test 3
Modified breakeven analysis combines the traditional breakeven analysis model with an evaluation of: a. consumer demand. b. target return objectives. c. supply cost. d. marginal cost curves.
a
The situation in retailing in which similar merchandise is available from multiple retail outlets distinguished by price more than any other factor is known as: a. retail convergence. b. wholesale concentration. c. scrambled merchandising. d. mail-order proliferation.
a
Which of the following is a disadvantage of personal selling as a promotional strategy? a. It is expensive and involves high cost per contact. b. It elicits a delayed response from targeted consumers. c. It cannot mold the message to fit the customer need. d. It is difficult to measure its promotional effectiveness.
a
Which of the following sales promotion techniques produces a higher response rate than most other promotions? a. Sampling b. Rebates c. Sweepstakes d. Coupons
a
You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process? a. Qualifying b. Prospecting c. Approach d. Presentation e. Demonstration
a
if a manufacturer offered an intermediary a percentage discount off the list price of products it handled in exchange for performing certain wholesaling activities, this would be classified as a: a. trade discount. b. cash rebate. c. cumulative discount. d. list price.
a
Bethany is 7 years old and loves watching the Disney channel. Recently, she saw a television advertisement for My Little Pony toys and told her parents that she wanted one for her birthday. Which step in the AIDA model does Bethany's request for a My Little Pony toy reflect? Answers: a. attention b. desire c. interest d. action
b
Conflicts resulting from disagreements among channel members at the same level, such as two or more wholesalers or two or more retailers, or among marketing intermediaries of the same type are called _____ conflicts. a. vertical b. horizontal c. cross-channel d. exclusive
b
Most firms that use a customer-oriented organizational structure to strengthen their relationship with the largest customers adopt: a. geographic organization. b. a national accounts organization. c. a vertical structure. d. decentralization.
b
A salesperson from Healthcare Pharmaceuticals provided free samples of the company's latest line of pain relievers to retailers in an effort to promote the firm's goodwill during a sales approach. Later, a wholesaler took orders and delivered the merchandise. Which of the following sales tasks had been performed by the salesperson? : a. Order processing b. Creative selling c. Missionary selling d. Networking
c
A wide variety of services such as charge accounts, delivery, gift wrapping, and liberal return privileges are most likely to be associated with _____. a. industrial distribution stores b. clearing houses c. department stores d. merchandise mart
c
Retailers such as Home Depot and Lowe's, who offer to meet and beat the best price offered by their competitors, use the strategy of _____ pricing. a. cost-plus b. skimming c. competitive d. penetration
c
Setting the timing and sequence for a series of advertisements is known as: a. media polarizing. b. media programming. c. media scheduling. d. media sourcing.
c
The Lands' End catalog provides a toll-free number for customers to call and place orders. The staff is pleasant and knowledgeable and will place orders and answer questions. This is an example of a(n): a. promotional mix component. b. customer-driven technology. c. inbound telemarketing effort. d. marketing communications element.
c
Which of the following is a practical problem involved in applying price theory concepts to actual pricing decisions? a. All firms attempt to maximize profits. b. It is difficult to comprehend the supply side of the pricing equation. c. It is difficult to estimate demand curves. d. Supply curves must be based on marketing estimates.
c
Which of the following is a strategy in which a retailer shares advertising costs with a manufacturer or a wholesaler? Answers: a. Community advertising b. Corporate advertising c. Cooperative advertising d. Institutional advertising
c
A _____ is a channel intermediary that takes title to goods it handles and then distributes those goods to retailers, other distributors, or B2B customers. a. category killer b. department store owner c. merchandiser d. wholesaler
d
A _____ is an agent wholesaling intermediary that does not take title to or possession of goods in the course of its primary function, which is to bring together buyers and sellers. a. mass merchandiser b. truck jobber c. drop shipper d. broker
d
A price quotation system that allows the buyer to deduct shipping expenses from the cost of purchases is known as _____ pricing. a. FOB plant b. uniform-delivered c. basing-point d. freight absorption
d
A pricing strategy that emphasizes benefits of a product in comparison to the price and quality levels of competing offerings is called _____ pricing. a. incremental-cost b. full-cost c. cost-plus d. value
d
Any part of an organization to which revenue and controllable costs can be assigned is termed a(n): a. division b. small business unit c. business entity d. profit center
d
Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the "tech hotline." These individuals not only answer technical questions from customers, they also identify customer needs and recommend products that can fill those needs. They have the ability to initiate and close sales on the spot. These individuals are essentially participating in: a. network marketing. b. outside sales. c. market analysis. d. inside selling.
