 32) Coca-Cola cups prominently featured on episodes of American Idol are an example of ________. A) advertainment B) buzz marketing C) personal selling D) sales promotion E) product placement Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 33) Which term refers to the general idea that will be communicated to consumers through an advertisement? A) advertising appeal B) message strategy C) consumer-generated message D) creative concept E) message execution Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 34) Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals. A) consumer trends B) competitors' weaknesses C) competitors' strengths D) customer benefits E) consumer emotions Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 35) ________ tend to be straightforward outlines of benefits and positioning points that the advertiser wants to stress. A) Promotion mix plans B) Message strategy statements C) Creative concept strategies D) Advertainment statements E) Branded entertainment plans Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 36) After creating a message strategy statement, the advertiser must develop a compelling ________ that will bring the message strategy to life in a distinctive and memorable way. A) creative concept B) customer strategy C) customer benefit D) execution style E) media vehicle Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 37) The first step in creating effective advertising messages is ________. A) selecting specific media vehicles B) planning a message strategy C) determining return on advertising investment D) choosing media timing E) executing the message Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 38) Which of the following are the three characteristics that an advertising appeal should have? A) engaging, informative, and stylish B) trendy, compelling, and appealing C) meaningful, believable, and distinctive D) unique, emotional, and entertaining E) humorous, memorable, and interesting Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 39) In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion in its advertisements, and Rolex stresses luxury and status. These are all examples of ________ appeals. A) rational B) reminder C) believable D) entertainment E) distinctive Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 40) Which message execution style depicts average people using a product in an everyday setting? A) lifestyle B) scientific evidence C) slice of life D) personality symbol E) testimonial evidence Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 41) An ad for a new convection oven shows a busy professional woman using the convection oven to cook dinner for her family. Which of the following message execution styles is illustrated in this example? A) testimonial evidence B) slice of life C) fantasy D) scientific evidence E) mood or image Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 42) An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time." This ad uses the ________ execution style. A) slice of life B) lifestyle C) fantasy D) scientific evidence E) personality symbol Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 43) Which of the following message execution styles focuses on the company's skill and knowledge in making the product? A) endorsement B) scientific evidence C) slice of life D) technical expertise E) testimonial evidence Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 44) A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of a medication. Which of the following message execution styles is illustrated in this example? A) mood or image B) fantasy C) personality symbol D) musical E) testimonial evidence Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 45) An IKEA ad shows consumers creating fanciful room designs with IKEA furniture, such as "a bedroom for a queen made by Bree and her sister, designed by IKEA." Which of the following message execution styles is illustrated in this example? A) mood or image B) musical C) fantasy D) lifestyle E) personality symbol Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 46) Apple used an album by the band U2 to promote the Apple Watch announcement. Which of the following message execution styles is illustrated in this example? A) personality symbol B) musical C) fantasy D) lifestyle E) slice of life Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 47) The advertisements that use the Aflac duck or the GEICO gecko are using the message execution style of ________. A) lifestyle B) technical expertise C) testimonial evidence D) slice of life E) personality symbols Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 48) Progressive Insurance uses Flo to represent its product. Which of the following message execution styles was used by Progressive Insurance? A) mood or image B) fantasy C) personality symbol D) technical expertise E) musical Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 49) Which message execution style involves presenting survey data indicating that a brand is better than other brands? A) scientific evidence B) testimonial evidence C) endorsement D) technical expertise E) slice of life Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 50) Which of the following message execution styles features a highly believable or likable source endorsing the product? A) musical B) mood or image C) testimonial evidence D) lifestyle E) slice of life Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 51) Maybelline used Sarah Michelle Gellar, an actress, to endorse a new range of cosmetics. This message execution style is referred to as ________. A) lifestyle B) testimonial evidence C) image D) technical expertise E) personality symbol Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 52) The McDonald's fast-food restaurant chain uses Ronald McDonald, a clown, as its primary character. Which message execution style is used by McDonald's? A) technical expertise B) lifestyle C) personality symbol D) image E) slice of life Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 53) An illustration, a headline, and a copy are the three ________ elements of an advertisement. A) tone B) mood C) format D) reach E) frequency Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 54) What is the first element that a reader most likely notices in a print ad? A) copy B) illustration C) headline D) slogan E) tone Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 55) The main block of text in a print ad is referred to as the ________. A) copy B) testimonial evidence C) headline D) slogan E) message strategy statement Answer: A AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 56) Which of the following is illustrated by an amateur 30-second video, developed by a consumer, telling the story of the online crafts marketplace, Etsy.com? A) personal selling B) consumer-generated messages C) consumer ethnocentrism D) sales promotion E) consumerism Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 57) Which of the following is a major step in selecting advertising media? A) determining reach, frequency, and impact B) selecting message execution style C) developing a compelling creative concept D) deciding on format elements E) planning a message strategy Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 58) ________ is a measure of the percentage of people in a target market who are exposed to an ad campaign during a given period of time. A) Frequency B) Qualitative value C) Impact D) Premium E) Reach Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 59) You receive a report that 68 percent of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information? A) frequency B) reach C) impact D) engagement E) qualitative value Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 60) The number of times an average person in the target market is exposed to a message is known as the ________ of the message. A) quantitative value B) reach C) frequency D) exposure rate E) turnover rate Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 61) Which term refers to the qualitative value of message exposure through a given medium? A) reach B) turnover rate C) efficiency D) media impact E) frequency Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 62) Which of the following is a media measure? A) consumer price index B) GDP per capita C) wholesale price index D) click-through rate E) human development index Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 63) Which of the following is a newer digital medium that is used by advertisers to reach consumers directly? A) smartphone B) direct mail C) newspapers D) billboards E) television Answer: A AACSB: Information technology Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 64) Television, as a medium of advertisement, is characterized by ________. A) high audience selectivity B) low absolute costs C) poor mass-marketing coverage D) fleeting exposure E) high cost per exposure Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 65) You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media. A) newspaper B) radio C) magazines D) television E) direct mail Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 66) Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities? A) the Internet B) newspaper C) TV D) radio E) billboard Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 67) Which of the following is an advantage of using newspapers as an advertising medium? A) long life B) good reproduction quality C) large pass-along audience D) broad acceptability E) no ad competition within the same medium Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 68) Which of the following statements about magazines as an advertising medium is true? A) Magazines have long ad purchase lead times. B) Magazines cannot offer high geographic selectivity. C) Magazines lack credibility. D) Magazines provide better local coverage than newspapers. E) Magazines have poor reproduction of images. Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 69) Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) no flexibility C) severe ad competition D) relatively high cost per exposure E) lack of personalization Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 70) Franklin & Marshall College wishes to contact high school seniors at independent schools in Pennsylvania. Which of the following media would be most effective and efficient? A) a Facebook page for the college B) local newspapers ads throughout the state C) radio ads throughout the state D) a direct mail piece sent to selected students E) billboards throughout the state Answer: D AACSB: Reflective thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 71) Which of the following statements is most likely true about radio as an advertising medium? A) Radio advertising is typically quite expensive. B) Radio ensures good attention from the target audience. C) Radio offers very low audience selectivity. D) Radio prohibits the use of segmentation strategies. E) Radio advertising is characterized by good local acceptance. Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 72) Which of the following statements about outdoor media is true? A) It has no creative limitations. B) It is characterized by higher costs per exposure. C) It has good positional selectivity. D) It has very limited flexibility. E) It has high audience selectivity. Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 73) A Spanish-language channel runs its ads only in Hispanic neighborhoods. This is an example of ________. A) broadcasting B) buzz marketing C) narrowcasting D) media multitasking E) personal selling Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 74) The term "media multitaskers" refers to ________. A) competing brands which use the same media vehicle B) people who absorb more than one medium at a time C) media planners who also head the creative department D) media planners who use more than one advertising medium E) ad agencies whose clients are competitors of each other Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 75) Glee and The Wall Street Journal are both examples of ________-specific media within each general media type. A) alternative media B) major media C) media vehicles D) media multitaskers E) micromedia Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 76) When selecting a media vehicle, the media planner looks both at the total cost of using a medium and at the ________. A) cost per thousand persons reached B) cost of premium offers C) cost of the magazine it is using D) profit margin E) continuity cost Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 77) When a media planner determines whether an advertisement for diapers should be placed in Parents magazine or Sports Illustrated magazine, the planner is evaluating the media vehicle's ________. A) profit margin B) flexibility C) rate of depreciation D) audience quality E) cost per exposure Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 78) Audience quality, audience engagement, and editorial quality are most likely to be considered when a media planner ________. A) decides on media timing B) selects an execution style C) selects a media vehicle D) evaluates return on investment E) measures the communication effects of an advertisement Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 79) In the context of media timing, ________ means scheduling ads unevenly over a given time period. A) routing B) continuity C) sequencing D) narrowcasting E) pulsing Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 80) In the context of media timing, ________ means scheduling ads evenly within a given period. A) sequencing B) narrowcasting C) continuity D) routing E) pulsing Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 81) In the context of media timing, the idea behind ________ is to advertise heavily for a short period to build awareness that carries over to the next advertising period. A) continuity B) pulsing C) shuffling D) sequencing E) segmenting Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 82) Which of the following is most likely true about using a pulsing schedule for an ad? A) The ads would achieve maximum awareness. B) The costs of advertising would be low. C) The only effective medium would be radio. D) The ads would negatively affect the image of the brand. E) The ads would lack flexibility. Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate 83) To measure the ________ effects of an ad after it has aired, the advertiser can evaluate how the ad affected consumer recall, product awareness, and preference. A) sales B) profit C) communication D) continuity E) associativity Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Easy 84) Which of the following characterizes standardized global advertising? A) higher advertising costs B) no global advertising coordination C) higher appeal to varying demographics D) a more consistent worldwide image E) lower reach Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Moderate Refer to the scenario below to answer the following question(s). Most clients of Second Avenue have learned about the store through word-of-mouth communication. This small retailer of quality secondhand children's clothing thrives on the sale of a vast inventory of children's clothing placed on consignment. "Because small children grow so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes before they've hardly been worn!" Second Avenue provides a way for people to sell their children's clothing, earn a few dollars, and buy the next larger size. "We're extremely picky about the condition of the clothing we stock," the owner stated, "but we sell most items at a 60-percent discount." 85) Which of the following media options would be the LEAST costly for Second Avenue's promotional efforts? A) periodic advertising in a local newspaper that follows a pulsing schedule B) daily advertisements on a cable television station C) daily commercials during the local evening news D) a billboard placed on the nearest interstate highway E) a billboard placed in a supercenter Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 86) Second Avenue has just developed a 30-second television ad that features three different shoppers enthusiastically shopping in the store and appreciating its products. This ad uses the ________ execution style. A) slice of life B) technical expertise C) personality symbol D) fantasy E) image Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 15.2: Describe the major decisions involved in developing an advertising program. Difficulty: Challenging 128) Which of the following promotion tools involves building up a positive corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct marketing D) public relations E) advertising Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Easy 129) Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations. A) press relations B) product publicity C) investor relations D) lobbying E) development Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Moderate 130) One of the functions performed by a PR department is ________, which involves building and maintaining relations with legislators and government officials to influence legislation and regulation. A) direct marketing B) press relations management C) investor relations management D) lobbying E) public affairs management Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Easy 131) One of the functions performed by a PR department is ________, which involves working with donors or members of nonprofit organizations to gain financial or volunteer support. A) direct marketing B) press relations management C) investor relations management D) development E) lobbying Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Easy 132) The National Pork Board developed "Pork. The Other White Meat" campaign. The campaign provided nutritional information and pork recipes in an attempt to encourage people to view pork as a tasty alternative to poultry and fish. Which of the following functions was the goal of this public relations campaign? A) influencing government regulations on pork B) gaining financial support for pork producers C) creating newsworthy information about pork D) maintaining relationships with pork producers E) rebuilding consumer interest in pork Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Challenging 133) Which of the following statements is most likely true of public relations? A) It requires participating companies to pay for media space or time. B) It can have the same impact on public awareness as advertising at much lower costs. C) It is always handled by a third-party agency hired by the firm. D) It forms a huge portion of the overall marketing budget of most large firms. E) It plays an insignificant role in brand building with the increasing popularity of advertising. Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Moderate 134) Which of the following best explains why public relations is often overlooked as a tool for supporting product marketing objectives? A) Public relations departments are typically large divisions within corporations. B) The time and costs associated with public relations prohibit its extensive use. C) Public relations specialists lack the skills necessary to work with marketing experts. D) Many public relations professionals see their jobs as communicating not brand building. E) The public relations department handles stockholders and legislators but not employees. Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Moderate Refer to the scenario below to answer the following question(s). Most clients of Second Avenue have learned about the store through word-of-mouth communication. This small retailer of quality secondhand children's clothing thrives on the sale of a vast inventory of children's clothing placed on consignment. "Because small children grow so quickly," Second Avenue's owner commented, "they often outgrow many of their clothes before they've hardly been worn!" Second Avenue provides a way for people to sell their children's clothing, earn a few dollars, and buy the next larger size. "We're extremely picky about the condition of the clothing we stock," the owner stated, "but we sell most items at a 60-percent discount." 135) The owner of Second Avenue wants to establish a community clothing drive to collect clothes for a local children's shelter. The owner is planning to set up collection barrels outside Second Avenue. In this case, which of the following public relations tools is being used by the owner? A) press relations B) product publicity C) lobbying D) development E) public affairs Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 15.3: Define the role of public relations in the promotion mix. Difficulty: Challenging 142) Which of the following is a major tool used by PR professionals? A) standardized global advertising B) market penetration C) news D) bait-and-switch strategy E) product packaging Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Easy 143) News conferences, press tours, and grand openings are examples of ________, a type of tool commonly used by public relations professionals. A) public service activities B) special events C) social networking D) development E) investor relations Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Easy 144) Which of the following would most likely be included in the written materials prepared by PR professionals to reach and influence target markets? A) employee code of conduct B) annual reports C) memorandum of association D) advertisement jingles E) white papers Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Easy 145) Which of the following is an example of audiovisual material used by PR professionals? A) blogs B) logos C) vision statements D) brochures E) online videos Answer: E AACSB: Information technology Skill: Concept Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Moderate 146) Logos, uniforms, brochures, and company trucks are all examples of ________ materials that can be used to help a company create a visual image which the public can immediately recognize. A) direct marketing B) social marketing C) public service D) corporate identity E) buzz marketing Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Easy 147) In an attempt to set the company apart from its competitors, Central Parcel Service (CPS) has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is being used by CPS? A) buzz marketing B) corporate logos C) corporate identity materials D) product publicity E) public service materials Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 15.4: Explain how companies use PR to communicate with their publics. Difficulty: Moderate

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1) The sets of firms that supply companies with the raw materials, components, parts, information, finances, and expertise needed to create products or services are known as ________. A) retailers B) upstream partners C) distributors D) downstream partners E) distribution channels Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 2) Which of the following terms refers to the wholesalers and retailers that form a vital link between the firm and its customers? A) factory-supply networks B) downstream partners C) resource banks D) upstream partners E) supply channels Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 3) The term supply chain is considered limited because it ________. A) ignores the make-and-sell aspect of the market B) suggests that planning begins with raw materials and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) takes a sense-and-respond view of the market E) suggests that planning starts with identifying the needs of target customers Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 4) The term demand chain is considered limited because it ________. A) advocates a make-and-sell view of the market that relies on a responsive supply network B) suggests that planning starts with raw materials, productive inputs, and factory capacity C) takes a step-by-step, linear view of purchase-production-consumption activities D) ignores the evolution of the global marketplace E) overlooks the needs of target customers Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 5) A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system. A) value delivery network B) horizontal channel C) consumer base D) product delivery network E) product line Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 6) A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) resource bank Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 7) Which of the following is most likely true of marketing channel decisions? A) They often involve long-term commitments to other firms. B) They have minimal influence on the prices of products offered to customers. C) They increase the amount of time a company spends connecting with customers. D) They increase the amount of effort a company puts in to distribute goods. E) They are easily altered, replaced, or discarded. Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 8) ________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities. A) Virtual banks B) Intermediaries C) Price consultants D) Uniform-delivery networks E) Upstream partners Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Challenging 9) From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers. A) upstream partners B) marketing intermediaries C) third-party logistics D) price consultants E) factory supervisors Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 10) A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. A) product platform B) channel level C) resource bank D) contact center E) customer franchise Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 11) In a(n) ________ channel, the same member both produces and distributes a product or service to consumers. A) tiered B) direct C) platform D) vertical E) exclusive Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 12) Which of the following companies uses a direct marketing channel? A) Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores worldwide B) Germfight, a factory that manufactures dental products that it distributes only to select department stores C) Apple Blossoms, a company that sells its cosmetics exclusively through Ray's Retail Store D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs E) Showdown, a clothing store that stocks merchandise from different international brands Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 13) Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use? A) inclusive B) multitiered C) indirect D) direct E) selective Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 14) At its most basic form, a marketing channel consists of the producer and the ________. A) retailer B) sales agent C) competitor D) processor E) consumer Answer: E AACSB: Reflective thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 15) A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel. A) cyclic B) upstream C) looped D) direct E) indirect Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 16) Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________. A) a direct marketing channel B) intensive distribution C) an indirect marketing channel D) disintermediation E) extensive distribution Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 17) Which of the following is an example of an indirect marketing channel? A) June Bride, which sells bridal gowns via its click-to-order online catalogs B) Farmer Brown, who delivers fresh milk from his dairy to customers every morning C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country D) Lifebelt Insurance, which sells life insurance through its door-to-door salespeople E) Rhonda's Rental, which rents cars to people for the day Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 18) The greater the number of channel levels in a marketing channel, the ________. A) less distance between producer and end-consumer B) greater the channel complexity C) less time it takes for products to reach end-consumers D) greater the control producers have over the distribution of their products E) greater the control producers have over the demand of their products Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 19) Which of the following is a conventional consumer marketing channel? A) producer to business distributor to end consumer B) producer to wholesaler to retailer to end consumer C) producer to end consumer to business customer D) producer to retailer E) producer to business distributor to business customer Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy 20) Which of the following is an indirect business marketing channel? A) producer to retailer to business distributor B) producer to wholesaler to retailer to end consumer C) producer to end-consumer to business distributor D) producer to retailer E) producer to business distributor to business customer Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 21) Which of the following is a type of flow that connects all institutions in a marketing channel? A) payment flow B) ownership flow C) physical flow D) promotion flow E) information flow Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Easy Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. 22) Which of the following is Giant Beanstalks' upstream partner? A) the management of Greenleaf B) the farmers of Riverdale C) the trucks that carry Giant Beanstalks' products to Greenleaf D) the end-consumers who buy the canned vegetables from Greenleaf E) the logistics division of Giant Beanstalk Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 12.1: Explain why companies use marketing channels and discuss the functions these channels perform. Difficulty: Moderate 34) ________ are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals. A) Customer relationship management systems B) Distribution channels C) Partner relationship systems D) Consumer bases E) Buying centers Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 35) Which of the following is true of channel members? A) They act independent of each other. B) They play specialized roles in the channel. C) They are not accountable to other channel members. D) They play generalized and interchangeable roles in the distribution process. E) Their competence and cooperation don't affect the company's image or profits. Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 36) Conflict that occurs among firms at the same level of the marketing channel is known as ________ conflict. A) multitiered B) horizontal C) vertical D) prolonged E) financial Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 37) Conflict that occurs between different levels of the same marketing channel is known as ________ conflict. A) horizontal B) vertical C) multitiered D) equilateral E) communal Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 38) Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict. A) equilateral B) vertical C) multitiered D) communal E) horizontal Answer: E AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 39) The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict. A) intensive B) selective C) exclusive D) horizontal E) vertical Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 40) When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict. A) equilateral B) vertical C) multitiered D) communal E) horizontal Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 41) Stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm's exclusive dealers. This type of a disagreement is known as a(n) ________ conflict. A) vertical B) indirect C) horizontal D) selective E) multitiered Answer: A AACSB: Application of knowledge; Information technology Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 42) A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole. A) multitiered supply chain B) conventional distribution channel C) intrinsic market matrix D) resource bank E) product platform Answer: B Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 43) Which of the following is true of conventional distribution channels? A) Channel members have complete control over each other. B) Channel members seek to maximize their own profits. C) Channel conflict is governed by formal mechanisms. D) Channel members are assigned roles according to a clearly defined framework. E) Channel members work exclusively for the good of the organization. Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 44) A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system. A) horizontal B) vertical C) multitiered D) communal E) equilateral Answer: B Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 45) Which of the following is true of vertical marketing systems? A) Producers, wholesalers, and retailers act as a unified system. B) Channel members have no control over each other. C) Channel conflict is governed by informal mechanisms. D) The system is dominated by the consumer. E) Channel members work independently with no cooperation from other members. Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 46) Which of the following is a major type of vertical marketing system? A) corporate B) conventional C) multilevel D) intrinsic E) extrinsic Answer: A Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 47) A ________ VMS integrates successive stages of production and distribution under single ownership. A) contractual B) corporate C) contingency D) conventional E) communal Answer: B Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 48) A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone. A) corporate B) contingency C) contractual D) communal E) conventional Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 49) The ________ organization is the most common type of contractual relationship. A) franchise B) horizontal C) conventional D) multi-national E) entrepreneurial Answer: A Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 50) Ford and its network of independent franchised dealers is an example of a ________. A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture Answer: A AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 51) Fire Up makes fireproof clothing material and it licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following type of franchising is evident here? A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Challenging 52) In a(n) ________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. A) horizontal marketing system B) administered VMS C) corporate VMS D) contractual VMS E) conventional VMS Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 53) ________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. A) Contingent B) Administered C) Corporate D) Contractual E) Aligned Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 54) In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity. A) administered vertical marketing system B) horizontal marketing system C) corporate vertical marketing system D) hybrid distribution system E) conventional marketing system Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 55) Which of the following is most likely a manufacturer-sponsored retailer franchise system? A) international fast food chains like McDonald's and Pizza Hut B) Starbucks outlets operating within Target stores C) Toyota and its network of independent franchised dealers D) licensed bottlers that bottle and sell soft drinks to retailers E) hotel chains like the Ritz Carlton and Shangri-La Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 56) When McDonald's offers its products inside of a Walmart store, it is using a(n) ________. A) conventional marketing system B) corporate VMS C) contractual VMS D) administered VMS E) horizontal marketing system Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 57) A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments. A) conventional distribution B) corporate vertical marketing C) horizontal marketing D) administered vertical marketing E) multichannel distribution Answer: E Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 58) Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here? A) corporate vertical marketing system B) horizontal marketing system C) multichannel distribution system D) administered vertical marketing system E) conventional distribution channel Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 59) Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system. A) conventional B) inclusive C) intensive D) extensive E) multichannel Answer: E AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 60) Which of the following is an advantage of adding new channels in a multichannel distribution system? A) limiting market complexity B) reducing control over the system C) expanding sales and market coverage D) decreasing marketing needs and costs E) minimizing mass customization of products Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 61) Which of the following is a disadvantage of adding new channels in a multichannel distribution system? A) decreasing complexity of markets B) decreasing control over the system C) reducing opportunities for franchising D) lowering sales and market coverage E) minimizing publicity needs Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 62) ________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) Extensive distribution B) Multichannelization C) Disintermediation D) Inclusive distribution E) Cross merchandising Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Easy 63) The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________. A) indirect marketing B) disintermediation C) franchising D) exclusive distribution E) intensive distribution Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 64) Which of the following is true of changes in the organization of distribution channels? A) Developing new channels seldom causes conflict with a company's established channels. B) To remain competitive, product and service producers must use fewer marketing channels. C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation. D) Companies have fewer channel-options today than they did in the past due to economic problems. E) Advances in technology have decreased the number of channels available to entrepreneurial firms. Answer: C AACSB: Information technology Skill: Concept Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. 65) What distribution strategy does Giant Beanstalks use? A) inclusive distribution B) exclusive distribution C) selective distribution D) intensive distribution E) extensive distribution Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 12.2: Discuss how channel members interact and how they organize to perform the work of the channel. Difficulty: Moderate 83) Which of the following is an environmental factor that affects channel objectives and design? A) economic conditions B) factory staffing C) organizational objectives D) interpersonal influences E) individual motives Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Challenging 84) ________ distribution is a strategy in which producers of convenience products and raw materials stock their products in as many outlets as possible. A) Direct B) Intensive C) Inclusive D) Exclusive E) Selective Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 85) For which of the following products would the intensive distribution strategy most likely be used? A) high-end cameras B) luxury cars C) lawn mowers D) soft drinks E) furniture Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Moderate 86) Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution. A) exclusive B) selective C) hybrid D) intensive E) normal Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Moderate 87) With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories? A) exclusive distribution B) extensive distribution C) moderate distribution D) primary distribution E) intensive distribution Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 88) For which product would a company use an exclusive distribution strategy? A) luxury cars B) newspapers C) chewing gum D) dairy products E) soft drinks Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Moderate 89) Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution. A) exclusive B) selective C) intensive D) indirect E) corporate Answer: A AACSB: Application of knowledge Skill: Application Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 90) ________ distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. A) Exclusive B) Selective C) Intensive D) Indirect E) Corporate Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 91) Which of the following is true of the exclusive distribution strategy? A) It makes products available to everybody, everywhere. B) It is used primarily for convenience items. C) It helps promote a brand's luxury image. D) It gives producers no control over their products. E) It enlists all of the intermediaries willing to carry a company's products. Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Moderate 92) When the seller allows only certain outlets to carry its products, this strategy is called ________. A) exclusive distribution B) subjective dealing C) selective distribution D) exclusive pricing E) disintermediation Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 93) When a seller requires its dealers to abstain from handling competitors' products, it is called ________. A) subjective distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 94) Why do firms have difficulty accessing potential market areas in developing countries, such as China and India? A) inadequate distribution systems B) anti-globalization efforts C) highly centralized rural markets D) limited manpower E) high operating costs Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 12.3: Identify the major channel alternatives open to a company. Difficulty: Easy 103) ________ management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time. A) Inventory B) Marketing channel C) Brand image D) Customer experience E) Brand content Answer: B Skill: Concept Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members. Difficulty: Easy 104) To help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, companies are now installing integrated high-tech ________ systems. A) advertiser funded programming B) customer segmentation network C) brand content management D) partnership relationship management E) closed loop marketing Answer: D Skill: Concept Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members. Difficulty: Easy 105) A strategy of exclusive dealing is most likely considered legal if ________. A) the industry is newly developed B) both parties have large territories C) competition is not substantially lessened D) the dealer agrees to promote the competitor's products E) the dealer receives a steady source of supply and support Answer: C AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members. Difficulty: Moderate 106) Which of the following involves the producer agreeing not to sell to other dealers in a given area, or the buyer agreeing to sell only in its own region? A) closed loop marketing B) uniform-delivery pricing C) exclusive territorial agreement D) cross merchandising E) nationalized marketing Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members. Difficulty: Easy 107) Producers of strong brands sometimes sell to dealers only on the condition that dealers take some or all of the rest of a product line. This practice is known as ________. A) product line franchising B) selective dealing C) cross merchandising D) full-line forcing E) disintermediation Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 12.4: Explain how companies select, motivate, and evaluate channel members. Difficulty: Easy 114) Smart Shoppers, an online store that delivers its products to homes in and around California, recently switched its entire fleet to biodiesel trucks that run on used cooking oil rather than gas. Smart Shoppers has most likely developed a(n) ________. A) vertical marketing channel B) green supply chain C) multitiered marketing channel D) intermodal transportation system E) hybrid distribution system Answer: B AACSB: Ethical understanding and reasoning Skill: Application Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 115) ________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. A) Advertising B) Product positioning C) Mass customization D) Marketing logistics E) Branding Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 116) ________ logistics starts with the marketplace and works backward to the factory or even to sources of supply. A) Outbound B) Customer-centered C) Upstream D) Reverse E) Inbound Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 117) ________ logistics involves moving products from the factory to resellers and ultimately to customers. A) Customer-centered B) Outbound C) Upstream D) Reverse E) Inbound Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 118) ________ logistics refers to moving products and materials from the suppliers to the factory. A) Outbound B) Diverse C) Inbound D) Reverse E) Customer-centered Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 119) Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________. A) cross merchandising B) reverse logistics C) disintermediation D) diverse logistics E) inbound logistics Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 120) ________ management refers to the management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. A) Cross B) Supply chain C) Price D) Product cycle E) Customer Answer: B Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 121) Which of the following is NOT a major logistics function? A) inventory management B) product designing C) warehousing D) transportation E) packaging Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 122) ________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. A) Loading docks B) Open warehouses C) Distribution centers D) Shipping platforms E) Product platforms Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 123) ________ or smart tag technology helps companies locate a product's exact position within its supply chain. A) RFID B) PRM C) VMS D) BCODE E) 3PL Answer: A AACSB: Information technology Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 124) Which of the following is true of using trucks as a transportation mode? A) Transportation via trucks is costlier than by rail or air. B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Trucks provide in-transit services such as the diversion of shipped goods to other destinations en route. D) Trucks are highly flexible in their routing and time schedules. E) Trucks are the slowest mode of transportation and most affected by the weather. Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 125) Which of the following is true of transporting goods via railroads? A) Railroads are ideal for the transportation of digital technology. B) Railroads are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. C) Railroads are a cost-effective way to ship large amounts of bulk products over long distances. D) Railroads are the most flexible mode of transportation in their routing and time schedules. E) Railroads are the slowest mode of transportation and are the most affected by the weather. Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 126) Which of the following is true of shipping goods via water transportation? A) Water transportation is an efficient way to ship perishable merchandise over long distances. B) Water carriers are highly flexible in their routing and time schedules. C) Water transportation provides in-transit services, such as the processing of goods en route. D) Water transportation is ideal when time is short and speed is needed. E) Water transportation is the slowest mode of transportation and the most affected by the weather. Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 127) ________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets. A) Air tunnels B) Rail flatcars C) Steam ships D) Pipelines E) Airlines Answer: D Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 128) Which of the following is true about using air carriers as a transportation mode when shipping products? A) Air carriers are the most cost-effective way to ship non-perishable goods over short distances. B) Air carriers are the slowest and least reliable modes of transport. C) Air carriers provide in-transit services such as the processing of goods en route. D) Air carriers are ideal when time is short and speed is needed. E) Air carriers are a specialized means of shipping chemicals from sources to markets. Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 129) In intermodal transportation, which of the following describes the use of both rail and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 130) In intermodal transportation, which of the following describes the use of both water and trucks for transportation? A) fishyback B) drawbar C) trainship D) piggyback E) airtruck Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 131) Which of the following is the most effective way for a company to ship bulky, non-perishable products if its key requirement is low price? A) pipelines B) air transport C) trucks D) water carriers E) piggyback Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 132) Which of the following is the most effective way for a company to ship perishable goods over long distances, if its key requirement is speed? A) pipelines B) air transport C) trucks D) water transport E) trainships Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 133) Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them? A) rail transport B) air carriers C) trucks D) piggybacks E) water transport Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 134) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers. A) automated storage and retrieval systems (ASRS) B) vendor-managed inventory (VMI) systems C) transportation management systems (TMS) D) warehouse management systems (WMS) E) distribution center management systems (DCMS) Answer: B AACSB: Information technology Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 135) ________ management is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system. A) Logistics inventory B) Integrated logistics C) Logistics information D) Independent logistics E) Group logistics Answer: B AACSB: Interpersonal relations and teamwork Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. 136) Roland is the logistics manager of Giant Beanstalks. Which of the following is NOT an area of responsibility for him? A) the transportation of the canned vegetables to Greenleaf B) the storage of the unprocessed vegetables C) the advertising of the final product D) product inventory management E) the packaging of the final product Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 137) Which of the following modes of transport should Roland choose to transport the unprocessed vegetables from Riverdale's farms to the Giant Beanstalks' factory quickly and with minimum cost? A) air carrier B) pipeline C) truck D) oil tanks E) air tunnels Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy Refer to the scenario below to answer the following question(s). Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country. 138) What distribution strategy does Kimberly's Crown use? A) exclusive B) intensive C) selective D) inclusive E) extensive Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 139) When one of the stores complains that the jewelry they're being given is inferior to the jewelry Kimberly sells to other stores, Kimberly experiences ________ conflict. A) horizontal B) multitiered C) vertical D) intensive E) subjective Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Moderate 140) Kimberly decides to alter its distribution strategy so that its jewelry is accessible to the public only through one distributor. The strategy they're considering is known as ________ distribution. A) elusive B) extensive C) exclusive D) selective E) elective Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy 141) What mode of transport should Kimberly use to ship its goods over long distances as quickly as possible? A) flatcars B) water transport C) air transport D) trucks E) railroads Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 12.5: Discuss the nature and importance of marketing logistics and integrated supply chain management. Difficulty: Easy

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2) A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools? A) the product mix B) product line filling C) the promotion mix D) the price mix E) horizontal diversification Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 3) Which of the following is one of the five major promotion tools? A) market penetration B) strategic positioning C) product line filling D) market diversification E) direct marketing Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 4) Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. A) sales promotion B) advertising C) direct marketing D) personal selling E) public relations Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 5) The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. A) direct marketing B) sales promotion C) personal selling D) public relations E) publicity Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 6) Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events? A) sales promotion B) personal selling C) direct marketing D) public relations E) advertising Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 7) Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations? A) sales promotion B) direct marketing C) horizontal diversification D) public relations E) advertising Answer: A AACSB: Written and oral communication Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 8) ________ includes sales presentations, trade shows, and incentive programs. A) Direct marketing B) Sales promotion C) Personal selling D) Public relations E) Advertising Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 9) Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________. A) sales promotion B) personal selling C) public relations D) direct marketing E) advertising Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Moderate 10) Which major promotion category uses catalogs, telephone marketing, kiosks, and the Internet? A) sales promotion B) direct marketing C) horizontal diversification D) public relations E) advertising Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 11) Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? A) sales promotion B) direct marketing C) advertising D) public relations E) horizontal diversification Answer: D Skill: Concept Objective: LO 14.1: Define the five promotion mix tools for communicating customer value. Difficulty: Easy 15) Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information. A) push strategies B) direct marketing C) the Internet D) personal selling E) public relations Answer: C AACSB: Information technology Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Easy 16) Which of the following statements is true regarding today's marketing communications? A) More marketers are shifting away from narrowly defined micromarkets and moving toward mass marketing. B) More customers have started relying on marketer-supplied information rather than finding out information on their own. C) Network television, magazines, newspapers, and other traditional mass media continue to increase their dominance. D) Focused marketing programs, which are designed to build closer relationships with customers in more narrowly defined micromarkets, are no longer used by marketers. E) Today's consumers are better informed about products and services. Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 17) Shifting away from mass marketing, marketers are developing ________ which are designed to build closer relationships with customers in more narrowly defined micromarkets. A) focused marketing programs B) horizontal diversification programs C) backward integration strategies D) new pull strategies E) new push strategies Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Easy 18) Which of the following is a specialized and highly targeted media selection that an advertiser might use to reach smaller customer segments? A) radio B) magazines C) newspapers D) network television E) online social networks Answer: E AACSB: Information technology Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 19) Companies are doing less ________ and more ________ as a result of the explosive developments in communication technologies to better target smaller customer segments. A) personal selling; digital activities B) public relations activities; digital activities C) digital activities; mass marketing D) mass marketing; engagement marketing E) viral marketing; word-of-mouth marketing Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 20) Which of the following statements is true regarding the old mass-media communications model? A) Mass-media costs are decreasing. B) Mass-media audiences are increasing. C) Many viewers are gaining control of message exposure through DVRs and video streaming. D) Ad clutter is decreasing. E) Internet ad spending has stagnated and more marketers are shifting toward TV advertising. Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 21) Companies often fail to integrate their various communications to consumers because ________. A) historically, consumers have been able to distinguish between message sources B) advertising departments are reluctant to work with public relations professionals C) communications often come from different parts of the company D) personal selling and sales promotion are in direct conflict E) firms have overemphasized the concept of brand contact Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 22) Consumers today receive commercial messages from a broad range of sources. However, consumers ________ the way marketers do. A) don't distinguish between message sources B) never pay attention to sales promotions C) don't care about buzz marketing D) are not able to block out messages E) block out all media messages Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 23) Today, several companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. A) integrated marketing communications B) pull strategy C) vertical diversification D) nonpersonal communication channels E) buzz marketing Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Easy 24) Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________. A) equal portions of the advertising budget B) independent communications directors C) separate marketing objectives D) the same target audience E) the same brand message, look, and feel Answer: E AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 25) Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog, print ads, and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________. A) buzz marketing B) experiential marketing C) integrated marketing communication D) word-of-mouth marketing E) database marketing Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Challenging 26) Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain ________ in design and tone. A) variety B) simplicity C) creativity D) consistency E) flexibility Answer: D AACSB: Written and oral communication Skill: Application Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Moderate 27) To carefully integrate and coordinate the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products, some companies appoint a(n) ________. A) idea champion B) marketing communications director C) sales representative D) business analyst E) media planner Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 14.2: Discuss the changing communications landscape and the need for integrated marketing communications. Difficulty: Easy 39) In order to avoid shortsightedness, today marketers are moving toward viewing communications as managing the ________ over time. A) organizational culture B) nonpersonal communication channels C) word-of-mouth influence D) customer relationship E) product life cycle Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 40) While using integrated marketing communications, the communications process should start with a(n) ________. A) advertising strategy B) competitive-parity analysis C) long-term public relations plan D) audit of all potential customer touch points E) strategy for implementing a social media presence Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 41) Which of the following is one of the four major communication functions? A) coordination B) distribution C) noise D) response E) preference Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 42) ________ refers to the process of putting thought into symbolic form. A) Sending B) Encoding C) Decoding D) Receiving E) Feedback Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 43) HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________. A) messaging B) decoding C) sending D) encoding E) responding Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 44) The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model. A) sourcing B) messaging C) acknowledging D) decoding E) encoding Answer: E AACSB: Application of knowledge; Written and oral communication Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 45) A(n) ________ is a set of symbols that the sender transmits. A) encoder B) feedback loop C) message D) media E) decoder Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 46) In the communication process, an actual HP printer/fax machine advertisement would be considered ________. A) encoding B) decoding C) the product D) the message E) the medium Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 47) Which of the following terms best represents the communication channel that a company uses to move its advertising messages from sender to receiver? A) decoder B) media C) encoder D) communicator E) feedback loop Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 48) In a communication process, a receiver assigns meaning to the symbols encoded by a company in its advertisements through a process known as ________. A) integrating B) reciprocating C) acknowledging D) decoding E) coordinating Answer: D AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 49) In the communication process, the reaction of the receiver after being exposed to a message is called the ________. A) response B) disturbance C) noise D) code E) distortion Answer: A AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 50) When a customer lets a producer know something about its products or advertising, the customer is providing ________. A) decoding B) noise C) feedback D) encoding E) reverse marketing Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 51) A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________. A) noise B) encoding C) feedback D) response E) decoding Answer: A AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 52) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they tried the new makeup. In terms of the communication model, the sender of this message is ________. A) Melina Kanakaredes B) Ladies' Home Journal C) readers who redeem the $1-off coupon D) Maybelline E) the target market to which Melina Kanakaredes appeals Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 53) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they tried the new makeup. In terms of the communication model, the medium of this ad is ________. A) Melina Kanakaredes B) Ladies' Home Journal C) readers who redeem the $1-off coupon D) Maybelline E) the target market to which Melina Kanakaredes appeals Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 54) An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered readers a $1-off coupon when they tried the new makeup. In the context of the communication model, measuring which of the following would be the best way for the source to measure feedback? A) the number of subscribers to Ladies' Home Journal B) the number of people who make up the target market C) the number of people who redeem the coupon D) the number of people who have purchased Maybelline products in the past E) the number of people to whom Melina Kanakaredes is an appealing spokesperson Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 55) In the communication process, the more the sender's field of experience ________ that of the receiver, the more ________ the message is likely to be. A) varies from; distinguishable B) overlaps with; effective C) connects with; ineffective D) coincides with; creative E) departs from; direct Answer: B AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 56) To communicate effectively, a marketing communicator should most likely ________. A) ensure that the encoding and decoding processes are different B) encode and decode the message personally and frequently C) understand the consumer's field of experience D) foresee unplanned static or distortion E) use familiar words and symbols Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 57) Marketing communicators must be good at ________ messages that take into account how the target audience ________ them. A) delivering; encodes B) sending; encodes C) encoding; decodes D) retrieving; perceives E) decoding; receives Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 58) Which of the following is the first step in developing an effective integrated communications and promotion program? A) designing a message B) identifying the target audience C) determining the communication objectives D) collecting feedback E) choosing the media through which to send a message Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 59) While developing an effective integrated communication, once the target audience has been defined, marketers must do all these steps EXCEPT ________. A) determine the desired response B) collect feedback C) choose the media through which to send a message D) identify potential distractions E) design a message Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 60) The six stages consumers normally pass through on their way to making a purchase are known as the ________ stages. A) personal-readiness B) buyer-readiness C) objective-readiness D) market-readiness E) supplier-readiness Answer: B Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 61) Among the buyer-readiness stages, the first stage is ________. A) preference B) knowledge C) liking D) awareness E) insistence Answer: D Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 62) Boson Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ________ stage of buyer-readiness. A) liking B) awareness C) preference D) insistence E) conviction Answer: B AACSB: Application of knowledge; Written and oral communication Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 63) The AIDA model identifies the characteristics of an effective ________. A) advertising budget B) channel of communication C) marketing message D) marketing mix E) marketing response Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 64) A message showing a product's quality, economy, value, or performance is an example of a(n) ________ appeal. A) structural B) rational C) emotional D) moral E) standard Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 65) An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is called a(n) ________ appeal. A) rational B) structural C) emotional D) moral E) standard Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 66) Which of the following appeals is based on the idea that consumers often feel before they think? A) emotional appeal B) rational appeal C) structural appeal D) standardized appeal E) integrated appeal Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 67) Moral appeals ________. A) relate to the audience's self-interest by showing that the product will produce the desired benefits B) attempt to stir up either negative or positive emotions that can motivate purchase C) range from love, joy, and humor to fear and guilt D) are directed to an audience's sense of what is "right" and "proper" E) are based on the idea that practical benefits are more important for consumers than emotions Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 68) A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal. A) structural B) awareness C) rational D) moral E) standard Answer: D AACSB: Application of knowledge Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 69) One of the message structure issues that a marketer must handle is whether to ________. A) draw a conclusion or not B) make a moral appeal or not C) use the pull strategy or push strategy D) diversify vertically or horizontally E) use mass marketing or niche marketing Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 70) A(n) ________ argument is most likely to be effective when the audience is highly educated or likely to hear opposing claims. A) one-sided B) two-sided C) moral D) emotional E) structured Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 71) Which of the following advertising slogans most likely represents a two-sided argument? A) Breakfast of champions B) Good to the last drop C) A diamond is forever D) The ultimate driving machine E) The next big thing is already here Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 72) A marketer making decisions about the headline, copy, illustration, and colors for a print ad is determining the message ________. A) structure B) content C) medium D) channel E) format Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 73) Which of the following terms best describes the channels through which two or more people communicate directly with each other, including face-to-face, mail, e-mail, texting, or an Internet chat? A) shared communication channel B) earned communication channel C) personal communication channel D) nonverbal communication channel E) owned communication channel Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 74) Communication through a telephone call is considered a part of a(n) ________ communication channel. A) online B) nonverbal C) personal D) nonpersonal E) unidirectional Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 75) Which of the following statements is true about personal communication channels? A) A magazine advertisement exemplifies the use of a personal communication channel. B) All personal communication channels are directly controlled by a company. C) Personal communication channels do not allow sending and receiving of feedback. D) Word-of-mouth influence uses a personal communication channel. E) A billboard message exemplifies the use of a personal communication channel. Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 76) Personal communications about a product between target buyers and neighbors, friends, family members, associates, and other consumers, are known as ________. A) personal selling B) direct marketing C) public relations D) buzz marketing E) word-of-mouth influence Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 77) ________ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities. A) Sales promotion B) Indirect marketing C) Buzz marketing D) Stealth marketing E) Public relations Answer: C AACSB: Application of knowledge; Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 78) A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________. A) a reverse marketing activity B) nonpersonal marketing C) sales promotion D) buzz marketing E) direct marketing Answer: D AACSB: Application of knowledge; Written and oral communication Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Challenging 79) Nonpersonal communication channels include major media, ________, and events. A) sales calls B) atmospheres C) buzz marketing D) word-of-mouth influence E) phone calls Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Easy 80) Display media includes ________. A) newspapers B) magazines C) television D) company Web sites E) billboards Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 81) To ________, a marketer would most likely ask target audience members whether they remember the message, how many times they saw it, and what points they remember. A) select a message source B) collect feedback C) select a message channel D) plan a media purchase E) design a marketing appeal Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate Refer to the scenario below to answer the following question(s). John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow but we really had no advertising plan," John stated. "We were relying mostly on word-of-mouth." By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet cleaning in homes and offices. "Competition was getting tough for both of our services at that point," Barb added. "We ran a local radio spot three times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure." John and Barb Mayes admit that they did not realize the value of a sound promotional plan earlier. "We wish we would have put together something catchy with a jingle long before now," they said. 82) In a recent radio spot, John and Barb gave a quick explanation of Sparkle's cleaning process and a description of the value consumers receive for their money. This is an example of a(n) ________ appeal. A) emotional B) standard C) rational D) moral E) social Answer: C AACSB: Application of knowledge; Written and oral communication Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 83) John and Barb could have drawn attention to their services in several ways by using effective integrated marketing communications. Which of the following is NOT a part of an IMC strategy? A) public relations B) personal selling C) direct marketing D) strategic planning E) sales promotion Answer: D AACSB: Application of knowledge; Written and oral communication Skill: Application Objective: LO 14.3: Outline the communication process and the steps in developing effective marketing communications. Difficulty: Moderate 104) While using the ________ method for setting an advertising budget, a company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. A) integrated B) moving-average C) competitive-parity D) percentage-of-sales E) affordable Answer: E Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 105) Which of the following statements is true regarding the affordable method for setting a promotion budget? A) It is mostly used by large businesses. B) It completely ignores the effects of promotion on sales. C) It tends to place promotion first among spending priorities. D) It leads to a certain annual promotion budget. E) It almost always results in overspending. Answer: B Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 106) Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. A) percentage-of-sales B) integrated C) competitive-parity D) objective-and-task E) regression Answer: A Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 107) Which of the following methods is used by companies to set their advertising budgets based on the industry average? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) regression method Answer: C Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 108) Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting does Sam use? A) the objective-and-task method B) the competitive-parity method C) the percentage-of-sales method D) the affordable method E) the pull-push method Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Challenging 109) Which of the following statements is most likely true regarding the competitive-parity method? A) This method involves starting with total revenues, deducting operating expenses and capital outlays, and then devoting some portion of the remaining funds to advertising. B) It is based on the availability of funds rather than on opportunities. C) It wrongly views sales as the cause of promotion rather than as the result. D) In this method, promotion budgets are set to match competitors' outlays. E) This method involves setting the promotion budget at a certain percentage of current or forecasted sales. Answer: D Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 110) Which of the following is the most logical budget-setting method? A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) push method Answer: D Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 111) Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget? A) percentage-of-sales method B) objective-and-task method C) affordable method D) exponential task method E) competitive-parity method Answer: B Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 112) Which of the following statements is most likely true regarding the objective-and-task method of budget setting? A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest and least time consuming method to use. C) It is the least logical budget-setting method. D) It involves setting the promotion budget to match competitors' outlays. E) It wrongly views sales as the cause of promotion rather than as the result. Answer: A Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 113) Which of the following is most likely a shortcoming of advertising? A) It is the most expensive promotion tool. B) It cannot reach masses of geographically dispersed buyers. C) It is impersonal and lacks the direct persuasiveness of company salespeople. D) It cannot trigger quick sales. E) It cannot be used to build up a long-term image for a product. Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 114) In most cases, what is the most expensive promotion tool? A) advertising B) personal selling C) mass media D) public relations E) publicity Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 115) Which of the following promotional tools is the most effective in building up buyers' preferences, convictions, and actions? A) mass-market advertising B) sales promotion C) segmented advertising D) personal selling E) public relations Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 116) ________ consists of strong short-term incentives that invite and reward quick responses from customers. A) Public relations B) Personal selling C) Advertising D) Sales promotion E) Direct marketing Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 117) Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________. A) sales promotion B) personal selling C) a public relations strategy D) horizontal diversification E) a pull strategy Answer: A AACSB: Application of knowledge Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 118) ________ is very believable because news stories, features, sponsorships, and events seem more real and believable to readers than ads do. A) Differentiated marketing B) Public relations C) Direct marketing D) Sales promotion E) Personal selling Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 119) A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a country, was changing its name to M-Mobile and that to begin the makeover process it had replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following elements of a promotion mix is represented in this example? A) sales promotion B) advertising C) public relations D) personal selling E) direct marketing Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Challenging 120) Which promotional tool is the most immediate, customized, and interactive? A) segmented advertising B) sales promotion C) direct marketing D) horizontal diversification E) public relations Answer: C AACSB: Written and oral communication Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 121) Under which promotional mix strategy does the producer direct its marketing activities toward channel members to induce them to carry the product and promote it to final consumers? A) pull strategy B) blitz strategy C) push strategy D) buzz strategy E) pulse strategy Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 122) The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________. A) sales promotion B) direct marketing C) a push strategy D) a pull strategy E) a vertical diversification strategy Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Challenging 123) Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product. A) pull B) blitz C) push D) buzz E) pulse Answer: A AACSB: Written and oral communication Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Easy 124) Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________. A) word-of-mouth influence B) public relations C) buzz marketing D) a push strategy E) a pull strategy Answer: E AACSB: Application of knowledge Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Challenging 125) Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy. A) pull; push B) push; pull C) pulse; pull D) blitz; pull E) push; blitz Answer: A Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 126) John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere? A) public relations strategy B) direct marketing strategy C) push strategy D) blitz strategy E) pull strategy Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate 127) Which of the following would be classified as bait-and-switch advertising? A) advertising a cheaper brand but making only a more expensive one available to customers B) advertising the advantages of a product by comparing it to its competitors C) providing free samples of a product D) providing discount coupons with a product E) favoring certain customers over others through trade promotions Answer: A AACSB: Ethical understanding and reasoning Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Challenging 128) The FTC has adopted a three-day cooling-off rule to give special protection to ________. A) customers who purchased because of deceptive advertising B) customers who purchased because of bait-and-switch tactics C) customers who were not seeking a product D) resellers who do not receive proportionately equal treatment from manufacturers E) resellers who are not covered by the Robinson-Patnam Act Answer: C AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate Refer to the scenario below to answer the following question(s). John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow but we really had no advertising plan," John stated. "We were relying mostly on word-of-mouth." By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet cleaning in homes and offices. "Competition was getting tough for both of our services at that point," Barb added. "We ran a local radio spot three times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure." John and Barb Mayes admit that they did not realize the value of a sound promotional plan earlier. "We wish we would have put together something catchy with a jingle long before now," they said. 129) When starting their business, John and Barb would most likely have benefitted from understanding ________. A) social media B) buzz marketing C) public relations campaigns D) network television advertising E) integrated marketing communications Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 14.4: Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Difficulty: Moderate