d
Paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product, or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience is called _____. a. product placement b. sales promotion c. direct marketing d. advertising
d
Retailers, when classified on the basis of form of ownership, are grouped as: a. limited-line and general merchandise retailers. b. wholesalers and service providers. c. convenience, shopping, and specialty retailers. d. chain stores and independent retailers.
d
Which of the following distribution strategies seeks to distribute a product through all available channels in a trade area? Selected Answer: Answers: a. Exclusive distribution b. Selective distribution c. Associative distribution d. Intensive distribution
d
A cost that changes with the level of production is called a(n) _____ cost. a. variable b. fixed c. average total d. marginal
a
A cost that remains stable at any production level within a certain range is called a(n) _____ cost. a. fixed b. marginal c. variable d. average total
a
A jewelry store organizes a jewelry design contest to promote the launch of its new line of charm bracelets. This is an example of: a. sales promotion. b. personal selling. c. advertising. d. direct marketing.
a
A local apparel shop sets prices by adding a 45 percent markup to the invoice price charged by the supplier. This method of pricing is known as _____ pricing. a. cost-plus b. incremental-cost c. breakeven d. full-cost
a
A _____ accepts orders from customers and forwards these orders to producers, which then deliver the desired products directly to customers. a. drop shipper b. merchant wholesaler c. rack jobber d. truck jobber
a
You have gotten quite a few complaints recently from unhappy clients, among them the following: One customer feels that the salesperson was not transparent about contractual issues; another client feels like he was taken advantage of because English is his second language; and a third client feels like he was pressured into a purchase without having sufficient time to try out the product. You want to emphasize to your sales team the importance of upholding the ethical business practices that are characteristic of your company. What can you do to encourage honesty and ethical behavior? a. establish reasonable customer expectations b. arrange for an ethics and diversity training workshop c. set the proper example of ethical business practices d. screen new applicants for the way in which they deal with ethical issues e. encourage salespeople to report ethics violations to you
b
_____ is a cash reward paid to retail salespeople for every unit of a product they sell. a. Rebate b. Push money c. Buying allowance d. Handling fee
b
he Robinson-Patman Act specifically prohibits: a. charging the same price to everyone for everything you sell. b. price discrimination in sales to wholesalers, retailers, and other producers. c. imposing taxes on the products that are being exported to other countries. d. earning excess profits, that is, more than the average for an industry.
b
A _____ is a payment tied directly to the sales or profits a salesperson achieves. a. salary b. periodic payment c. commission d. fixed pay
c
A newly opened seafood restaurant advertises various deals on meal packages and special prices on dinner packages to attract customers. This is an example of _____ pricing. a. competitive b. list c. promotional d. leader
c
A firm that manufactures TVs sells them at prices of $750, $1,000, and $1,250. The manufacturer will return $75, $100, or $125 respectively, by mail, to those who purchase its brand of TV. This reduction in price is an example of a: a. promotion allowance. b. rebate. c. quantity discount. d. trade-in.
b
A franchise is a type of contractual marketing system in which: Answers: a. a wholesaler or dealer agrees to meet the operating requirements of a manufacturer. b. a wholesaler develops a line of private brands to be stocked by the retailers. c. a dominant channel member exercises its power to achieve channel coordination. d. a group of retailers establish a shared wholesaling operation to help them compete with chains.
a
A schedule of the amounts of a firm's product that consumers will purchase at different prices during a specified time period is referred to as _____. a. demand b. ration c. supply d. surplus
a
A(n) _____ is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers. Answers: a. wholesaler b. drop shipper c. agent d. broker
a
An intermodal coordination system between motor carriers and water carriers is known as Answers: a. fishyback service b. piggyback service c. birdyback service d. horseyback service
a
An offering within a product line, such as a specific size of liquid detergent, is known as a(n) _____. a. stock-keeping unit b. price look-up factor c. product array element d. unique article number
a
General product categories, specific product lines, specific products within lines, and the depth and width of its assortment are factors considered by retailers while developing their: a. merchandising strategy. b. interactive marketing policy. c. product liability strategy. d. customer service program.
a
In 2012, James Bond played by actor Daniel Craig in the film Skyfall ordered a Heineken instead of his traditional "shaken, not stirred martini." The US division of Heineken reportedly paid $45 million to have the product featured in the movie. This is an example of a(n): Answers: a. product placement b. sponsorship c. advertising d. public relations
a
In the business-goods market, full-function merchant wholesalers are also known as _____. a. industrial distributors b. cash-and-carry wholesalers c. drop shippers d. mail-order wholesalers
a
Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to mention some of the other financial services the bank offers. Jamie is engaged in: a. cross-selling. b. transaction selling. c. team selling. d. virtual selling.
a
Marco is a representative for Nationwide Magazines and serves the central southwest region. He provides inventory for a variety of retail stores such as grocery, drug, and convenience stores and is responsible for maintaining the stock and appearance of magazines in the stores. He and his company are known as: a. rack jobbers b. drop shipper c. merchant wholesaler d. truck jobber
a
Menards is known primarily as a home improvement store with lumber, plumbing, paint, electrical, and tools as their most sought-after products. However, the store also features a "grocery" section with milk, break, cereal, and other staple items in its store. This is an example of __________, the practice of combining dissimilar product lines to boost sales volume. a. scrambled merchandising b. retail confusion c. diverse merchandising d. retail convergence
a
Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives. a. profitability b. not-for-profit c. prestige d. volume
a
Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency is called _____ advertising. a. institutional b. cooperative c. product d. retail
a
The most popular method of pricing is _____ pricing. a. cost-plus b. breakeven c. incremental-cost d. full-cost
a
The process through which a firm attempts to control downstream distribution is called _____ integration. a. forward b. balanced c. associative d. horizontal
a
The receiver's response, known as _____, completes the communication process. a. feedback b. epistle c. encoded message d. channeled data
a
A local eye doctor is seeking to expand its practice and entice new customers to visit for their annual eye exam and purchase glasses or contacts if prescribed. The office is offering 2 pairs of glasses for $69 with the goal of attracting a large number of new patients. What type of pricing objective is utilized by the office? a. prestige b. volume c. profitability d. meeting competition
b
A new specialty retail store, Threads is making decisions about its target market and access the US Census Bureau website to identify the characteristics of individuals living within its market area. It's specifically interested in the distribution based on income, education, and age of residents. This information helps Threads understand the ______ profile of the market area. a. purchasing b. demographic c. psychographic d. geographic
b
Advertising in which the manufacturer pays a percentage of the retailer's advertising expenditures and the retailer prominently displays the firm's products is known as _____ advertising. a. sustainable b. cooperative c. affinity d. community
b
Direct-response retailing that runs promotions on cable TV networks to sell merchandise through telephone orders is called: a. automatic merchandising. b. home shopping. c. personal selling. d. telemarketing.
b
In addition to traditional drug stores, Dr Scholl's foot care company sells its products through convenience stores as well as through telemarketing to podiatrists. Which of the following is being employed by Dr Scholl's foot care company to sell its products? Answers: a. Exclusive distribution b. Dual distribution c. A direct channel d. A reverse channel
b
Products manufactured under license from a U.S. firm and then sold in the U.S. market in competition with that firm's own domestic output are called _____ goods. a. exempt b. gray c. subsidized d. deficient
b
Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause is called _____ advertising. a. evaluative b. informative c. persuasive d. reminder
b
The AIDA concept refers to the steps in: Selected Answer: a. the distribution of a product. b. the consumer purchase decision process. c. the development of an IMC program. d. the production of a product.