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2) ________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling E) Disintermediation Answer: B Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 3) ________ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Differentiation B) Shopper marketing C) Social media marketing D) Retailer marketing E) Segmentation Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 4) ________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. A) Limited-service B) Self-service C) Full-service D) Specialty-service E) Wholesaling Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 5) ________ are retailers that offer sales assistance because they carry more shopping goods about which customers might need information. A) Self-service retailers B) Full-service retailers C) Off-price retailers D) Limited-service retailers E) Specialty-service retailers Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 6) Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process? A) self-service retailer B) limited-service retailer C) full-service retailer D) independent retailer E) off-price retailer Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 7) At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________. A) full-service retailer B) limited-service retailer C) self-service retailer D) specialty store E) superstore Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 8) Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop? A) self-service retailer B) full-service retailer C) off-price retailer D) limited-service retailer E) convenience retailer Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 9) Today, ________ are flourishing due to the increased use of market segmentation and market targeting. A) chain stores B) specialty stores C) superstores D) discount stores E) off-price stores Answer: B Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 10) Specialty stores carry ________ with ________ within them. A) only convenience products; shallow assortments B) narrow product lines; deep assortments C) narrow product lines; shallow assortments D) wide product lines; shallow assortments E) wide product lines; deep assortments Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 11) Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) warehouse clubs B) department store C) factory outlet D) merchant wholesaler E) category specialist Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 12) ________ are facing slow sales growth because of slower population growth, increased competition, and the rapid growth of out-of-home eating. A) Warehouse clubs B) Off-price retailers C) Discount stores D) Supermarkets E) Factory outlets Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 13) Which of the following is the most frequently visited type of retail store? A) convenience store B) department store C) supermarket D) superstore E) off-price retailer Answer: C Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 14) A ________ is a small store, located near a residential area that is open long hours seven days a week and carries a limited line of high-turnover goods. A) convenience store B) chain store C) department store D) supermarket E) specialty store Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 15) Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? A) off-price retailer B) specialty store C) factory outlet D) superstore E) convenience store Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 16) Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store? A) category killer B) convenience store C) factory outlet D) warehouse club E) off-price retailer Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 17) Home Depot and PetSmart are examples of ________. A) factory outlets B) warehouse clubs C) superstores D) off-price retailers E) category killers Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 18) Which of the following would be considered a service retailer? A) factory outlets B) supermarkets C) jewelry stores D) restaurants E) gas stations Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 19) ________ retailers in the United States are growing faster than product retailers. A) Discount B) Merchant C) Service D) Specialty E) Off-price Answer: C Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 20) ________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Merchant wholesalers B) Discount stores C) Full-service retailers D) Limited-service retailers E) Factory outlets Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 21) The early ________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) department stores B) hypermarkets C) discount stores D) supermarkets E) full-service retailers Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 22) ________ have filled the ultra low-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Specialty stores C) Convenience stores D) Chain stores E) Supercenters Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 23) Which of the following is NOT a type of off-price retailer? A) independent B) factory outlet C) warehouse club D) category killer E) wholesale club Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 24) ________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items. A) Category killers B) Factory outlets C) Specialty stores D) Superstores E) Power centers Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 25) Which of the following is an off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees? A) warehouse club B) service retailer C) convenience store D) hypermarket E) superstore Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 26) ________ are two or more outlets that are commonly owned and controlled. A) Corporate chains B) Convenience stores C) Off-price retailers D) Independent off-price retailers E) Power centers Answer: A Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 27) As a result of the great success of corporate chains, many independent stores choose to band together in either a voluntary chain or a(n) ________. A) factory outlet B) retailer cooperative C) wholesale club D) warehouse club E) convenience cooperative Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 28) A ________ is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. A) voluntary chain B) retailer cooperative C) franchise D) wholesale club E) warehouse club Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 29) McDonald's, Subway, and Jiffy Lube are all examples of ________. A) voluntary chains B) retailer cooperatives C) franchises D) category killers E) power centers Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 30) Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract? A) corporate chain B) franchise C) voluntary chain D) retailer cooperative E) warehouse club Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Challenging 31) Sears, Target, and Kroger are examples of ________. A) voluntary chains B) retailer cooperatives C) corporate chains D) franchise organizations E) warehouse clubs Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 32) Independent Grocers Alliance, Do-It Best, and Western Auto are examples of ________. A) franchise organizations B) warehouse clubs C) voluntary chains D) category killers E) wholesale clubs Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 33) GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________. A) department store B) convenience store C) category killer D) specialty store E) off-price retailer Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 34) Stop-N-Go , 7-Eleven, and Circle K are examples of ________. A) department stores B) convenience stores C) category killers D) specialty stores E) supermarkets Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 35) Which of the following terms best describes a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products? A) convenience store B) supermarket C) specialty store D) warehouse club E) factory outlet Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Easy 36) Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n) ________. A) specialty store B) off-price retailer C) factory outlet D) wholesale club E) category killer Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate Refer to the scenario below to answer the following question(s). In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population—the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." 37) Indiana Wood can be best classified as a(n) ________. A) full-service retailer B) industrial distributor C) self-service retailer D) warehouse club E) limited-service retailer Answer: A AACSB: Application of knowledge Skill: Application Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 38) Retailers can also be classified by the length and breadth of their product assortments. In terms of product line, what kind of retailer is Indiana Wood? A) supermarket B) specialty store C) category killer D) department store E) convenience store Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 13.1: Explain the role of retailers in the distribution channel and describe the major types of retailers. Difficulty: Moderate 69) In recent years, service differentiation among retailers has ________. A) increased at a steady rate B) decreased C) stayed the same D) increased exponentially E) tripled Answer: B Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 70) Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________. A) service mix B) pricing C) product assortment D) store atmosphere E) distribution strategy Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 71) A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________. A) product assortment B) services mix C) segmentation D) atmosphere E) pricing Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 72) An ideal price policy scenario for retailers would be to achieve ________ while charging ________. A) low volume; high markups B) low volume; low markups C) high volume; high markups D) high volume; low markups E) high volume; zero markups Answer: C Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 73) In-store demonstrations, displays, sales, and loyalty programs are examples of ________. A) direct marketing B) sales promotion C) public relations D) personal selling E) affinity marketing Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 74) Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 75) Which of the following is most likely gained by stores that cluster together? A) decreased competition B) increased customer pulling power C) compliance with franchise agreements D) creation of retailer cooperatives E) standardization of the service mix Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Challenging 76) ________ were the main form of retail clusters until the 1950s. A) Strip malls B) Discount stores C) Independent off-price retailers D) Central business districts E) Regional shopping malls Answer: D Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 77) A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) warehouse club B) franchise C) shopping center D) supermarket E) hypermarket Answer: C Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 78) A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area. A) community shopping center B) neighborhood shopping center C) central business district D) regional shopping center E) strip mall Answer: D Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 79) A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) neighborhood shopping center C) strip mall D) regional shopping center E) power center Answer: A Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 80) A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store. A) regional shopping center B) community shopping center C) neighborhood shopping center D) warehouse club E) factory outlet Answer: C Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 81) Most shopping centers are ________. A) strip malls B) regional shopping malls C) community shopping centers D) lifestyle centers E) power centers Answer: A Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 82) Neighborhood shopping centers are also known as ________. A) power centers B) lifestyle centers C) warehouse clubs D) strip malls E) regional shopping centers Answer: D Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 83) ________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) Shopping malls B) Power centers C) Superstores D) Chain stores E) Regional shopping centers Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 84) A small, open-air mall with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater, is an example of a(n) ________. A) regional shopping center B) lifestyle center C) community shopping center D) franchise E) power center Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 85) Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________. A) positioning B) price strategy C) service level D) corporate identity E) organizational structure Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 86) Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________. A) wholesaling B) nonstore retailing C) shopper marketing D) experiential retailing E) showrooming Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 87) Big and Tall Men's Shop carries men's clothing in larger sizes; this allows the store to ________ other stores. A) align itself with B) differentiate itself from C) cluster with D) affect the store atmosphere of E) converge with Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 88) The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________. A) promotions B) target C) atmosphere D) services mix E) product assortment Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Challenging 89) Which of the following best describes a similarity between Costco and Walmart? A) Both are warehouse clubs. B) Both target the same affluent market. C) Both are specialty stores. D) Both use everyday low pricing. E) Both are examples of merchant wholesalers. Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 90) Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales and price promotions, in particular offering discounts to customers who use a Macy's credit card. Macy's uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) retail convergence Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate 91) Which of the following is most likely true about shoppers who prefer to shop at "lifestyle centers"? A) They use coupons. B) They prefer upscale stores. C) They prefer indoor shopping locations. D) They rarely dine out in expensive restaurants. E) They are motivated by deals on last year's merchandise. Answer: B AACSB: Reflective thinking Skill: Critical Thinking Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Moderate Refer to the scenario below to answer the following question(s). In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population—the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." 92) The authentic Amish décor of Indiana Wood's contributes to the store's ________. A) product assortment B) services mix C) atmosphere D) segmentation E) retail convergence Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 13.2: Describe the major retailer marketing decisions. Difficulty: Easy 102) Many retailers are now experimenting with limited-time shops that allow them to promote their brands to seasonal shoppers and create buzz in busy areas. Which of the following terms best represents such shops? A) power centers B) strip malls C) pop-up stores D) category killers E) lifestyle centers Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Easy 103) Target recently opened temporary shops to celebrate limited-run collections by Jason Wu in Toronto and Missoni in New York. These temporary shops are examples of ________. A) lifestyle centers B) pop-up stores C) warehouse clubs D) strip malls E) category killers Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Easy 104) With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers. A) convenience stores B) franchises C) megaretailers D) power centers E) lifestyle centers Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Moderate 105) ________ is known as the merging of consumers, products, prices, and retailers. A) Retail conglomeration B) Consumer convergence C) Price merging D) Retail convergence E) Retail clustering Answer: D Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Easy 106) Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online? A) pop-up shopping B) wheel-of-retailing C) off-price retailing D) showrooming E) wholesaling Answer: D AACSB: Information technology Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Easy 107) Touchscreen kiosks, handheld shopping assistants, interactive dressing-room mirrors and virtual sales associates are all examples of how retailers use technology to ________. A) maintain inventory costs B) send information between stores C) meet consumers' expectations D) produce more accurate forecasts E) interact with suppliers Answer: C AACSB: Information technology Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Moderate 108) Today's retailers increasingly adopt environmentally sustainable practices. Which of the following is NOT one of these practices? A) working with channel partners to reduce their environmental impact B) cutting back on recycling programs C) greening up their stores and operations D) launching programs to help customers be more responsible E) promoting more environmentally responsible products Answer: B AACSB: Ethical understanding and reasoning Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Moderate Refer to the scenario below to answer the following question(s). In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a shoe store, a small restaurant, and a grocery store. Over the next two decades, the small town transformed into an international tourist attraction, attracting thousands of tourists who were intrigued by the lifestyle of Shipshewana's largest population—the Amish. Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on their town's popularity and their woodworking skills. Their shop, Indiana Wood, began with a small display of handmade hickory rocking chairs, Ben Miller's specialty. But within a few months, the display at Indiana Wood included picnic tables, flower boxes, and small handmade novelty items. No other shop offers the same variety. Mary Miller decorated the shop's display room with authentic Amish décor and eventually hired three Amish friends to sew and embroider napkins and other textiles as customers had requested such items. In addition, two women from the Amish community sought permission from the Millers to display home-baked pastries and jellies on Tuesdays and Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the south edge of town. The Millers also hired four more people to help customers throughout the purchasing process and to provide the required product-related information to the customers. "Shipshewana is full of specialty shops," Mary Miller stated. "People don't come here to buy things made in China or Taiwan. They want real, Amish-made goods." 109) Which of the following would be the most logical way for Indiana Wood to expand? A) establishing an online presence B) pursuing retail convergence C) implementing RFID inventory tracking D) establishing a community-gathering environment in the store E) joining a producers' cooperative Answer: A AACSB: Information technology Skill: Critical Thinking Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Moderate 117) Describe how nonstore retailing has grown in the past decade. Answer: Though most purchases are still made in stores, more and more consumers are now shopping using a broad range of nonstore alternatives, including mail-order, television, phone, and online shopping. Easy-to-use Web sites, improved online service, mobile apps and sophisticated search engines have all helped online business grow at a faster rate than retail buying. All types of retailers now use direct and online channels, with traditional brick-and-mortar retailers selling online, along with online-only retailers such as Amazon.com and eBay. Much of the growth in online sales will go to multichannel retailers who provide service both in stores and online. While the total percentage of nonstore retail sales is still small, it is growing at a much faster rate than retail buying as a whole. AACSB: Information technology Skill: Concept Objective: LO 13.3: Discuss the major trends and developments in retailing. Difficulty: Moderate 118) ________ includes all activities involved in selling goods and services to those buying for resale or business use. A) Wholesaling B) Retailing C) Franchising D) Discounting E) Showrooming Answer: A Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 119) ________ buy mostly from producers and sell to retailers and industrial consumers. A) Warehouse clubs B) Factory outlets C) Wholesalers D) Discount stores E) Megaretailers Answer: C Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 120) Which of the following wholesaler's channel functions is demonstrated when a wholesaler's sales force helps a manufacturer to reach many small customers at a low cost? A) bulk-breaking B) selling and promoting C) buying and assortment building D) risk bearing E) rack jobbing Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 121) Which of the following is NOT one of a wholesaler's channel functions? A) financing B) risk bearing C) transportation D) off-price retailing E) bulk breaking Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 122) Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers? A) financing B) transporting C) buying and assortment building D) warehousing E) bulk breaking Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 123) Which of the following wholesaler's channel functions is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers? A) financing B) transportation C) buying and assortment building D) warehousing E) risk bearing Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 124) Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities? A) warehousing B) transportation C) risk bearing D) bulk breaking E) selling and promoting Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 125) ________ are the largest group of wholesalers. They include two broad types: full-service wholesalers and limited-service wholesalers. A) Brokers B) Manufacturer sellers C) Manufacturers' agents D) Merchant wholesalers E) Selling agents Answer: D Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 126) What is the most common type of agent wholesaler? A) wholesale merchant B) industrial distributor C) limited-service wholesaler D) manufacturers' representative E) truck jobber Answer: D Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 127) ________ and ________ do not take title to goods, and they perform only a few channel functions. A) Full-service wholesalers; limited-service wholesalers B) Brokers; agents C) Industrial distributors; cash-and-carry wholesalers D) Cash-and-carry wholesalers; industrial distributors E) Rack jobbers; off-price retailers Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 128) A(n) ________ brings buyers and sellers together and assists in negotiations. A) agent B) broker C) retailer D) wholesaler E) industrial distributor Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 129) A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker. A) full-service wholesaler B) industrial distributor C) agent D) retailer E) cash-and-carry wholesaler Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 130) Which type of wholesaler sells to manufacturers rather than to retailers? A) industrial distributor B) full-service wholesaler C) cash-and-carry wholesaler D) wholesale merchant E) limited-service wholesaler Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 131) ________ are a type of limited-service wholesaler who carries a limited line of semiperishable merchandise (such as milk, bread, and snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, or hotels. A) Industrial distributors B) Wholesale merchants C) Full-service wholesalers D) Truck jobbers E) Purchasing agents Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 132) ________ are a type of limited-service wholesaler who does not carry inventory or handle a product. They typically operate in bulk industries, such as coal, lumber, and heavy equipment. A) Wholesale merchants B) Industrial distributors C) Cash-and-carry wholesalers D) Rack jobbers E) Drop shippers Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 133) ________ are agents who take physical possession of products and negotiate sales. They deal mostly with agricultural marketing. A) Industrial distributors B) Cash-and-carry wholesalers C) Purchasing officers D) Rack jobbers E) Commission merchants Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 134) ________ are wholesalers who serve grocery and drug retailers, mostly in nonfood items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records. A) Purchasing agents B) Rack jobbers C) Drop shippers D) Cash-and-carry wholesalers E) Manufacturers' agents Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 135) Today's large, progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) investing less money in expensive machinery D) reducing their markup rates E) reducing promotional activities Answer: B AACSB: Information technology Skill: Concept Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Easy 136) Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. According to this information, which of the following wholesaler's channel functions does Carey David provide? A) buying and assortment building B) selling and promotion services C) risk bearing services D) marketing information E) management services and advice Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate 137) You own a small independent retail store in your neighborhood. You want to offer fresh seafood, milk, and bread in your store. In this case, which of the following types of wholesalers will serve you the best? A) truck jobber B) independent distributor C) drop shipper D) mail-order wholesaler E) manufacturers' agent Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Challenging 138) You own a neighborhood grocery store and would like to have non-food items delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the goods. Which type of wholesaler best fits your needs? A) cash-and-carry wholesaler B) rack jobber C) drop shipper D) mail-order wholesaler E) agents and brokers Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Challenging 139) Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the manufacturer then transported the tablets directly to the Tony Pool store. In this case, Chemical Inc. is an example of a ________. A) drop shipper B) truck jobber C) rack jobber D) full-service wholesaler E) cash-and-carry wholesaler Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Challenging 140) ________ perform a role similar to that of brokers or agents but are part of the buyer's organization. A) Truck jobbers B) Merchant wholesalers C) Purchasing officers D) Rack jobbers E) Cash-and-carry wholesalers Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 13.4: Explain the major types of wholesalers and their marketing decisions. Difficulty: Moderate

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