b
The compensation package for sales personnel that gives management more control over how sales personnel allocate their efforts, but may reduce the incentive to expand sales, is the: a. salary plus commission system. b. straight salary plan. c. pure commission program. d. salary plus bonus system.
b
The strategy of convincing a customer to buy a higher-priced item than he or she had originally intended is called: a. cross-selling. b. selling up. c. value-added selling. d. bait-and-switch selling.
b
The use of bots to search out price quotes on specified products forces Internet marketers to: a. install "bot-stoppers." b. keep their prices low. c. use printer-disabling viruses. d. close their websites.
b
Which of the following factors is a characteristic of a long marketing channel? a. Manufacturers with broad product lines b. Durable and inexpensive products c. Manufacturers that cater to large orders of their products d. Marketers with a small and concentrated market
b
Which of the following is TRUE regarding the use of advertising when products are in the maturity phase of the product lifecycle? a. firms focus efforts by utilizing personal selling to expand distribution b. firms typically reduce advertising and sales promotion expenditures c. firms typically increase advertising and promotion expenditures d. firms promote their products at trade shows to inform and educate consumers
b
Which of the following modes of transportation controls the largest share of the freight business as measured by ton-miles? Answers: a. Water carriers b. Railroads c. Pipelines d. Motor carriers
b
Alva, a fashion house specializing in designer bags, sells its products only through a limited number of boutiques worldwide. This is an example of: a. intensive distribution. b. discriminative distribution. C. selective distribution. d. associative distribution.
c
An example of odd pricing would be: a. rebates that lower total price. b. subtracting trade-ins from the list price. c. selling a radar detector for $129.99 instead of $130. d. a buy-two-get-one-free promotion.
c
The customer service department of a vitamin and nutritional supplement company has been receiving an increase in customer complaints since the company changed the shipping and handling charges to be the same amount for every order. Which delivery pricing method is this company using? a. free on board b. basing point c. uniform delivered d. cumulative quantity e. zone
c
The owners of an organic restaurant have purchased the farm that supplies their fresh herbs and vegetables. This is an example of which type of vertical marketing system or process? Answers: a. Forward integration b. Cooperative integration c. Backward integration d. A contractual marketing system e. A purchase-based marketing system
c
The use of unconventional, innovative, and low-cost marketing techniques designed to get consumers' attention in unusual ways is called _____. a. cloud marketing b. mass marketing c. guerrilla marketing d. cause marketing
c
Walmart is the largest retailer in the world and is known for being very demanding with its suppliers. Walmart exerts control over its suppliers due to its large size and buying capacity and manufacturers often acquiesce to the demands made by Walmart. Walmart is an example of a channel _______. Answers: a. intermediary b. sponsor c. captain d. leader
c
Which of the following exemplifies a yield management pricing strategy? a. Charging an exorbitant price for a designer outfit to signal quality and exclusiveness b. Selling a brand of soap at 20 percent discount for a limited time period during its introductory stage c. Lowering cab rental rates on weekends compared to weekdays d. Introducing a pack of oatmeal breakfast cereals at a price of $3 which actually cost $5
c
Which of the following is a part of the consultative selling process? a. Offering multiple goods or services to the same customer b. Concentrating mostly on short-term or quick sales c. Understanding customer problems d. Salespeople and specialists working together to promote products
c
Which of the following is true of using publicity as a promotional strategy? a. Consumers tend to believe more in company-disseminated information than in publicity-generated news. b. Companies tend to view all kinds of publicity—good or bad—as profitable for the company's reputation and its brand equity. c. Companies have less control over whether the press publishes good or bad news. d. Companies have to spend more for publicity than advertising or personal selling.
c
Which of the following terms represents the measure of responsiveness of purchasers and suppliers to a change in price? a. Captivity b. Selectivity c. Elasticity d. Sensitivity
c
a car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers. It offers a low-end version for price conscious customers and luxury cars for high-end customers. This is an example of _____ pricing. a. leader b. psychological c. product-line d. promotional
c
the breakeven point is the point at which: a. marginal cost runs above the marginal revenue curve. b. revenue from sales equals the variable cost of the product. c. total revenue from sales equals total cost. d. the supply curve intersects the demand curve.
c
A one-time reduction in list price typically offered at the time of sale is referred to as a(n): a. cumulative discount. b. rebate. c. allowance. d. noncumulative discount.
d
Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with an extensive catalog of brands. She typically meets with restaurants, bars and hotels to market her products and assists customers in developing their beverage menu to generate sales revenue and meet customer's needs. Recently, she had the opportunity to offer customers a great deal - if they ordered 5 cases of wine (assorted brands), they could receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in order to reduce warehouse inventory and shift inventory from their warehouses to the customer's business location. This is an example of a(n): a. sweepstake b. specialty advertising c. coupon d. trade allowance
d
DHL is one of the top companies specializing in handling logistics activities to other firms especially in the international sector. For example, DHL was under contract to assist Prestige Distributors to transport a container ship of French wine to the United States and provided its expertise to ensure transportation from each wine maker to the port as well as managed all export duties. In this case, DHL is operating as a(n): Answers: a. downstream management contractor b. administered logistics provider c. upstream management contractor d. third-party logistics firm
d
In international marketing, which of the following pricing objectives is used when products are associated with intangible benefits, such as high quality, exclusiveness, or attractive design? a. Meeting-competition objective b. Profitability objective c. Volume objective d. Prestige objective
d
In the absence of other cues: a. the relationship between price and quality holds true only in declining economies. b. many buyers interpret low prices as signals of high-quality products. c. price offers no clue of a product's quality to prospective purchasers. d. price is an important indicator of product quality to consumers.
d
Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy, protein-based after-school or pre-dinner snack. They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids. In order to promote product trial and subsequent adoption, the company plans to use a relatively low entry price compared to the competition. What type of pricing strategy does Oscar Mayer plan to utilize? Answers: a. skimming b. everyday low pricing c. competitive pricing d. penetration
d
The most expensive sales method overall is: a. inbound telemarketing because of the technology costs. b. outbound telemarketing because of the high rejection rate from customers who avoid telemarketers. c. over-the-counter sales, largely because of the high overhead in retail operations. d. field selling, largely because of the travel costs of sales personnel.
d
The movement of goods and services from producers to customers is called _____. a. promotion b. valuation c. production d. distribution
d
When visiting one of his major accounts, Matt is accompanied by finance and product specialists. These specialists are able to answer specific questions so that a customer can make a purchase decision. This is an example of _____. a. cross-selling b. transaction selling c. missionary selling d. team selling
d
Which of the following terms best represents an interpersonal influence process that involves a seller's promotional presentation conducted on a face-to-face basis with the buyer? a. Advertising b. Mass marketing c. Social referencing d. Personal selling
d
a skimming pricing strategy is more commonly used by firms to: a. set a relatively low price for a product when they enter new markets characterized by dozens of competing brands. b. set stable wholesale prices that undercut offers competitors make to retailers. c. reduce the raised prices of products to the original level. d. set a market-entry price for distinctive goods or services with little or no initial competition.
d
after identifying a target market, a retailer must: a. concentrate on determining the ideal levels of inventory to be maintained. b. devise marketing plans to expand their target market. c. segment the market based on factors such as family income and customer lifetime value. d. develop marketing strategies to attract chosen customers to its stores or websites.
d
A committee of city council members is searching for a new vendor for trash and recyclables removal in the community. Which mechanism provides the committee with information about the prices vendors charge to perform this service? a. negotiated bidding b. product-line bidding c. promotional bidding d. leader bidding e. competitive bidding
e